European Parliament set to get tough on debt crisis

BRUSSELS: The European Parliament will press top officials face to face next week for firmer action to tackle the region's debt crisis, with common bonds and a stronger euro zone rescue fund likely to anchor the debate.

European Central Bank President Jean-Claude Trichet will be questioned on Aug. 29 alongside Eurogroup Chairman Jean-Claude Juncker and Olli Rehn, the European commissioner for economic and monetary affairs, in an extraordinary session of parliament's economic and monetary affairs committee.

Estonian Growth to Slow Due to Euro-Debt Crisis, Ligi Says

Estonia will reduce its growth forecast for next year due to the euro-area’s sovereign-debt crisis, Finance Minister Juergen Ligi said.

Ligi, speaking at a news conference in Tallinn today, didn’t elaborate. The Finance Ministry is due to publish its updated forecast in the middle of September, Katrin Reimann, a ministry spokeswoman, said in a phone interview today.

What Italy tells us about Europe's debt crisis

So we all know Italy is a mess. Its government debt to GDP ratio of 127% in 2010 is the third worst in the OECD (after Japan and Greece). Economic growth is practically nonexistent, with growth surpassing 2% only once since 2001. So is it any surprise that Italy has been tarred as one of the PIIGS and fallen into a debt crisis?

Actually, it is. Yes, Italy has its economic problems, but its government has not been fiscally irresponsible, with a much more conservative record than most other countries in the developed world. In other words, Italy has been gripped by Europe's debt crisis even though it really doesn't deserve to be. That scary fact tells us a lot about where Europe's debt crisis may be headed.