European Financial Stability Facility (EFSF)
Commission unveils contentious Eurobond proposals
European Commission unveils three options for Eurobonds in bid to restore stability in Europe; analysts say the measures are politically unviable and ineffective
Draghi exasperated with eurozone leaders over EFSF
European Central Bank president Mario Draghi expresses frustration at delays from member states to issue new powers to eurozone rescue fund
IMF’s European director Antonio Borges quits
Director of European department, Antonio Borges, steps down for personal reasons; succeeded by strategy director Reza Moghadam in shake-up at Fund
Lender of last resort not an option for ECB, say analysts
A financial backstop is needed to address the eurozone crisis, analysts say, but full lender of last resort status for the European Central Bank remains politically unpalatable
Lagarde holds crucial talks with Beijing
IMF managing director Christine Lagarde meets Chinese premier Wen Jiabao to discuss the country’s economic response to the global slowdown; warns international economy could face lost decade of growth
Draghi open to further bond purchases
Bank of Italy governor Mario Draghi says tools for immediate implementation of unconventional measures are necessary for crisis management
Barroso spells out eurozone recovery plan
European Commission president José Manuel Barroso outlines roadmap to eurozone stability in last ditch effort to end the sovereign debt crisis
ECB’s Noyer says larger EFSF ‘unrealistic’
ECB governing council member says EFSF will not be made bigger; is open to schemes that would offer greater leveraging opportunities for money already committed
Germany backs new EFSF powers
Concerns over firepower of European Financial Stability Facility remain despite its new enhanced powers after Berlin passes new legislation with majority vote
Papandreou appeals for German support
Greek prime minister George Papandreou travels to Berlin to seek solution to sovereign debt crisis; due to meet German chancellor Angela Merkel
Regaining confidence essential to euro crisis solution: Finland’s Liikanen
Bank of Finland governor Erkki Liikanen says implementation of European Financial Stability Facility good first step to restoring credibility
ECB's Bini Smaghi on overcoming moral hazard problems
European Central Bank executive board member Lorenzo Bini Smaghi says delicate balance should be kept between maintaining credibility and ensuring stability
German courts stand by Greece bailout
Federal constitutional court rules Greece bailout as legal; clears way for establishment of eurozone bailout vehicle; says parliamentary budget committee must authorise future budgetary plans
EU no-bailout rule must be strengthened, says Buba
German Bundesbank says eurozone bailout reduces incentive to commit to sound fiscal policy; calls for strengthening of no-bailout rule in EU treaty
Austria’s Nowotny fears delay in ratification of EFSF
National Bank of Austria president Ewald Nowotny expresses concern that new European Financial Stability Facility powers will not be phased in by October
Bond markets rally as ECB moves on Italian and Spanish debt
Yields on Italian and Spanish debt fall as European Central Bank signals it will actively implement its bond purchase programme
Barroso calls on eurozone to speed up completion of EFSF legislation
European Commission president José Manuel Barroso says member states must accelerate implementation of EFSF reforms as eurozone sovereign debt crisis spreads beyond the periphery
Euro area leaders face tough choices over Greece
Crucial euro area summit to address funding of second Greece bailout to be held; terms for private sector involvement on agenda
ECB “sidelined” in sovereign crisis debate, says analyst
Eurogroup lays out plans to provide bail-out fund with greater flexibility to address sovereign risks; analyst says message sends signal European Central Bank is being “sidelined” in discussion
Barroso confirms European finance ministers agree to EFSF fund rise
European Council set to meet in Brussels to discuss economic policy change and the Greek crisis; Barroso reveals finance ministers agree to raise European Financial Stability Facility fund
ESM will wrap up restructuring dispute: IMF
IMF says completion of European Stability Mechanism will end unproductive debate on restructuring debt of peripheral countries
Greek budget cuts raise default concerns
Markets prepare for the worst as Athens unveils new tougher austerity measures; IMF managing director Dominique Strauss-Kahn says cuts are necessary
Central bank reserve managers recoil at sovereign risk
Central Banking Publications survey finds fears over sovereign risk led reserve managers to limit or cut exposure to “peripheral” European countries; impact also felt in attitudes towards the euro
Risk Europe: S&P slammed for linking Greece, Portugal downgrades to ESM
Eurozone bail-out vehicle doesn't hurt existing bondholders, EC official argues