Euro Area: Locked in a Cycle of Market Pressure and Policy Response

 The European Central Bank (ECB) has raised the prospect of a more effective bond-purchase programme. Unfortunately, it may require additional market pressure for governments to unlock that support.

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Draghi’s Dilemma: How to Meet
Heightened Expectations

European Central Bank Governor Mario Draghi has raised expectations ahead of this week’s ECB Governing Council meeting.

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Is Germany an Example Other
Euro-Area Countries Can Follow?

Germany may have the strongest economy in the troubled euro area, but the euro has not been a massive “free lunch”, as some critics claim. Germany’s strength has come at the cost of many painful years of sacrifice.

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The Opportunity in European
High-Yield Financials

European bond markets have been volatile in recent months, with high-yield financials suffering some of the worst turbulence. But we’ve seen this kind of volatility before, notably in 2008/2009. That bloodbath was followed by a highly lucrative rally. 

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The European Bond Markets Today:
Be Selective, Be Risk-Aware

Continued uncertainty and volatility are forcing European bond investors to think on their feet.  But there are ways to generate yield without taking excessive risk. 

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Greece Gains Some Breathing Space

Today, New Democracy (ND) leader Antonis Samaras will try to form a government. If he succeeds, an immediate disaster scenario will have been avoided. The question is: for how long? 

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Greek Election Will Be a Watershed in the Euro Crisis

As Greek voters prepare to go to the polls on Sunday, we are approaching a pivotal stage in the sovereign-debt crisis—and, perhaps, in the post-war history of European economic and political integration.

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Spanish Bank Rescue Package Is a Step in the Right Direction

The €100bn rescue package agreed for Spanish banks over the weekend is credible and, to that extent, should be welcomed. But it is not enough, by itself, to stabilize markets on a sustained basis.

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A Credible Recapitalization of Spanish Banks Is Now Imperative

A  credible recapitalization of the Spanish banks is now a necessary, though not sufficient, condition to stabilize markets. But there is disagreement about how to achieve this—increasing the risk of a damaging standoff and further volatility in European sovereign-debt markets.

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Euro-Area Leaders Need to Focus on More Pressing Issues

A surprising amount of common ground was reached at last week’s informal meeting of European Union leaders—but  there wasn’t agreement on joint issuance of Eurobonds.

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