Ways out of the debt crisis
The Eurozone countries have agreed on a second, 130-billion-euro bailout package for Greece and signed a fiscal pact with other EU countries. The press discusses how much budgetary discipline is called for and who will foot the bill in the end.
Phileleftheros - Cyprus | Tuesday, 13. November 2012
Nicosia has expressed satisfaction with the commencement of new talks with the troika of lenders, the EU Commission, the ECB and the IMF. Progress had been made in the negotiations on a bailout programme, the Cypriot Ministry of Finance announced on Friday. The liberal daily Phileleftheros believes that only help from the troika can get Cyprus out of the crisis and rejects any criticism of the plan: » more
Nicosia has expressed satisfaction with the commencement of new talks with the troika of lenders, the EU Commission, the ECB and the IMF. Progress had been made in the negotiations on a bailout programme, the Cypriot Ministry of Finance announced on Friday. The liberal daily Phileleftheros believes that only help from the troika can get Cyprus out of the crisis and rejects any criticism of the plan: "If we don't receive the loan from the EU bailout mechanism how are we supposed to guarantee the payment of salaries in the public and semi-public sector? The attempts to obtain loans from Russia and China have been unsuccessful. It seems there is no Plan B. … The negotiations with the troika seem to be the only path for the Cypriot state. What we need now is good negotiating skills and a great sense of responsibility. Revolutionary slogans and opposition are no solution and won't calm the situation."
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Diário de Notícias - Portugal | Tuesday, 13. November 2012
German Chancellor Angela Merkel stressed during her visit to Lisbon that there was no reason to renegotiate Portugal's austerity programme at present. This has aroused certain expectations, the liberal daily Diário de Notícias notes: » more
German Chancellor Angela Merkel stressed during her visit to Lisbon that there was no reason to renegotiate Portugal's austerity programme at present. This has aroused certain expectations, the liberal daily Diário de Notícias notes: "Merkel has done a good job of preparing and staging her charm offensive. … She cited former German chancellor Ludwig Erhard (the father of Germany's 'economic miracle' in the post-war period), who used to say that economics was 50 percent psychology. In doing so she was trying to get across the message that the strongest EU partner not only supports Portugal's reform programme but is confident of its success. At a time when we are making great sacrifices and doubting our ability to overcome the recession, impoverishment and rising unemployment with the current austerity policy, Merkel has called for a little more patience. … It has also become clear that the programme won't be renegotiated before its completion - which also arouses expectations: in around six months' time an entire nation will want to know whether economic growth is really making a comeback."
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Diário Económico - Portugal | Tuesday, 6. November 2012
German Chancellor Angela Merkel does not see the euro crisis coming to an end within the next five years. Now the time for more discipline has come, she said on Saturday at a regional conference of her party, the Christian Democrats. The liberal business paper Diário Económico calls on Merkel to assume her responsibilities towards Europe: » more
German Chancellor Angela Merkel does not see the euro crisis coming to an end within the next five years. Now the time for more discipline has come, she said on Saturday at a regional conference of her party, the Christian Democrats. The liberal business paper Diário Económico calls on Merkel to assume her responsibilities towards Europe: "Merkel has once again prescribed the only treatment she knows and likes. But the EU can't take any more austerity. On one point she is right: a crisis of these dimensions takes years to resolve. ... Europe's problem is above all an economic one: it can't generate enough prosperity to pay off all the debts. The 'rescued' states that are stuck in a recession need lower interest rates and more time. ... Moreover northern Europe, which is profiting from the crisis (Germany can borrow money for next to nothing), should increase its investments in the crisis countries. ... During her visit to Portugal Merkel has the chance to show that she can lead Europe with supportive policies. Otherwise she will be digging the graves of the euro and the EU."
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Corriere del Ticino - Switzerland | Tuesday, 6. November 2012
Louis Gallois, former head of the aerospace and defence corporation EADS, on Monday presented a report on France's competitiveness in which he calls for the country to be given shock therapy to prevent it from lapsing into an enduring crisis. If François Hollande deviates from the austerity course all Europe will suffer, the liberal daily Corriere del Ticino warns: » more
Louis Gallois, former head of the aerospace and defence corporation EADS, on Monday presented a report on France's competitiveness in which he calls for the country to be given shock therapy to prevent it from lapsing into an enduring crisis. If François Hollande deviates from the austerity course all Europe will suffer, the liberal daily Corriere del Ticino warns: "The European crisis is far from over. ... Angela Merkel explained on Saturday that it will require at least five further years of stringent austerity. ... The next chapter of the crisis will no doubt be written in France. The prospects are dismal, but not worse than the experiences with the last socialist presidency. ... Hollande's policies can't be compared with Mitterrand's radical Jacobinical measures. ... If he doesn't manage to drastically reduce public spending, the EU will inevitably reach the end of the road in Paris."
