Chronology of Coverage

Mar. 12, 2015

Euro is trading at $1.0567, decline of nearly 13 percent in first months of 2015 that is being greeted by some businesspeople with dread and other with glee; American companies that intend to sell products to Europeans are harmed most by strong dollar, but otherwise United States benefits from currency plunge. MORE

Feb. 25, 2015

European Central Bank Pres Mario Draghi unveils new 20-euro bill that features transparent hologram intended to thwart counterfeiters. MORE

TheUpshot; dramatic reversals amid negotiations over future of Greek sovereign debt recall similar turmoil in Europe in years 2010 through 2012; market activity seems to indicate optimism crisis will be averted, as it was before; data, however, also suggests widely held opinion Europe has true longterm macroeconomic problem in terms of its shared currency and vast economic differences between its northern and southern constituents. MORE

Eduardo Porter Economic Scene column examines state of eurozone in light of growing problems in Greece, Spain and elsewhere; holds those who predicted a single currency would harmonize Continent forgot simple truth that all politics are local, and that eurozone was doomed to turmoil as soon as economic fortunes of member countries diverged. MORE

The Upshot; nineteen nations in euro currency union face stronger pressures to lift their economies as European Central Bank stretches limits of its power with 60 billion euro monthly bond-buying program; bank’s president Mario Draghi says structural change is required; many countries have been reluctant to spend more, preferring to hew to budget austerity. MORE

European Central Bank’s move to buy European bonds is not seen as having much effect on American economy; tourists to Europe will see cheaper spending as euro drops against the dollar; investors will also benefit. MORE

With a $69 billion-a-month bond-buying program, Mario Draghi, the European Central Bank president, is unleashing the bank’s full money-printing powers. MORE

James B Stewart Common Sense column observes that retail prices on imported luxury goods from Europe have not fallen in line with steep decline of euro against the dollar; notes that counterintuitive trend is caused by phenomenon known as ‘incomplete exchange rate pass-through,’ as well as tendency by producers to increase markup to cancel out decline in marginal cost. MORE

Value of Swiss franc soars after nation’s central bank allows it to float freely against the euro, shocking global markets; decision follows steep decline in the euro, and shows turbulent state of a global economy in which many smaller nations are struggling to adapt to monetary activism by the Federal Reserve and the European Central Bank; abrupt action causes Swiss stocks to tumble, with impact falling hardest on exporters. MORE

Editorial notes that euro, which has been sliding against dollar for 12 months, has fallen to nine-year low and is trading at $1.1815, compared to $1.3588 at start of 2013; contends that euro has fallen due to fear among investors that eurozone is stuck in economic quagmire; holds that European leaders are doing far too little to reverse situation. MORE

Euro falls to its lowest level in years, causing big drops in European stocks and stoking fears over whether Europe is near a new economic crisis. MORE

Continuing rise of the dollar against the euro and most other currencies has broad implications for the global economy, reflecting strong relative growth in the United States; euro trades below $1.19, lowest level in nine years; trend could present challenges for US importers, boons for US travelers and could lessen inflationary pressure in Europe and Japan. MORE

Statements by Mario Draghi, president of the European Central Bank, led investors to conclude that the bank would soon buy large quantities of eurobonds. MORE

Lithuania in January 2015 will become 19th country in to adopt euro; analysts and political leaders say it should expedite commerce, end money-changing expenses and help develop new markets to West, but enthusiasm among residents is tepid. MORE

Europe is closely watching Greece as it closes in on unexpected possibility of early general election, results of which could bring political change altering Greece’s relationship to rest of continent and rethinking its participation in European currency; leftist leader Alexis Tsipras has been building on austerity-weary sentiment to argue for break with eurozone. MORE

Top French and German finance and economy ministers, meeting in Berlin, agree only to come up with economic proposals by Dec 1; with concern rising that eurozone is slipping into recession, expectations had been high that leaders might reach grand bargain. MORE

European Central Bank says foreign investment in eurozone rose in 2013 and that there are signs in 2014 that euro is winning back popularity as currency for issuing debt and conducting international transactions. MORE

