Government Policy

  • 2018-03-28 07:30


    -BOE Says Non-UK Firms Can Plan On Delaying Authorisation Until End of Brexit Transition (Dec 2020)

    LONDON (MNI) - The Bank of England welcomed the provisional agreement between the UK and EU over a Brexit transition period and told overseas institutions that they could plan on the basis that they had until the end of the transition period to get authorisation to operate under the new arrangements.

    The Bank's announcement Wednesday is designed to ease the pressure on non-UK financial institutions that want to keep operating here post-Brexit, by stressing that the deadline for authorisation has been pushed back.

    The provisional transitional deal offers an interim period through to December 2020 after the UK leaves the EU in March 2019 under which the cou

  • 2018-03-26 04:00


    By Christian Vits

    FRANKFURT (MNI) - Germany's Ifo Institue, the economic think tank, expects a continued recovery in the euro area during the first half of 2018, it said Monday.

    "Robust economic growth of 0.6% can be expected in the first and second quarters of 2018," according to a joint projection of the Munich-based ifo, KOF (Zurich) and ISTAT (Rome). "Growth will slow down marginally to 0.5 percent in the third quarter," the report said.

    Key drivers of growth are investments, which will benefit from low interest rates and rising capacity utilisation rates. Investments will increase by 1.0%, 0.9% and 0.7% respectively over the first three quarters of 2018, according to the joint forecast.

  • 2018-03-21 08:05


    --Data Show UK Hours Worked Picked-Up In Jan
    --Supporting ex-BOE Bean View Productivity Rise A Blip

    LONDON (MNI) - The latest UK labour market data show a sharp rise in hours worked in November through January, bolstering the view of Charles Bean, a senior official at the Office for Budget Responsibility, that the marked acceleration in productivity growth in the second half of 2017 was a statistical blip.

    The labour market data published Wednesday showed total weekly hours worked rose by 0.6% in November through January on the previous three months, after falling 0.3% on the quarter in the fourth quarter of 2017 and dropping 0.5% in the third quarter.

  • 2018-03-21 07:26


    By Silvia Marchetti

    ROME (MNI) - Potential U.S. duties could negatively impact on Italian exports by E40 billion a year, Confindustria, Italy's leading trade lobby, warned Wednesday.

    In a flash bulletin, the association said that even if the outlook now remains "subdued", the risk that the US may extend duties to the European Union, and therefore to Italy, is of great concern to Italian businesses and could "mar" growth in the country.

    "Italy's recovery is consolidating and consumer and business confidence are at its highest for years, close to pre-crisis levels," said the lobby.

    But even if Italy's industry is now "little exposed to the new U.S.

  • 2018-03-20 02:14


    --Draft Discussion Paper Stresses "Limited Degree" Of Agreement Seen

    BRUSSELS (MNI) - Eurozone heads of state will meet in Brussels Friday for a summit dedicated to the deepening of the Economic and Monetary Union, with two issues set to dominate the talks, MNI has learned.

    According to a draft discussion paper obtained by MNI, the two issues set to dominate the discussion: the possible set-up of a eurozone fiscal capacity and the best way the EU can help to promote national structural reforms.

    Discussions on these issues have shown only a 'limited degree of consensus' so far, the document stresses and expresses hopes that Friday's debate will give clarity on a way forward.

    The idea of a euro-area dedicated fiscal capacity has been pushed for a long t

  • 2018-03-15 05:03


    -Norges Bank Steers Towards Autumn Hike; Downplays Change In Target

    LONDON (MNI) - The Norges Bank left its key policy rate unchanged at 0.5% Thursday and downplayed the impact on policy of its lower inflation target, but gave a clear steer that a rate hike in the Autumn was on the cards.

    The Norges Bank stated that "it will soon be appropriate to raise the key policy rate" with Governor Oystein Olsen providing a steer on timing, saying that "the key policy rate will most likely be raised after summer 2018."

    The central bank's Monetary Policy Report (MPR) mixed caution over a near-term hike, with inflation still well below target, with a clear message that interest rates were heading higher, despite inflation currently undershooting target.

  • 2018-03-15 04:30


    By Silvia Marchetti

    ROME (MNI) - Italy's public debt rose E23.8 billion in January to E2.2799 trillion, while state revenues fell by E1.6 billion compared to the same period in 2017, the Bank of Italy said on Thursday.

    In its regular monthly statistical report, the central bank acknowledged the erratic pace at which public debt was rising, despite the pick-up in growth.

    Overall, 2017 saw a net E36.6 billion rise in debt.

  • 2018-03-09 05:49


    --Document To Be Officially Adopted by Ecofin Mar 13
    --Reflects EU Debate on Taxation of Digital Economy

    BRUSSELS (MNI) - Group of 20 member countries must remain aware of risks in the global economy, build a positive narrative on technological progress and intensify work on tax transparency, European Union finance ministers will say, according to a draft terms of reference drawn up ahead of the Mar 17/20 next meeting.

    The draft document, obtained by MNI, outlines the EU's main request regarding the drafting of the final communique.

  • 2018-03-08 03:06


    --Lega Party Looks to Visegrad Bloc, Greater Sovereignty
    --5 Star Ambiguous, No Will To Reform Europe
    --Conservative Forces Now Seen 'Legitimised' Through Vote

    ROME (MNI) - Italy's push to both reform Europe-wide governance and further the integration process will be weakened following the electoral success of the 'populist' parties, leading political analysts told MNI.

    "The 5-Star Movement and Lega victories have transformed the nature of populism. Now these parties cannot be defined as 'populist' anymore but are established, post-ideological forces with which all other Italian parties and institutions must deal with.

  • 2018-03-05 11:06


    By Christian Vits

    FRANKFURT (MNI) - Bundesbank Board member Andreas Dombret warned Monday against increasing protectionist measures and pleaded for more international cooperation.

    "I think it is vital to acknowledge that, even with some degree of divergence, we should not forget how important it is to remember the repercussions for global and national financial stability if we do not cooperate," Dombret said in a speech in Washington. "This sometimes means that we should accept solutions that are not in our immediate interest."

    "This concerns not least the issue of protectionism. Naturally, structural change poses a daunting challenge to the industrialised world, too," Dombret continued.