Eurozone

Soaring energy prices took eurozone inflation to its highest rate on record in November, official data showed on Nov. 30, challenging the European Central Bank's resistance to tightening monetary policy earlier than planned.

The 12th report of the European Commission on the Greek economy is expected to be positive in the context of the enhanced supervision linked to the payment of another installment of the Greek bond profits (ANFA's / SNP's).

Negotiations between Institutions and Greece came to an end. In view of the 12th assessment of the Greek economy, which is under strict supervision, the European institutions and the Greek governement discussed every single issue, focusing mainly on the financial issues, the public debts to individuals, the auctions and the bankruptcy law.

The Eurogroup verdict

Inflation in the Eurozone reached a record 3.4% for the last 13 years in September, according to Eurostat data. This is an increase of 0.4% compared to August. Core inflation, excluding food, energy, alcohol and tobacco, rose to 1.9% from 1.6% in August. The European Central Bank (ECB) expects the rate to rise to 4 by the end of the year, which would exceed the bank's target twice.

The growing uncertainty about rising consumer prices require close monitoring by the European Central Bank, which sees it as a temporary trend, but it must be prepared to act sharply and flexibly, ECB Governing Council member Mario Centeno said, quoted by Reuters.

The crisis with surging prices of energy sources is worse and will take longer to be resolved compared to the Covid-19 pandemic slowdown and the supply bottlenecks for major industries, European Central Bank President Christine Lagarde said in an interview for CNBC.

Greece's pandemic-battered economy will bounce back even more quickly than its government projects and could return to pre-crisis levels this year, according to Bank of Greece Governor Yannis Stournaras.

European governments have spent hand over fist, despite ballooning public debt, to prevent the coronavirus pandemic from triggering economic calamity.

Now, the European Union faces calls to loosen its budget rules to allow the largesse to continue, but the topic is a sensitive one for many member states.

100 million euros worth of internal debt in government bonds is being offered to investors. This is the first debt issuance since the spring of 2021, and in the term of office of caretaker Minister of Finance Assen Vassilev.

The presence of the European Central Bank in the Greek bond market will continue until the end of 2023, regardless of what will be decided for the emergency bond market program of the pandemic (PEPP).