News about the European debt crisis, including commentary and archival articles published in The New York Times.

Chronology of Coverage

Feb. 18, 2015

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

Jan. 23, 2015

Paul Krugman Op-Ed column compares results of economic policy and recovery effort in Europe and America following recession; notes that America, which followed far less austere approach than Europe, is faring better economically; holds that European leaders, in implementing harsh austerity measures, have both misread their situation and behaved irresponsibly. 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

Paul Krugman Op-Ed column challenges conventional wisdom that Europe’s prolonged economic plight is due to the profligacy of member nations like Greece, Italy and France; argues core problem is beggar-thy-neighbor policies in Germany, saying nation has exported deflation to its neighbors and held to a misguided aversion to stimulus measures. MORE

Editorial praises European Union for plan to pump up investment in public works and increase small-business lending, but warns proposal is overly complicated and self-defeating; argues that insistence on maintaining balanced budget, even as economy weakens, risks continued economic stagnation. MORE

Mario Draghi, president of European Central Bank, gives slightly more optimistic assessment of eurozone’s economy; repeats bank is ready to buy government bonds in order to stimulate economy if measures taken so far prove inadequate. MORE

Editorial contends while European Central Bank may be prepared to take additional steps to bolster the eurozone economy, steps it has in mind will not be sufficient to help the millions of unemployed people; holds dire situation requires urgent measures but European officials remain divided and timid. MORE

European leaders, policy makers and economists, as Europe confronts new signs of economic trouble, are starting to challenge Germany’s insistence on budget austerity as precondition to healthy growth; rapidly evolving debate holds potential to be turning point after long period in which country dominated European economic policy. MORE

Europe is facing new economic downturn, with few new ideas emerging for reigniting growth and deepening political divisions over austerity policies that many blame for worsening situation; recovery that took hold in 18-nation euro currency bloc is now reversing itself as Germany, France and Italy, its three largest economies, begin to stumble again. MORE

Paul Krugman Op-Ed column contends French Pres Francois Hollande could and should have led anti-austerity movement, which would have helped both France and Europe as a whole. MORE

Editorial contends that continued misguided policies of European leaders have impeded economic recovery throughout European Union; holds that both monetary and fiscal changes are needed to bring about recovery; adds that governments also need more flexibility and should be taking advantage of low bond yields to increase spending and kickstart their economies. MORE

Paul Krugman Op-Ed column contends economic woes of Europe should serve as a lesson to the United States; maintains stalled growth in Europe is result of European Central Bank doing too little to stimulate economy; laments that Federal Reserve chairwoman Janet Yellen is under pressure to raise interest rates. MORE

Data released by European statistics agency Eurostat shows that growth in euro zone rose 0.2 percent in first quarter, which translates to annual growth rate of 0.8 percent; while data represents fourth straight quarter of expansion, it is half what economists expected; growth is so feeble that it could be years before Europe recovers. MORE

Paul Krugman Op-Ed column reflects on why policy makers and politicians ignored both the lessons of economics and history in addressing the recession caused by the collapse of Lehman Brothers in 2008; maintains most of the vast waste and suffering that have afflicted Western economies since the onset of the recession was unnecessary. MORE

Euro zone governments have brought their combined budget deficits for 2013 in line with their target for the first time since 2008; some economists say meeting the cost-cutting goal has not been worth the price paid in lost jobs and feeble growth. MORE

The Upshot; new data compiled by LIS, group that maintains Luxembourg Income Study Database, offers surprising insight about why Europe came to financial brink; notes that while middle class made significant advances in earning power over last decade in advanced economies, wages for Germany’s working and middle class had intentionally stagnated during that time, leading to imbalance that triggered debt crisis. MORE

Concerns expressed at the World Bank and International Monetary Fund annual spring meetings are less about crisis and more about complacency; while euro zone has re-emerged from recession, emerging market jitters have quieted and American fiscal battles have abated, recovery remains fragile; in many cases, growth remains sluggish, leaving a jobs gap of 62 million. MORE

Floyd Norris Off the Charts column assesses Europe’s economic comeback through car sales, employment and gross domestic product; troubled economies of euro zone have begun to show improvement, although changes are coming, in some cases, from very low levels. MORE

