eurozone

La Cour constitutionnelle allemande lance un ultimatum à la BCE

Source : Les Echos
La Cour constitutionnelle de Karlsruhe a rendu son verdict très attendu sur le programme d’achats d’actifs lancé par la Banque centrale européenne sous Mario Draghi. Si elle estime que la BCE ne s’est pas livrée au financement des Etats, elle déclare que certaines parties du programme sont illégales. Elle lui donne trois mois pour se justifier.

Italy’s crisis and the crisis of democracy in Europe

Before analysing what has just happened in Italy and discussing its likely consequences, it is necessary to say something about the fact of what has just happened.
Italy is supposed to be a parliamentary republic with the Prime Minister and the government accountable to the parliament.
As in other parliamentary republics the Italian President is supposed to be a figure above politics, whose primary function is to safeguard the constitution, which he is sworn to uphold.  He is not supposed to meddle in day to day politics or to take on himself the leadership of the country.

Temer’s pension reforms face stiff opposition

Brazil’s unions have planned a day of struggle to protest Temer’s proposed social security reform bill. The president is already very unpopular in Brazil; polls show voters want him to be accountable for alleged corruption [Xinhua]
Brazilian President Michel Temer is facing a tide of opposition regarding his promise to reform the social security program.
Many among his supporters see the reform initiative as damaging to their relection bids in the general election next October.

Rapid urbanization a challenge for BRICS countries

Major cities in Brazil, China and India are witnessing rapid urbanization [Xinhua]
The Malaysian capital of Kuala Lumpur will next week host the Ninth Session of the World Urban Forum to discuss the challenges societies as more people move to the cities.
The forum titled, Cities 2030, Cities for All: Implementing the New Urban Agenda, will focus on the efforts of major countries, such as China, India, and Brazil to overcome the challenges posed by rapid urbanization.

Economists are playing catch-up with economic reality

Economic growth forecasts for 2018 have been ratcheted higher as data exceeds expectations
Growth rates in BRICS nations such as China and Russia have exceed expectations of the IMF and other forecasts [Xinhua]
The news that China’s GDP growth in 2017 was 6.9 per cent as opposed to the government target of 6.5 per cent and the January 2017 international Monetary Fund (IMF) projection of 6.5 per cent is merely the latest in a sequence of economic data releases that has pushed economists to play catch-up with economic reality.