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Draghi Urges 'Growth Pact'

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European Central Bank president, Mario Draghi, addressing the European Parliament in Brussels on April 25, 2012, supported both sides in the issues facing the eurozone, calling for continued vigilance on structural reforms to improve competitiveness of countries in the eurozone such as Spain and Italy, and at the same time saying it was imperative to generate economic growth. He told the European parliament: "The uncertainty about the present situation is very, very, high... Any exit strategy is premature given the current economic situation." Saying that the fiscal compact had been negotiated recently to control spending, yet what Europe needed was also a growth compact- "but my most present thought right now is to have a growth compact." He emphasized that it was now upto governments and banks to pick up the ball. The ECB's achievement was buying time with its 3 year loans to banks in Spain and Italy and other EU countries in Dec. 2011-March 2012, which he described as no ordinary achievement. Francois Hollande and Angela Merkel seized on Draghi's comments to show they were doing the right thing. Merkel conceded that growth was needed, saying sustainable initatives would be good for Europe, that what Germany was opposing was simply stimulus spending that would increase debt without the structural reforms to improve competitiveness. Hollande for his part said he would call for eurozone bonds to pay for industrial and infrastructure projects, and a financial transactions tax.

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The German response to the debt crisis in the eurozone and the events in 2011-2012.

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Quarterly EU growth reports from Eurostat, the European statistics agency, and other national statistics agencies.

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Eurozone GDP Shows Meager Expansion

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The Wall Street Journal's editorials on solutions to the Eurozone financial crisis- 2011-2012

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How to Save the Euro

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Europe and Its Money

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Merkel Urges Party to Help Save Euro

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Europe's Currency Road to Nowhere

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In euro zone crisis, Germany is the reluctant savior - The Washington Post

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The EU Summit, December 9, 2011

12/09/2011

The German position not to allow large scale bond buying by the ECB remained unchanged. The focus continued on getting debt brakes and fiscal discipline rules set for the eurozone members. The ECB's Mario Draghi opposes central banks of Europe sending money to the IMF which would be used to support EU countries with debt problems. The ECB lowered interest rates by 0.25% for the eurozone, bringing interest rates to 1%, and reversing earlier ECB policies under Trichet that increased rates. In addition the ECB will provide unlimited funding to European commercial banks for longer maturities of 3 years, instead of the current 1 year maturity.

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Tensions Rise at EU Summit

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Legal Uncertainty Imperils EU Agreement

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Leaders Grow Further Apart on Solutions

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The Euro Zone's Double Failure

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Euro Treaty to Require Only 9 Nations for Ratification

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Austerity measures facing European countries in 2011-2013

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German Election Overturns Political Order

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02/05/2011

Mario Monti focusses on the need for investing in the economy in an interview with German newspaper Die Welt during a January 2011 visit to Berlin. S&P economists and Nobel winner Stiglitz also emphasize this after a downgrade of France's credit rating- the need for improved competitiveness for the economies of France, Spain Portugal and Italy.

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Euro Zone Death Trip

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France Says It Will Miss Budget Deficit Targets

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The 2010 austerity budget and the European financial crisis affecting Spain.

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The contagion effect affecting Spain after Greece and Portugal similar to the manner in which the Asian financial crisis spread during a prior decade.

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New Spanish Budget Free of Austerity Measures

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Spain is simply shifting the problem

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Amid Europe's challenges, citizens face lifestyle shifts

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French Cracks Are Showing in Euro-Zone Core

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The IMF's Big Wager On Europe

Wall Street Journal 05/13/2010

Why government fiscal discipline alone will not establish a sound financial framework for the Euro currency- the example of Spain

03/03/2010

Spain kept its deficits below the 3% mandated under EU treaties, till recently. Asset bubbles sustained because of bad lending by a country's banks and easy acess to credit from outside the country, are two problems not addressed by tighter budget controls in the revised rules being set after the Dec. 9 EU Summit. Spain's debt problem is to recapitalize these failing banks and debt of regional governments. Spain relied too much on a construction boom for growth, with productivity stalled. Ireland improved competitiveness and attracted foreign investment. This too unraveled in the face of an asset bubble from speculative lending by its banks.

Grouped Articles

Euro Zone Death Trip

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Europe's Original Sin

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German Optimism Depends On Spanish Deficits

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Euro Zone Deficit Hits Target for First Time Since 2008

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Spain's Example Shows Limits of EU Targets

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The Euro Zone's Double Failure

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Once Again, the Fed Shies Away From the Exit Door

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Why a Fed Rate Hike May Be Delayed

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John B. Taylor: Monetary Policy and the Next Crisis

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Ratification of Europe's Fiscal Treaty following the EU Summit of Dec. 9, 2011

12/16/2011

Approval of the fiscal compact agreed to at the European Union summit of December 9, 2011 sets a low threshold, with it going into effect if 12 of 27 countries approve it.

