This past Tuesday (March 19th), the German-led Eurozone finance ministers and International Monetary Fund (IMF) offered Cyprus a €10 billion bail-out package. The catch is, this plan requires Cyprus to raise approximately €5.8 billion (almost one-third of Cyprus’ GDP) as its share of the bailout, by Monday (March 25th). Cyprus is a small player in the Eurozone, and in a lot of trouble – could the costs of keeping Cyprus in the Eurozone outweigh the benefits?
The lack of the requisite majority in the upper house has left the election outcome uncertain. However it is clear that Bersani’s promise to end the crush of austerity in Italy in order to get the Italian economy back on track has resonated with the Italian voter. Should Bersani emerge as Prime Minister, Italy will be set for a collision course with Germany and the European Central Bank.
It is now July 2012, almost three years since the chain of events that set in motion what is now called the Euro Crisis and surprisingly enough, the world is still waist deep in the middle of it. In my previous article I attempted to diagnose what was causing the breakup and why there was so little action taken, and regardless of whether it was for those reasons, just from looking at the EUR/AUD exchange rate it’s easy to see that the situation has been deteriorating continuously ever since the end of the global financial crisis and despite several attempts to change things, it has not really improved.
Located in the province of Arezzo, Tuscany, Italy, is the town of Cortona, where Giovanni, son of Tommaso, the wealthiest citizen there in 1421, married his daughter Caterina to the lawyer, Mariotto with a dowry of 420 florins. Four years later his other daughter, Isabetta, was married to the merchant Lazzaro, with a dowry of 300 florins.
I am sure you have heard of the commotion unfolding in Europe, dubbed by many news media outlets as the ‘European sovereign debt crisis’. But what does this all mean? Ric Battelino, Deputy Governor of the Reserve Bank of Australia, spoke in Sydney about the ‘European Financial Developments’ and what it means for the world …