Economy

Spanish police crack counterfeit 100-euro note operation

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Spanish police crack counterfeit 100-euro note operation

Spanish police arrested 14 individuals for producing and distributing counterfeit 100 euro bank notes valued at one million euros, which were undetectable by ATMs and other devices. The counterfeit notes, described as very high quality due to the use of special inks, watermarks, and other elements, were distributed by a gang of Pakistani origin based in Naples, Rome, and Barcelona across Italy, France, Greece, and Spain. Arrests included individuals carrying 70,000 euros in counterfeit notes at Barcelona airport and the city bus station. The operation, involving forces from Spain, Italy, and Greece, began in November after the discovery of a large number of counterfeit notes in Barcelona.

Moldovan breakaway region asks Russia to protect its economy from pressure

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Moldovan breakaway region asks Russia to protect its economy from pressure

Officials from the Russian-backed Moldovan breakaway region of Transdniestria have requested Russia’s assistance to counteract what they claim is economic pressure from the Moldovan government. This request was formalized through a resolution passed by the “congress of deputies of all levels” in Transdniestria, which includes several ministers from its government. The resolution appeals to the Federation Council and the State Duma of Russia for protective measures against Moldova’s increasing pressure. Transdniestria, an unrecognized statelet bordering Ukraine, has been autonomous from Moldova for three decades with Moscow’s support, including the presence of over a thousand Russian troops. Moldova introduced customs regulations requiring Transdniestrian companies to pay import duties to the Moldovan budget, reducing Transdniestria’s customs revenues by 18%. The resolution claims this constitutes social and economic pressure that violates European principles on human rights and free trade. Moldovan government spokesman Daniel Voda criticized the congress as a propaganda event.

EU countries block supply chain audit law at last hour

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EU countries block supply chain audit law at last hour

European Union countries blocked new rules requiring large companies to check their supply chains for forced labour or environmental damage due to opposition led by Germany. A ‘qualified majority’ was needed for the corporate sustainability due diligence directive (CSDDD) to proceed to a final vote in the European Parliament, but not enough support was garnered. Germany’s Free Democrats (FDP) argued the law would impose excessive bureaucracy on businesses. Thirteen EU members abstained and one voted against the law. This was the second attempt by Belgium, holding the rotating EU presidency, to secure backing for the directive. The CSDDD, set to enter force in 2027, mandates large companies in the EU to identify and address forced or child labour and environmental damage in their supply chains. The rules would apply to companies with more than 500 employees and a net worldwide turnover above 150 million euros.

UK job vacancies fall 15 per cent year-on-year in January, Adzuna data shows

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UK job vacancies fall 15 per cent year-on-year in January, Adzuna data shows

British employers advertised the fewest jobs in nearly three years last month, with a 15% decrease from the previous year, according to Adzuna. The official jobless rate was at 3.8%. The Bank of England aims to slow wage growth from rates of more than 6% to reduce inflation. Job vacancies in Britain were reported at 867,436 in January, the lowest since April 2021, down from over 1 million a year earlier. The number of job seekers per advertised vacancy rose to 1.81 from 1.48 a year earlier. Preliminary data for February suggested the number of vacancies was stabilising. The average starting salary for positions advertised was 38,168 pounds, a 3.0% increase from the previous year.

Cyprus establishes administrative services supervisory body

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Cyprus establishes administrative services supervisory body

The Cabinet approved the establishment of a unified supervisory authority for administrative service providers in Cyprus, aimed at enhancing oversight and protecting the nation’s reputation. This authority will be overseen by the Cyprus Securities and Exchange Commission, in collaboration with the Institute of Certified Public Accountants of Cyprus (ICPAC) and the Cyprus Bar Association. It will conduct joint inspections with relevant supervisors and strengthen the governance of administrative service-providing companies by defining service providers and limiting the number of companies served. The authority will also address sanctions violations and implement preventative measures, with fines and other penalties for violations.