Hans-Olaf Henkel, former German business leader who has been elected to the European Parliament, calls for abolition of the euro; joins growing wave of popular discontent with European Union, arguing that Germany would be better off returning to deutsche mark. MORE

Editorial contends series of policies announced by European Central Bank to bolster euro zone’s frail economy are unlikely to be sufficient; contends that until euro countries provide stimulus by increasing their spending on public services, instead of cutting spending and increasing taxes, there is little hope for vigorous economic recovery in the euro zone. MORE

European Central Bank rolls out groundbreaking package of new measures intended to put Europe on a path to stronger growth, cutting benchmark interest rate to a record low of 0.15 percent; so-called negative interest rate is intended to encourage banks to put their money to work rebuilding the battered euro zone, and to weaken the euro itself, making exports more competitive. MORE

Lithuania receives passing grade from the European Central Bank and the European Commission on requirements for membership to euro zone; Lithuania may be the last new member of the euro zone until the end of the decade, as none of the other seven European Countries planning to join meet all the criteria. MORE

Germany’s highest court rules that country’s government may participate in European Stability Mechanism, fund set up to help indebted euro zone members, provided that lawmakers are consulted on major contributions; decision is defeat for skeptics of the euro and removes lingering doubts about whether Germany will continue to contribute resources to a rescue fund that has been crucial to survival of the euro zone. MORE

Latvia becomes 18th European country to join currency union and adopt euro; euro zone enlargement is set to slow after Lithuania next adopts currency in 2015. MORE

Latvia becomes 18th nation to adopt euro and first to join euro zone since Estonia in 2011; nation with 2.2 million people keeps alive idea that despite its problems the euro club still has potential to grow; euro is appreciating in value, rising 4.5 percent against the dollar in 2013, its best showing in years. MORE

News analysis; Europe’s slow emergence from its second recession in the last five years is raising new questions about whether the euro currency is doing more harm than good; critics say core of trouble stems from structure of the euro currency union; big worry lately is specter of deflation. MORE

Restrictions on flow of capital in Cyprus as part of country’s bailout plan has given some Cypriots feeling that not all euros are created equal; rules and paperwork involved in transferring money add to cost of many transactions, effectively reducing value of the currency in Cyprus compared with rest of euro zone; most banks in Cyprus have stopped issuing loans altogether because their interest rates are much higher than their neighbors like Germany. MORE

Alternative for Germany, political party calling for end to European currency union, is gaining strength in final six months before country’s parliamentary elections; question remains whether party, started by Hamburg economics professor Bernd Lucke, is experiencing short-lived buzz of political fad or represents beginning of significant movement that could jeopardize struggling euro. MORE

European Central Bank head Mario Draghi rejects suggestions that Cyprus could benefit from giving up euro, while acknowledging that plan to tax small bank deposits in country was mistake. MORE

Europe’s finance ministers meet to discuss their concern over euro as recession continues; currency’s rise is making Europe’s exports more expensive, factor that could hamper growth. MORE

Euro falls sharply against the dollar and yen after European Central Bank president Mario Draghi cites its rising value as a possible threat to the region’s economic recovery; Draghi denies any attempt to influence currency values. MORE

Jeroen Dijsselbloem, newly elected president of group of ministers overseeing euro, pledges to do what he can to heal rift over austerity policies among euro nations. MORE

News analysis; probability of catastrophe in the euro zone has fallen substantially because of a fundamental change in the way European leaders are dealing with the debt crisis; question in 2013 will be whether fragile calm in Europe holds long enough for economic growth to resume, for banks to rebuild their finances and for leaders to make progress creating a more durable currency union. MORE

Floyd Norris High & Low Finance column holds that while global tension about the euro crisis has eased due to assurances that sovereign bondholders will be paid, long-term picture remains daunting; contends real issue facing the euro is whether peripheral countries can become successful economies while staying in the currency zone. MORE

Structural problems surrounding the euro zone will be addressed at the European Union summit meeting in Brussels, but crisis atmosphere surrounding the euro seems to have diminished with promise that Greece will not abandon the currency; general recognition is that the euro seems here to stay. MORE