News analysis; German court decision to contest pledge by Mario Draghi, president of the European Central Bank, to buy bonds if necessary to preserve euro currency union has raised more questions than it has answered; decision suggests that European court system suffers from same kind of turf battles that have hampered politics in euro zone and prolonged crisis. MORE

Investors, reassured by austerity programs, are again loading up on European sovereign debt, despite deep recessions and high unemployment across Southern Europe; economies of the 18-member euro bloc fell 0.4 percent in 2013 after 0.7 decline in 2012; mild recovery of 1.1 percent is forecast for 2014. MORE

Investors are piling into the government debt of bailed-out countries like Ireland and Spain; countries are able to sell their bonds at lower interest rates than they have seen in years, renewing hopes that Europe has turned corner; demand comes despite the problems still plaguing the euro zone. MORE

Paul Krugman Op-Ed column criticizes political leaders like George Osborne, Britain’s chancellor of the Exchequer, for claiming that austerity policies have worked, using lackluster global recovery as proof; contends growth would have been more robust without austerity policies, which have been clearly shown to be detrimental to depressed economies. MORE

International Monetary Fund is advocating a more aggressive approach to debt restructuring that would shift some pain to the private sector and away from German-style austerity; it is pushing hard for plan that would impose upfront losses on bondholders the next time euro zone country requests bailout. MORE

Paul Krugman Op-Ed column warns debate over the looming specter of deflation in Europe is becoming very ugly, and seems more like a battle of nations than a battle of ideas; laments that the euro seems to have introduced a climate of anger and disdain on the part of both creditors and debtors, rather than bringing Europe’s nations closer together. MORE

European Union’s top economic policy chiefs, invoking new oversight tools, warn Germany, France and 14 other member countries to address problems with their economies; warnings are largely advisory, and are unlikely to result in the fines allowed for in European rules. MORE

Customs agents at borders of European countries in economic crisis say they are seizing increasing amounts of undeclared cash exceeding 10,000 euros each traveler within European Union is allowed to carry; cash smuggling is following political currents as some Europeans seek to hide their wealth from rising taxes, high-profile tax investigations, and tightening rules at Swiss banks and other traditional havens. MORE

Composite purchasing managers index compiled by Markit Economics comes in at 51.5, up from 50.0 in October; modest growth indicates that Europe’s fragile recovery remains alive. MORE

Economists say there is consistent evidence that worst may be over for Europe’s economy; overdue cleanup of euro zone banks is about to begin, French business confidence is improving, and Spanish economy rose out of two-year recession in third quarter. MORE

Editorial urges European Union to act faster and do much more to end problems plaguing its financial system; contends that move by the EU to give the European Central Bank regulatory authority over large banks in euro zone countries is a good start, but will do little to clean up financial excesses dragging down the zone’s economy; calls for the creation of a centralized system to shut down failed banks and recapitalize failed lenders. MORE

Editorial warns that the politics of populist anger are on the march across Europe, fueled by austerity, recession and the inability of mainstream politicians to revive growth, and could result in strong populist gains in European Parliament elections; contends most effective way to reduce populist anger before it further corrodes European unity would be to loosen the constraints of financial austerity that European Union governments have agreed to at Germany’s behest. MORE

Editorial contends tepid growth of European Union’s economy in the three months that ended in June, which was best quarterly figure since early 2011, indicates austerity policies have prolonged European recession; criticizes those who insist that the faint recovery shows that their austerity policies have succeeded. MORE

European leaders are set to anoint European Central Bank as supreme bank enforcer, but questions are raised about whether Germany and other countries could postpone critical parts of European banking overhaul for political reasons; any delays could prolong a five-year economic slump in much of the euro zone that has driven unemployment to record highs. MORE

Re-election of German Chancellor Angela Merkel is seen as signal to rest of Europe of continued austerity policies; for countries now on economic life support, this would mean yet more painful cuts and tax increases, which in Greece has slimmed job prospects so significantly that over 60 percent of youth are now unemployed; some outside Germany hold out hope that a coalition with Social Democrats could moderate Merkel’s approach. MORE

Editorial holds German Chancellor Angela Merkel’s resounding re-election still leaves unanswered questions about direction she will lead Germany and the European Union over next four years; maintains Merkel’s challenge is to put together a government that will boost consumer demand at home, agree to easier bailout terms for debt-crisis countries and accept a more powerful European banking union. MORE

Floyd Norris Off the Charts column on return of investor confidence in Europe; says survey of investor sentiment in euro zone shows move into positive territory for first time since summer of 2011, but it remains to be seen whether optimism is rooted in complacency or belief that worst is over. MORE

Economic crisis has corroded commercial ties between Germany and the rest of Europe, despite country’s hefty financial support of euro zone’s more beleaguered members; German companies, with the government cheering them on, have turned their attention to faster-growing places like Asia or the United States. MORE

Official data shows Europe broke out of recession in second quarter, bolstered by stronger consumption and investment in Germany as well as growth in France; gross domestic product in euro zone grew 1.2 percent; weak upturn, high unemployment and other problems on Continent leaves open question of whether nascent recovery can last. MORE

Eurostat reports that European factories ramped up their output of consumer durable goods in June; economists say news signals end to recession; industrial production in euro zone rose 0.7 percent. MORE

German banks required more bailout cash after financial crisis than in any other European country except Britain, underlining shortcomings of German banking sector; roughly $860 billion was spent or set aside to rescue nation’s banking system, which is deeply intertwined with politics. MORE

European Central Bank president Mario Draghi offers slightly more upbeat assessment of growth prospects, saying that euro zone has stabilized markedly in past year; bank will leave benchmark interest rate unchanged at record low 0.5 percent. MORE

Memo From Europe; economic crisis has spawned its own language throughout Europe, bringing exotic financial terms into popular use, and generating a darkly humorous slang; changes in language are numerous enough that in June the Spanish Royal Academy updated a dictionary with new terms. MORE

Markit survey finds Europe may be near end of prolonged slump that has pushed unemployment to record highs, but recovery is likely to be slow and recession could persist in some southern countries; manufacturers in Germany and France begin to ramp up production. MORE

Perdasdefogu Journal; longevity of Melis family in Italy has become symbol of way of life that is envied worldwide; with older people in Mediterranean living longer, experts warn that Europe’s debt crisis is exacerbating a growing demographic crisis; in the coming years, there will be fewer workers paying into social security system to support pensions of older generations. MORE

European Union official Michel Barnier offers new compromise with Germany to salvage proposal that would appoint single authority to oversee winding down of Europe’s troubled banks. MORE

Survey by anticorruption group Transparency International finds that less than 10 percent of people in European countries hardest hit by region’s debt crisis feel that their leaders are effective at fighting corruption; results reflect crisis of faith in government since debt crisis crippled economies of much of euro zone beginning in 2008. MORE

European Union officials are expected to unveil detailed plan for dealing with failing banks, which will include centralized decision making and an emergency fund; Germany’s finance minister says proposal for new policies and a central authority to handle failed banks risks making economic problems worse. MORE

Editorial expresses concern about fact that progress toward a European banking union has been delayed by internal divisions within the European Union; contends banking union could provide strong central supervision of banks, and if carried out fully, plan could help restore health to the Continent’s depressed economy. MORE

Floyd Norris High & Low Finance column examines revelation of audiotapes showing that Anglo Irish Bank lied to officials about its finances in order to secure bailout in 2008; holds bank’s malfeasance eventually cost European Union and Irish taxpayers tens of billions of euros, setting unfortunate precedent and laying course for austerity measures that continue to hobble country’s economy. MORE

Jun. 26, 2013

Top bank executives in Greece are poised to potentially strike it rich, even as European taxpayers lament escalating cost of bailout of Greece’s banking system; stock offering will give investors free and potentially lucrative warrants that will entitle them to buy more shares in future at predetermined price, meaning many executives who were running banks will be rewarded despite management missteps. MORE

Op-Ed article by Profs James K Galbraith and Yanis Varoufakis considers possibility that unrest could topple Greek government and bring left-wing opposition to power; says such a shift could prove beneficial in combating failed austerity policies that are jeopardizing growth on Continent; warns without major policy change, total collapse of Greek economy is imminent. MORE

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