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Welt am Sonntag - Germany | Sunday, 4. November 2012
Despite the crisis the euro is a good currency not least because of its role in imposing discipline, writes economist Holger Schmiedling in the conservative weekly Welt am Sonntag: » more
Despite the crisis the euro is a good currency not least because of its role in imposing discipline, writes economist Holger Schmiedling in the conservative weekly Welt am Sonntag: "The mere existence of the current crisis is not a condemnation of the euro. The euro is still young. Occasional turbulence is part of life, as many parents of teenagers can confirm. The euro crisis continues to pose a threat - but it also provides an opportunity, because just like individuals, communities only tend to get their act together and get rid of bad habits when under pressure. Precisely because the euro prevents its member states from going for the easy option of devaluating their currency, it forces them to change. We are therefore witnessing an unexpected wave of reforms in the peripheral countries of the Eurozone. ... The external balances of peripheral states are improving at a breathtaking pace. Four years ago Spain had a trade deficit amounting to 10 percent of its GDP, while today it has a small surplus. Ireland is actually ahead of Spain, with Portugal just a little behind. ... The euro remains a good currency."
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Main focus of Friday, 19. October 2012
At the EU summit the heads of state and government last night agreed on a rough schedule for setting up Eurozone banking supervision. The supervisory ... » more
At the EU summit the heads of state and government last night agreed on a rough schedule for setting up Eurozone banking supervision. The supervisory body is to become operational some time in 2013. Commentators complain that there is still no precise date for when banks will receive assistance and write that it was a deliberate ploy by Angela Merkel to improve her chances of re-election.
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Handelsblatt - Germany | Friday, 19. October 2012
Even if there a rough timetable for the banking union now exists, the EU summit leaves many questions unanswered, the liberal business daily Handelsblatt comments: » more
Even if there a rough timetable for the banking union now exists, the EU summit leaves many questions unanswered, the liberal business daily Handelsblatt comments: "The most urgent question from the Spanish and Irish perspective is: When will the euro bailout fund help the banks with direct cash injections? In spring 2013, the French diplomats answered early this morning. ... The German government wants to delay the direct capitalisation of the banks through the European Stability Mechanism (ESM) for as long as possible. Because in practice this step boils down to Spain, Ireland and Cyprus being able to dump their banks' problems on the Eurozone without having to burden their own budgets. As a partner in the ESM Germany would have to assume financial responsibility for the banks in the crisis coutries. This is not pleasant news for German citizens in the midst of the parliamentary election campaign. So it's understandable that Merkel wants to postpont it until after the September 2013 election. After the confrontation is before the confrontation: the row about how to distribute the financial burden in overcoming the euro debt crisis is far from over."
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ABC - Spain | Friday, 19. October 2012
German Chancellor Angela Merkel has got her way regarding the schedule for the creation of a banking union. The project now won't be launched on January 1, 2013, as France and other countries had hoped. The conservative daily ABC accuses Merkel of selfish strategising ahead of the German elections next year: » more
German Chancellor Angela Merkel has got her way regarding the schedule for the creation of a banking union. The project now won't be launched on January 1, 2013, as France and other countries had hoped. The conservative daily ABC accuses Merkel of selfish strategising ahead of the German elections next year: "Given the deep cracks the current crisis has made in the whole EU infrastructure, the heads of state and government had agreed in June on the need to create a true banking and fiscal union to guarantee the survival of the euro. It was hoped that the summit which began yesterday in Brussels would confirm this idea by producing a concrete timetable and procedure for dispelling the latent doubts about the Eurozone. However German Chancellor Angela Merkel prefers to adjust the construction of European unity to Germany's election schedule [Germany will hold parliamentary elections in September 2013]. ... Germany continues with its strategy of doing as little as possible at the very last moment to guarantee the survival of the euro. However now is the time to take firm decisions and adhere to signed agreements, not to pursue personal interests."
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Il Sole 24 Ore - Italy | Friday, 19. October 2012
Participants at the EU summit are reluctant to come out say what a banking union actually entails, the liberal-conservative business paper Il Sole 24 Ore criticises: » more
Participants at the EU summit are reluctant to come out say what a banking union actually entails, the liberal-conservative business paper Il Sole 24 Ore criticises: "The last few months have demonstrated that the two decisive steps towards saving the euro - a banking and fiscal union - overlap to such an extent that creating a banking supervisory authority without a fiscal union, in other words without pooling financial resources, is implausible. Berlin, which wants to discuss both points, is aware of this but instead of accelerating the two steps Merkel is trying to delay a banking union. Germany, like France, has now introduced the idea of a mini rescue fund for the Eurozone that would be financed through the financial transaction tax [Merkel proposed this in a government statement]. This is an attempt to divert attention from the real problem. But it's obvious that Berlin's main goal is to avoid the proposals for the introduction of euro bonds being brought up again."
