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Euro Banks: Time for another check-up

The European Parliament yesterday passed legislation clearing the way for the European Central Bank to become the sole supervisor of the euro area’s largest banks next year, an early milestone on the long journey towards a euro area banking union...

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RBS - Is George's Heart Really In A Break-Up?

The UK government’s apparent volte-face over breaking up the 81%-taxpayer-owned Royal Bank of Scotland, revealed by chancellor George Osborne in his Mansion House speech on Wednesday evening, has clearly unnerved markets...

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Euro area economic forecasts: A little light at the end of the tunnel

The euro area remains in the second-deepest recession of its short history. Despite the emergence of a handful of “green shoots”, such as a pick-up in industrial activity and exports in certain countries at the start of the second quarter, sentiment remains...

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Floods in Germany: No impact on ECB policy

In August 2002 Germany was hit by one of its most severe floods in more than a century, causing total estimated damages of €9.2bn (around 0.4% of GDP). While the current floods are unlikely to be as damaging as those...

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Weakness in the euro area's core: Structural or cyclical?

The ECB’s decision in early May to cut its key policy rate to a new record low mainly reflected the deteriorating economic outlook in the euro area’s core. Today’s GDP figures provided a timely reminder of the challenges faced by...

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