Here are some recent press articles on the European crisis. I'll post a Weekender-linkfest later today. -MoreLiver
The Economist
Buttonwood: The ugly-bug ball – The Economist
Traders are picking on the euro again
European bank capital: By hook or by crook – The Economist
Banks in Europe scrape together the extra capital they need
The recession has been mild so far. But things are likely to get much worse
Euro-zone leaders meet and talk, but have not resolved their crisis
The Telegraph
Friday the thirteenth in the eurozone – The Telegraph
What’s clear is that both the downgrades and the break-down in the Greek restructuring talks could change the face of the eurozone crisis. Though the downgrades seem more dramatic now, the Greek problem could soon begin to hit home.
The eurozone needed a French downgrade like a hole in the head – The Telegraph
Combined with news that Greek debt talks have stalled, making disorderly Greek default more likely, the French downgrade has added to the impression that the euro crisis is entering a new, and possibly even more dangerous phase.
If this new text is agreed, the veto was for nothing – The Telegraph
Twenty-six EU leaders are reported to have agreed a new draft for the FU Treaty. Although the text is not yet available, it apparently still makes references to the EU institutions. On what possible legal basis, though, can it do so?
Der Spiegel
Nicolas Sarkozy wants to speed up the launch of the proposed tax on financial transactions in Europe because he thinks this might help his re-election bid. His meeting with Angela Merkel on Monday was a glorified campaign event, write German media. Merkel helped him out a bit, in a sign that the French-German axis remains intact at the start of a tough year.
What Would a European Tobin Tax Really Mean? – Der Spiegel
Angela Merkel and Nicolas Sarkozy are pressing forward with plans to introduce a financial transaction tax in the EU -- if necessary without Britain, home to Europe's largest financial center. Critics believe it will cause an exodus of the industry from the euro zone. But a closer look at the proposal suggests the worst wouldn't necessarily come true.
Doubts Grow over Greek Debt Restructuring – Der Spiegel
The outlook for cash-strapped Greece is looking increasingly bleak. Government reforms are behind target, and negotiations with private creditors over voluntary debt relief are stalled. A disorderly default could be just weeks away.
Its neighbors may be suffering, but the euro crisis has created conditions that actually benefit the German economy. Not only is the government enjoying the windfall of negative interest rates on bonds, but unemployment is down and exports are booming.
In a SPIEGEL interview, Czech Foreign Minister Karel Schwarzenberg attacks European politicians for lacking vision, describes the resentment felt by small EU members at the dominance of Germany and France and warns the Germans against megalomania in their defense of the euro.
The German economy grew strongly last year, despite the European debt crisis. Gross domestic product jumped by 3 percent, while the national deficit sank, the Federal Statistical Office reported on Wednesday. But experts warn that, given the slight contraction in the final quarter of last year, Germany could enter a recession in 2012.
Merkel Praises Italian Prime Minister at Berlin Meeting – Der Spiegel
German Chancellor Angela Merkel praised Italy's willingness to make speedy reforms on Wednesday in a demonstration of unity with the country's new leader. And Italian Prime Minister Mario Monti applauded German budgetary discipline. Concerns that Berlin is playing too dominant a role in managing the euro crisis, it seems, remained a minor issue.
Germany has long insisted that austerity be the primary strategy used in confronting the ongoing euro-zone debt crisis. Italy has now joined France in demanding a more nuanced approach, with Prime Minister Monti presenting his ideas to Chancellor Merkel in Berlin on Wednesday.
Merkozy Upbeat Despite Return of Euro Crisis – Der Spiegel
Angela Merkel and Nicolas Sarkozy have once again shown a common front in the euro crisis, insisting that the euro zone is well on track to agreeing on binding debt rules, and papering over differences on the financial transaction tax. Merkel also said Greece must speed up debt restructuring talks -- or the next aid tranche won't be paid out.
Berlin appears to be losing influence at the European Central Bank. Leading economist Hans-Werner Sinn, 63, believes that Germany has been 'pushed to the margins' at the institution and that its hardline positions on monetary policy are a thing of the past.