fiscal

News links for 4 December 2011.

My takeaway from two days in DC is that Europe is headed to a blood in the streets outcome. While ECB funding remains ongoing even as it’s uncertain, in any case, the underlying theme remains austerity. There is no plan B.

The prevailing view amongst euro area policy makers seems to be that saving Italy from default is necessary and that the only politically justifiable way to effect this rescue is to move to fiscal integration. All of the statements by…

The dollar is trading on an easier footing as risk improves ahead of payrolls and hope of EZ action. US private payrolls expected to come in at 150k; strong report likely to be supportive of sentiment. Merkel calls for treaty changes in…

Mario Draghi has become explicit about what it will take for the ECB to have a more active role in the European sovereign debt crisis.

Foreign news for 1 December 2011 focuses on Europe, and in particular Spain.

The EU Summit is the last opportunity of the year, and some observers say the last opportunity period, for action that will begin seriously addressing the crisis. Tomorrow France's Sarkozy is expected to present his proposals tomorrow and…

Below are the five ways now being discussed to tackle the euro zone sovereign debt crisis. I should say that overall, it is still unclear how far along European leaders are in defining a mutually agreeable outcome. Just this morning, I have…

According to Spanish website Cinco Dias, France and Germany want to move from a 3% deficit target to balanced budget by the year 2016. This aim points to a clear intention by the two countries to present a deal on fiscal integration and…

Given the flurry of activity this past weekend in the euro zone, it seems clear that the Europeans have pushed the panic button. I anticipate that some sort of systemic response is likely in order to deal with Italy (and Spain), two large…