A Euro area action plan
The eurozone summit did not pledge any concrete sums, but only provided a framework. Member states will announce their individual plans today. The UK will nationalise some banks this morning. The euro area agreement consists of three main components: state guarantees of new debt issuance by banks, recapitalisation of banks, and new temporary accounting rules. We think there are no explicit provisions for the non-collateralised inter-banking market, but the ... Full Story »
Posted by Peter Barnett
It is beginning to look increasingly likely that the current financial crisis will give impetus to closer financial and political links within Europe paving the way for a federal European state.