News and Reviews European Economic Zone

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News and Review of European Economic Zone (UK)

 

Disappointingly, the rate of UK GDP Located in the Lower Estimates

Tuesday, April 28, 2015

 

Gross domestic product (GDP) grew at a rate UK slower than expected in the first quarter at 0.3%, becoming an important economic indicator last 9 days left before the election. Preliminary estimates from the Office of National Statistics (ONS) showed GDP grew by 0.3% on a quarterly level, below estimates of 0.5% according to a Reuters poll.

 

The data is unlikely to be welcomed by Prime Minister David Cameron, who has made the strengthening of the economy as an important part of the campaign ahead of the elections on 7 May. Sterling weakened towards the range of 1.5185 after the data was released. Respond to these data, David Cameron and Chancellor of the Exchequer George Osborne said the economy was still growing but may not take the risk of recovery

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News and Review of European Economic Zone (UK)

 

House prices in Britain Recording Growth Highest In 10-Months

Wednesday, April 29, 2015

 

House prices in the UK rose in April to the highest monthly rate since June last year, according to the Nationwide survey released Wednesday. Which adds to the signs if the housing market may begin to regain momentum. Nationwide said house prices grew 1.0% in April after rising only 0.1% in March, exceeding all predictions of economists in a Reuters poll.

 

On an annual basis, house prices increased to 5.2% from 5.1% in March. Which is the first rise in annual house price growth in the 7-month.

 

"The condition of a healthy labor market and mortgage interest rates low had helped push demand for housing until the next quarter," said Robert Gardner, Nationwide's chief economist.

 

But Gardner also said that if the level of activity in the housing market is still relatively flat overall, in spite of the surge in house price growth in April. Uncertainty ahead of Thursday's national election next week may also weigh on activity, with mortgage approvals was down about 20% from the level at the beginning of 2014, he added

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News and Review of European Economic Zone (Greece)

 

ECB Raises Ceiling Emergency Funds To Greece

Wednesday, April 29, 2015

 

European Central Bank (ECB) to raise the maximum limit of an emergency fund, Emergency Liquidity Assistance (ELA), for Greek banks. The ECB is also reviewing the steps needed to reduce the risks associated ELA funds weigh the slow progress of negotiations between Greece and its creditors.

 

ECB internal speakers from Bloomberg interviewed explained ceiling emergency fund untu Greek banks added 1.4 billion euros to 76.9 billion euros. The ECB will address the funding requirements of ELA in the meeting on May 6 and one of the measures proposed is to add pieces worn on the proposed bank assets as collateral for loans.

 

This additional liquidity should help Greece which is almost bankrupt and facing some domestic payments to international creditors in the near future. Greece had to pay the wages of employees and retired at the end of the month and arrears of 1 billion euros to the International Monetary Fund (IMF) in early May.

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News and Review of European Economic Zone

 

Lending levels Eurozone Up in March

Wednesday, April 29, 2015

 

Rate loans to people and companies in the euro zone rose for the first time in 3 years in March, according to data from the European Central Bank on Wednesday, scoring the increase is less than 2 months after the ECB launched a program of massive money printing. Loans to the private sector rose as much as 0.1% of post fell by 0.1% in February, according to the ECB. Reuters poll estimate loan rate remained flat at 0.0%, last increase occurred in March 2012. The slowing down of loans to corporations has been difficult for the euro zone economy, although the outlook has improved and policy panel including ECB President Mario Draghi believes that the euro zone is being recovered , Progress is partly due to stimulus schemes worth more than 1 trillion euros to buy government bonds, which pushed the level of confidence despite the political impasse with Greece.

 

Guillaume Menuet, chief euro zone economist at Citi in London, said lending conditions eased dramatically begin to be felt its effects. The improvement in lending conditions are also caused by compression risky lending margins, which indicates that the increase in the level of loan terjadai widely and evenly in the euro zone. M3 money supply rose as much as 4.6% in March, according to the ECB.

