Tag: austerity measures

Spain will not follow Greece and Ireland and seek bailout

Spain will not follow Greece and Ireland and seek bailout

Spain’s finance minister has insisted that the country will not follow Greece and Ireland and seek a bailout. In a newspaper interview published today, Elena Salgado said: “Our fiscal adjustment is on track… we have done all the things that we had to do with our financial sector.” She added that Spain is “absolutely not” […]

December 6, 2010 More
BCC revises its forecast for UK economic growth

BCC revises its forecast for UK economic growth

The British Chambers of Commerce (BCC) has revised its forecast for UK economic growth, in light of austerity measures, the euro zone debt crisis, the VAT hike and the weak housing market. Many experts and business organisations have said the tough austerity measures, introduced by the Government to trim the deficit, will undoubtedly hit growth. […]

December 5, 2010 More
Euro zone retail sales pick up in October

Euro zone retail sales pick up in October

Eurostat has today revealed a rise in euro zone retail sales for the month of October, after two months of declines. Retail sales grew 0.5% in October on the month and were 1.8% higher on an annual basis, according to the European statistics office. The increase also beat analysts’ expectations of a 0.2% rise. Europe’s […]

December 3, 2010 More
EU dismisses reports of Portugal seeking bailout

EU dismisses reports of Portugal seeking bailout

Speculation has been mounting that Portugal is under pressure to seek a bailout from the EU rescue fund – however, the country continues to strongly deny the claims. European Commission President, Jose Manuel Barroso, has today also denied reports that the country is looking for a financial rescue package. Mr Barroso said the reports were […]

November 26, 2010 More
Portuguese strikes bring country to a standstill, fears for Spain grow

Portuguese strikes bring country to a standstill, fears for Spain grow

Portugal came to a standstill today after its biggest strike in more than 20 years as workers protested against the Government’s austerity measures. The Government has introduced massive spending cuts and tax hikes, which are currently being pushed through parliament. They are aimed at bringing the budget deficit down to 4.6% next year, from the […]

November 24, 2010 More
Ireland unveils tough austerity measures

Ireland unveils tough austerity measures

Ireland’s Government has today, as expected, outlined its four-year austerity plan, in a move designed to bring down the country’s ballooning budget deficit. Ireland is aiming to save €15 billion (£13 billion) between 2011 and the end of 2014 – 11% of the economy‘s annual output. The measures include a reduction in the minimum wage […]

Borrowing costs surge in Spain and Portugal

Borrowing costs surge in Spain and Portugal

Once again, fears for Portugal and Spain are raised as borrowing costs surge to high levels as Ireland’s debt crisis looks set to spread. Yields on 10-year Portuguese bonds rose to 6.9% – mimicking what happened in Greece and Ireland – just before they were forced to seek emergency aid. Meanwhile, 10-year Spanish bonds surged […]

Greece set to receive third instalment of rescue loan

Greece set to receive third instalment of rescue loan

The International Monetary Fund (IMF) has today announced that Greece has met the conditions of its loan and will therefore receive the third instalment of its bailout loan. In May, the EU and the IMF agreed to loan €110 billion. The three-year rescue deal comprises €80 billion from the EU, with the rest coming from […]

November 23, 2010 More
Ireland in €90bn bailout

Ireland in €90bn bailout

Ireland’s Prime Minister, Brian Cowen, announced last night that his Government has made a formal request for an emergency bailout. In the euro zone’s second emergency rescue this year, Ireland will receive between €80 and €90 billion but the country’s finance minister, Brian Lenihan, said a precise figure has not been determined. The loan will […]

November 22, 2010 More
Ireland in emergency talks as bailout looms

Ireland in emergency talks as bailout looms

Irish finance minister, Brian Lenihan, has today said the country is preparing to make a formal request for an emergency bailout. The exact amount of the loan, which will come from the EU rescue fund, which was established by European Governments and the International Monetary Fund after the Greek debt crisis earlier this year, was […]