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Main focus of Thursday, 18. October 2012
In an interview with six European newspapers French President François Hollande called for more solidarity in the Eurozone. With his appeal for the introduction of ... » more
In an interview with six European newspapers French President François Hollande called for more solidarity in the Eurozone. With his appeal for the introduction of euro bonds and against stringent austerity he has openly defied Germany just before the EU summit begins this Thursday. Some commentators praise Hollande for defending the crisis countries while others say that the confrontation will only delay urgently need consensus in the EU.
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Público - Portugal | Thursday, 18. October 2012
François Hollande stressed in his interview that "we cannot impose a life-long sentence on nations which have already made considerable sacrifices if people do not perceive the fruits of their efforts". The liberal daily Público praises the French president for these words: » more
François Hollande stressed in his interview that "we cannot impose a life-long sentence on nations which have already made considerable sacrifices if people do not perceive the fruits of their efforts". The liberal daily Público praises the French president for these words: "It is not just an ethical statement about the austerity policy but also a realistic assessment of its impact. The austerity budget presented to us for 2013 is indeed a 'lifelong prison sentence'. The tax burden will only intensify the financial crisis, undermine political stability and rob the Portuguese of all faith in the 'fruits of their efforts'. Hollande's statement must be seen as part of a strategy aimed at establishing a balance of power in the EU. His proposals for the introduction of euro bonds won't be implemented in the short term. But his call for Germany to change its priorities is a great help to countries in difficulties."
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Die Zeit - Germany | Thursday, 18. October 2012
Schäuble's proposal for a currency commissioner who would control the budgets of the euro states is as idealistic as it is illusory, the liberal weekly ... » more
Schäuble's proposal for a currency commissioner who would control the budgets of the euro states is as idealistic as it is illusory, the liberal weekly paper Die Zeit comments, asking "Can anyone seriously believe that would work? That, for example, the French National Assembly would really let a Brussels commissioner prevent it from slightly increasing the public debt in order to raise teachers' salaries, purchase a modern aircraft carrier or support the national car industry? That's an illusion. The pattern of the stability pact, with its quickly transgressed three-percent-deficit limit, has shown how Europeans (or at least the powerful ones, that is the Germans) deal with self-imposed obligations when they start to pinch. The EU in its current state is not a club that can be trusted to respect its own rules. It should be cautious about seeking salvation in new regulations, competences and institutional arrangements. ... Think carefully before donning the next corset!"
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Le Figaro - France | Wednesday, 17. October 2012
Given that French President François Hollande's ideas run counter to the German position, the conservative daily Le Figaro doubts that an agreement will be reached at the EU summit: » more
Given that French President François Hollande's ideas run counter to the German position, the conservative daily Le Figaro doubts that an agreement will be reached at the EU summit: "The contradictory positions are reminiscent of the chicken and the egg. For Germany, budget control comes before solidarity. France wants solidarity before stricter controls are introduced. ... At the core of this enormous misunderstanding lies the banking union agreed on in June. Like Madrid, Paris sees it as an instrument for supporting ailing banks, regardless of the national deficit of the country in question. Not so fast, answers the chancellor, who wants to prevent her country from being lumped with the losses of Spain's banks before they are subject to European controls. In this chicken-and-egg dispute it will be hard for François Hollande and Angela Merkel to find common ground."
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Die Presse - Austria | Thursday, 18. October 2012
The EU's crisis policy looks increasingly like a game of hopscotch and is frustrating the people, the liberal-conservative daily Die Presse writes: » more
The EU's crisis policy looks increasingly like a game of hopscotch and is frustrating the people, the liberal-conservative daily Die Presse writes: "When the heads of state and government meet yet again this week in Brussels to find a solution for Greece and the euro the game of hopscotch will continue. French President François Hollande and Germany's Finance Minister Wolfgang Schäuble ... are trying to keep their customers happy with maximum demands aimed at sending the message 'At least I tried!'. The one is making a fresh demand for the introduction of euro bonds and influence over the wage policies of other countries; the other is calling for a powerful budget commissioner with total control over the austerity programmes of countries like Greece, Italy and Spain. … But in reality this conflict over which direction to take is doing nothing but increasing people's frustration at the inability of Europe's leaders to negotiate a common solution."
