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Breakingviews: confidence tricks for the euro zone

Monday, July 23, 2012 - 04:41

July 23 - A quick fix for the confidence crisis is needed; possible options include leveraging the ESM and allowing core countries to subsidise Spain and Italy's interest rates, says Breakingviews

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Today's picks from -- is breaking -- confidence tricks for the Euro zone and don't -- out of futures Singapore -- -- for its British rival with me is Chris Hughes. Quick fix I am -- for the confidence crisis. Is what is needed since Hugo Dixon. But what kind of our quick fixes that -- it. Data might be kind enough to be supplying it somewhat below wall with thing here is clearly it's right. It's. A year is and it is. And -- on these austerity programs. How have. There is damaging side effect of that which needs to be addressed with other measures which is this. This collapse in confidence and it's as -- as content that has various competitiveness of the rule insulate you. This would fail it's all of this Wimbledon ball summit. Which that was the markets to sort through -- you get sort of the increased lowering -- -- -- units of the and then that feeds and see. Economic weakness in the political weakness not altogether and just how this. This this lack of belief that the process it's gonna be resolved but there are things that you that you can do to help explain it. Wallace sticking to the the austerity programs there are other things you can do it. To help them bring down the borrowing costs in this too in particular which. -- essence. This seems pretty explicitly. Give the thumbs down to Juan. Would be to increase the borrowing capacity that yes then kept bailout fund now. In -- that that nobody asked he wants to see that have unlimited access to the BCB. But. Why not allowed to have unlimited access to the market see what -- referenced in the markets buyout would keep the fire power then to tell it to. It's in embrace some of the rating -- that by about the people weren't what -- that -- this very -- -- of actually getting. The tourism minister in Jordan cheap foreign conflict and they see. -- -- -- back to give it back to the to spend that we have got. Yeah barring any heart which which which we've talked about before so as a few years says head arm and balance the statement every parent that's. Like most -- are gonna keep the stick of -- thought there are things you can do in the meantime there are little. Tricks if -- like to use that would help you get to -- the borrowing costs down and as you say this is cross subsidy. The the interest rate. And Brady on shock -- yes then. Within the context of the other rule reform drive in about -- -- -- OK I'm fat ass chicks -- for the NSC. Not happening now we think it's a good fit. Left it's not the right time clearly Tennessee's in the middle of this thing. Big deal getting into clearing with a suits and that -- -- still reading through life. From. -- -- -- Australia. Of the Baltic it's that or perhaps even a -- Celeste is an incredibly premium. For the -- you know on the loose and is that still be making -- decent have some return on investment right mechanic but the trouble is that. Passing -- immediately. With the financial muscle problem is that -- you have to but it cash and says. Did from the some reports from Tennessee which is a bit tricky. Would have to pay -- overview of -- of -- this thing it's not time to you -- And that's also -- problem with the with the best units is. Trading whom they have. Time with with the nonstop him technology at. -- vehicle is -- with that and and and this is busy. Thought that if it will -- better than those interviews and if you find away and they -- over the coming this. Problem with how you extricate himself from. From the of them than not that that was called for it. And this evening. Yesterday at the bit more financial -- You know that there is -- it's not -- -- Chris and thanks for series -- just -- your site what should our US sprint TV show comes on every day twelve birdies in 1730. BSC. I can see all the shares of course on Reuters dot com -- --

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Breakingviews: confidence tricks for the euro zone

Monday, July 23, 2012 - 04:41