The document discusses three main points:
1) The flaws in constructing the Eurozone by mixing countries with different economic development stages which increased debt and artificially lowered financing costs, obscuring issues.
2) Lack of fiscal and social integration has led to increasing competitiveness gaps over 10 years, at the heart of the current crisis. Bailouts and ECB intervention do not address this root problem.
3) A World Economic Forum report exemplifies how improving competitiveness of struggling countries like Portugal, Italy, Greece and Spain (PIGS) will take at least 10 years to overcome.
The European Council summit brought a "surprisng" conclusion with the agreement on mutualizing EZ banks' rescue; however the roots of the EZ problems are not addressed: economic and competitiveness imbalances.
Eurozone, macro economic imbalances and the bailoutMarkets Beyond
European imbalances at a glance and a new measure of the fragility of countries according to their debt and budget deficits. Greece will need to restructure its debt
Since the publication in July of stress test for banks in Europe, everything went quiet on the PIGS debt crisis with no much news during the summer. Things however are boiling again and Greek will come back to the forefront of medias sooner rather than later.
Adoption Trends in XBRL (Europe), European Commission","extensible business reporting language",iasb,icai,ifrs,institute,institutexbrl,ireland,xbrlXBRL Europe
What is needed to cleap up the eurozone house - clean-up the banks and restru...Markets Beyond
European banks have been very good at lobbying to make sure European countries are baling out Greece and others, whilst our analysis shows that they could sustain a PIGS default.
Greece's crisis deepens as fast as its debt. 2011 budget execution is terrible with tax receipts well below plans, and there is no way Greece will get out the crisis without defaulting on its debt obligations one way or an other (the latest idea is to call it "reprofiling"!) .
Presentation by Marcello Messori, Director, Luiss School of European Political Economy
Conference on:
“Sovereign Debt Crises: Prevention and Management"
Rome, 10 December 2018
The Cost of NonEurope in the Sharing Economy: Economic, Social and Legal Challenges and Opportunities
European Parliament Research Service
This 'Cost of Non-Europe' study examines the current economic, social and legal state of play
regarding the sharing economy in the European Union, and identifies the cost of the lack of
further European action in this field.
The assessment of existing EU and national legislation confirms that there are still significant
implementation gaps and areas of poor economic performance. The subsequent examination of
areas where it was believed that an economic potential exists highlighted that substantial
barriers remain, hindering the achievement of the goals set out in the existing legislation.
Moreover, some issues are not or are insufficiently addressed (e.g. status of workers employed
by sharing economy service providers). Consequently, more European action would be
necessary to achieve the full economic potential of the sharing economy. In doing so, policymakers
should seek to ensure an adequate balance between creative freedom for business and
the necessary regulatory protection.
This research estimates the potential economic gain linked with a better use of capacities
(otherwise under-used) as a result of the sharing economy is €572 billion in annual
consumption across the EU-28. This figure should nevertheless be considered with caution;
substantial barriers prevent the full benefits from being realised, and could reduce the value of
potential increased use to up to €18 billion in the shorter-term and up to €134 billion in the
medium and longer term, depending on the scale of regulatory obstacles.
Cyprus bail in revisited - consequences for small economiesMarkets Beyond
Cyprus bail-in is spilling over and the 100% of added burden is falling on the country, with 70% of its gold reserves at risk and EUR 5.8 billion withheld from banks depositis.
Small economies with a large financial sector are increasingly bullied by larger countries which are quick to find scapegoats
The European Council summit brought a "surprisng" conclusion with the agreement on mutualizing EZ banks' rescue; however the roots of the EZ problems are not addressed: economic and competitiveness imbalances.
Eurozone, macro economic imbalances and the bailoutMarkets Beyond
European imbalances at a glance and a new measure of the fragility of countries according to their debt and budget deficits. Greece will need to restructure its debt
Since the publication in July of stress test for banks in Europe, everything went quiet on the PIGS debt crisis with no much news during the summer. Things however are boiling again and Greek will come back to the forefront of medias sooner rather than later.
Adoption Trends in XBRL (Europe), European Commission","extensible business reporting language",iasb,icai,ifrs,institute,institutexbrl,ireland,xbrlXBRL Europe
What is needed to cleap up the eurozone house - clean-up the banks and restru...Markets Beyond
European banks have been very good at lobbying to make sure European countries are baling out Greece and others, whilst our analysis shows that they could sustain a PIGS default.
Greece's crisis deepens as fast as its debt. 2011 budget execution is terrible with tax receipts well below plans, and there is no way Greece will get out the crisis without defaulting on its debt obligations one way or an other (the latest idea is to call it "reprofiling"!) .