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Jyllands-Posten - Denmark | Thursday, 18. October 2012
The EU summit that begins today won't produce the urgently needed results, the liberal daily Jyllands-Posten believes: » more
The EU summit that begins today won't produce the urgently needed results, the liberal daily Jyllands-Posten believes: "Even if the German Finance Minister Wolfgang Schäuble did manage to push through his proposals and all 27 member states were to approve the corresponding changes to the EU treaties, it would be at least one and a half to two years before the plan bore fruit. Europe can't afford to wait that long. Because now even the German economy is running into difficulties - the main force keeping Europe's head above water. Germany's modest economic growth is down to less than 1 percent. If the countries of the Eurozone fail to achieve economic stability across the board so that the Eurozone becomes interesting for international investors once more, the future looks pretty bleak. The EU summit must reflect this reality. The time for talking is over. Now we need action. But it's unlikely that this will come about."
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Main focus of Wednesday, 17. October 2012
German Finance Minister Wolfgang Schäuble plans to propose in-depth reforms of the EU at its summit meeting, which begins on Thursday. Among other measures he ... » more
German Finance Minister Wolfgang Schäuble plans to propose in-depth reforms of the EU at its summit meeting, which begins on Thursday. Among other measures he wants a new currency commissioner with the power to veto the budgets of member states. For some commentators Schäuble genuinely wants changes to the EU treaties in order to stabilise the Eurozone. Others believe he is just seeking to secure more elbow room for Germany .
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Trouw - Netherlands | Wednesday, 17. October 2012
Schäuble's initiative is a counterconcept to EU Council President Herman Van Rompuy's plan for stronger economic integration of the EU, which the German finance minister considers too vague. But for the Christian-social daily Trouw Van Rompuy's calls for centralised bank supervision, debt mutualisation and the Eurozone to have its own budget go too far: » more
Schäuble's initiative is a counterconcept to EU Council President Herman Van Rompuy's plan for stronger economic integration of the EU, which the German finance minister considers too vague. But for the Christian-social daily Trouw Van Rompuy's calls for centralised bank supervision, debt mutualisation and the Eurozone to have its own budget go too far: "Van Rompuy's proposals are certainly no incentive for the rich countries of northern Europe to go a step further. In fact he has pushed so far ahead that he may lose sight of these countries entirely. Van Rompuy understandably wants less arbitrariness and more unity for the monetary union, but he has utterly failed to take into account the mood in a number of countries, including the Netherlands. … The same goes for the proposal for Euro bonds. With this proposal he demands more solidarity from the northern countries, yet the reality is that public opinion is putting that solidarity sorely to the test."
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Die Presse - Austria | Wednesday, 17. October 2012
Just days before the EU summit takes place Germany's Finance Minister Wolfgang Schäuble has decided to play with fire, the liberal-conservative daily Die Presse comments, adding that his bringing up his old idea of an EU currency commissioner again was just a ploy: » more
Just days before the EU summit takes place Germany's Finance Minister Wolfgang Schäuble has decided to play with fire, the liberal-conservative daily Die Presse comments, adding that his bringing up his old idea of an EU currency commissioner again was just a ploy: "The current Commissioner for Economic and Currency Affairs should be given powers to rule on the reliability of the budget legislation of Eurozone countries on his own. … That would be a clear break with the current approach to agreeing on budget policy in the EU. … This is why Schäuble got nowhere with his idea of a currency commissioner in November 2011 and in February 2012. France, in particular, is allergic to the idea. Because a currency commissioner would push through the very same ideas about budgeting against which François Hollande pitched his whole election campaign. … Schäuble's proposal is therefore just a strategy aimed at securing more room for manoeuvre for the chancellor at the summit meeting on Thursday. If Angela Merkel backs down on this absolutist demand she will be allowed to get her way on issues that she considers realistic - for example her call for the Eurozone to have its own budget."
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Il Sole 24 Ore - Italy | Wednesday, 17. October 2012
Schäuble is not just after a broad fiscal union; MEPs from the Eurozone should also be able to make separate decisions in the EU Parliament having to do with the Eurozone. German Finance Minister Wolfgang Schäuble is pursuing a double strategy with his proposals, the liberal-conservative business paper Il Sole 24 Ore conjectures: » more
Schäuble is not just after a broad fiscal union; MEPs from the Eurozone should also be able to make separate decisions in the EU Parliament having to do with the Eurozone. German Finance Minister Wolfgang Schäuble is pursuing a double strategy with his proposals, the liberal-conservative business paper Il Sole 24 Ore conjectures: "For years Germany defended the importance of the European single market. Is it now prepared to sacrifice to a certain extent the unity of the 27 states for the sake of an inevitable integration of the Eurozone? This is a legitimate question in view of the (new) demand for a reform of the EU treaties. … Germany is pursuing two goals. On the one hand it wants more stability through increased reciprocal control over national budgets and economic reforms. On the other hand the idea of amending the EU treaties is driven by the desire to appease the German public in the year before Germany's parliamentary elections with the assurance that new rules will be drawn up to improve the administration of the monetary union."
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Süddeutsche Zeitung - Germany | Wednesday, 17. October 2012
With his proposal the German Finance Minister Wolfgang Schäuble is deliberately seeking a confrontation with the EU, the UK and the German Constitutional Court, the left-liberal daily Süddeutsche Zeitung writes: » more
With his proposal the German Finance Minister Wolfgang Schäuble is deliberately seeking a confrontation with the EU, the UK and the German Constitutional Court, the left-liberal daily Süddeutsche Zeitung writes: "Schäuble is clearly dissatisfied with the reform paper of the presidents of the EU Commission, the European Council, the Euro Group and the Central Bank. In their proposal the four presidents didn't refrain from proposing the euro bonds so detested by the German government. As it now looks, Schäuble is ready to strike back. The idea of a quick new convention [which would begin preparing an amendment to the EU treaties as soon as December] is also a nod to Britain. ... Anti-European at home, but placatory when it deals with the continent, the British government is playing a double game. It is right to demand that the UK take a stand on whether it will at least deign not to stand in the way of the euro bailout. And what about the German Constitutional Court in Karlsruhe? ... If Schäuble is now challenging the judges in calling for a currency commissioner, it only fuels suspicions that he's not just interested in amending the EU treaties - but also the German Basic Law."
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eldiario.es - Spain | Thursday, 11. October 2012
The real crisis is only just beginning in Spain, Ignacio Escolar fears in his blog with the left-leaning online newspaper eldiario.es: » more
The real crisis is only just beginning in Spain, Ignacio Escolar fears in his blog with the left-leaning online newspaper eldiario.es: "What is the difference between Spain and Portugal? A year! To see our own future all we have to do is look to our neighbour: even tougher cuts, even more unemployment, even more suffering and an even harsher recession. 'The real crisis begins now', a manager at one of the big Ibex 35 companies told me recently. Her fear is that so far the crisis has only been a foretaste of what is to come, and that things will get really bad now. The latest prognoses of the IMF confirm her fears. ... Dismiss half of the public sector employees? Cut pensions? Increase VAT and income tax? Or levy a new tax on petrol and cut all the salaries in the private sector? All these measures were unthinkable until now. But in other countries fighting for survival they have either already been introduced or are under discussion. They will soon arrive in Spain."
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Trouw - Netherlands | Thursday, 11. October 2012
The IMF's warning that a rigorous austerity course could harm the global economy must be taken seriously, the Christian-social daily Trouw writes: » more
The IMF's warning that a rigorous austerity course could harm the global economy must be taken seriously, the Christian-social daily Trouw writes: "Excessive austerity could propel the economy into a downwards spiral. One person spends less, the next earns less as a result and therefore in turn spends less, meaning that someone else earns less and so on. According to the IMF, a clever austerity plan means undertaking long-term structural measures. The important thing is that at the same time everything possible is done to ensure that those affected remain in good health despite the difficult therapy. In the Netherlands, for example, one obstacle is uncertainty about the housing market, which is causing widespread paralysis. A government that can remove such uncertainties can undertake further cost-cutting measures without endangering the economy."
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Tages-Anzeiger - Switzerland | Wednesday, 10. October 2012
The IMF has made a devastating assessment of the Eurozone's financial stability. Hardly surprising, says the liberal Tages-Anzeiger, because Europe is seeking a solution to the euro crisis that is impracticable: » more
The IMF has made a devastating assessment of the Eurozone's financial stability. Hardly surprising, says the liberal Tages-Anzeiger, because Europe is seeking a solution to the euro crisis that is impracticable: "Albert Einstein defined insanity as doing the same thing again and again and expecting different results. The austerity policy in the Eurozone proves this theory conclusively. ... In economics, what the Eurozone is demanding of a growing number of its members is called 'internal devaluation'. Because of the single currency individual countries cannot devaluate their own currency externally. However the imbalance resulting from the varying levels of development in the different economies must be removed. The only way left to do this is through internal devaluation. The problem here is that this solution only works in theory; in practice it has already ended in disaster on several occasions."
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Handelsblatt - Germany | Wednesday, 10. October 2012
For the IMF, the euro crisis has become a catch-22 situation, the liberal daily Handelsblatt writes: » more
For the IMF, the euro crisis has become a catch-22 situation, the liberal daily Handelsblatt writes: "On the one hand it is attempting to convince Europeans to apply their reform programmes in a way that will stimulate growth. ... On the other hand in the troika missions it is the IMF staff, of all people, who are now calling for strict adherence to austerity programmes. ... In any case, the onus is now on the Europeans, and first and foremost on the Germans, who as the biggest exporting nation rely on a functioning economic system. They must be the first to take seriously the IMF's warning that the euro virus could infect the entire global economy. And they must be ready to openly discuss proposals from Asia and Brazil, and to change the euro bailout policy to ensure it doesn't stifle the global economy. It won't be easy. It will mean giving Southern Europeans more time for their austerity programmes, and it will mean increasing the bailout fund."
