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Cyprus: A Haircut In All But Name

After six months of broad stability in euro area markets, Saturday morning’s announcement by the Eurogroup of its framework for the Cyprus bailout – based on an offer of up to €10bn of multilateral funds...

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Banking union: Deflecting the euro area’s cosmic rock

Credit conditions in the euro area’s periphery continue to deteriorate. Despite the recent marked improvement in banks’ funding positions, highlighted by the large-scale LTRO repayments in January, loans to non-financial companies in the periphery contracted...

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UK inflation: Why wages matter

For a government that took office vowing to deliver credibility to the UK’s economic policy framework, 2013 could not be going much worse. The loss of the UK’s AAA status, the preservation of which George Osborne had placed at the heart of his economic plans...

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ECB: Tailoring rates getting increasingly challenging

Now that the threat of a near-term breakup of the euro area has disappeared, thanks largely to the ECB’s OMT programme, thoughts have turned to the outlook for the ECB’s monetary policy...

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France: How much should we worry?

Following a steady improvement in business sentiment in recent months, yesterday’s flash PMIs provided a reminder of the fragile state of the euro area’s recovery.

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