The European Commission has cited a number of “possible national solutions” to the tracker problem crippling the Irish banking system in its latest report on the Irish economy — ruling out official support from either the ESM or the ECB.

The ECB left key interest rates unchanged but said that if it is going to engage in another long-term refinancing operation (LTRO) it will be designed to stimulate the economy, not just banks.

On both sides of the Atlantic, the politics of bravado and brinkmanship will be seen in 2013, says Joseph Stiglitz

Markets calmed yesterday as investors’ concerns eased a little about the uncertainties created by potential changes in the French and Dutch governments.

There is a palpable sense of hope at the annual Davos World Economic Forum that the eurozone is edging away from the brink of catastrophe.