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The SPD's Peter Steinbruck's criticism of Merkel's handling of the eurozone crisis. Speaking to the Bundestag Steinbruck said Merkel had wasted time and billions of dollars of taxpayers before committing to keep Greece in the eruozone. "You should have held this speech three years ago... Never has Germany been so isolated in Europe as it is today." He said Merkel was not being honest with Germans that to be part of Europe Germany had to take on some of the cost and that it was worth it. Instead she was riding the wave of negative opinion for the eurozone and at the same time trying to keep up Germany's influence in Brussels, creating a perception of a new kind of German "industrial imperialism." This comes as France's president Hollande expressed serious dissatisfaction with Merkel's handling of the eurozone crisis in an interview with reporters of 5 European newspapers in October 2012.

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Martin Feldstein points out why the recent agreement for a "fiscal compact" is no more than an empty statement about fixing the eurozone's finances. In this respect it is no different than the Stability and Growth Pact it replaces, with serious weaknesses. Feldstein cites the weaknesses in the language of the agreement. Each eurozone country is required to limit its"cyclically adjusted" budget deficit to 0.5% of GDP and bring its debt down to 60% of GDP. Compliance will be performed by the European Court of Justice and fines imposed. In practice the questions loom large- for a country like Spain with a 23% unemployment rate, isn't all of the 6% budget deficit cyclical? Again the agreement says deficits are calculated "net of one-off and temporary measures." Under this provision a lot of the stimulus programs would be considered in the category of "one-off." Other language lets eurozone countries frame budgets based on "exceptional circumstances" and "periods of severe economic downturn." Italy has declining economic growth, does it make sense to have a large budget surplus in that situation to lower debt to GDP, and how does that goal relate to "exceptional circumstances."...

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The ECB president Draghi announces an interest rate cut, lowering the interest rate in the eurozone to 0.15% from 0.25%. He also lowered the rate on overnight bank deposits at the ECB to a negative 0.10%, to encourage banks to lend at a time when credit is tight for businesses in the eurozone. The eurozone faces a risk of deflation with low growth in the eurozone economies. Popular discontent was reflected in eurozone elections in France, UK, Greece and Spain.

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The Markit eurozone purchasing managers index comes in at 52.8 for June 2014. France's PMI declined to 48, showing contraction in manufacturing. Germany was at 54.2. The rest of the eurozone showed improvement. Average eurozone PMI for the second quarter 2014 was 53.5, up from 53.1 in the first quarter 2014.

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Lower oil and natural gas prices are a big boost to the economies of the US and the European Union. Cost savings equal about 3.5% of GDP in Italy and 2% of GDP for Portugal, Germany, and Spain, according to Capital Economics. The price of oil has dropped to $77 a barrel from $121, falling below its pre Ukraine war levels. This boost could increase eurozone output by 1.5%, equivalent to about a years worth of growth. Instead of contracting by 1.3% eurozone economies are expected to grow by 0.7%.

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After inflation drops to 2.3% in the eurozone in December 2024 the British pound rises to 1.21 euros and 1.04 US dollars. The ECB says its decision to cut rates to 3% was a result of inflation forecasts showing a further drop in inflation to 1.9% by 2026. Growth in eurozone was also updated to 0.7% in 2024 and 1.1% in 2025. 

The Fed is likely to make a further interest rate cut and the Bank of England keep it steady at 4.75%.

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A new plan for the eurozone crisis from the German Council of Experts which would create a European Redemption Fund to take over sovereign debts in excess of 60% of GDP, and impose constitutional brakes on spending on troubled eurozone coutries.

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The European Commission forecast for 2013 shows a decline in GDP of 0.3% for the eurozone economies. The forecast shows a return to growth with GDP increasing by 1.4% in 2014 for the eurozone. The larger European Union is expected to grow by 0.1%. Unemployment is expected to increase from 11.4% to 12.2%.

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In September 2014 inflation in the eurozone reaches an annual rate of 0.3%, far from the 2% target set by the ECB. It was 0.4% in August 2014. Unemployment is at 11.5% in the eurozone. Inflation is expected to pick up with the euro declining to 1.26 to the dollar. Analysts expect no immediate action at the upcoming ECB meeting in Naples.

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Economic policy for the eurozone during Merkel's third term. A German proposal for legally binding contracts between sovereign eurozone governments and the EU executive in Brussels on economic policy and budgets meets resistance from Netherlands, Austria, Italy and Spain.

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As Mr. Mitsotakis of the New Democracy party takes over as prime minister from Mr. Tsipras this report from Greece reflects on what happened under Mr. Tsipras with his call for no in the referendum on the Eurozone economic loan package that set austerity cuts in Greece. Mr Tsipras was unable to reverse the loan agreements set by the eurozone leaders. There is much to reflect on austerity policies also for Germany and northern European countries in the events of the last five years leading to the loss of confidence in major parties in Europe and in eurozone countries. Austerity policies also have undermined public confidence. Yet in the Greek case the lack of transparency bad finances were of another magnitude that called for responsibility to be taken by internal groups within Greece. In the end this proved little except that the eurozone was expanded too hastily for countries such as Greece, hurting the eurozone, the idea of Europe, and Greece.

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The June 28, 2012 EU deal is expected to increase the role of the European Central Bank in addressing the eurozone crisis with powers of banking regulation and supervision and direct capital aid to Spanish banks. Mario Draghi's experience with the Bank of Italy and in dealing with different Italian governments has prepared him for the difficult task of making sure governments in the eurozone make responsible decisions for eurozone finances.

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The agreement reached Dec. 12, 2012 to setup a single supervisory authority for large banks in the eurozone is a major and historic step. The ECB takes up this role after parliaments in the eurozone countries ratify the agreement by March 2013.

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French officals are pushing for a new eurozone architecture to address many of today's problems. This includes setting up a pathway that leads to the joint issuance of eurobonds. It also would include coordination of monetary policy with the budgets and fiscal situation in the eurozone. French officials see the lack of this as the cause of many of today's problems.

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Economic growth drops to 0.4% in the eurozone and Germany avoids a recession with slight increase in growth to 0.2% in the 3rd quarter of 2024. Energy cost have hit German industry hard.

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Growth is back in the eurozone. The OECD estimates 2.1% growth in 2017 and 1.9% growth in 2018 for the eurozone countries. Business investment is up significantly- up 5.7% in the first half of 2017. Worldwide business investment in 2016 was at 1.3 trillion euros, up 7.2% from the prior year, according to Eurostat.

New investment for electric vehicles in the auto industry is also up significantly in an industry that provides 10% of all jobs in manufacturing. Yet business investment is only half of what it needs to be- to makeup 5% of GDP- to spur good job creation, says this report in the WSJ. Use of automation is also limiting the number of jobs created. Real wage growth is also lacking.

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Former German chancellor from the SPD party, Gerhard Schroeder, is interviewed by Rayond Zhong of the WSJ. Here he describes his views on the way Agenda 2010 was implemented in 2003 in Germany to gain public support for changes to Germany's welfare state. He also talks about the eurozone crisis and how Angela Merkel has handled the crisis, and the right approach for an Agenda 2020 for Europe. The interview was made at Schroeder's law office in Hannover, Germany. This is a detailed and exceptional interview by Zhong covering all facets of the eurozone crisis and Germany's response. Schroeder says it was right to give Greece more time to make the reforms, so that the Greek people could see that this path would help in a positive way. In doing this he cites his own experience when as the reforms for Agenda 2010 to make Germany more competitive were taking place- including cuts in spending and lower taxes- he turned down his finance minister Hans Eichel's proposal in 2003 for an additional 20 billion euros in cuts to put Germany in compliance with EU law....

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ECB president, Mario Draghi, said on March 25, 2014, "we will do what is needed to maintain price stability." Annual inflation in the eurozone declined to 0.6% forecast for the eurozone, 0.9% for Germany, and a negative 0.2% in Spain, for Feb. 2014.

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Eurozone inflation was 0.4% for October 2014, according to Eurostat. Germany's inflation only 0.7%. Spain, Greece, and Italy slipping below 0% inflation.

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The effects on exports and particularly the U.S. auto industry of the eurozone financial crisis.

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The cost of the first bailout for Greece of May 2010 is 53 billion euros for eurozone funds and 20 billion euros for IMF funds, according to the European Commission. The cost of the second bailout for Greece of March 2012 is 142 billion euros for eurozone funds and 12 billion euros for IMF funds. The eurozone took back 11 billion euros following the failure of negotiations.

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The euro has stayed surprisingly strong at 1.35 to the U.S. dollar in November 2011, in the middle of the eurozone debt crisis. One factor cited by analysts in addition to the interest rate differential is the repatriation of funds into the eurozone as European funds and banks try to prepare themselves for a worsening situation.

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Simon Nixon looks at 2013 as the year that marked a turning point for recovery in the eurozone.