News and Reviews European Economic Zone

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News and Review of European Economic Zone (UK)

 

UK Service Sector Down to Lowest Level 5 Months

Wednesday, June 3rd, 2015

 

The strength of the British economy back in doubt after the country's services sector activity fell to its lowest level in five months. In the first quarter of last, the British economy grew at its lowest rate since 2012.

 

Markit report on manufacturing activity index fell to 56.5 in May from 59.1 the previous month. The decline was also much larger than economists' estimates for 59.2. Markit previously released data on manufacturing activity index of 52.0, and the construction sector activity index of 55.9.

 

According to Markit data will bring the British economy grew 0.5% in the second quarter, after growing 0.3% in the first quarter. Bank of England in mid-May, has lowered the growth forecast for the UK economy this year to 2.5%, from the previous estimate of 2.9%.

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News and Review of European Economic Zone

 

ECB Liikanen: Continue QE Inflation Target Reached

Thursday, June 4th, 2015

 

The ECB reiterated his commitment to the easing program kuantitative and it was likely to be passed on beyond the end of the period of September 2016. Members of the board of the European Central Bank (ECB), Erkki Liikanen, the media quoted MarketWatch, stated the program of quantitative easing (QE) ECB can be resumed after a month September 2016 ECB inflation target for the euro zone were a little under 2% has not been reached. Liikanen, who is also the Governor of the Bank of Finland, said he wanted to make consistent with the ECB's target inflation permanently.

 

For Liikanen program of buying government bonds with a value of 60 billion euros per month this has a positive impact on the economy of the Euro zone. The stronger inflation expectations and the overall economy of the Euro zone countries begin to recover when compared to a year ago.

 

The manufacturing sector the main countries of Euro zone managed to increase outperformed market expectations in May and for the first time in six months the Euro zone consumer inflation rose in May. As a result, positive economic data from the 19-nation bloc have also contributed to the strengthening of the Euro against other currencies in the pair earlier this week

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News and Review of European Economic Zone (France)

 

French economy Improving, But Still Risky

Thursday, June 4th, 2015

 

The Bank of France said that France's economic growth will exceed the expectations of the country's government and will berakselesari next year and the year 2017. The French economy is expected to grow 1.2% this year, while the French government's official estimate of 1%, and for 2016 by 1.8%, in 2017 by 1.9%.

 

The central bank adds French economic growth will be sustained low oil prices, increased exports following the weakening of the euro, the monetary policy of the European Central Bank, as well as increased corporate profits.

 

However the Bank of France still estimates for uncertainties in the outlook. Investasti meingkatanya business expectations may fade if the company is using increased profits to pay off debts. While consumer spending may be lower than expected if households still save money at the same level today.

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News and Review of European Economic Zone (UK)

 

Bank of England Hold Interest Rates 0.5%

Thursday, June 4th, 2015

 

As predicted by many, the Bank of England (BoE) kept interest rates and the asset purchase program at a monetary policy meeting today. BoE Monetary Policy Committee opted to keep interest rates of 0.5% and asset purchases worth £ 375 billion, while the UK experienced deflation.

 

Data released by the Office for National Statistics on 19 May showed the consumer price index (year-on-year) of -0.1%, or deflation in April. Deflation is the first since 1960.

 

Although demkian BoE board member is not too worrying deflation, and said the consumer price index will recover soon. The latest forecasts from the Bank of England showed inflation target of 2% will be reached in early 2017. The UK economy which last year led growth than the G7 countries also slowed grew 0.3% in the first quarter of this year, with only grew 0, 3%.

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News and Review of European Economic Zone (Greece)

 

Greece Will Holds Early Elections if EU / IMF Not Softened

Friday, June 5th, 2015

 

Greek left-wing government elections may be held earlier if the parties do not loosen the requirements of international lenders of their agreement, according to Deputy Social Welfare Minister Dimitris Stratoulis, a hard-line officials in the government, Friday. He said that the creditors want to impose a strict policy, and if they do not loosen the package "extortion" against the government, perhaps Greece will seek alternative solutions that election.

