Euro Zone Crisis

The euro zone crisis was triggered in 2009 when Greece's debts, left by its previous government, reached a record 300 billion euros, leaving the southern European economy with debt levels more than four times higher as a proportion of gross domestic product than the official euro zone cap of 60 per cent of GDP. Since the original problems were uncovered, Greece has been bailed out twice, and lenders have also had to rescue Ireland and Portugal. In the latter half of 2012. Cyprus also required a bailout.

EU’s Juncker makes last-ditch offer to Greece to reach bailout agreement, sources claim

EU Commission President Jean Claude Juncker apparently made a last-minute offer to Athens. Photo: EPA

European Commission President Jean-Claude Juncker made a last-minute offer to Athens in a bid to reach a bailout agreement before the deadline expires today, European Union and Greek government sources said.

Tuesday, 30 June, 2015, 8:39pm

EU warns of "no" vote in Greece

EU warns of "no" vote in Greece

European Council President Donald Tusk says Greece will not have a stronger negotiating position by voting against bailout in a referendum.  (Photo: AFP)

30 Jun 2015 - 8:42am

Wall Street joins global sell-off on Greek crisis

A trader on Wall Street rubs his head as stocks suffered their biggest losses for the year on Monday over the crisis in Greece. Photo: AP

US stocks added to a global selloff on Monday as Greece veered toward a default on its debt, while the euro recovered from an early sharp loss to turn higher against the dollar.

30 Jun 2015 - 8:52am

Policymakers should foster closer integration in euro zone

The Greek crisis raises key questions about the outlook for the euro-zone economy, the survival of the euro and the future viability of a united Europe. Photo: Reuters

With the Greek crisis playing out its last act of denouement, it raises key questions about the outlook for the euro-zone economy, the survival of the euro and the future viability of a united Europe. Grinding austerity policies, stagnant growth and the blight of high unemployment have deepened economic divisions, posing major dangers for European political cohesion ahead.

28 Jun 2015 - 5:52pm

Why G20 and EU lose mettle on global recovery

Greece has a reasonable case for ditching debt deflation in favour of a more sustainable path of growth-linked debt restructuring. Photo: EPA

Long gone are the days when global financial markets used to quiver at the prospect of a major policy initiative by the Group of Seven. The group of nations consisting of the United States, Japan, Germany, France, Britain, Italy and Canada used to hold the markets in thrall in the 1980s and 1990s.

16 Feb 2015 - 9:03am

Creditor-nations must give Greece some breathing room

Greek Prime Minister Alexis Tsipras says that Greece does not want an extension of its bailout but a "bridge program", which would buy the country time to negotiate a new deal. Photo: AFP

We need more money and soon, says Greece. We have no more to give, counters Germany.

9 Feb 2015 - 1:36pm 2 comments

Greece Prime Minister Alexis Tsipras unlikely to persuade European leaders to waive bailout deals

Greece's Prime Minister Alexis Tsipras will head to his first European summit on Thursday. Photo: Xinhua

In Paris and Rome, it was sugar coated; in Berlin and Frankfurt unequivocal. But the message from European capitals to Greece's new leaders was the same at every stop on last week's tour - stick to your commitments.

9 Feb 2015 - 7:15am 1 comment

Drinking the Kool-Aid of stimulus poison

The European Central Bank has decided to do a US Fed by adopting a big money-printing programme. Photo: AFP

Quantitative easing is the last chance for euro-zone policymakers to defeat deflation and put the economy back on the road to recovery.Macroscope, David BrownBusiness, January 26

28 Jan 2015 - 11:39pm 2 comments

ECB has one last chance to save euro with bond purchases

If the going gets really tough, the euro may retest the historic low of 82.4 US cents. Photo: Reuters

After dragging its feet for the past five years, the European Central Bank has finally placed its ultimate policy bet with a government bond-buying programme designed to pump €1 trillion (HK$8.7 trillion) of new money into the deflated euro-zone economy.

Quantitative easing has finally arrived in euro land.

26 Jan 2015 - 8:52am

Euro-zone political divisions undermine ECB policy plans

German stocks have risen 2 per cent over the past three months on hopes that sovereign quantitative easing will weaken the euro further. Photo: Reuters

Ever since the euro-zone crisis escalated dramatically in the autumn of 2011, financial markets have been clamouring for a programme of large-scale government bond purchases by the European Central Bank aimed at restoring confidence in Europe's ailing economy.

22 Jan 2015 - 10:31pm

EU easing under ‘Draghinomics’ a pipedream

Mario Draghi surprised markets again last week by announcing a further cut in the ECB’s deposit rate and pledging to buy asset-backed securities and covered bonds. Photo: Reuters

Investors continue to underestimate the determination of Mario Draghi, the president of the European Central Bank (ECB), to help shore up the euro zone's depressed economy.

12 Sep 2014 - 3:39am

Europe’s rapidly unravelling economic reform agenda

France’s economy, which accounts for more than a fifth of euro-zone output, registered no growth in the second quarter. Photo: Bloomberg

There are many casualties of the four-year-old crisis in the euro zone.

29 Aug 2014 - 1:10am

Europe’s populist backlash

In France, Marine Le Pen's National Front trounced the ruling Socialists. Photo: AP

The strong showing of populist and anti-establishment parties in last weekend's European Parliament elections had been on the cards for some time.

30 May 2014 - 12:59am 3 comments

Euro zone 'coming out of crisis' amid accelerating growth, Eurogroup chief says

Prospects in Europe are very good for investors, Jeroen  Dijsselbloem says. Photo: AP

Eurogroup president Jeroen Dijsselbloem said the euro zone is “coming out of crisis” and the member countries are expected to grow an average 1 per cent this year and 1.7 per cent next year.

The Eurogroup, the main forum for the management of the single-currency area, is an informal body that brings together the finance ministers of countries whose currency is the euro.

13 Jan 2014 - 12:38pm

Europe's jittery markets find their feet while the economy stumbles along

EU interest rates remain at record low. Photo: EPA

As 2013 draws to a close, it appears that the worst of the crisis in Europe's ailing single currency area has passed. For the past year or so, the bond markets of the periphery of the euro zone, which in 2011 and the first half of last year were a byword for panic and surging yields, have proved extremely resilient.

6 Dec 2013 - 2:12am