The Eurozone Crisis Thread

Who's Eat The Book guy?

I think there will be a big support for Italy tbf, and other countries hit by this hard. Just think it might be a bit too early to already go Eu DoEs NoThInG!1 We're still at this being the most urgent now. I'm sure it will be followed by funding soon, but first things first?

"Eu DoEs NoThInG!1"

People have seen the spread of the virus in East Asia at the beginning of the year. It's surely right to question whether Public Officials -- who are paid to monitor and be ahead of the curve -- have been sitting and hoping it wouldn't spread or were actually coordinating any kind of action.

Who's Eat The Book guy?

Matthew Goodwin. I am sure the video of him eating a book on TV is still up.

I know someone who does emergency planning for manchester council. all worst case scenario stuff but these contingency plans def exist in some vague form.

Ah I see, ty.

Re: EU, of course it's right to question that. Just wondering what measures could Italy not feel let down right now.

xp

Not sure where this theoretical EU pot of gold is supposed to come from - it's the Member States holding the money and EU competence in area of public health is close to nil. I guess you'll be comparing the situation to the financial crisis- but in this instance, there were mechanisms already in place to put together financial packages. So ultimately the question is basically whether Germany and France will agree to inject massive sums to save Italy, which I guess is unlikely for the time being since they will have to reckon wih their own crisis. So maybe your overall point holds, in situations of widespread crisis, cross-border solidarity goes out the window (cf. export bans of medical masks by some countries)

As long as we don't have an EU-wide health system (yes I know about the EHIC), this isn't to be managed at the EU level.

I think France and Germany will inject massive sums into Italy, yes. The ECB can print euros as needed. nb I am a philosopher not an economist.

https://ftalphaville.ft.com/2020/03/18/1584528247000/The-ECB-is-under-pressure-to-act-fast--/

Acting now..

😷😷😷

Italian bond yields jump as EU leaders fail to reach agreement
The failure to reach an EU deal is causing investors to worry about the eurozone, with Italian borrowing costs rising. Talks have been suspended until tomorrow.

Eurogroup chairman Mario Centeno said on Wednesday morning:

After 16 hours of discussions we came close to a deal but we are not there yet. I suspended the Eurogroup and (we will) continue tomorrow.”

Failure to share the financial risks between hard-hit countries such as Italy and Spain and wealthier nations such as the Netherlands and Germany could endanger the eurozone response to the pandemic, so investors are watching closely.

Via Reuters:

The 10-year Italian yield rose 20 basis points to 1.799% in early European trading, hitting its highest since March 19. Two-year bonds yields were up 22 basis points [0.22 percentage points] on the day at 0.79%, the highest in three weeks.

The gap between German and Italian 10-year bond yields also widened to 213 basis points [2.13 percentage points], up 29 basis points [0.29 percentage points] on the day.

#Italy bonds rally w/10y risk spread over Germany plunges to 235bps as Moody’s hints that it could hold off downgrading Italy to junk. Moody’s currently ranks Italy as Baa3, its lowest investment grade, w/review scheduled for May8. S&P will review Italy rating this evening. pic.twitter.com/OhBuMKIS85

— Holger Zschaepitz (@Schuldensuehner) April 24, 2020

https://www.independent.co.uk/news/world/europe/coronavirus-europe-economy-recovery-france-germany-grants-macron-merkel-a9520566.html

Breaking: Apple and Ireland have won their appeal against the European Commission's €13.1 billion ruling:

The General Court of the European Union annuls the decision taken by the
Commission regarding the Irish tax rulings in favour of Apple

— Tony Connelly (@tconnellyRTE) July 15, 2020

Seems bad. Potentially no impediment to Eurozone countries setting an effective 0.005% tax rate on international companies afaict, though it will be appealed.

ffffs

If Berlusconi somehow ends up as PM that will be another pretty good indication of where 2021 is headed https://t.co/sQYdfqxzmu

— Populism Updates (@PopulismUpdates) January 12, 2021

No, grazie.