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Not so fast, Ireland’s Makhlouf warns ECB doves (POLITICO)

WASHINGTON — Ireland’s central bank governor pushed back strongly against colleagues looking to lock in a sequence of interest rate cuts in the second half of the year, stressing that the uncertainties around the economy are still far too great. “It is speculating a bit too far to say ‘I feel confident enough about the […]

How Dresden became Germany’s Chips City (POLITICO)

By Pieter Haeck · Mar 26, 2024. This article is part of a special report, The New Factory Towns. DRESDEN, Germany — If Europe’s best manufacturing days are behind it, no one told Dresden. The eastern German city and Saxon capital has become an industrial stronghold, with a world-class microchip manufacturing sector that is attracting […]

France pitches radical joint EU borrowing plan to pay for defense (POLITICO)

By Bjarke Smith-Meyer · Mar 20, 2024 BRUSSELS ― The French government is pushing for the European Union to issue joint debt to pay for increased military spending and is pitching the radical idea to its European counterparts, according to a confidential letter seen by POLITICO. In the diplomatic note, likely to spark fierce opposition […]

Look away: the ECB is about to change its rules of engagement (POLITICO)

By Geoffrey Smith · Mar 12, 2024 ECB policymakers will meet on Wednesday outside of the framework of their usual monetary policy meetings to decide the technical details about how the central bank should operate in the post-QE era. All the signalling from the ECB suggests they don’t want markets to read too much into […]

Asset purchases won’t exclusively mean ‘easing’ for much longer (POLITICO)

By Johanna Treeck, Carlo Boffa · Mar 6, 2024 FRANKFURT — Since large-scale liquidity operations became the norm, markets have become accustomed to treating asset purchases of any sort as a signal that authorities are in monetary easing mode. But that is set to change. Central bank liquidity is now in retreat, which means the […]

ECB eyes floor system with ample liquidity for its new framework (POLITICO)

By Johanna Treeck · Mar 1, 2024 FRANKFURT – European Central Bank policymakers are approaching a “broad consensus” on a new way of steering short-term interest rates and, indirectly, the eurozone economy, people familiar with the discussion told POLITICO. According to central bank officials, the ECB will maintain a so-called “floor system” where “ample” central […]

Critics blast outgoing SNB chief for maintaining bank’s opaque structures (POLITICO)

By Ben Munster · Mar 5, 2024 The acclaimed 12-year run of Switzerland’s retiring central bank governor was tainted by autocratic processes enabled by the opaque decision-making structures of the Swiss National Bank, three prominent economists have said. Thomas Jordan unexpectedly announced Friday that he plans to leave the Swiss National Bank (SNB) in September, […]

EU plans to create war-ready defense-industrial complex (POLITICO)

By Jacopo Barigazzi, Laura Kayali, Joshua Posaner · Feb 27, 2024 BRUSSELS — The EU wants to shift its defense industry onto a war footing, laying out its plan in a 27-page draft of a European Defence Industry Strategy seen by POLITICO. A few of the most far-reaching proposals made during the consultation process — […]