 

Stratoulis known to be close to the left faction of the party Syriza, and it is unclear whether the statement shows an overall view of the party members. However, the statement underlined the anger against the proposal of the creditors and speculation that Syriza party would look for alternatives in order to avoid to not accept the plan. Greece has delayed payments to the International Monetary Fund debt maturing this Friday as Prime Minister Alexis Tsipras who face the wrath of his left-wing supporters, asking for changes to the difficult conditions of international creditors.

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News and Review of European Economic Zone

 

Consumer interest in the Euro Zone Factory Orders Spur Germany In April

Friday, June 5th, 2015

 

International consumer interest in products of German manufacturing in April increased and it became a catalyst enhancement Factory Orders Data. The low valuation of the Euro as a result of the quantitative easing program (QE) European Central Bank seems to be able to increase the sale value of German exports at the beginning of the second quarter.

 

Monthly German factory orders 1.4% higher in April. This increase was better than expected and the previous report. Before the data was released, the market predicts rise in factory orders only 0.6% of the data for March were revised up from 0.9% higher to an increase of 1.1%. In a detailed report, Destatis detailing overseas orders grew 5.5% with orders for the Euro zone increased by 6.8%. While consumer non-Euro zone increased by only 4.7% and domestic orders fell 3.8% otherwise.

 

Factory orders data is one of the main indicators of production companies. Increased orders will be signaling an increase in the activity of the company and in general can be a positive outlook for the economy of the country.

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News and Review of European Economic Zone (Germany)

 

Bundesbank The German Economy Project Optimistic

Friday, June 5th, 2015

 

Bundesbank more optimistic projecting economic growth in Germany over the low level of unemployment and the increase in the level of consumption. In the six-month projections, Germany's central bank raised its forecast for Gross Domestic Product (GDP) of Germany in 2015 to 1.7% and 1.8% for 2016. This projection is higher than projected in December, namely 1% for 2015 and 1 , 6% for 2016.

 

Europe's largest economies take advantage of the increase in the number of workers, lower global oil prices, and the success of the program of quantitative easing (QE) to stimulate the recovery of the European Central bank. Bundesbank added that the German economy is recovering faster than expected and this recovery will trigger an increase in inflation. Similar to the calculation of the European Union, the German Bundesbank predicts inflation will be in the range of 0.5% for this year, 1.8% in 2016, and 2.2% in 2017

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News and Review of European Economic Zone

 

Chancellor of Germany: Greece Must Want Doing Reform 'Cruel'

Friday, June 5th, 2015

 

Greek debt negotiations has not produced results despite the negotiating parties begin to see the light. Athens government are in great pressure because they do not have the money to pay the mortgage debt maturing today.

 

Post deadlock in the last meeting between Greece and the creditors (the International Monetary Fund, European Central Bank and the European Union), the German Chancellor said that the crisis can only be terminated if there is one party that wants to budge. Especially for Greece, Angela Merkel assess the government should be willing to agree on a bailout scheme specified by the creditor. He also asked Greece to emulate the Irish, who have dared to undertake a policy of 'cruel' for the sake of restoring the national economy.

 

"Ireland will carry out the program (efficiency) is painful, and this is what should be emulated by Greece in order to remain in the euro zone," he told CNN. Merkel itself take part in the process of resolving the crisis given the position of head of state importance as Europe's largest economy. He has held a meeting with the President of France, the Central Bank boss European (ECB) and the head of the International Monetary Fund (IMF) on Monday to discuss the news of the Greek developments. All three agreed to a new bailout clause thrusts with the terms of the austerity program. But until the last meeting yesterday, the Greek government, represented by Prime Minister Alexis Tsipras has not been willing to sign the agreement because it considers the request of creditors too cruel.

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News and Review of European Economic Zone (Germany)

 

Two Important Data Indicate Economic Supremacy German

Monday, June 8, 2015

 

Two German state of economic data released on Monday positive (08/06). In addition to reporting the results of a slick industrial production, trade balance posture of Europe's largest economy is also getting better.

 

German industrial production report exceeded forecasts in April and the trade surplus hit a record high in the same month. Industrial production figures, adjusted for inflation and seasonal factors, increased 0.9% compared to the figure in March 2015 (data Destatis). Increase pass percentage increase expressed by the analysts in the market which amounted to 0.5%.

