Di Maio says Italy has no risk of speculators’ attacks

Reuters/TGCOM Italy’s Deputy Prime Minister Luigi Di Maio said on Monday there was no risk of speculators attacking the country’s financial markets and that the government was working to stabilise the economic and financial situation.

Di Maio responded remotely to the fears of the Undersecretary to the Presidency of the Council Giorgetti who had explained that he expected a speculative attack on the markets to Italy in August, because “a large part of Italian savings was taken abroad and therefore the management of the various financial ‘titles’ is not domestic “. Be Informed

Germany to increase powers to block foreign investments

The Financial Times reports that Germany is to increase its powers to block foreign investments by significantly lowering the threshold for deals that can be subject to ministerial veto.

The newspaper refers to this as being a further sign of “growing protectionist sentiment towards Chinese acquisitions.”

Berlin can veto deals that involve the purchase of at least 25 per cent of the equity of a German company by an entity from outside the EU, and only if they endanger public order or national security.… Be Informed

Unfavourable external environment, such as growing trade tensions with the US, can dampen confidence and take a toll on economic expansion. – EU Commission 

Growth is set to remain strong in 2018 and 2019, at 2.1% this year and 2% next year in both the EU and the euro area.

However, after five consecutive quarters of vigorous expansion, the economic momentum moderated in the first half of 2018 and is now set to be 0.2 percentage points lower in both the EU and the euro area than had been projected in the spring.… Be Informed

Insight: The Economics of Migration – Lawrence Zammit

In recent days and weeks the issue of migration has been quite a hot issue in the Mediterranean and in the United States. At times the issue was debated more from an emotional perspective than a rational perspective.

The Italian Government has decided to put its foot down and not accept any more ships, which are operated by NGO’s and which pick up immigrants from the Mediterranean Sea, from docking in Italian ports.… Be Informed

Oil Prices push Eurozone inflation

Financial Times:  The surge in the price of oil has pushed eurozone inflation above the European Central Bank’s target, but policymakers in Frankfurt are expected to ignore the rise as broader price pressures across the region remain weak. Headline inflation rose to 2 per cent in the year to June from 1.9 per cent in May, according to a preliminary estimate published by the European Commission’s statistics bureau, Eurostat, on Friday.… Be Informed

EU Summit Agenda- Economy and Finance

EU leaders are expected to adopt conclusions on several issues recently debated under the Leaders’ Agenda, such as digital taxation, tax avoidance and evasion.

Trade will be discussed in light of recent, global and growing trade tensions. The European Council is expected to underline the importance of the multilateral rules-based system, call for improvements to the functioning of the World Trade Organisation (WTO) and emphasise the EU’s positive trade agenda.… Be Informed

Agreement on an economic reform plan for Libya reached

An economic reform plan for Libya was agreed at the Libya Economic Dialogue meeting in Tunis yesterday.

The Libyan Presidential Council (PC) and the Central Bank of Libya (CBL) have agreed on economic reforms that would end “deformed prices of fuel” and “foreign currency rates at the market.”

The agreement came following the eighth meeting for the Libyan Economic Reform in Tunisia in the presence of the US Chargé d’affaires Stephanie Williams.… Be Informed

Insight – Effects of US sanctions not limited to higher oil prices but could spill over into global trade jitters (Diplomatique.Expert)

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Although the immediate response to Tuesday’s announcement of the US withdrawal from Iran’s nuclear deal was a jump in oil prices, most analysts seem to agree that the largest economic cost of President Trump’s decision to reintroduce sanctions will be the potential disruptions it may cause to global trade flows.… Be Informed

Malta needs to depart from the myopic 5-year political cycle – Part 2

In the first part of this series, we argued how both the International Monetary Fund and the European Commission identified certain aspects of the labour market as key challenges to Malta’s economic resilience. In this second instalment, we will look at taxation – another area flagged as a future challenge to Malta by both institutions in their reports.… Be Informed

ECB retains same interest rates

This week, the European Central Bank announced that it will keep its interest rates unchanged. This decision was based on the ECB’s regular economic and monetary analyses. In a statement, the ECB said that it will continue to expect them to remain at their present levels for an extended period of time, and well past the horizon of its net asset purchases.… Be Informed

Unprecedented threats to unprecedented growth

World economy

The IMF released its World Economic Outlook in January 2018, where it expressed satisfaction with global economic growth in 2017, where the world economy expanded by 3.7%. Looking ahead, the Washington-based financial institution expects global growth to reach 3.9% in 2018 and 2019 – the highest such expansion since 2010.… Be Informed

Spain overtakes Italy, and it’s not about football.

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Italy and Spain, often end up ‘fighting it out’ on the football pitch. The past weeks saw Roma and Juventus facing Barcelona and Real Madrid respectively. The matches were the most emotional and had different outcomes for the two countries. But one can easily say that in the past decade, the Italian Serie A was overtaken by the Spanish Liga in terms of its attractiveness and wealth.… Be Informed