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Der Standard - Austria | Wednesday, 10. October 2012
Eleven EU states plan to jointly introduce a tax on financial transactions, the EU Commissioner for Taxation Algirdas Šemeta announced after consultations with the finance ministers of the EU on Tuesday in Luxembourg. However for now the project doesn't go far beyond good intentions, the left-liberal daily Der Standard concludes: » more
Eleven EU states plan to jointly introduce a tax on financial transactions, the EU Commissioner for Taxation Algirdas Šemeta announced after consultations with the finance ministers of the EU on Tuesday in Luxembourg. However for now the project doesn't go far beyond good intentions, the left-liberal daily Der Standard concludes: "Not just because the UK and Sweden are being mean and vetoing the move. Also EU states without the euro like the Czech Republic and Poland are sceptical about taking such a major step on the sensitive subject of common taxation - they say no for now. And: one of the Union's 'core countries', Luxembourg, which for decades has been capitalising on European integration, is also keeping its distance owing to its status as a financial hub, as is Ireland. Then there's the fact that key issues remain unresolved, the most important of which is what kind of financial transactions would be subject to the tax. If only shares are subject to taxation (as is already the case in France and the UK), while derivatives and high-risk transactions are left exempt, the name would remain but it would hardly have an impact."
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Les Echos - France | Monday, 8. October 2012
According to three leading European economic institutes, the economy of the Eurozone will shrink until the end of the year and stagnate in the first two quarters of 2013. The liberal business paper Les Echos writes that the euro countries should finally take concerted action to fight the crisis: » more
According to three leading European economic institutes, the economy of the Eurozone will shrink until the end of the year and stagnate in the first two quarters of 2013. The liberal business paper Les Echos writes that the euro countries should finally take concerted action to fight the crisis: "Consensus now rules over the causes of the recession, and that is good news: monetary union is not enough, there must also be a budgetary, banking, social and fiscal union. ... The concept has been worked out, it's time to act. But Germany resists the banking union, Spain rejects financial solidarity, France pretends to accept budgetary restraints while hoping they will soon be eased, and the euro countries have not advanced at all on the question of the social union. The first recession, in 2009, was an external shock. The second, which we are experiencing today, has obliged us to take stock of the situation. Perhaps it will take a third for us finally to reach a decision on what must be done."
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The Irish Times - Ireland | Monday, 8. October 2012
Only debt relief can ensure economic recovery for crisis-stricken Ireland, the left-liberal daily The Irish Times stresses: » more
Only debt relief can ensure economic recovery for crisis-stricken Ireland, the left-liberal daily The Irish Times stresses: "The arguments for debt relief are persuasive at national and European levels, even if there are real difficulties in getting it agreed. Ireland faces a huge problem to achieve a primary surplus on its public income and expenditure through spending cuts and tax increases. This has to be tackled irrespective of what is done about public debt and is the principal focus of the support programme from the European Union and the International Monetary Fund. But it will not be possible to stimulate recovery and growth on the basis of a more competitive economy if the burden of debt remains. That in turn would undermine returning to the markets, in a signal the programme had failed."
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Diário Económico - Portugal | Friday, 14. September 2012
Portugal's Socialists are no longer prepared to back the new austerity measures. The main opposition party announced on Thursday that it would vote against the proposed budget for 2013. The liberal business paper Diário Económico voices annoyance at the carelessness with which the government has lost a broad consensus on the austerity package: » more
Portugal's Socialists are no longer prepared to back the new austerity measures. The main opposition party announced on Thursday that it would vote against the proposed budget for 2013. The liberal business paper Diário Económico voices annoyance at the carelessness with which the government has lost a broad consensus on the austerity package: "Prime Minister Passos Coelho has managed to undermine the key prerequisite for the success of the austerity programme: fundamental political and social consensus. ... Not only did the government announce an audacious of economic policy, it is dabbling in political experiments that are difficult to comprehend: the political cohesion of the coalition is at risk, the support of the main opposition party has been lost and the Portuguese are taking to the streets. Passos Coelho has no choice. He must make adjustments to the announced measures and this will cause many problems. … The Portuguese accepted the austerity measures for 2012, integrated them into their daily lives and tolerated impoverishment. But now they want to see results."
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All available articles from » António Costa
NRC Handelsblad - Netherlands | Friday, 14. September 2012
Europe has emerged as a winner from the Dutch parliamentary election, the liberal daily NRC Handelsblad writes: » more
Europe has emerged as a winner from the Dutch parliamentary election, the liberal daily NRC Handelsblad writes: "The two major parties should be clever enough to form a government quickly. Perhaps together with one or more partners. ... It is in the interests of the Netherlands, which in recent years has experienced too many political crises, that the government is ambitious enough to seek a sustainable solution to the financial crisis. This must be done in cooperation with the European Union, which can certainly be regarded as the other victor of the Dutch elections after the defeat of the [right-wing populist] anti-European PVV party. Whether this will push populism to the margins for good is not certain. It would also be premature to write off the Christian democrats entirely, even if this party has lost 28 seats in the space of two years."
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Frankfurter Rundschau - Germany | Friday, 14. September 2012
Lessons can be learned from the re-election of right-wing liberal Dutch Prime Minister Mark Rutte, the left-liberal daily Frankfurter Rundschau comments: » more
Lessons can be learned from the re-election of right-wing liberal Dutch Prime Minister Mark Rutte, the left-liberal daily Frankfurter Rundschau comments: "Rutte focused on economising, but also on development policy, tax breaks 'for hard-working Dutch' and a verbal anti-euro course. [The left-liberal alliance] D66 and its top candidate Alexander Pechtold were the only ones who called for more Europe during the campaign. ... What do the results of the Dutch election mean for Europe? German Chancellor Angela Merkel can look forward to continued cooperation with her right-wing liberal comrade-in-arms Mark Rutte - although nowadays he sounds even more Merkelist than the original. One message from the Netherlands for the chancellor is: not every government is automatically replaced in the euro crisis. Yes, you can even win elections with austerity policies. With an eye to Holland's economy the other message is: the crisis has now reached the north. That is a disquieting one."
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All available articles from » Peter Riesbeck
Il Sole 24 Ore - Italy | Friday, 14. September 2012
Italy's gross domestic product dropped by 0.8 percent from April to June, meaning that the economy contracted for the fourth quarter in a row, as the statistics office Istat announced on Monday in Rome. To fight the recession Italy must pass a stimulus package in addition to reducing its debts, the liberal-conservative business paper Il Sole 24 Ore warns: » more
Italy's gross domestic product dropped by 0.8 percent from April to June, meaning that the economy contracted for the fourth quarter in a row, as the statistics office Istat announced on Monday in Rome. To fight the recession Italy must pass a stimulus package in addition to reducing its debts, the liberal-conservative business paper Il Sole 24 Ore warns: "Spending cuts in public administration and the sale of public assets can help to reduce the public debt. But economising doesn't mean dispensing with reforms and measures to stimulate growth. On the contrary, Europe has persistently called for guarantees that we will introduce reform - even after the Monti government ends. ... Consequently it makes sense to introduce a stimulus agreement that is binding both for the current government and the one to come. In this way we can coordinate the recovery programme with the EU Commission and the ECB and pave the way for the austerity package that is a pre-requisite for ECB purchases of government bonds."
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All available articles from » Guido Gentili
Cinco Días - Spain | Friday, 14. September 2012
Following the parliamentary elections in the Netherlands a grand coalition between the pro-European right-wing liberals and Social Democrats seems to be taking shape. But this return to pro-Europeaness is not necessarily a long term development, the left-liberal business paper Cinco Días warns: » more
Following the parliamentary elections in the Netherlands a grand coalition between the pro-European right-wing liberals and Social Democrats seems to be taking shape. But this return to pro-Europeaness is not necessarily a long term development, the left-liberal business paper Cinco Días warns: "The Dutch government has found its way back to its usual centrist and European stance. After a prolonged flirt with the anti-austerity and anti-euro groups the majority of voters decided to back the country's main political parties. … But it would be a mistake to conclude that Dutch enthusiasm for Europe has been renewed. The potential bailouts of Spain or Italy could unleash a new wave of scepticism, above all if the Dutch economy doesn't manage to recover from its current problems. The Dutch voters have taken the pragmatic decision that the country is better off within the monetary union than outside it. But a return to centrist policies can't be taken for granted."
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All available articles from » Peter Thal Larsen
Die Presse - Austria | Friday, 14. September 2012
Right-wing populist politician Geert Wilders' was unable to convince the Dutch with his anti-EU rhetoric, the liberal-conservative daily Die Presse writes: » more
Right-wing populist politician Geert Wilders' was unable to convince the Dutch with his anti-EU rhetoric, the liberal-conservative daily Die Presse writes: "For the first time it is obvious that for the right-wing populists it does make a difference whether they stoke up resentment against immigrants or against the joint Europe. For many people (unfortunately) immigrants are still a key source of frustration. But the latter's marginalisation doesn't affect voters as directly as an exit from the euro or even the European Union would. They are very much aware that if that were to happen they would all feel the side-effects. Therefore they prefer to keep the EU with all its imperfections rather than see it destroyed. This new pragmatism vis-à-vis Europe should not be mistaken for a positive mood. But it provides a great opportunity for governments to introduce the reforms necessary for preserving the EU and the euro."