Presentation by Marcello Messori, Director, Luiss School of European Political Economy
Conference on:
“Sovereign Debt Crises: Prevention and Management"
Rome, 10 December 2018
The Cost of NonEurope in the Sharing Economy: Economic, Social and Legal Challenges and Opportunities
European Parliament Research Service
This 'Cost of Non-Europe' study examines the current economic, social and legal state of play
regarding the sharing economy in the European Union, and identifies the cost of the lack of
further European action in this field.
The assessment of existing EU and national legislation confirms that there are still significant
implementation gaps and areas of poor economic performance. The subsequent examination of
areas where it was believed that an economic potential exists highlighted that substantial
barriers remain, hindering the achievement of the goals set out in the existing legislation.
Moreover, some issues are not or are insufficiently addressed (e.g. status of workers employed
by sharing economy service providers). Consequently, more European action would be
necessary to achieve the full economic potential of the sharing economy. In doing so, policymakers
should seek to ensure an adequate balance between creative freedom for business and
the necessary regulatory protection.
This research estimates the potential economic gain linked with a better use of capacities
(otherwise under-used) as a result of the sharing economy is €572 billion in annual
consumption across the EU-28. This figure should nevertheless be considered with caution;
substantial barriers prevent the full benefits from being realised, and could reduce the value of
potential increased use to up to €18 billion in the shorter-term and up to €134 billion in the
medium and longer term, depending on the scale of regulatory obstacles.
Cyprus bail in revisited - consequences for small economiesMarkets Beyond
Cyprus bail-in is spilling over and the 100% of added burden is falling on the country, with 70% of its gold reserves at risk and EUR 5.8 billion withheld from banks depositis.
Small economies with a large financial sector are increasingly bullied by larger countries which are quick to find scapegoats
The bundesbank repatriates its gold reservesMarkets Beyond
Is the Bundesbank feeling unease with 2/3 of its gold reserves held abroad? This repratriation is a telling story about Germany's confidence in France and the FED.
Current account surplus is a key determinant to bonds market turnaround ita...Markets Beyond
Current accounts are key in determining when an over-indebted country will see it financial situation turning around allowing it to go back to the bond markets under "normal conditions". On this criteria, the discrepancy between Italy and France is startling and not justified by fundamentals: France will be punished by bonds market if nos dramatic action is impletmented by the French Government.
Eurozone falling chickens choice internal or external devaluationMarkets Beyond
The political and economic backround in Europe is awful and no good choice is left to solve the huge imbalances between countries: external or internal devalutation.
Whatever the route followed it will translate into a fall in standard of living of Europeans. The path followed by European politicians for the past 4 years has led to a dead end and they will soon have to decide which of two tough routes to follow..
French presidential elections showed a strong following for anti-eurozone candidates, and even stronger for anti-austerity only EU/ECB policy.
This will have consequences for th futre of the euro in a context where the Europe is heading back in recession and Spain is in deep trouble. France is also facing very strong social and economic challenges ahead.
The economic situation in Europe worsens: France's performance is catastrophic and Greece's whist improvin,g remains in negative territory. Europe has not addressed the roots of its failure and will continue to be under market's pressure.
The Greek 2011 budget failed miserably despite austerity measure; the eurozone continues stubbornly to plug an unpluggable hole since the roots of the problem are not adressed. The worst is to come...
The magnificent 7 and equity markets review 11Markets Beyond
2011 was a bumby year for financial markets and 2012 will be no less hectic. However the US economic picture is improving and as written in early 2011 no double dip to be expected but for FED policy folly.
Global imbalances remain, but the eurozone is where lies the deepest problems which have not been properly addressed.
Remain invested in high yielding equities / net cash companies with a strong franchise and look at strong brands in fast growing economies; stay clear from the bond market and financials.
Numbers announced by European leaders concerning the private sector participation to the rescue do not add up: the total losses would amount to EUR55 bn, far from the EUR100 bn trumpeted.
The EUR 100 billion banks will need to write down on their Greek sovereign debt can be matched via profits, dividends and bonus cuts for many banks in order to abide by Basle III capital ratio rules. A handful of banks will need to go to governments for capital.
This does not however look at the quality of private asset or any default from another peripheral European country.
Who should be single A rated france or italyMarkets Beyond
Italy have been for months under pressure from markets and France relatively unscattered even if froa few weeks its spreads have increased; according to numerous economic indicators France should hardly be better rated than Italy and does not deserve a AAA rating.
2. http://marketsandbeyond.blogspot.com/
http://www.pcgwm.com/
Source:
The World Economic Forum: The Global Competitiveness Report
http://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20Report/inde
x.htm
2