deficit is forecast to remain above three percent of GDP in 2015 and 2016. The cep already highlighted last year in its Default Index the urgent need for action in Finland.
sides needed to make "significantly more" progress. According to Thomsen, Greece could have enough money to meet debt and other commitments until June but would need to reach an agreement before then. cep [...] ,” Kullas said. “For this reason, the European institutions are well advised to prepare themselves for a Greek payment default.”
not preparing for any debt default and the same goes for its lenders," Prime Minister Alexis Tsipras' office said in a statement. cep economist Matthias Kullas, though, argues that the slow progress in the negotiations between Greece and its creditors indicate that the government is actually willing to allow a debt default. “A debt default, however, does not automatically mean an exit of Greece from [...] Greece is preparing itself for declaring a debt default unless it can reach a deal with its international creditors by the end of April, the Financial Times reported citing sources. According to the
. "Of course we know that the liquidity situation in Greece is becoming more and more difficult," he said. The cepDefault Index already showed in January that Greece’s creditworthiness is further
Even though the contagion risks are not as big as some years ago, “an exit of Greece from the euro is not without risk,” cep economic expert Matthias Kullas told Germany’s Focus Online. Nobody is in a position to predict with any certainty how capital markets would react, he remarked. “It’s possible that capital markets will price in a foreign exchange rate risk when handing out loans to euro states, because they’ll act on the assumption that other euro states might also reintroduce a national currency,” Kullas explained. Moreover, Greece would most likely default on part of the loans handed to
close economic relations with Greece. Moreover, Greece would most likely default on part of the loans handed to the country under the financial aid programs from its eurozone peers. This would also [...] Division, email@example.com
absence of equity coverage obligations as well as the absence of large exposure limits for sovereign exposure by banks. Bert Van Roosebeke, cep Head of Division backs the Bundesbank’s call: "The existing situation increases sovereign incentives for borrowing and prevents the necessary decoupling between financial institutions and public finances. In the “Sovereign Default Regime for the Eurozone” , developed by cep in 2013, equity coverage for sovereign exposure by banks is an essential element as well.
Greece only a short breather, anyhow, he argued. The cep already pointed out this fact in its latest Default Index for Greece.
The Vice-President of the EU Commission, Valdis Dombrovskis, responsible for the euro and social dialogue, does not rule out that France could face sanctions if it does not bring its budget in line with EU rules. “All options are on the table,” the Latvian Commissioner said in an interview with German business daily Handelsblatt published Thursday. France needs to cut its structural deficit by 0.8 percent and not only by the 0.5 percent announced by French President Francois Hollande, Dombrovskis made clear. The cep already pointed out last year in its default index that the French government
While other crisis states of the Eurozone are gradually seeing their situation improving, a recovery in Greece is nowhere in sight. The cepDefault-Index for Greece released this Monday shows that the deterioration of the creditworthiness of the country not only continued in 2014 but in fact accelerated. The index has now fallen below the level of 2010, when the country first applied for international help. Co-author Matthias Kullas told German weekly Welt am Sonntag that another debt cut for Greece, which is currently discussed, would make no sense. “Any debt cut would only impact on existing