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News and Review of European Economic Zone (Germany)

 

German Retail Sales Slips Back in March

Thursday, April 30, 2015

 

German retail sales surprisingly again showed negative figures in March, extending losses recorded in February, according to the federal statistics office Destatis reported Thursday. March retail sales slid 2.3% after falling 0.1% in the previous month. The figure confront the estimated increase of 0.4% from the economists.

 

Nevertheless, German retail sales data assessed as an indicator of the volatile and prone to large revisions. Therefore, the analysts tend to view the monthly figures with caution and consider the average figures in 3 months.

 

On an annual basis, German retail sales recorded an increase of 3.5% in March. While in the first 3 months of 2015, retail sales increased 3.6% compared to the same period last year, Destatis added

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News and Review of European Economic Zone (France)

 

French consumer spending down in March

Thursday, April 30, 2015

 

Total consumer spending in France fell in the month Matey after four months of consecutive rise, the data indicated by Insee on this day.

 

Consumer spending in the country with the second largest economy in the euro zone fell by 0.6% at the monthly level in March as energy consumption fell 3.2% and the household sector less in shopping-marang goods manufacturing, furniture for the home and clothing.

 

However, although the monthly rate fell, to an annual rate of consumer spending rose by 2.1%.

 

After expansion in January of February, consumer spending 1.6% higher in the first quarter than the same period last year, it became the steepest rise since 2009.

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News and Review of European Economic Zone

 

Save the Eurozone ECB Stimulus From Deflation

Thursday, April 30, 2015

 

The rate of consumer inflation in the euro zone put an end to the decline for four consecutive months after the European Central Bank began pumping billions of euros into the region's economy through quantitative easing program hers. The inflation rate stagnating in April from a year earlier post fell by 0.1% in March, according to European Union statistics office in Luxembourg on Thursday. The data is according to analyst estimates. The unemployment rate remained at the level of 11.3% in March. The progress confirms ECB President Mario Draghi that the large-scale asset purchases have successfully demonstrated success in avoiding deflation in the 19 countries of the euro zone. Bank lending rate rose in March for the first time since 2012 and the positive data from Germany and Spain refers to the strength of recovery despite the Greek crisis still weighed on sentiment investors.

 

According to economists, inflation data will rebound during the year, following the normalization of energy prices, while the core inflation rate is still quite low, and it will strengthen the opportunities for monetary easing. The inflation rate in addition to harag energy, food, and tobacco rose by 0.6% from April last year, according to Eurostat. A sharp drop in energy prices have eased.

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News and Review of European Economic Zone (UK)

 

UK Manufacturing Sector Slows, Exports Depressed

Friday, May 1, 2015

 

The growth rate of the UK manufacturing sector unexpectedly slowed last month as the strengthening of the pound suppress the level of demand for British goods overseas. Manufacturing sector PMI dropped to a seven-month low at 51.9 from 54 in March, according to Markit on Friday in London. Mempekrirakan economists rose to 54.6 from 54.4 the previous results at. The level of new export orders contracted for the fifth time in seven months.

 

The pound has gained about 6% this year against the euro, Britain's biggest trading partner, as the European Central Bank to buy government bonds in order to trigger inflation. Data from the Markit amplifies the signal that the UK economy will probably slow as black before the election, after Tuesday's data showed pertumbuh GDP slowed in the first quarter. According to economist at Markit, the global economic slowdown and the strengthening of sterling against the euro suppress competitive exporters in the UK, and a major challenge for the next government is to revive the manufacturing sector and help achieve high levels before the crisis.

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News and Review of European Economic Zone (Greece)

 

Rating Agencies: Greece Will Not Default If Default ECB

Friday, May 1, 2015

 

Most of the major rating agencies say they will not be defaulit Greece cut its rating if it fails to make a payment to the International Monetary Fund or the European Central Bank, measures can continue to maintain the vital flow of funds from the ECB towards the financial system. Greece owes nearly 1 billion euros to the IMF in May and nearly 7 billion euros at the ECB in July and August and there are concerns that the Greek government, the impasse in negotiations with the creditors, will not be able to pay on time.

