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Fiscal oversight in the Euro Region is coming their way
Posted By Peter Boockvar On May 18, 2010 @ 8:20 am In MacroNotes | Comments Disabled
In order for the Euro to survive the current travails, all involved know that fiscal budget rules must be followed and enforced unlike the close your eyes mentality of the last 10 years. Today, European finance ministers will likely agree to tough budget rules as “it is now very important to reinforce confidence in the euro economy” according to the EU’s Rehn. Even the French are thinking of raising the retirement age eligibility for pensions in order to save money. If there was doubt about the ECB’s ability to sterilize, it should be put to rest for now as they had 162.7b euros of demand for their 16.5b euros of one week term deposits on offer used to pull out the money they injected into the sovereign bond markets. The euro is higher as are European stocks notwithstanding Germany’s weaker than expected ZEW investor confidence # in their economy 6 months out. US inflation data is out today and Wed with PPI and CPI.
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