This report from Reuters reveals the thinking of some German lawmakers.
Author: Philip Lane
This week’s edition carries an analysis of the Irish economy: you can read it here.
Although the absolute score for Dublin has declined in the Global Financial Centres Index, its relative position has improved from 13th place to 10th place (other financial centers also face various problems). See the full report here.
The FT has an editorial today that recommends that Irish firms look overseas in order to obtain a more diverse pool of non-executive directors. My impression is that the practice so far has been to primarily recruit non-execs from the US and the UK. A broader geographical range might contribute more to diversity, rather than focusing on countries with very similar approaches to corporate governance.
Axel Weber made an interesting speech last night. He recognises that European fiscal assistance to a member state may be possible, but only under extreme conditions. Moreover, in order to comply with the ‘no bailout’ clause, any loan would have to be conditional (he does not specify the list of conditions).
Key part of the speech:
“It should be emphasised that the “no-bail-out” rule, as stipulated in the EC Treaty, is an indispensable instrument for preventing moral hazard behaviour by the member states. With that in mind, issuing blank cheques would definitely be the wrong course of action.
Yet, EMU is our common destiny. If any kind of help for a member state were necessary in the improbable case of an extreme emergency, the clear conditionality of such support would be essential in order to comply with the Treaty.”