Tell us about your transfer We'll tell you who's offering the best rate today...

Market News – Italy Makes Big Changes To Please The ECB

Italy said that it would make big changes to help stabilize its economy and get its deficit under control if it got help from the ECB in regards to its bonds. The ECB helped, set some guidelines for Italy to meet, and that’s what they did.

First, taxes will be higher. People making over 90,000 Euro per year will have a special levy placed on their incomes. Income that is derived from financial investing will also have a special tax on it.

There are quite a few cuts as well. There are many areas where budget spending will be greatly reduced, and the amount of politicians will be reduced in local municipalities.

Silvio Berlusconi was reluctant to make these changes, but he had no other choice – if he didn’t make them, things would just continue to get worse. If this happened, more drastic changes would be needed in the future. It’s better to act now than later.

 

Portuguese Banks Will Meet Minimum Capital Levels

While banks in Portugal are struggling to stay above water, the ECB says that they are confident that the banks will be able to meet the minimum capital requirements that were set when Portugal received their bailout.

Obviously, things in Portugal are very tough right now, but it is understandable – a country is not going to recover from the situation they were in without a little pain. But, before long, of they stick to their plan and a few breaks fall their way, they will be right back on their feet.

 

Europe Short Selling Ban Not The Best Idea

On Friday, short selling was banned in France, Spain, Italy and Belgium. There was talk that this ban was going to spread all over Europe in the coming days, but not everyone thinks it’s a good idea.

It is quite clear that there are some fundamental problems that are causing issues with the European economy, and a simple measure like this isn’t really going to fix anything. It will just delay the inevitable. It is essential to fix the main problems as soon as possible.

We will have to see how the markets go early next week to get a better picture of how the administration will respond to these issues. A temporary short selling ban all over Europe may be the only option to buy more time and find a better plan to fix the whole economy.

Leave a Reply

Your email is never published nor shared. Required fields are marked *

*
Name*:
*
Email*:
Website:
Comment*: