ECB Raises Rates

The European Central Bank just raised interest rates for the second time in the past few monhts, and it looks like they’re far from over. However, not everyone is pleased.

Politicians and some economists see a risk that higher ECB rates will choke growth. French Finance Minister Thierry Breton said Feb. 13 that “we don’t see an increase of inflation in the euro zone.”

Welcome to world of a unified currency! The French economy has been stuck in neutral for some time.
Here’s more unilateralism from France:

Paris has been increasingly accused of pursuing a protectionist agenda, particularly after its outspoken opposition to Mittal Steel’s E18.6 billion bid for Luxembourg-based rival Arcelor.
Mr de Villepin said: “There is no reason that our American, Japanese or British friends should have tools that we do not. All I want is for France to fully play its role in globalisation and that our country can defend itself with all the tools needed to succeed, within the respect of the rules, European or international.”
Mr de Villepin also outlined plans to boost employee shareholdings by allowing companies to issue free shares to staff, make profit-sharing share schemes more advantageous, transform overtime into shares, and create multi-company profit-sharing share schemes for specific projects.
France is also granting companies the right to use “poison pill” defence strategies to protect themselves from hostile bids.

Posted by on March 2nd, 2006 at 10:34 am


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