 

While the trade surplus (adjusted) figure rocketed to 22.3 billion euros ($ 24.74 billion) in April, thanks to the increase in the volume of exports to foreign countries. It is the largest number since the data was first released in 1991 ago. The pace of exports jumped 1.9% compared to March and imports actually declined 1.3%. The second report is an important economic indicator for measuring the performance of the industrial sector and the stability of the German import-export.

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News and Review of European Economic Zone (France)

 

Bank of France: Economy Will Grow With More Speed Slow in Q2

Monday, June 8, 2015

 

French economy will continue to show growth in the 2nd quarter, albeit at a slower pace than earlier this year, according to a survey conducted by the Bank of France on Monday.

 

2nd largest economy in the Euro bloc is expected to expand 0.3% in the April-June quarter, after surging 0.6% in the first 3 months period of this year, according to the central bank of France referring to the latest business sentiment index.

 

For the month of May, reported the French business sentiment index edged up to 99 from 98 in the previous month. In the services sector, the index level of 95 survived in the last month. While the construction sector index rose to 93 from 92 in April.

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News and Review of European Economic Zone (UK)

 

Housing Market Encouraging growth in UK Retail Sales

Tuesday, June 9th, 2015

 

UK retail sales recorded an increase in May, helped by a recovery in the property market, according to a survey released Tuesday. British Retail Consortium report showed the total value of retail sales increased 1.1% after slumping 1.3% in April, when the annual sales hit by Easter shopping time earlier.

 

Details BRC report also showed the strongest increase in furniture sales since July last year, reflecting the growth in the UK housing market. While sales of clothing and footwear recorded the biggest drop since September, as the impact of cold weather in the previous month. While food sales reported to be stable after continued to weaken in the last 6 months.

 

However, the British consumer spending is predicted to continue to rise in the inflation rate in the range of 0% and the slow recovery of the wages of a period of prolonged weakness

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News and Review of European Economic Zone (Greece)

 

Greece Optimistic Reached Agreement, Crop Reluctant Retirement

Tuesday, June 9th, 2015

 

Greece may reach an agreement with its international creditors if they stop asking that include trimming pensions, Prime Minister Alexis Tsipras said in an interview with Italian daily Corriere della Sera on Tuesday. Shows a quieter tone of Athens in recent days, he said the two sides can compromise on the key points agreement, including the amount of the primary budget surplus. But he did not show the signal will accept requests creditors to cut pensions or other social expenditures, repeated comments in recent days.

 

Tsipras said that he thinks Greece is very close to an agreement on the budget surplus promer for several years, but it only takes a positive attitude towards alternative proposals for pension cuts and the imposition of recessionary policies. Comments were released as the creditors of Greece, including German Chancellor Angela Merkel and European Central Bank officials, warned that time is running out. Tsipras will meet with Merkel and French President Francois Hollande on Wednesday to try to break the deadlock that has raised concerns that Greece may be forced to exit from the eurozone, with consequences that are still unknown to the euro and the global economy.

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News and Review of European Economic Zone (UK)

 

British trade deficit narrows in April

Tuesday, June 9th, 2015

 

UK trade deficit narrowed more than expected in April, indicating that the trade sector will probably not hamper the pace of growth in the second quarter, according to data on Tuesday. Office for National Statistics said Britain's trade deficit narrowed to 1.202 billion pounds in April from a revised rose to 3,093 billion pounds in March, the lowest level since March 2014. The trade deficit narrowed to 8,561 goods himself billion pounds of 10 705 billion pounds, which is also the the lowest level since March last year, compared with economists' estimates for a drop menajdi 9.9 billion pounds. UK trade deficit reduces the growth rate of the first quarter of this year amounted to 0.9%, contributing to the expansion rate of gross domestic product as a whole is only 0.3%.

 

Tuesday's data was revised down from the first quarter trade deficit of as much as 219 million pounds, while the trade deficit for the third and fourth quarters of 2014 respectively were revised up almost as much as 1 billion pounds. British exporters faced pressure from weak demand from the euro zone, the UK export destination, and the sterling rallied toward its strongest level in trade basis since August 2008. But Tuesday's data gave hope for recovery, with export volume in April alone rose as much as 4.8 %, the sharpest rise since September 2014. The UK trade sector volatile data for a monthly rate, and the ONS said that in the three months to April, export levels flat after growing by 0.3% in the first quarter, while the level of imports rose 2.1%, the same as in the three months to March.

