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Kaufmann, Stephan

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2 articles of this author have been cited in the European Press Review so far.

Berliner Zeitung - Germany | 20/12/2012

Haircut for Cyprus not the end of the world

Rating agency Standard & Poor's cut Cyprus's credit rating by two notches to CCC+ on Thursday night. Shortly beforehand the IMF had called for a debt haircut for the cash-strapped country. The left-liberal daily Berliner Zeitung is quite taken with the idea: "A haircut could trigger a panic on the financial markets. ... And it's true, the investors would indeed lose money - but not much. Cyprus's entire debt amounts to around 16 billion euros. Moreover debt relief would restore Cyprus's ability to service its debt. … And nobody should be too bothered about the fact that the EU is breaking its promise not to repeat the Greek action. No one really believed it anyway. There is one other major reason why it is unlikely to come to a mass exit from the euro or the contagion of other countries: with the announcement that it would step in and buy unlimited government bonds if necessary, the European Central Bank has given a powerful guarantee and thus provided a robust safety net."

Frankfurter Rundschau - Germany | 28/06/2010

Reins tightened on social spending

Instead of tightening the reins on the financial markets, the participants in the G20 summit decided to cut social spending, the left-liberal daily Frankfurter Rundschau writes indignantly: "Since savings measures alone will not solve the debt problem, all states are strengthening their competitiveness in order to generate growth. Privatisation is taking place and the state is making itself leaner again. Despite strains on the public purse, taxes will not be raised, and the labour market is being made more flexible. What started out as a major campaign to 'tame the markets' seems to be turning into a new version of the programme that before the crisis was criticised as 'neoliberalism.' The danger is a new global race 'to be competitive,' with states vying with one another to offer the highest capital returns and lowest costs. This shows that alongside regulating the financial markets it is just as important - despite the need to save - that all industrialised states coordinate their efforts in order to prevent an uncontrolled race to curry the favour of the financial markets."

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