Grouped Articles

Euro Treaty to Require Only 9 Nations for Ratification

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Germany's Merkel to Need Opposition Help in Approving EU Fiscal Pact

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Europe Needs the Bond Vigilantes

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In test for Europe, Ireland votes on fiscal treaty - The Washington Post

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Germany May Compromise on Joint Debt

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Efforts by the Monti government to issue more taxi licenses, pharmacy licenses and introduce competition in professional and other sectors protected from competition.

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Italy Plans New Measures to Liberalize Economy

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Monti Pulls a Thatcher

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Italy's Labor Reforms Are Serious and Will Be Effective

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Monti's Mounting Italian Challenge

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Actions taken by Spain's government of Mariano Rajoy to improve the competitiveness of the economy- 2012-2014

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Grouped Articles

Spain Emerges From Recession but Sees More Austerity Ahead

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Spain Approves Changes to Labor Policy

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Germany's Inflated Fear of Inflation

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Improvements in current account deficits of Ireland, Portugal and Spain and the Rebalancing moves in the European Union

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The sharp decline in imports and the improvement in exports in Ireland and Spain is providing a ray of hope for the needed rebalancing of economies in Europe. This would not put the entire burden of the rebalancing on falling wages. Greece is an exception because of falling imports and exports as a result of the widespread economic dislocation.

Grouped Articles

Euro Zone Death Trip

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Ireland Makes Moody's Less Blue

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Bond yields for Spanish government bonds in 2011-2014.

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Return of Long-Term Bond Buyers Seen as Crucial to Europe

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A Warning Light to Alert the I.M.F.

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Spain's efforts to control regional spending

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Spain is a highly decentralized country with the central government in Madrid able to exercize little control on spending by the regions. The eurozone crisis and the higher than expected 8% deficit in Spain for 2011 is changing attitudes in the regions and in Madrid. The clause inserted in the constitution in 2011 with Germany's insistence for a balanced budget gives Madrid power to restrain spending. An agreement was reached with regional governments including Catalonia for new legislation on spending controls. Valencia was downgraded along with Spain in the recent downgrade of Spain's credit rating.

Grouped Articles

Europe to Vote on Tougher Rules for Currency

New York Times 09/27/2011

Rajoy Appeals to Catalonia to Stick With Spain

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Spain: Budget Woes Hit Regional Governments

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Madrid to Curb Spending by Powerful Regions

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Spain's economy 2010-2013

07/22/2010

Grouped Articles

Still Sputtering, Spain Turns Away From Cuts

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Spain: Budget Woes Hit Regional Governments

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Spanish Job Market May Be Turning Around

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Italy's Borrowing Costs Jump

New York Times 07/28/2011

Italy Seeks to Tackle Youth Jobless Problem

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The Spanish Reform Model

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Spain's economic growth

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Grouped Articles

Still Sputtering, Spain Turns Away From Cuts

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Spain: Budget Woes Hit Regional Governments

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Spanish Job Market May Be Turning Around

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In Europe, Even the German Powerhouse Is Losing Steam

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Spain's Budget Cuts Trigger Downturn

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Spain Spells Out Latest Plan to Bolster Health of Lenders

Wall Street Journal 02/03/2012

Unemployment in Spain 2010-2014

01/01/2010

Grouped Articles

The Next First (and Only) 100 Days

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Spanish Jobless Rate Has First Drop in Two Years

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Spain’s Unemployment Declines in 2014

Wall Street Journal 01/05/2015

In Spain, a Soaring Jobless Rate for Young Workers

New York Times 01/01/2010

Spain is simply shifting the problem

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Italy's Mario Draghi, as the new president of the ECB

04/20/2011

Grouped Articles

ECB Moves Markets, Not Economy

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Bonds of Italy, Spain Narrow Gap With U.S., German Yields

Wall Street Journal 04/09/2014

Italian Gains Support in Central Bank Race

Wall Street Journal 04/20/2011

Paris Backs Italy's Draghi as Europe's Central Banker

Wall Street Journal 04/27/2011

German Paper Finds Draghi Not So Bad After All

New York Times 04/29/2011

Trichet to Leave a Difficult Legacy at Central Bank

New York Times 05/31/2011


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