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News and Review of European Economic Zone (UK)

 

Oil and gas sector Increasing of British Industry Output

Wednesday, June 10, 2015

 

UK industrial output was much higher than expected in April due to the increase in oil and gas production, but pressured by a weakening manufacturing sector in the field of pharmacy, according to government data on Wednesday. Industrial output grew by 0.4%, above the average forecast of economists for a gain of 0.1%, and following an increase of 0.6% in March, according to the Office for National Statistics. The increase will reinforce expectations that the pace of the UK economy will grow faster in the second quarter. However, the output for the manufacturing sector fell as much as 0.4%, depressed by a decrease of 6% in the pharmaceutical sector, which is a correction to the sharp rise in the sector in March.

 

Business surveys and data recently showed the pace of economic recovery will be accelerated in the second quarter after the slowdown at the beginning of the year. Data released on Tuesday showed Britain's trade deficit mennyempit more than expected in April, adding to expectations of a rapid rate of growth in the second quarter. ONS revised upwards its estimate of industrial output in the first quarter to 0.2% from 0.1%. However, the ONS said this did not have a significant impact on the estimate of GDP for the second quarter. Oil and gas extraction naiks ebanyak 8.7% in April, the highest rate of increase since February 2014, as the re-operation of the installation in the North Sea.

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News and Review of European Economic Zone (Germany)

 

Yield Bond Germany Touch Level 1%

Wednesday, June 10, 2015

 

German bond yields touched the 1% level for the first time since September on Wednesday as rising long-term inflation expectations, although the movement up and down past the fixed-income market makes the stock market remained flat. Greek debt drama has also become the focus of investors, with a planned meeting between the leaders of Germany, France and Greece on Wednesday, will undoubtedly produce an agreement after European Union officials said the reform proposals of Athens are still insufficient in order for the lender to disburse aid and prevent a default.

 

Fluctuations in the bond market has made investors anxious in the current European Central Bank is trying to revive the economy and the euro zone as market expectations that the Federal Reserve will take a different path and raise interest rates before the end of this year. The dollar index fell this week, hitting a 3-week low, with analysts saying that terjado debate at the G7 meeting related to the pace of the strengthening of the dollar as the US prepares to put an end to monetary easing. Trader mengatakaan investors have trimmed their positions amid volatility and said the selloff in the bond market will continue.

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News and Review of European Economic Zone (UK)

 

Raise NIESR GDP Estimate rate UK

Wednesday, June 10, 2015

 

UK economic growth accelerated in the period of 3 months until May, recovering from weakness in the first quarter, according to projections at the National Institute for Economic and Social Research on Wednesday. NIESR estimated gross domestic product in the three months to May rose by 0.6% from the previous three months, the fastest growth rate since January and rose by 0.5% in the three months to April. Such estimates in accordance with the recovery of economic growth in the second quarter of this year, according to NIESR.

 

The UK economy grew only by 0.3% in the first quarter of 2015, down sharply from 2014 when the printing annual growth rate of 2.8%, the highest level in eight years and the fastest pace among developed countries. NIESR expects the UK economy to grow by 2.5% this year, slightly above the long term average. Data earlier today showed UK industrial output print higher than expected rise in April as rising oil and gas production.

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News and Review of European Economic Zone (France)

 

Recent French CPI figures released Higher Compared to April data

Thursday, June 11, 2015

 

The French economy began to move faster in the second quarter of 2015. This is implied from the results of the data prices at the consumer level in May, the increase is greater than the period of April.

 

French consumer prices accelerated thanks to rising food prices and service businesses in the tourism sector ahead of the summer. According to the statistics institute Insee, the consumer price index in May rose 0.2% compared to the previous month calculation period. April consumer prices rise only 0.1% per month. Meanwhile, if compared with May last year, the price increase reached 0.3%.

