EU-DIGEST

Labels: EU, Eurozone, Unemployment

Eurozone prices fall: EU data agency

Consumer prices in the 16 euro countries fell in June for the first time on record, official EU figures showed on Wednesday. The European Union's Eurostat data agency said that 12-month inflation in the eurozone fell 0.1 percent, the lowest rate on records going back to 1996 and down from 0.0 percent in May, confirming an estimate from June 30. After hitting a record high point of 4.0 percent in June and July 2008, eurozone inflation has fallen sharply as oil and other commodity prices have collapsed in the face of a dire economic downturn.

Labels: EU, Eurozone, Price Index

EU-Digest

Jean-Claude Juncker, the prime minister and finance minister of Luxembourg who also chairs the 16 member state Eurozone finance group rejected any easing of the requirements for joining the eurozone and increased economic stimulus measures as suggested by the US. Speaking after last nights meeting Juncker said:" “We don't feel we need to pile deficit on top of deficit and add further to our debt and we do not want to give the impression that we are considering putting together other recovery packages."

His comments came after Larry Summers, director of the US National Economic Council, in an interview with the Financial Times said that, "governments should pump more public money into their economies in fighting recession. In response Junker noted “Recent American appeals” for a European budgetary effort are “not to our liking."

Finance ministers from the euro zone were preparing their position for those G20 meetings at Monday's talks in Brussels, and were due to widen their advance deliberations today with colleagues from the entire 27-country European Union. A document they are expected to approve makes clear that Europe feels it has announced sufficient fiscal stimulus for now and wants the focus on rolling out all those measures rapidly and in a coordinated manner. The Euro zone position is seen by most economic experts as a good move to safeguard long term stability and growth in the Euro zone.

Labels: Economic Crises, EU, Eurozone

Europe to suspend banks mark-to-market accounting- "Legalizing Banking Fraud"

European leaders have agreed to seek measures to suspend so-called "mark-to-market" accountancy rules in order to stabilise bank balance sheets, a statement said on Sunday. According to an action plan released by the 15 leaders of the eurozone single-currency bloc, equities held by banks will no longer be recorded at their current values on the world's severely depressed markets. "Under the current exceptional circumstances, financial institutions should be allowed to value their assets consistently with risk of default assumptions rather than immediate market value which, in illiquid markets, may no longer be appropriate," the statement said.

The leaders hope that by suspending this requirement, banks balance sheets will look more healthy and the risks will be reduced that they be swept away by a run on the markets.

Labels: Banking system, EU, Eurozone, meltdown

Eurozone inflation retreats to 3.6% in September

Annual inflation in the euro zone fell to 3.6 percent in September, retreating from its record highs in the previous months, the European Union (EU)'s statistics bureau Eurost at estimated Tuesday. Pushed by hiking oil and food prices, the eurozone inflation has been on increase in the past year. It peaked at 4.0 percent in June and July, the highest since the European Central Bank (ECB) started 12 years ago collecting inflation data for the countries which began to use the euro in 1999. Analysts said the easing of price pressure in the euro zone was mainly due to recent drops of oil prices, but the figure remained too high for the 15-nation bloc sharing the same currency, which is facing increasing risk of recession.

Labels: EU, Eurozone, Inflation