Tuesday

26th Sep 2017

Euro has weathered debt storm, Barroso says

  • Barroso: good news, but many investors still think Greece might go (Photo: consilium.europa.eu)

Business investors are confident the eurozone has weathered the worst of the sovereign debt crisis, according to European Commission chief Jose Manuel Barroso.

In a speech given to Portuguese diplomats in Lisbon on Thursday (3 January), the former Portuguese leader said that "the perception of risk in the eurozone has disappeared."

Thank you for reading EUobserver!

Subscribe now and get 40% off for an annual subscription. Sale ends soon.

  1. €90 per year. Use discount code EUOBS40%
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

He added: "Investors have understood that when European leaders commit themselves to doing everything to safeguard the integrity of the euro, they mean business."

His speech comes after Portugal earlier this week became the latest EU country to break ranks on economic policy.

Its president, Anibal Cavaco Silva in his New Year address condemned what he described as the "social injustice" of the country's bailout terms and promised a court enquiry on the subject.

For his part, Barroso acknowlegded that his native country is facing "a true ... social emergency."

Amid criticism that EU-mandated austerity has caused a spike in unemployment across the Union, he conceded that the commission is "willing to analyse the completion of programmes and to make adjustments and do the fine-tuning necessary to minimise social costs."

But Barroso's remarks reflect a growing belief among EU officials that market pressure on the single currency is starting to abate.

Last month, German finance minister Wolfgang Schauble also told reporters the euro has survived the worst of the crisis, following a buy-back deal on Greek bonds.

The optimistic tone was bolstered by a survey out this week.

A poll of 778 investors in December by research group Sentix showed that the business community by and large expects the single currency to stay alive.

One in four respondents said at least one country will leave the euro in 2013. But the figure this is down from one in three in November and from 73.3 percent in June 2012.

Greece remains the country deemed most likely to leave the 17-country curtecy bloc despite the buy-back scheme.

Over one fifth of respondents sill believe that it will leave the eurozone, while 10 percent of those surveyed said Cyprus is the second most likely to go.

But in a statement accompanying the poll, Sentix commented that "investors do not expect a sudden euro end for the above mentioned countries anymore."

EU takes time to ponder tech giant tax

The EU commission published a paper that outlined several options on how to increase tax income from internet companies' activities, but fell short of proposing legislation.

Investigation

EU bank accused of muzzling watchdog

An ongoing review of the the European Investment Bank's "complaints mechanism" could make the oversight branch less independent and less effective.

Stakeholders' Highlights

  1. EU2017EEEU Finance Ministers Agreed to Develop New Digital Taxation Rules
  2. Mission of China to the EUGermany Stands Ready to Deepen Cooperation With China
  3. World VisionFirst Ever Young People Consultation to Discuss the Much Needed Peace in Europe
  4. European Jewish CongressGermany First Country to Adopt Working Definition of Antisemitism
  5. EU2017EEFour Tax Initiatives to Modernise the EU's Tax System
  6. Dialogue PlatformResponsibility in Practice: Gulen & Islamic Thought
  7. Counter BalanceHuman Rights Concerns Over EIB Loan to the Trans Anatolian Pipeline Project
  8. Mission of China to the EUChina Leads the Global Clean Energy Transition
  9. CES - Silicones EuropeFrom Baking Moulds to Oven Mitts, Silicones Are a Key Ingredient in Kitchens
  10. Martens CentreFor a New Europeanism: How to Put the Motto "Unity in Diversity" Into Practice
  11. Access MBAGet Ahead With an MBA Degree. Top MBA Event in Brussels
  12. Idealist QuarterlyIdealist Quarterly Event: Building Fearless Democracies With Gerald Hensel