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Sunday, December 04, 2011

Another Key Week for Europe

by Calculated Risk on 12/04/2011 05:35:00 PM

This will be an interesting week ...

From the WSJ: Euro Faces Tests From ECB, EU Summit

This Thursday, policy makers at the ECB will gather for a meeting that is widely expected to lead to a reduction in interest rates by at least 0.25 percentage point, to 1%. On Friday, European Union leaders have scheduled a summit meeting, where euro-zone officials are expected to lay out plans to enforce stricter budget rules across the currency bloc in an effort to keep the Continent's turmoil from worsening.

Market observers say the ECB and the EU summit are intertwined. Investors are eager for the central bank to take a more aggressive role in buying euro-zone government debt, driving down interest rates. But unless euro-zone countries overhaul their fiscal policies, the ECB is reluctant to expand its emergency bond-buying...
From the Financial Times: Monti cabinet agrees Italy austerity plans
Rome’s planned tax increases, pension changes and spending cuts amount to a savings of €30bn over the next three years, of which about €10bn will be put back into the economy through measures to promote growth, including cuts in the cost of labour and incentives to get more women and young people into the workforce.
excerpt with permission
Summary for Week ending Dec 2nd
Schedule for Week of Dec 4th