Euro-area jobless data this week will expose the social cost of last year’s debt crisis and recession on southern European economies as unemployment across the region probably rose to a record in December.
Belgium’s budget deficit will overshoot targets set by the European Union as the economy slows, putting pressure on the new government to maintain a tight grip on spending to insulate the country from the euro debt crisis.
Dexia SA, the French-Belgian lender being broken up after requiring two bailouts in three years, is unlikely to have to tap Belgian government guarantees in 2012, said Luc Coene, the head of Belgium’s central bank.
Belgian banks and insurers will not be pushed to accept Greek requests for a rollover of debt that matures after 2020, Luc Coene, the governor of Belgium’s central bank, said in an interview with L’Echo.
The chaos in Greece has resumed and a new election that nobody expects to resolve anything looms. Exasperated European Union officials have begun openly discussing the country’s exit from the euro currency system. This is a grave mistake. Greece’s exit would be no less catastrophic than when the EU called it unthinkable -- and not just for Greece.