Today Europe: Quo vadis inflation?
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FMI extra dose of austerity

‘IMF expects extra dose of austerity for 2015’

World economy

LISBON | By Diário de Notícias via Presseurop | The International Monetary Fund (IMF) believes that austerity measures taken until now are sufficient to fulfill the deficit targets set for this year and the next, but anticipates more cuts for 2015, writes Diário de Notícias.

Spain in pictures
In Spain

Spain in Pictures: The road to recovery continues

NEW YORK | By JPMorgan analysts | The Spanish economy has been showing clear signs of recovery since the summer, although from very low levels and we see no time for complacency for Rajoy’s government, a risk investors are already highlighting. There are some pending structural reforms in the fiscal, legal and pension sectors, while, in the banking sector, we would encourage a final cleanup to prevent a Japanese-style downturn, regarding which the October deflation data may be a warning. In our view, a more stable legal environment is also necessary for investors in regulated sectors, where banks and utilities are likely to be most affected.

In Spain

Experts Not Convinced By Spain’s Labour Reform

MADRID | By Francisco López | There are increasingly more voices doubting the effectiveness of the labor reform that’s apparently making the Minister of Industry so proud. Qualified labour market experts argue that such reform has been a fiasco and it has not served nor it will serve to meet its main target: the creation of productive employment.

In Europe

German exports: Don’t lash out at ‘Made in Germany’

LISBON | By at Diário Económico via Presseurop | The European Commission has opened a “thorough investigation” into Germany’s export surpluses, which stand accused of damaging the Eurozone’s balance. However, working towards banking union would be wiser, writes Diario Economico’s director.

In Europe

Spanish and Italian inflation wrap-up: Services and food driving inflation down

LONDON | By Barclays analysts | Taking into account today’s downward revision in Spanish HICP, we now revise our October French HICP forecast from -0.2% m/m (0.6% y/y) to -0.1% m/m (0.7% y/y). The Italian final October HICP inflation rate was revised up by 9bps to 0.76% y/y. We note that historical subcomponents indices have been revised since the beginning of the year (although not the headline index). This nonetheless does not alter our view that euro area HICP inflation rate should come in unchanged at 0.7% y/y. If anything, we see slight downside risk to our 116.99 HICP ex tobacco projection.

European Council
In Europe

Is the European Council a Death Boring or an Exciting Summitry?

AMSTERDAM | By at De Volkskrant via Presseurop | A lack of openness in Brussels negotiations is often cited as a cause of the EU’s democratic deficit. But for the “Brussels’ ultimate insider”, historian Peter Ludlow, behind-closed-doors meetings are a cornerstone of EU leaders’ decision-making.