 

HICP figures, resulting from the harmonization of consumer price changes per year, an increase of 0.3% compared to 2014. The percentage that was higher than the increase in HICP April that only 0.1%

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News and Review of European Economic Zone

 

Bailout Negotiations Slow, ECB Throw 'The ball Heat' to Greece

Thursday, June 11, 2015

 

European Central Bank (ECB) pushed the Greek government to immediately sign a bailout deal proposed by the creditors. In an occasion today, the ECB's policy council member Jens Weidmann, asserted that the longer the resolution is not reached, the greater the risk faced by the Greek economy and its own citizens.

 

As quoted by the Wall Street Journal, Weidmann said it has demonstrated its determination to help Greece improve government management through good financial governance. European countries have also been kind enough to raise funds to protect the country from bankruptcy. "But when the more urgent, and the risk is also growing every day," said Weidmann. His comments were in line with other central bank officials said in recent times.

 

One of the ECB's top officials also cited the effects of the Greek crisis could have been handled better than the similar problems experienced by the previous states. But again, the situation could deteriorate if the parties are not seriously looking for a solution Athens crisis. "In the end the most disadvantaged is Greece and its citizens," said Weidmann.

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News and Review of European Economic Zone (UK)

 

Selling Shares of Royal Mail, the UK Government Raup 750 Million Pounds

Thursday, June 11, 2015

 

Britain has amassed worth 750 million pounds by selling half of his 30% stake in Royal Mail, said in a statement Thursday, adding that the government says there is no reason to keep stock on the postal service which is fully owned by the government until 2013 and then it was. Sale of shares in the first phase of the postal service operator 500-year-old two years ago drew criticism from opposition politicians and trade unions who say the company sold too cheaply after its shares surged as much as 87%. Sold in 2013 at a price of 330 pence in one of Britain's biggest privatization for decades, the government release 15% of its shares on Wednesday at a price of 500 pence.

 

The stock sales pushed the share price of Royal Mail to open lower 3.8%, at the level of 497 pence on Thursday. Business Secretariat Sajid Javid said sales showed good value for taxpayers. Royal Mail has shown that he can survive in the private sector, and currently has the ability to access the funds needed to ensure the future of prolonged and can adapt to changes in the postal services market. The government has no more reason to maintain its stake in Royal Mail, he added.

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News and Review of European Economic Zone

 

Germany Braces For Greek Default

Friday, June 12th, 2015

 

Austerity Greece rejected the proposal creditor Germany is now beginning to consider the chances of a Greek bankruptcy, based on the news that Germans Bild newspaper citing sources close to the German government. Advisers of Prime Minister Germans now discuss the steps that need to be done in the face of a Greek bankruptcy, including capital controls the Greek banking clients and trimming debt. German PM Angela Merkel even under pressure from the Christian Democratic party to refuse to provide further aid to the Greek.

 

Greece's international creditors patience dwindling. Media Bild also reported talks leaders of Germany, France, and Greece ended with Greece refused prospoal such as value added tax. Greece's stubbornness made President of European Council, Donald Tusk, asked the Greek PM Alexis Tsipras stopped maneuvering and give firmness is willing to accept the terms of the bailout. Tusk abandon its neutral position as an intermediary for the European Union and signaling the lenders will give an ultimatum in Athens. This can increase the chances of a Greek bankruptcy which may eventually make Athens out of the single currency bloc and potentially shake the stability of the Euro

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News and Review of European Economic Zone (UK)

 

Changed Data calculation, UK GDP Revised Up

Friday, June 12th, 2015

 

British economic growth was stronger than previously estimated in the last year and and early 2015, the British statistical office menrut as announced revision of how to measure the construction sector. Gross domestic product will grow by 3.1% in 2014, up from previous results at 2.8%, according to the revision that was announced Friday by the Office for National Statistics. The ONS said that it has changed the way the calculation of price changes on the sector konstrksi and methods for seasonal adjustments to the data.

 

Output of the construction sector in the first quarter of this year was revised to show a decline of 0.2%, a drop lower than previously reported at 1.1% for the first quarter. In April, the construction sector output fell as much as 0.8% from March, when printing an increase of 1.4%. Compared with last year, the construction sector output rose 1.5%, slowing from a rise of 5.0% in March.

