BOI Chief Sees Debt Crisis in Spain, Italy as ‘Highly Unlikely’

The euro-region rescue fund should be empowered to bail out banks and buy bonds on the market even though it’s “highly unlikely” that the debt crisis will spread to either Spain or Italy, according to Bank of Italy Director General Fabrizio Saccomanni.

“It would be useful to increase the effective size of the EFSF, which is less than its nominal value, and especially to raise its operative potential,” according to a transcript of a speech Saccomanni delivered today in Berlin. These steps should be taken even in the improbable scenario that the debt crisis extends to bigger countries such as Spain and Italy, he said.

Base metals ends higher on Euro debt crisis

The base metals complex delivered a good performance on the LME last week. Prices were driven by favorable economic data from the US and the Euro Zone released in the last week.

But, prices also took cues from developments on the crisis in Egypt. This led to major concern in the global financial markets and sharp gains further were capped on the back of these worries. The US Dollar Index (DX) closed on a flat note in the last week.

Euro crisis: Germans yearn for their lost Deutschmark

Germans have long felt a nostalgia for their old currency. If you wander through the Christmas markets that thrive at this time of year, you come across stands which still take the Deutschmark. 

You can buy your bratwurst with Germany's old money, which is accepted with a smile and then taken to the bank and exchanged for the true currency of Germany, the euro.

Euro woes give EU's Lisbon Treaty baptism of fire

For many of the EU's citizens, facing job insecurity and public service cuts, the Lisbon Treaty's first birthday this week is hardly cause for celebration.

The treaty's troubled infancy is blighted by deep fissures in the 27-nation EU and a determination already to change the text - however unpalatable that is after eight gruelling years of negotiations.

Angela Merkel in eurozone permanent bail-out vow

Germany's Chancellor Angela Merkel has vowed to implement a permanent bail-out facility amid speculation over a break up of the 16-nation eurozone.