Major American companies are preparing detailed plans to deal with the possibility of a Greek departure from the euro, even as European leaders repeat assurances that the crisis is manageable and the currency union can be held together; American banks and consulting firms have done a brisk business advising their corporate clients on how to prepare for the possibility of a splintering of the euro zone. MORE

European Central Bank president Mario Draghi faces intense pressure to provide specific details of his plan to shore up the euro zone’s weaker members by buying their bonds, part of an effort to save the common currency from collapse; Draghi’s first test will come after the bank’s governing council meets, and he has to explain whatever the central bank has or has not done. MORE

German Chancellor Angela Merkel pledges during a meeting with Greek Prime Minister Antonis Samaras to support the new Greek government as it struggles to overhaul its economy; stresses that heavily indebted Greece must remain in the euro zone. MORE

Paul Krugman Op-Ed column examines what can be done to save the euro; expresses skepticism that European policymakers will do what needs to be done. MORE

Report by Roger Bootle and economists at Capital Economics in London is the winning entry in a contest to develop a solution to the euro zone crisis; prize in contest sponsored by Simon Wolfson is 250,000 pounds, or $388,000. MORE

European leaders move toward restoring confidence in the euro, taking a significant step toward economic integration and easing market pressure on Spain and Italy, as what appears to be a new coalition of forces pushed Germany to bend; also move swiftly to grant their bailout funds more flexibility to come to the rescue of Spain and potentially Italy; questions quickly arise about issues that are not resolved, especially the zone’s structural imbalances and lack of a lender of last resort. MORE

Eduardo Porter Economic Scene column on the future of the euro in Germany says that Chancellor Angela Merkel must know that dissolving the currency would cost Germany much more than maintaining it, and that ultimately, it will reluctantly help its European neighbors and underwrite the currency’s rescue. MORE

Greek voters are charting the immediate course of their nation’s role in the euro zone, but the euro’s problems look to be longer-lasting; currency has weakened steadily as Europe’s economic crisis has worsened, recently trading near a two-year low at $1.26. MORE

Britain and Switzerland, the two largest European economies that do not use the euro, announce measures to help shelter their countries from the debt crisis that has engulfed Greece and Spain; Britain unveils plans for a special bank-financing effort to increase business lending, while Switzerland says it is ready to take action to keep the value of the Swiss franc from rising further. MORE

Greek elections could soon bring real-world urgency to a debate that had been largely academic: whether the euro zone can withstand the departure of one of its members; some economists say Greece’s departure from the euro will not be that great of a shock because there has been time to prepare. MORE

Floyd Norris High & Low Finance column contends the roots of the euro crisis lie in events 20 years ago, when an experiment with semi-fixed exchange rates broke down under pressure from German monetary policy; states the euro, whether or not it survives, has fostered anger, recession and resentment instead of integration and prosperity; points out Greece and other countries see in this a German conspiracy, while Germany sees a conspiracy to force it to pay for the continuing sins of others. MORE

Op-Ed article by British Parliament member John Redwood contends that the United Kingdom’s decision not to join the euro zone has turned out to be prescient in light of the current financial crisis; argues that countries that wish to stay in the euro zone must demonstrate the ability to curb their deficits so they can finance themselves at market rates. MORE

Op-Ed article by Wall Street executive Steven Rattner asserts that the top priority for the flagging euro zone is to fix the disastrous design flaw in which the 17 members agreed to a common monetary policy without coordinating their budgets and regulations; concludes that if this fundamental problem is not addressed, the crises will continue and ultimately destroy the common currency. MORE

European officials propose linking banking systems more closely under growing international and financial market pressure to fix the region’s problems; plan could demonstrate that governments are willing to cede power to the strong institutions that economists say are needed to stabilize the euro and union. MORE

May. 29, 2012

Pew Research Center survey finds citizens of five euro countries, including Greece, say the euro has not been a good thing for them, but nevertheless do not want to go back to their old currencies; desire to keep the Euro ranges from 52 percent in Italy to 71 percent in Greece. MORE

Tyler Cowen Economic View opines that the world needs to face the danger that the euro could implode, proving that a major economic unit does not work as currently constituted; warns that there appears to be a power vacuum in Europe, with alarming implications; contends the world may be entering a new phase where international cooperative arrangements are commonly recognized as unworkable. MORE

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