 

This will make the fate of Greece in the euro zone are unclear and raises the question of whether it can trigger a similar reaction, the possibility of accelerating the maturity date of payment in the private sector and other lenders, helped add to the problems of Greece. But for most of the rating agency, which determines whether the ECB's view can still accept Greek government bonds as collateral on a loan perbankanya sector, failure to make payments to the IMF would not make a Greek default. It is important to maintain the strut mechanism of life, emergency fund ELA provided by the Greek central bank with the approval of the ECB, flowing towards the banking sector mindless ECB will not accept bonds issued by the government default.

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News and Review of European Economic Zone (Germany)

 

Although slowing, the German Manufacturing Sector Still Strong

Monday, May 4, 2015

 

The pace of growth in Germany's manufacturing sector lost momentum in April, but is still in good condition overall, according to the survey results Monday, indicating that the manufacturing sector began to slow, but steady. Markit PMI of manufacturing sector fell to 52.1 from a 11-month high at 52.8 in March, still firmly above the level of 50 for 5 consecutive months and exceeded the previous release on 51.9. Markit economist said that Germany's manufacturing sector slowed in April, but in any case, the figure is the second best result in the last 9 months and this shows moderate growth in the manufacturing sector.

 

New orders continued to arrive, albeit with a slower pace than in March, and output growth slowed, but factories increase the number of their new workers. While the weakening of the euro helps companies to obtain new contracts from abroad with the falling prices of their goods to consumers outside the euro zone, it is nevertheless pushing up the cost of imports for the first time in 15 months.

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News and Review of European Economic Zone

 

Euro zone investor sentiment worsens in May

Monday, May 4, 2015

 

Sentiment in the euro zone deteriorated slightly in May, but analysts and investors are more optimistic about the current situation than any time since mid-2011, according to survey results Monday, indicating that the overall investor ignores the crisis in Greece. Sentix index of consumer sentiment fell to 19.6 in May from 20.0 in April, were slightly below analysts' estimates for the number at 19.8. Senior analyst at Sentix said that the stability index of sentiment is quite impressive considering the future of Greece is still unclear.

 

Discussions between Greece and its international creditors have been running very slowly along the left wing pemeirntah Greece refused trimming pension and labor reform. But the Greek government official said on Sunday that negotiations to obtain the funds have achieved progress. Sentix said its index of investor sentiment that followed in Germany showed weakness for the second consecutive month as the worsening expectations, with the Sentix said it was caused by the strengthening of the euro and the mixed signals from the US economy.

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News and Review of European Economic Zone (Switzerland)

 

Still contraction, Switzerland PMI figures Unchanged

Monday, May 4, 2015

 

When the results of data purchasing managers' index (PMI) other countries negative, Swiss PMI figure it remained strong in April. Business people proved capable of adapting to the strengthening of the French franc exchange rate even though the manufacturing sector is still contracted.

 

Purchasing managers 'index unchanged in April at 47.9 figure, or was above analysts' estimates of 47.7 and economy. However, the index is still near its lowest level in October 2012 and remained below 50 which is defined as a signal contraction.

 

The manufacturing sector is flagging after the Swiss National Bank's decision on January 15, which memcabut rules Franc exchange rate peg of 1.20 per euro level. Since fell in January, the PMI stabilized in the range of 48 points so dispelled anxiety about the recession. While the Swiss currency over the 1:05 range against the Euro throughout April despite weakening during the past few days and now in the 1.0470 area.

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News and Review of European Economic Zone (UK)

 

UK Construction Sector Growth Slows Sharply

Tuesday, May 5, 2015

 

The rate of growth of the construction industry in the UK slowed sharply in April as companies postpone a decision before the election this week, but investor sentiment remains quite high and expects an increase in post-election, according to survey results. Manufacturing sector PMI from Markit / CIPS fell to 54.2 last month, its lowest level in 22 months and down from 57.8 in March, and was under analysts' estimates and following a similar result in the manufacturing sector in April.

 

Seara UK economic growth rate slowed sharply overall in the first quarter of this year, according to data last week, a setback for Perdanga Minister David Cameron who has staked his campaign for re-election on the strength of the recovery. However, economists said the weakening of GDP in the first quarter might be only a seasonal factor and the economy will recover. UK service sector survey, which will be released tomorrow, is likely to give clues about the slowdown at the beginning of the second quarter of 2015. Markit said there are signs that the company's decision to postpone construction spending ahead of the elections on May 7th. But while the confidence level fell from 9-year high in March, the rate of growth of the labor sector improved slightly, signaling that the company expects the construction sector will recover in the near future

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News and Review of European Economic Zone (Greece)

 

European Commission Cuts Growth Projections Greece

Tuesday, May 5, 2015

 

The European Commission cut its forecast for economic growth and primary surpluses Greece on Tuesday and forecast a decline in inflation and the increase in the public debt as a result of the uncertainty of the policy direction of Athens since the end of 2014. The European Commission said today it expects the Greek economy will only grow by 0.5% This year, after growing by 0.8% in 2014, and will berakselarasi to 2.9% in 2016, unless there is a change in policy. Three months ago, the European Commission estimates that Greece will grow by 2.5% this year and 3.6% in 2016 after growing by 1.0% a year ago.

 

The European Commission's quarterly economic projections indicate that positive momentum has been lost by uncertainty since the announcement of the election results in December. The lack of clarity of the direction of government policy and the commitment of the Greek policy in the context of EU and IMF aid was also re-aggravate this uncertainty, according to the report

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News and Review of European Economic Zone

 

Raise European Union Eurozone GDP Projections

Tuesday, May 5, 2015

 

EU economists said the drop in oil prices and stimulus by central banks will produce a more rapid growth rate in the euro zone this year, but the question is whether the European economy can continue to expand at a rate in the long term. Projections from the European Commission, the executive body of the European Union, shows the impact of kawsan debt crisis, high unemployment and the burden of government and corporate debt, the problems of the banking system and weak investment spending, is also likely to reduce the rate of growth in the region over the next few years. Head of the European Commission's economic directorate says that the EU economy has benefited from a number of factors, but whether the economy will be able to create long-lasting growth and balanced when these temporary factors faded, the answer is not necessarily. Remnants of the crisis will continue to be felt for several years, he added.

 

Projections released Tuesday also showed a different fate in the euro zone countries afflicted by the debt crisis. Spain and Ireland economy is expected to grow most rapidly in the euro bloc, while growth in Greece trimmed as the debate between the government and its creditors hurt investor confidence. The European Commission estimates that euro zone GDP will grow at a rate of 1.5%, up from a previous projection of 1.3% in February. They predict growth in the euro area at 1.8%, up from 1.7% in February.

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News and Review of European Economic Zone

 

Eurozone Business Activity Rises in Early Second Quarter

Wednesday, May 6, 2015

 

Activities bsinis eurozone start the second quarter with a robust growth rate of new orders in line strut trigger level of recruitment, according to a survey on Wednesday. The signal strength of the recovery in the euro zone will be welcomed by the European Central Bank, which launched a bond-buying stimulus program worth 1 trillion euros in March, although the survey shows that the number of peruashaan still cut the price. Markit composite PMI is at 53.9 in April, is above the previous release at 53.5, but was slightly below the level of 11-month high in March at 54.0.

 

Chris Williamson, chief economist at Markit, said the fact that the growth rate failed to gain additional momentum is a disappointment, but the variation in the rate of growth will encourage the government and the central bank that the economy is recovering. The PMI figures showed the rate of growth quarter to quarter sebeasr Dair 0.4% for the second half, according to Williamson, which menyamain projected growth rate of the first quarter.

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News and Review of European Economic Zone (UK)

 

UK Service Sector Growth Rate Recovers Ahead of Election

Wednesday, May 6, 2015

 

UK service sector growth rate accelerated in April, according to survey results Wednesday, broke the other signals that perkeonomian slowed only shortly before the election on Thursday. PMI services sector by Markit / CIPS rose to an 8-month high at 59.5 in April from 58.9 in March and well above economists' estimates for a decline to 58.5. Chris Williamson, chief economist at Markit, said the survey results eased fears that the economy is down due to anxiety election results Thursday.

