Tuesday May 26, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Disappearing inflation heightens Draghi concerns

Eurozone inflation dropped to a fresh five-year low in August, data showed on Friday, something likely to concern the European Central Bank but not force it into immediate policy action.

Consumer prices in the 18 countries using the euro rose by just 0.3 percent year-on-year in August, the smallest increase since October 2009, the European Union’s statistics office Eurostat said.

The number matched market expectations. The ECB targets an inflation rate at below-but-close to 2 percent over the medium term, a level not seen since the first quarter of 2013. It also considers anything below 1 percent over time to be in a “danger zone.”

Inflation moving ever closer toward zero, a stagnating economy, a double-digit unemployment rate and increasing signs of reform fatigue among eurozone governments are posing a tough challenge for the ECB that it says it cannot solve alone.

In a landmark speech at a central banker gathering in Jackson Hole last week, ECB President Mario Draghi said it would be “helpful for the overall stance of policy” if fiscal policy could play a greater role alongside the ECB’s monetary policy.

He got backing on Thursday from German Finance Minister Wolfgang Schaeuble, who told Bloomberg that monetary policy could only buy time and had run out of tools, calling instead for more investment without running excessive deficits.

Others believe the ECB should do more to stimulate growth.

“This is yet another bad indicator of the health of the eurozone economy,” said Aberdeen Asset Management Investment Manager Luke Bartholomew. “We are now relying on Draghi the politician not Draghi the economist to get Europe out of this mess. He is walking a tightrope between conservative European institutions and the markets’ desire for more stimulus. But as every month passes we get closer to the dread of deflation and Draghi looks more and more like Nero fiddling while Rome burns.” [Reuters]

ekathimerini.com , Saturday August 30, 2014 (13:40)  
Overhaul planned for car taxation
Third-country tourists posted major increase up to 2014
Firms write off a tenth of turnover in bad debts
Counter-incentives against early retirement
Ranks of civil service shrink, but not for long
The size of the Greek civil service dipped in the first quarter of the year, continuing the downward trend that started in 2009, but it is expected to grow again, as the government has pledg...
Debt talks resume amid concerns over differences, looming repayment, political upheaval
Government officials on Monday expressed confidence that Greece was close to a deal with creditors that would allow loans to be unlocked but pressure is growing on Prime Minister Alexis Tsip...
Inside News
SOCCER
Berg brace gives Panathinaikos four-point lead
Panathinaikos beat Atromitos on Sunday and took advantage of the goalless draw between PAOK and Asteras Tripolis to open a four-point gap from PAOK at the top of the Super League play-off mi...
SOCCER
Reds add Cup to league trophy with 3-1 win over Xanthi
Olympiakos completed a league-and-cup double on Saturday by beating Xanthi 3-1 in the Greek Cup final at the Olympic Stadium of Athens, that was more balanced than the final score suggests. ...
Inside Sports
COMMENTARY
Greece needs a second election
Most scenarios facing Greece are bleak. The country could default, introduce capital controls, forcibly convert savers’ deposits into bank capital, quit the euro and so forth. But there is s...
COMMENTARY
No more ´quick and dirty´ fixes for Greece
International Monetary Fund Managing Director Christine Lagarde correctly said last week that the protracted negotiations between Greece and its official creditors required «a comprehensive ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Overhaul planned for car taxation
2. Third-country tourists posted major increase up to 2014
3. Firms write off a tenth of turnover in bad debts
4. Counter-incentives against early retirement
5. Halt in payments stifles market
6. Ranks of civil service shrink, but not for long
more news
Today
This Week
1. Overhaul planned for car taxation
2. No more 'quick and dirty' fixes for Greece
3. ND's Bakoyannis fears capital controls over long weekend
4. Brussels Group talks to resume Tuesday with VAT, pension topping agenda
5. Greece calls on creditors to compromise as IMF payment nears
6. Greece needs a second election
Today
This Week
1. Conspiracy madness
2. National self-awareness put to the test
3. Albanian demarche raises concerns about possible territorial claims over Greece
4. Why Greece won't hold referendum on reforms
5. Greek endgame nears for Tsipras as bank collateral hits buffers
6. Hotel contracts with a ‘Greek default clause’
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.