Archives Jan. 1, 2020

The failure of the meeting between the European leaders occurred on March 26th about the measures to be adopted to strengthen the solidarity between State-members and soften the economic consequences of the current outbreak shows to which point the European Union has not assessed the challenges to which it is confronted. So, it risks being one of the main victims. Germany and the Netherland have put their veto to the proposal of nine other States, among which are France, Italy, Spain, Belgium and even Luxemburg, to issue European bonds, the “corona bonds”, assigned to finance the countries which were the ...

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The crisis the world economy is going through is without  precedent. Measures taken to fight against the corona virus outbreak have, as an effect, to stop the economic activity. Household aren’t anymore moving around, which hurts entire sectors: air transport, hotels, airports, restaurants. Shuted up at home, they don’t consume anymore, except to satisfy essential needs and shops, malls and soon markets close. Enterprises have no more clients or spare parts to produce. Home working is only possible for some services activities. To produce, you need to be there. Plants put their workers on unemployment and close. But ...

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In the past, oil crisis were associated with a sharp increase of the barrel price, as at the beginning of the Seventies or in 1979, which had generated an inflationist wave, followed by a restrictive action by the central banks. Through a sharp augmentation of their interest rates, they had caused recessions. These last days, it is the fall of the barrel value, between 30 and 40%, which generates a deep worry. Financial markets, already affected by the corona virus epidemic, have plummeted and the trend was amplified by the American president declarations. Oil company shares or industrial equipments for ...

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