 

A similar survey showed the rate of growth in UK manufacturing and construction slowed in April. And in the first quarter of this year, the rate of growth of the UK economy as a whole slowed to 0.3%. National Institute for Economic and Social Research in the UK on Wednesday also estimates the rate of growth will recover, although the weakening in the first quarter to make projections for the UK growth rate in 2015 is lower overall.

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News and Review of European Economic Zone (Greece)

 

Pay Debt, Greece Anticipated Next Installment

Wednesday, May 6, 2015

 

Greece reported just repaying a loan to the International Monetary Fund (IMF) worth 200 million euros or the equivalent of $ 224.9 million. The news was reported by Reuters on statements of government officials in Athens a few moments ago.

 

The debt payments does not mean to solve the problem that occurred in the past. Although only repay the loan, Greece still has dependents worth 750 million euros ($ 832 million) to the IMF which will expire on 12 May. The Government is not expected to have much money to pay the next installment. Greece will run out of money unless the new loan funds from European lenders could be liquid within the next few days. Pross loan negotiations have so far not see the meeting point, and the Greek government accused the creditors of the IMF and the EU that have hampered the disbursement of money for them

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News and Review of European Economic Zone (Greece)

 

Greece Rejects Trimming Pension Fund, Labor Reform

Thursday, May 7th, 2015

 

Greece denies its international creditors on Thursday by continuing to hold on to his views on pension and labor market reforms and urged the creditors to budge, dimming the prospects for progress in the next week to get a much-needed financial assistance. Despite the efforts of the European Commission President Jean-Claude Juncker to persuade Prime Minister Alexis Tsipras to approve these two conditions for the disbursement of bailout EU / IMF, the Greek government spokesman said that the creditor can not hope that the Athens grant all requests for a deal.

 

Gabriel Sakellaridis said that the creditors should not expect that the Greek government will succumb to all of them. When there is negotiation, both parties must mutually budge, he added. He said that Greece will not exceed the limit, and it was clear that Greece can not cut pensions. Athens will soon run out of funds but is still not able to reach agreement with the creditors reform, which has said that there will be no agreement at the meeting of euro zone finance ministers next Monday. Sakellaridis Greece dims hopes that the finance ministers of the Eurogroup will see progress towards agreement on a joint statement, giving way for the European Central Bank to allow Athens to sell more short-term debt to banks in Greece.

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News and Review of European Economic Zone

 

Juncker: Grexit Anxiety Can Disrupt Markets

Thursday, May 7th, 2015

 

European Commission President Jean-Claude Juncker on Thursday said that he would not increase the chances of a Greek exit from the euro zone, in part due to the impact on financial markets. Asked when the panel debate MEPs about opportunities "Grexit", he replied that, if he says that Grexit an option, roughly what will happen in the financial markets? Earlier, Juncker has denied Grexit option.

 

Other EU officials anxious speculation Grexit possibility would trigger a shift of funds out of Greece that can aggravate the condition of the Greek financial crisis is being searched for a way out. Juncker said he had discussions about Greece with European Central Bank President Mario Draghi on Thursday and will call the Prime Minister of Greece Alexis Tsipras. He said that the discussions between Athens and its creditors are making progress but declined to give details.

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News and Review of European Economic Zone

 

Sapin: EU Will Help Greece Discover Solutions

Thursday, May 7th, 2015

 

Finance Minister of France, Michel Sapin, the instability of the Greek economy could threaten growth in the euro zone so that the European Union (EU) would help Greece find a solution to the Greek crisis. Speaking before the European Parliament committee in Brussels on Thursday (7/5), the instability of Greece will not be a disaster for the euro zone, however, can impede the economic recovery 19-country bloc.

 

Priorities of the euro zone finance menterti still seeking agreement on Greek bailout before the deadline in June. However Sapin also added Athens may still be in need of financial assistance after that.