Saudi Arabia denies its commerce minister met with Israeli counterpart at WTO talks

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Saudi Arabia denies its commerce minister met with Israeli counterpart at WTO talks

Saudi Arabia denied a meeting between its Commerce Minister Majid bin Abdullah al-Qasabi and Israeli Economy and Industry Minister Nir Barkat, attributing their interaction at a World Trade Organization conference in Abu Dhabi to an unexpected greeting by Barkat, who identified himself afterwards. The incident was notable due to the absence of formal relations between Saudi Arabia and Israel, despite efforts by the United States to foster closer ties. Saudi Arabia reaffirmed its support for the Palestinian cause in response to the incident.

Eurozone bonds dance to the beat of US markets

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Eurozone bonds dance to the beat of US markets

Eurozone bonds are trading in sync with US bonds, with correlations between the markets reaching a record high. The 52-week correlation between German and US two-year bond yields has hit a record, with longer bonds also showing high correlations. The US economy has grown more than Europe’s, with US GDP rising 2.5% and Eurozone GDP growing 0.5% in 2023. Inflation, which surged in both regions in 2021, has become a key focus for markets. The Federal Reserve raised rates in March 2022, followed by the European Central Bank in July. Inflation peaked at 9.1% in the US in June 2022 and at 10.6% in the eurozone before falling to around 3% in both regions. The US bond market, with .9 trillion of government securities outstanding, influences global borrowing costs. Investors expect the correlation between Eurozone and US bonds to decrease as macro and policy outcomes diverge. The European Central Bank is anticipated to cut interest rates in April, ahead of the Federal Reserve in June.

Limassol Chamber of Commerce discusses labour shortages with minister

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Limassol Chamber of Commerce discusses labour shortages with minister

Labour Minister Yiannis Panayiotou emphasized the importance of collaboration between the government and the business community for economic development, advocating for rational and balanced policies to promote growth and reduce unemployment. He met with the Limassol Chamber of Commerce (Evel) to exchange information and discuss challenges faced by businesses, including worker shortages and slow public service processes. Panayiotou stressed the need for effective public administration and dialogue to find mutually beneficial solutions for economic growth. He acknowledged the necessity of employing workers from abroad due to the economy growing beyond demographic capacities but also highlighted the importance of utilizing local human resources to ensure satisfactory growth in 2024.

The Greek debt crisis and its misconceptions

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The Greek debt crisis and its misconceptions

The text discusses the Greek debt crisis, highlighting inaccuracies and misconceptions in public debate. It references Nikos Garganas’ book, which outlines the crisis’s causes, including the misuse of fiscal space and increased government spending leading to significant debt. The crisis was exacerbated by the global financial crisis and Greece’s inability to find investors. The European Union initially refused a bailout, citing the ‘no bailout’ clause, but eventually provided a €110 billion Memorandum to prevent bankruptcy and potential contagion. The IMF participated despite concerns over debt sustainability. A debt restructuring, including a 53.5% bond haircut, was implemented in 2012, which, despite criticisms, was deemed necessary and led to improved debt sustainability. The text also refutes myths about the crisis, emphasizing that memoranda were a response to, not a cause of, the crisis and that debt relief alone would not have ended austerity. It concludes that understanding the crisis’s causes and implementing structural reforms are crucial for preventing future crises.

MP seeks to end compound interest on delayed loans

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MP seeks to end compound interest on delayed loans

MP Kostis Efstathiou submitted a bill proposal to the Parliament’s Plenary Session aiming to amend the Law on Interest Rate Liberalization to prevent banks from capitalizing compounded interest on delayed loans. Compounded interest, which increases the total borrowed amount through direct or indirect methods, can lead to over-indebtedness and is considered by Efstathiou to contradict principles of good faith and non-abusive rights exercise by banks. The proposal is expected to face opposition from credit institutions and the Central Bank. A study by the Parliament’s Research and Studies Sector, following Efstathiou’s instructions, revealed varied international approaches to interest capitalization, with specific regulations in Austria, Belgium, Greece, Spain, Lithuania, Portugal, and Slovakia, reflecting different consumer protection policies and financial contract regulations.