02 June 2014

EIM Economic - May 2014

• The spring economic forecast showed a continuing slow recovery.

• The Commission published it long-awaited impact assessment on the massive wave of financial sector reform. My blog pointed out that many of the measures are not yet in force and highlighted the one indisputable fact: the massive economic effects on society.

• Several ECB Council members (Draghi/Praet/Mersch/Weidmann) reflected on the difficulties of conducting monetary policy amidst factors outside the ECB’s control: public finance, banks’ balance sheet adjustment, the legal limits on the bank’s mandate – all coupled with a period of low global inflation.

• The FTT debate raged on – with 10 states deciding they want to do `something’ but unable to agree on what. So the Presidency has given them three basic options and asked for views.

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© Graham Bishop