European press roundup: ECB bond-buying plan and Greek elections

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Euranet Plus News Agency Trans-European press review Friday, January 9, 2015

This week, our press review of European media is focusing on the European Central Bank’s plan for the purchase of government bonds of 60 billion euros per month, which was unveiled Thursday (January 22). But also on the upcoming Greek elections, which will take place this Sunday (January 25). The Portuguese analyst on economic and European affairs, Francisco Sarsfield Cabral, described this week as “the euro week”. However, the Latvian newspaper “Diena” focused on another topic: ideas to tackle Russian propaganda within the EU.

The European Central Bank (ECB) announced on Thursday (January 22) its quantitative easing programme to revive the European economy and prevent deflation in the eurozone, with plans to buy 60 billion euros in governments bonds per month, starting from March until September 2016.

Before the ECB announcement, the Portuguese news portal “Sapo” published an opinion by Francisco Sarsfield Cabral, journalist from Euranet Plus partner Rádio Renascença, who stressed that this week might be important for the future of the euro.

Portugal: The Euro week (Sapo)

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Clik here to view.In an opinion published in the Portuguese news portal “Sapo” this week, the journalist said that “the future of the euro and European economies that share the same currency as the Portuguese will depend largely on what is going to happen in the next few days, especially with the ECB’s plan.”

The impact of the ECB’s plan of buying bonds in the market, including debts, on the EU economy would depend on the size of this programme, Cabral reported before the announcement.

He stressed that if the ECB put would buy government bonds only of eurozone countries with a maximum credit rating (Triple A), it would be absurd.

Another hypothesis, explained the analyst, would be that the ECB decided that national central banks, in their case the Bank of Portugal, would buy debt of other EU states.

• Read the entire article in Portuguese – recommend by the Portuguese Euranet Plus member station Rádio Renascença

The Italian newspaper Il Sole 24 ore also reported ahead of the announcement of the ECB’s quantitative easing programme.

Italy: What will be the features of the quantitative easing carried out by the ECB? (Il Sole 24 ore)

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Clik here to view.Before the ECB will communicate its quantitative easing (QE) plan, analysts and insiders are now trying to figure out how the “QE” will be created by the ECB.

And on this topic, there are many open questions, according to the author in Il Sole 24 ore. Especially since the operation promises to be much more complex than those implemented by the central banks of the US, Japan and Great Britain.

The ECB has to deal with 19 countries that, although part of the same monetary area, have governments, economies, public finances and thus public debts which are hugely different.

As far as rating, price, liquidity etc. are concerned, these considerations create doubt about what will be the composition of the purchases of the ECB.

What will be the portion allocated to the individual countries? There may be two criteria: according to the amount of outstanding securities – which would benefit the most indebted countries, like Italy. Or according to shares in the assets of the ECB – and this would mean that the lion’s share should be atllocated to German bonds. It is less likely that the deciding criterion will be based on the ratings, as this would mean a significant reduction in the group of securities affected by the plan.

• Read the entire article in Italian – recommended by Italian Euranet Plus partner station Radio 24 II Sole

Sunday’s election in Greece (January 25) is being watched closely by the financial markets, who fear that a victory of the anti-austerity party Syriza, leaded by Alexis Tsipras, could lead Greece to default on its debt and exit from the euro.

The Greek newspaper Ethnos focused on the important choice that Greek electors have to make.

Greece: Greek choice between realism or hell (Ethnos)

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Clik here to view.Ahead of the Greek parliamentary elections on Sunday (January 25), the EU Commission President Jean-Claude Juncker called on the country to fulfil its obligations towards its international creditors and stick to its reform course.

According to an opinion published in the Greek newspaper Ethnos, Athens should take these warnings seriously: “The experts said that however Greece organizes its public finances, there is no place for conflicts, because without the support of the EU partners, the state coffers will be empty at the beginning of February,” reported the author.

