Once again Angela Merkel has tried to close any discussion on the possibility of eurobonds. They are simply “not the answer right now,” she says. This time she gives two reasons: 1) She won’t let financial markets dictate policy, and 2) Eurobonds might sound good, but it will “take years” to establish them and make the required changes in the European Union treaty.
While governments behind the Euro and the US dollar are struggling to gain strength in their currencies, the government in Switzerland have the totally opposite problem – their currency is simply to strong. That’s why the Swiss government have announced to use €1,7 billion to boost the economy and help exporters and tourism related business.
Ohhh, and once again the German, British and French stocks opened lower this morning. London’s FTSE 100 index fell 0,4%, Frankfurt’s DAX fell 1,2% and Paris’ CAC-40 index fell 0,7%.
The European Commission has revealed a draft for a new set of rules that will strengthen border-free rules inside the Schengen area. This means that countries who wants to reimpose internal borders for any period longer than five days will have to obtain permission from Brussels.
EU is expected to announce an embargo on oil from Syria. If confirmed, the EU oil embargo will become the hardest-hitting sanction the West has yet applied to Damascus.