On Sunday, voters in Catalonia will go to the polls--an election that could pave the way for a referendum on independence from the rest of Spain. But recent reports suggests that secession could be economically disastrous for the region.
We've been so caught up in the U.S. elections lately that we've forgotten to check out the never-ending debacle in Europe. But there have been a couple developments this week that seem to be rattling financial markets.
This week, the IMF argued that recent efforts among wealthy countries to shrink their deficits — through tax hikes and spending cuts — have been causing far more economic damage than policymakers had realized. It's a massive and important shift for the IMF. But not everyone is convinced.
The Nobel Peace Prize this year went to the European Union, which prompted cackles at a time when the EU, or at least its common currency, appears on the brink of collapse. But if you look past the snark, there's a strong case for giving it the prize.
It's euro-doom time once again. A general strike in Greece. Protesters flooding the streets of Madrid. Talk of secession in Catalonia. What happened? Europe's fundamental problems still haven't disappeared.
In September, Mario Draghi announced a grand plan to save the euro zone. It looked reasonable enough, and the crisis quickly faded from the headlines. But as a new Bloomberg investigation details, there's still a massive bank run in the heart of the euro zone that's threatening to tear the currency union apart.
The German Constitutional Court has approved a new rescue fund for the euro zone. Financial markets are breathing a sigh of relief. The new plan to save Europe can start in earnest! But there's just one problem... a closer look at the plan reveals that it may not be a decisive solution for Europe after all.
Europe will soon need to decide whether to kick Greece out of the euro zone or give it more time to bring down its debts. A recent report suggests that German Chancellor Angela Merkel is ready to do what it takes to keep Greece in the euro. But it won't be easy.
A new report from UBS suggests that peripheral countries like Greece, Portugal, and Spain got far more of a boost from joining the euro than core countries like Germany and France did. And that may explain why the core countries are now so reluctant to bail out their southern neighbors.
German Chancellor Angela Merkel said Wednesday that the euro zone should look to Canada as a model for solving its deficit crisis. And who doesn't love Canada? Still, the analogy seems slightly misguided. Here's why.
There are countless factors that have helped create the crisis in the euro zone. But a big one is the lack of a common language in Europe, which is making it harder for countries to adjust to economic shocks. So how difficult would it be to fix this problem? A few stats might help.
Yesterday, financial markets went into a panic after Mario Draghi, Europe's powerful central banker, declined to intervene in the euro crisis. Today, things have settled down. A closer read of Draghi's remarks suggest that maybe there's reason for optimism after all.
Last week, Europe's powerful central banker, Mario Draghi, said he'd do "whatever it takes" to save the euro. But his policy statement today was a dud. Markets are panicking. So what happened? It looks like Germany might have prevented Draghi from acting more decisively.