Jobs and growth are the answer to the crisis, says prime minister of Holland

Europe needs to become more competitive and create more jobs in order to ensure its future prosperity, Dutch prime minister Mark Rutte said after Monday night’s informal EU summit on the eurozone debt crisis. ‘There are currently 23 million people in the EU without work and in the long term, that is not sustainable,’ Rutte said. ‘The internal market can be an important motor for growth, but only 40% of the EU economy... [more]

French banks should come to Britain: Cameron

British Prime Minister David Cameron took a fresh dig at cross-channel rival France Monday, warning that French banks would flee to Britain if Paris introduces a financial transactions tax. In comments aimed squarely at Nicolas Sarkozy after the French president reportedly criticised British industry, Cameron said the concept of the tax at a time of economic difficulty was “mad” and “extraordinary”. “I know... [more]

France and Italy plan high-speed rail link

France and Italy on Monday signed an agreement to build a high-speed rail link between Lyon and Turin, the largest such project in Europe, despite opposition on the Italian side of the border. The line, which is due to be completed by 2023, would allow high-speed trains to link Paris and Turin in just over four hours, compared to seven at present. The Lyon to Turin connection would be cut back from just over four to just under two. Work... [more]

Assange win would have ‘profound’ effects

WikiLeaks founder Julian Assange’s two-day hearing at England’s Supreme Court gets underway Wednesday, in the latest stage of his lengthy battle against extradition to Sweden to face rape allegations. If the court rejects his case, the 40-year-old Australian will have exhausted all his options in Britain but he could still make a last-ditch appeal to the European Court of Human Rights, prosecutors have said. The Supreme Court,... [more]

Merkel pushes through EU fiscal pact

Chancellor Angela Merkel and other EU leaders attempted to solve Europe’s debt crisis on Monday evening with a German-driven treaty meant to end deficits. But the announcement that that 25 of 27 European Union nations had adopted the new pact on budgetary discipline was overshadowed by outrage over a German suggestion heavily indebted Greece submit its finances to EU review. The idea of placing the cradle of European democracy under the... [more]

IMF sees low impact on Asian finance from EU crisis

The eurozone financial crisis has had only a limited impact on Asia, and in fact has created opportunities for Asian banks, according to a top IMF official. Anoop Singh, the International Monetary Fund’s Asia director, said that if the eurozone plunged into recession, it would definitely hurt Asia, where exports to Europe are an important driver of growth. “In India as in other economies demand for exports would certainly be... [more]

Euro zone banks may double emergency loans from ECB

Some of the euro zone’s biggest banks have told the Financial Times that they are preparing to tap the European Central Bank’s emergency funding scheme for up to twice as much as the ECB supplied in its December auction. The banks told the FT that they may double or triple their request for funds in the ECB’s three-year money auction on Feb 29, a further sign of the liquidity squeeze faced by the banks, the paper... [more]

Winter cold snap kills 36 in eastern Europe

A severe and snowy cold snap acrosscentral and eastern Europe has left at least 36 people dead, cut off power to towns, and snarled traffic. Officials are responding with measures ranging from opening shelters to dispensing hot tea, with particular concern for the homeless and elderly. This part of Europe is not unused to cold, but the current freeze, which spread to most of the region last week, came after a period of relatively mild weather.... [more]

ECB slashes bond buys as Greek loss debate rages

The ECB all but halted its purchases of government bonds last week despite fresh financial market pressure on Portugal and as calls intensified for the bank to take losses on its Greek debt. Controversy surrounding the ECB’s bond buying programme has escalated in recent weeks. The IMF and private sector have urged it to write down its holdings of Greek bonds, or at least forgo profits, as part of a deal to stabilise the country’s... [more]

EU leaders agree on permanent bailout fund

EU leaders reached agreement at a summit on Monday on the introduction of a permanent euro zone bailout mechanism from July 2012, with a treaty governing the fund to be signed at a later date, three EU officials told Reuters. The European Stability Mechanism, which will have a lending capacity of 500 billion euros, will take over from the European Financial Stability Facility, a temporary mechanism that has so far been used to bail out Ireland... [more]

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