Tag: interest rates
WTF is Christine Lagarde up to? – POLITICO
Deep in the Wyoming wilderness last month, Christine Lagarde, president of the European Central Bank, stood before a large audience of elite central bankers and casually predicted the collapse of the international financial order. Resplendent in red and black, she resembled a humanoid Lindor chocolate truffle — and though her warning was diluted by the usual impenetrable jargon, the subtext was sufficiently clear and dramatic.
“There are plausible scenarios where we could see a fundamental change in the nature of
Italy to hit banks with 40 percent windfall tax – POLITICO
Georgia Meloni is going after the banks.
In a move that surprised investors and political observers alike, Italy’s far-right government led by Prime Minister Meloni announced plans late Monday to slap a 40 percent one-off windfall tax on bank profits.
Italian lenders have been raking in huge benefits from higher interest rates on their loans at a time when ordinary people are struggling with the cost of living.
The eurozone’s cost of living crisis, which has been marked by the
Bank of England raises key rate to 5.25 percent – POLITICO
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The Bank of England raised its key interest rate by a quarter point on Thursday to the highest since 2008, saying that while inflation has begun to fall and the economy is growing with unemployment low “inflation is still too high”. Six out of nine members of the monetary policy committee voted in favor of the move.
The hike takes the Bank Rate to 5.25 percent and is the
How the Recession Doomers Got the U.S. Economy So Wrong
This is Work in Progress, a newsletter by Derek Thompson about work, technology, and how to solve some of America’s biggest problems. Sign up here to get it every week.
In 2022, it was a matter of conventional and nearly universal wisdom that the 2023 economy would be a nightmare.
Last October, a Bloomberg economic model said that the odds of a U.S. recession this year were 100 percent. No, not 99.99 percent, as in the odds that you’ll avoid
After summer heat, economic chill – POLITICO
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BRUSSELS — While Europe counts the cost of wildfires and record high temperatures, governments are facing up to a decidedly frosty fall and winter.
Buffeted by rising borrowing costs and a decline in business and consumer confidence, the eurozone economy is weakening rapidly. Interest rates this week were increased to record-equaling levels, inflation is falling but remains stubbornly high, and, on Friday, there came a fresh warning from the
Germany faces 5 tough years, economy minister warns – POLITICO
Germany faces five difficult years of green industrial transition that “will put a burden” on people, Economy Minister Robert Habeck warned — while urging his government to approve fresh subsidies to safeguard the country’s industrial base.
Reacting to a new report by the International Monetary Fund that projects Germany’s economy will shrink 0.3 percentage points this year, Habeck told German public broadcaster ARD on Wednesday evening, “The data certainly isn’t good.”
Germany’s statistical office had already warned in May that
How to navigate Spain’s EU presidency policy agenda like a pro – POLITICO
Spare a thought for Spanish diplomats in Brussels. They’re going to be working flat-out until Christmas.
Sweden has spent the last six months trying to process a huge pile of legislative files, many of which were proposed late by a European Commission distracted by COVID-19 and Russia’s war on Ukraine.
Despite commendable progress, many of these files still need a lot of work before being passed into law. Look at the files we’ve laid out below, then look back at
Where Britain went wrong – POLITICO
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LIVERPOOL, England — On the long picket line outside the gates of Liverpool’s Peel Port, rain-soaked dock workers warm themselves with cups of tea as they listen to 1980s pop.
Dozens of buses, cars and trucks honk in solidarity as they pass.
Dockers’ strikes are not new to Liverpool, nor is depravation. But this latest walk-out at Britain’s fourth-largest port is part of something much bigger, a great wave of public and private
So Rishi Sunak is the UK’s next prime minister. What happens now? – POLITICO
LONDON — It took one bruising campaign defeat and six weeks of exile — but on Tuesday, Rishi Sunak will finally become U.K. prime minister.
He faces the toughest in-tray of any British leader since World War II, entering No. 10 Downing Street as the country hurtles into winter with energy bills, hospital waiting lists, borrowing costs and inflation all soaring.
The challenge has been magnified by Liz Truss’ brief crash-and-burn premiership. As a result of her now-infamous mini-budget, which
What you need to know (and worry about) – POLITICO
Welcome back! After a scorching summer, Brussels people are trickling back into the office or, for many of you, the home office setup.
A word of warning: It’s going to be an intense rentrée.
From the war in Ukraine to spiking energy prices, EU officials will have their hands full keeping their policy agendas on track amid escalating geopolitical crises. The most obvious field to be disrupted is energy, as leaders scramble to fill up gas reserves and keep