November 21, 2010 More
OECD cuts UK economic growth

OECD cuts UK economic growth

Influential think tank, the Organisation for Economic Co-operation and Development (OECD) has today revised its growth for the UK economy, as a result of the Coalition Government’s austerity measures, designed to bring down the budget deficit. However, the revision comes as no surprise as experts have been predicting that the harsh spending cuts will undoubtedly […]

November 18, 2010 More
Eurostat revises Greece’s budget deficit

Eurostat revises Greece’s budget deficit

The European Union’s statistics office, Eurostat, has today said Greece’s budget deficit reached a revised 15.4% of annual economic output last year – higher than the 13.6% reported in April. The revised figure, which is almost two percentage points more than originally forecast, now makes it the largest deficit in the euro zone – even […]

November 15, 2010 More
Euro zone Q3 growth slows

Euro zone Q3 growth slows

The European Union’s statistics office, Eurostat, has today revealed growth in the 16 countries that use the euro slowed in the third quarter. According to Eurostat, the euro zone grew 0.4% in the July to September period, compared with 1% in the second quarter. On an annual basis, growth was recorded at 1.9%. It follows […]

November 12, 2010 More
Ireland unveils measures to trim deficit

Ireland unveils measures to trim deficit

Ireland is the latest in a long line of nations forced to introduce tough austerity measures to deal with its spiralling budget deficit. The country’s Government has outlined €15 billion (£13.1 billion) worth of budget cuts and is aiming to shave the deficit to 3% of GDP by 2014 to keep within euro zone rules. […]

November 7, 2010 More
Euro zone interest rates remain on hold

Euro zone interest rates remain on hold

The European Central Bank (ECB) today elected to keep interest rates on hold at the historic low of 1% – where they have been since May 2009. Interest rates are expected to remain on hold until at least 2011, as a result of uneven growth and low inflation. The news comes after the Bank of […]

October 7, 2010 More
Ireland’s debt rating cut by Fitch

Ireland’s debt rating cut by Fitch

Ireland received yet another blow today after credit agency Fitch cut the country’s debt rating to A+ from AA- with a negative outlook. Fitch said the downgrade was due to massive banking bailouts, which have drained the economy, as well as uncertainty surrounding the fragile recovery. Fitch also cut the short-term foreign currency issuer default […]

October 6, 2010 More
Moody’s warns of further Irish downgrade

Moody’s warns of further Irish downgrade

Credit rating agency, Moody’s, today warned it may downgrade Ireland’s credit rating again, due to its ailing banking system. In addition, the agency said weak economic growth and rising borrowing costs could lead to the further cut. In July, Moody’s cut Ireland’s sovereign bond rating to Aa2 from Aa1. Other agencies, Standard & Poor’s and […]

October 5, 2010 More
Leading economist fears for future of euro

Leading economist fears for future of euro

Nobel prize winner, Joseph Stiglitz, has expressed his concern for the euro and the euro zone’s fragile recovery. Sixty-seven-year-old Stiglitz, the former chief economist of the World Bank, warned that the future of the single currency is bleak, while the region’s recovery is threatened by a series of austerity measures, which have been introduced by […]

October 3, 2010 More
Moody’s downgrade Spanish debt to Aa1

Moody’s downgrade Spanish debt to Aa1

Credit rating agency Moody’s has downgraded Spain’s credit rating today – just a day after unions held a general strike to protest against tough austerity measures. Like many other euro zone nations, Spain has introduced austerity measures, aimed at cutting its budget deficit, which is currently 11% of GDP. Spain aims to reduce the deficit […]

September 30, 2010 More
Romania’s entry into euro zone may be delayed

Romania’s entry into euro zone may be delayed

Romania’s President, Traian Basescu, has today said its entry date for the euro zone may be delayed as it introduces tough austerity measures in order to avoid a Greek-style debt crisis. The country’s current target date for euro zone entry is 1 January 2015 but Mr Basescu said this could be postponed by “one or […]

September 22, 2010 More