He added: “And apart from not being able to service the international debt of just under 4.5 billion euros, there won’t be any money for salaries and pensions either. The only solution after the elections is to meet our obligations regarding our creditors. The dilemma is simple: realism or hell,” according to his view.

• Read the entire article in Greek – recommended by the Greek Euranet Plus partner station Skaï Radio

Croatia – Pusić: Regime of sanctions on Russia should be linked to implementation of Minsk agreement (Dnevnik)

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Clik here to view.“We will represent and I hope that we will agree that we should talk and clearly define agreements from Minsk, which Russia should respect, including the correct parameters to end the conflict in eastern Ukraine. Fulfilment of these agreements should then tie the gradual reduction of sanctions, since the sanctions were imposed precisely to lead to resolving conflicts and establishing peace,” said the Croatian Minister of Foreign and European Affairs, Vesna Pusic, before the meeting of EU foreign ministers on Monday.

The Croatian daily newspaper Dnevnik reported that the the main topics of the meeting of the foreign ministers of the EU member countries were the relations of the EU with Russia and the fight against terrorism.

“At the hearing on Russia, two basic positions crystallized: one that is more likely to immediately find ways to talk with Russia – and that may go towards alleviating some sanctions. And the other position that thinks the talks should not take place yet, or that sanctions should be alleviated,” Pusić said, adding that these are two little more extreme views.

The High Representative of the European Union for Foreign Affairs and Security Policy, Federica Mogherini, on Monday expressed her concerns about a return to violence in eastern Ukraine and added that the repeal of sanctions against Russia was  not on the agenda.

•  Read the entire article in Croatian – recommended by the Croatian Euranet Plus Partner HRT Radio

The Latvian newspaper Diena published an opinion about the ideas to tackle Russian propaganda within the EU.

Latvia – Rinkevics: Agreeing on Opinions is not going to be Easy (Diena)

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Clik here to view.Even though the EU member states have many ideas on how to counter the propaganda of Russia, it is not going to be easy to agree on opinions and plans, admitted the Latvian  Minister for Foreign Affairs, Edgars Rinkevics, in his conversation with agency LETA, reported Diena.

The minister explained that strategic discussions on countering the propaganda spread by Russia had taken part at the EU foreign affairs meeting which was held on Monday, yet no written decisions have been taken so far.

It is expected that the plans will be entrusted to the European Commission and its European External Action Service (EEAS) and working parties that will work under the management of the Latvian presidency of the EU Council.

The plan itself might be approved in March or April, although everything depends on the progress of the discussions, admitted Rinkevics.

When asked about the ideas expressed during the meeting, Rinkevics pointed out that the invitation of Estonia, Lithuania, Denmark and UK, which Latvia has not joined, as well as other plans, including establishing a new TV channel and cooperation with journalists.

• Read the entire article in Latvian – recommended by Latvian Euranet Plus partner station Latvijas Radio

UK: Thousands of Britons on benefits across EU (The Guardian)

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Clik here to view.The British newspaper The Guardian published research showing that almost 65.000 EU nationals are getting Jobseeker’s Allowance (JSA) in the UK, compared to around 30.000 Britons claiming unemployment benefits elsewhere in the EU.

The research shows more than four times more Britons obtain unemployment benefits in Germany as Germans do in the UK, while the number of jobless Britons receiving benefits in Ireland exceeds their Irish counterparts in the UK by a rate of five to one.

In general, the benefits elsewhere in Europe are much more generous than in the UK. A Briton in France receives more than three times as much as a jobless French person in the UK.

The research is being published after the German chancellor, Angela Merkel, visited London this month and met with the Prime Minister, David Cameron, who is campaigning to “reform” EU freedom of movement as part of his attempt to rewrite the terms of Britain’s EU membership before putting the issue to a referendum in 2017, if he is still in power.

• Read the entire article in English – recommended by the Euranet Plus News Agency

• Author: Laeticia Markakis, Euranet Plus News Agency

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