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News and Review of European Economic Zone (UK)

 

McCafferty Signaled BOE rate hike is Nigh

Friday, June 12th, 2015

 

Economic data in the coming months will play an important role in determining when the Bank of England will start to raise interest rates, according to members of the Monetary Policy Committee, Ian McCafferty in a speech released on Friday. McCafferty said the time for the central bank to start raising interest rates from a record low of 0.5% is already approaching. He said that the timing of the first rate hike will depend very much by the time the signal is on economic data in the coming months.

 

Ian McCafferty, one of nine policy board members BOE Monetary Policy Committee, said that the low level of UK inflation is now unlikely to survive. Consumer inflation rate fell as much as 0.1% until April this year, the first annual decline in more than 50 years. McCafferty said the impact of the factors that suppress inflation, including a decrease in oil and food prices as well as the strengthening of the pound, is likely to fade until next year. Recent projections from the BOE showed the annual inflation rate will rise to around 1.7% by the end of next year, only slightly below the BOE target of 2%. McCafferty said that at this time we are now approaching the time at which monetary policy should begin its journey back to normal.

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News and Review of European Economic Zone

 

Euro Zone Industrial Production Sectors Rise Only Thin

Friday, June 12th, 2015

 

The level of industrial production in the euro zone rose only slightly in April, an indication that the weakening euro is still not give rise significantly boost for exporters and an indication that the euro zone economic recovery is still slow. The EU statistics agency on Friday said that the level of production by factories, mines and utilities rose 0.1% than in March, and rose as much as 0.8% compared to the same month last year. The performance indicated that the depreciation of the euro since May 2014 are still not change the fate of the exporters, which dominated much of the manufacturing sector.

 

Data released this week showed pelamahan euro does not seem to encourage economic growth in the first quarter, as the level of imports grew much faster than the export sector. Euro zone economy grew at a rate fixed at 0.4% in the first quarter of this year, and the survey indicates that the rate of growth has been slow in the second quarter. Last week, European Central Bank President Mario Draghi said the number of lost momentum in recent months as the level of demand for exports from the euro zone proved weaker than expected central bank.

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News and Review of European Economic Zone

 

ECB Nowotny: Economic Growth Still Indicate That Slow Recovery

Monday, June 15, 2015

 

Economic growth may still be at a lower level than before the economic slowdown that hit North America and Europe in 2007, said a member of the board of the European central bank governor on Monday.

 

Ewald Nowotny in the conference in an event organized by the Austrian central bank that discusses the prospects for economic growth in the long term to say that we should consider the possibility that the Great recesion have marked the beginning of a new era of trend growth rate is lower.

 

The current monetary policy plays a crucial battle in the "manage fluctuations in demand, in stabilizing prices, output and unemployment," I think it is less important to enhance long-term growth potential of the economy. He added that structural policies, institutions, research research and development plays a significant role.

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News and Review of European Economic Zone (Greece)

 

Discussions Fail, Greece Requesting Party Creditor More Realistic

Monday, June 15, 2015

 

The Greek government continues to request on Monday that the creditor filed a bit more lenient conditions for the bailout deal after the discussion failed, bringing the Athens one step closer to default to the issuing of the euro zone. Recent negotiations failed after the European Commission again rejected the proposal of the Greek in Brussels at the end of last week. The creditors said that the Athens has failed to offer new sesuati to be able to disburse funding for mebayarkan 1.6 billion euros to the International Monetary Fund late June.

 

Following what was said to be the last attempt at a solution, the European Commission said euro zone finance ministers will probably say the issue when meeting on Thursday. Can not stand by tightening over the years, the Athens balks request to raise taxes and slash funds penisun to narrow the fiscal deficit.

In his first comments since the discussion ended up failing, Prime Minister Alexis Tsipras on Monday said it will wait for the lender to be more realistic and accuse lenders ask an unreasonable request. Tsipras told the Greek newspaper Ton Syntakton that there is a political will on the attitude of the creditors are insisting on cuts pension after five years of tightening in the bailout. He said that the Greek side will wait patiently so that the creditors more realistic. Tsipras will meet with his negotiating team on Monday, according to local radio stations Greece. Spokesman for Syriza party said that Greece will not budge from previous negotiating position stressing that the government will not leave the discussion.