2015/02/26 LEAP/E2020 Press Review on the Global Systemic Crisis

Europe, world finance’s new tractor

Whilst the US economy is off again at full speed without the Fed’s help, Europe is in such bad shape that it needs unprecedented quantitative easing by the ECB. That’s what we read, in essence, in the majority of the media. But nothing is further from the truth. In the GEAB No 92 we endeavoured to show on the contrary, from an economic point of view, that the US remains well and truly sick, whilst the Eurozone is setting off on promising tracks again. So why has Draghi announced a European QE if it’s unnecessary? Because, rightly; all is well. As we have seen in the US then in Japan, QE wasn’t done to help the real economy. Worse, it has the tendency to asphyxiate. In reality, its only role is to support the existing financial system, obese and bulky but which could prove to be dangerous if it fell. Therefore, the US has supported finance single-handedly with its QE3; Japan took over for a similar amount; therefore, it’s now Europe’s turn, the new tractor of world finance. Read more in the last GEAB issue..

LEAP

EU gives France until 2017 to fix deficit

The European Commission on Wednesday (25 February) gave France another two years to bring its budget within EU rules – the third extension in a row – saying that sanctions represent a “failure”...

EUObserver

Greece debt: EU says reform proposals ‘valid’

Greece is a step further on its way to receiving a bailout extension after its list of proposed reforms was backed by one of its key creditors. Top European Commission officials called the proposals "sufficiently comprehensive to be a valid starting point".

BBC News

Net migration to UK higher than when coalition took office

Net migration to Britain was 298,000 last year, shattering David Cameron’s “no ifs, no buts” promise to reduce it to the “tens of thousands” by the time of the general election, official figures show...

The Guardian

Mogherini: 'The EU is a superpower'

The EU is a superpower with unique tools to deal with some of the world’s most dangerous crisis, according to High Representative for Foreign Affairs Federica Mogherini. In a wide ranging speech given at Chatham House in London, Mogherini said by the end of her five year term she wanted to see “Europe speak with one voice and one flag” on issues of foreign affairs...

Euractiv

Cyprus praises Russia, lets in warships

The Cypriot president has, on a visit to Moscow, showcased his country’s economic dependence on Russia and the emergence of an increasing threat to EU and US unity on sanctions...

EUObserver

Pour Amnesty, “nous traversons la crise la plus grave depuis la Seconde Guerre mondiale”

La multiplication des conflits armés a fait 50 millions de déracinés, selon le rapport annuel d'Amnesty international publié ce mercredi. L'affaiblissement de nombreux Etats a creusé le lit d'une multitude de groupes armés responsable d'une recrudescence des violences.

L'Express

Fed’s Yellen flags rate hikes on ‘meeting-by-meeting’ basis

The Federal Reserve is preparing to consider interest rate hikes "on a meeting-by-meeting basis," Fed Chair Janet Yellen told a congressional committee on Tuesday, a subtle shift of emphasis that helps lay the groundwork for the Fed's first rate hike since 2006.

Reuters

Narendra Modi government mulls bullet bonds, dedicated fund to bolster infrastructure projects

India is looking at new ways of raising money for infrastructure development through innovative financing options such as bullet bonds and a dedicated fund, since bank lending isn't the best choice for long-gestation projects. Work has been started on creating a structure for raising large, longterm borrowings from overseas to help it fix the country's infrastructure, the woeful state of which is dragging down growth...

The Economic Times

Reduced to rouble? An update on the Russian economy

Recent events in Ukraine have shown that Russia is determined to change the balance of power in Europe. Whether Vladimir Putin can be stopped by diplomacy or sanctions remains an open question (and is the subject of a forthcoming CER policy brief). Russia’s economy, however, is in deep trouble...

CER (Centre for European Reform)

Juncker urged to revive 'Social Europe' model

The ‘Social Europe’ model must be revived if the EU is to avoid lumbering itself with low social mobility and other economic millstones, according to a report published Monday (23 February) by Brussels-based think-tank Friends of Europe.

Euobserver

China Voice: War on terror no reason for retreat on rights

Global terrorism should not be a warrant for retreat on citizens’ rights, and China’s first Counter Terrorism Law sends a welcome signal in this regard.

Xinhuanet

Otage française au Yémen: cinq clés pour comprendre le chaos dans le pays

Le pays est en proie à de violentes tensions confessionnelles et ne parvient pas à juguler la branche locale d’al-Qaïda, Aqpa. Le président Hadi, démissionnaire, est revenu sur sa décision, ajoutant de la confusion à la confusion.

L’Express

Japan plans 3,000-strong delegation to China

Japanese parliamentarian Toshihiro Nikai will bring a 3,000-strong delegation to China in late May this year, Nikai told a news conference in Tokyo on Wednesday, according to Japanese media.

China Daily

U.S. Senate banking chair says interested in Fed audit

The new Republican chairman of the U.S. Senate Banking Committee said on Thursday he was "very interested" in requiring a government audit of the Federal Reserve and its portfolio.U.S. Senator Richard Shelby, an Alabama Republican, said in an interview with Bloomberg TV that Congress should not function as an extra Fed governor, but it should have some oversight of monetary policy decisions...

Reuters

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