Economy of the European Union

The euro slumped to a nine-year low Jan. 5 as investors bet that the prospect of inflation across the region turning negative and mounting political uncertainty in Greece will force the European Central Bank to unleash quantitative easing.

BELGRADE - The dinar declined by 0.2 percent (20 paras) on Monday compared to the last day of last year, making the official dinar-to-euro medium exchange rate RSD 121.1543, the National Bank of Serbia (NBS) has announced.

The Serbian national currency has dropped by 0.1 percent against the Eurozone currency compared to a month ago and by 5.3 percent compared to a year ago.

Worries over Greece's future in the euro zone kept shares under pressure on Monday, even as fresh multi-year lows for the euro and crude oil gave a boost to travel and consumer-goods stocks.

The pan-European FTSEurofirst 300 index was down 0.1 percent at 0909 GMT, with benchmark indexes in London and Frankfurt also in negative territory. The Paris CAC 40 stayed flat.

Sentiment in the euro zone improved in January for a third month running as investors and analysts shrugged off uncertainty over new Greek elections and their view of longer-term economic developments reached its most optimistic level in six months.

The possibility of Greece needing additional liquidity before or after the January 25 general elections is due to be discussed at a meeting of the European Central Bank’s governing council on Wednesday, sources have told Kathimerini.

 Minister expects 2015 to cover losses and see prices soar once uncertainty ends in three weeks’ time

Finance Minister Gikas Hardouvelis expressed on Friday optimism that 2015 will bring considerable gains for the Greek stock market if the country remains committed to consistency and stability. However, he warned that forfeiting obligations will mean a eurozone exit.

Shares of Cyprus Airways will be delisted from the Cyprus Stock Exchange on January 13, bourse authorities said on Friday, in a fresh blow to the ailing carrier that is under EU scrutiny over concerns that it received illegal state aid.

By Wayne Cole

The euro started the new year at 29-month lows in Asia on Friday after the head of the European Central Bank fanned expectations it would take bolder steps on stimulus this month, underlining the U.S. dollar's expanding yield advantage.

Eurozone politicians are not obliged to rescue Greece as the country is no longer of systemic importance to the single currency bloc, a senior member of German Chancellor Angela Merkel's party was quoted as saying.

...

As Italy sold 10-year bonds on Tuesday at a record-low yield of less than 2 percent, rates on similar-maturity Greek debt were spiraling toward 10 percent.

Compare that with 2011, when Greece’s troubles were grouped with Portugal, Ireland, Italy and Spain and Italian borrowing costs exceeded 7 percent.