 

Sapin also suggest new Greek government to find a middle ground between the wishes of the electorate with its commitment to its creditors as a longtime member of the European Union, the Euro zone and the IMF. Related to the Euro Group meeting on 11 May, Sapin wants positive results even though it may not be an agreement.

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News and Review of European Economic Zone (Germany)

 

German Industrial Production Output Below Expectations For March

Friday, May 8th, 2015

 

German industrial production in March was below forecasts as output of basic goods dropped from February, pushing total output to levels last seen in November, a further sign that the recovery is not as strong as we think.

 

Economic Ministry on Friday said that some of the main sectors of the economy, such as the output of the engine and the car, this time losing momentum.

 

Industrial production, which is adjusted for inflation and seasonal changes, fell by 0.5% in March from the previous month. This is contrary to the economic survey conducted by the Wall Street Journak are expected to rise 0.4%.

 

An economist of one of the banks in Europe said that industrial production is clearly moving stagnant, reflecting weak demand from other countries in the Euro zone, in addition to the decline in industrial output was also affected by the decline in investment.

 

Weak global manufacturing bookings in the first quarter and the unstable global growth dampen prospects for production in the coming months

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News and Review of European Economic Zone

 

Liikanen: ECB QE policy Already Stimulate Inflation Outlook

Friday, May 8th, 2015

 

Program of government bond purchases by the European Central Bank has stimulated inflation expectations while the movement in bond yields can be expected in the future, according to one senior ECB, Erkki Liikanen on Friday. ECB start buying government debt, including bonds in March with a monthly rate of 60 billion euros (67.61 billion dollars) to prevent the threat of deflation, or a decline in prices continues and extends the euro zone. Although the bond purchase program, which is currently scheduled to continue at least until September 2016, is still at an early stage, but the program has sparked a positive reaction from the market, according to Liikanen, governor of the Bank of Finland and is a board member of the ECB's policy.

 

The new ECB's monetary policy and their commitment to the program has had an impact by preventing decline and pushed inflation expectations for a slight rise, said Liikanen. The inflation rate is still not at the level it should be, but the direction is correct, according to Liikanen. He also said that the ongoing decline in long-term government bond yields has stopped in recent years, with the current yield rose from a record low. He also added that the market assesses the policy of the ECB, and may be movement in bond yields.

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News and Review of European Economic Zone (UK)

 

UK Trade Deficit Over Width Of Estimates

Friday, May 8th, 2015

 

British perdaagangan deficit higher than expected in March and the deficit widened in the first quarter of 2015, underlining one of the economic problems that must be faced by the next government. Office for National Statistics on Friday said that the deficit in March narrowed to 10 122 billion pounds from 10 799 billion pounds in February which was revised to show deficits larger than previous estimates. Economists forecast a deficit of 9.8 billion pounds in March.

 

Merchandise trade deficit in the first quarter were at 29,905 billion pounds, up from 29 144 billion pounds in the fourth quarter of 2014. Including the UK surplus on trade in services, the overall trade deficit narrowed only 500 million pounds to 2,817 billion pounds in March, but the deficit for The first quarter widened to 7481 billion pounds from 5,968 billion pounds in the fourth quarter. One ONS officials said the widening deficit in the first quarter will probably only slightly slow the pace of overall economic growth. Contrast to this, the trade sector give a boost to gross domestic product in the fourth quarter.

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News and Review of European Economic Zone (Greece)

 

Although Runs Slow, PM Greece Remain Optimistic

Friday, May 8th, 2015

 

Greek Prime Minister Alexis Tsipras expressed optimism on Friday that Athens will soon reach an agreement with creditors that will unlock further aid in bailout EU / IMF hers. Tsipras said that he was confident Greece would soon reach a good end result, and despite the difficulties, but an agreement will soon be reached in Europe. He said that the Greek government to do whatever must be done in order to reach a mutually beneficial agreement with the creditors.

 

Negotiations between Greece and the creditors have been slow since the new left-wing government came to power in January. Lenders have closed the opportunity for an agreement on the next Eurogruop meeting next Monday in Brussels.