eurozone debt crisis
Average euro zone inflation was a provisional 0.7% in October, much weaker than the ECB's official target of "close to but below 2%". It is not just the low level of inflation that has been a concern for the Bank, but the rapid decline in recent months: between July and October the rate fell by 0.9 percentage points, from 1.6% to 0.7%.
George Osborne may be celebrating the International Monetary Fund's decision to boost its UK economic forecasts by more than
Silvio Berlusconi considered pulling Italy out of the euro in late 2011 before European financial officials brought about
Overall, however, given the combination of the ECB's unwillingness to address financial market fragmentation and the current austerity drive in most euro zone countries, we continue to expect a continuation of the economic crisis in the remainder of the year.
By threatening to sour Russian-EU relations and even propel an EU member state into the arms of Moscow, the currency union is reviving tensions between old antagonists.
Deputy Prime Minister Nick Clegg has issued a warning to the Tories to concentrate on fighting the "firestorm" in the eurozone
As far as the big picture is concerned, public reaction this year to Britain's continuing economic troubles has been remarkably static. 2012 has been groundhog year.
The IMF has reached an agreement to reduce Greece's public debt to below 110% of GDP by 2022 and to ensure its repayment. The compromise avoids the need for a haircut on Greek debt held by eurozone governments in the short term. However, the deal, if implemented successfully, exhausts most options available to reduce Greek debt other than an outright write-down of Greek government debt.
France's credit rating was cut by Moody's on 19 November, following a similar move in January by Standard & Poors. Moody's
If we are all going to be taking a larger stake in the restructuring of the European banking system, we have to do it right.