George Magnus News
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If, as opinion polls suggest, the French Socialist Party’s presidential candidate, Francois Hollande, ousts Nicolas Sarkozy in elections this spring, the euro area may be in for a new wave of instability with far- reaching consequences for financial markets and the euro system itself.
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Germany’s push to treat Europe’s financial crisis with austerity may backfire by stifling its exports to the euro area, says Jerome Cahuzac, economic adviser to France’s Socialist presidential candidate.
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Europe’s mounting debt crisis is unlikely to lead a widespread collapse of banks, according to George Magnus, senior economic adviser to UBS Investment Bank in London.
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European leaders are playing a “huge game of brinksmanship” as they grapple over who should shoulder the burdens to resolve the euro region’s debt crisis, said UBS AG’s George Magnus.
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George Magnus, senior economic adviser at UBS Investment Bank, says the European debt crisis "is going to deteriorate" unless policymakers can change their "single minded focus" on austerity. Magnus talks with Bloomberg's Ken Prewitt and Tom Keene on Bloomberg Radio's "Bloomberg Surveillance."
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Policy makers struggling to understand the barrage of financial panics, protests and other ills afflicting the world would do well to study the works of a long-dead economist: Karl Marx. The sooner they recognize we’re facing a once-in-a-lifetime crisis of capitalism, the better equipped they will be to manage a way out of it.
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George Magnus , senior economic adviser for UBS Investment Bank in London, said European Union leaders must restructure Greek debt without further delay.
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Germany’s top central banker cooled speculation that the European Central Bank will extend its role as European leaders pressed their case that a new fiscal accord will deliver the region from its two-year-old debt crisis.
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President Nicolas Sarkozy said that the loss of France’s top credit rating wouldn’t be an “insurmountable” economic difficulty, according to an interview published in Le Monde newspaper.
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Estonia, the newest member of the euro region, will stand by the single currency because its benefits outweigh the uncertainty caused by the region’s debt crisis, said Prime Minister Andrus Ansip.
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