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All available articles from » Wolfgang Böhm
ABC - Spain | Thursday, 13. September 2012
Germany has too much power over the single currency, the conservative daily ABC warns, but praises the judges in Karlsruhe for indirectly counteracting this imbalance: » more
Germany has too much power over the single currency, the conservative daily ABC warns, but praises the judges in Karlsruhe for indirectly counteracting this imbalance: "The huge sense of suspense created by the Constitutional Court's decision on the creation of the European Stability Mechanism (ESM) has proven for the umpteenth time that the euro is turning not into a European currency but a projection of the old Deutschmark. And that Germany has a decisive influence through all channels on European monetary policy. For this reason - and even the court itself stressed this - the EU urgently needs to establish appropriate, democratically legitimised institutions. This is the only way to prevent one country from having a stronger influence than all the rest together when it comes to decisions that affect the entire Eurozone."
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Ta Nea - Greece | Saturday, 8. September 2012
The Greek writer Petros Markaris says he can't understand why politicians are clinging to the euro, pointing out that Europe existed before the single currency. In the left-liberal daily Ta Nea he paints a picture of what Europe could be like in the post-euro era: » more
The Greek writer Petros Markaris says he can't understand why politicians are clinging to the euro, pointing out that Europe existed before the single currency. In the left-liberal daily Ta Nea he paints a picture of what Europe could be like in the post-euro era: "I fear that we Europeans have allowed ourselves to be infected by the politicians and have made a fatal mistake: we have equated Europe with the euro: … Before the euro Europe was not just an economic community. Europe was also the vision of the fathers of European integration. They want to bring countries with different languages, histories, cultures and traditions under one roof. … What concerns me is not the difficult decision between the euro and the drachma but the question: What kind of Europe will this decision result in? There was a Europe before the euro, but if the Eurozone collapses tomorrow will there be a Europe after the euro? … Most likely we will have a divided Europe where the one camp blames the other for the failure of the euro. Both camps will compete with each other and hate and despise each other."
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All available articles from » Petros Markaris
El Mundo - Spain | Thursday, 6. September 2012
German Chancellor Angela Merkel will meet her Spanish counterpart Marian Rajoy for talks in Madrid today. She shouldn't abuse her vast power, the conservative daily El Mundo advises: » more
German Chancellor Angela Merkel will meet her Spanish counterpart Marian Rajoy for talks in Madrid today. She shouldn't abuse her vast power, the conservative daily El Mundo advises: "Angela Merkel arrives in Madrid with more power than Hitler had when he met with the dictator Franco in [the French-Spanish border town of] Hendaye [to persuade him to side with Germany in 1940]. … The chancellor benefits from being able to borrow money at around one percent interest while Italy and Spain are paying six or seven percent. But Germany should not pull the noose around Spain's neck too tightly because choking these two major nations will also endanger Germany's prosperity. Too much greed is unhealthy. The chancellor must stop abusing the situation. It would already be a good deal for her if Spain and Italy paid three to four percent for their debts and the risk premium was kept below 300 basis points while the Germans continue to pay just roughly one percent."
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All available articles from » Luis María Anson
Le Monde - France | Wednesday, 5. September 2012
Three renowned German thinkers, the philosophers Julian Nida-Rümelin and Jürgen Habermas and economist Peter Bofinger, call in the left-liberal daily Le Monde for the political integration of Europe: » more
Three renowned German thinkers, the philosophers Julian Nida-Rümelin and Jürgen Habermas and economist Peter Bofinger, call in the left-liberal daily Le Monde for the political integration of Europe: "The euro crisis reflects the failure of a dead-end policy. Despite extensive rescue programmes and countless crisis summits, the situation of the eurozone has steadily deteriorated over the last two years. ... There are only two coherent strategies for dealing with the current crisis: a return to national currencies across the EU ... or the institutional underpinning of a collective fiscal, economic and social policy within the eurozone, with the further aim of restoring to policymakers their lost capacity for action in the face of market imperatives at a transnational level. ... For this reason alone - because it leads on to this broader perspective - the second option deserves preference over the first. ... We believe that we should be entirely open about this process. It is simply not possible to retain the common currency without also espousing the idea of collective responsibility and redressing the institutional deficit in the eurozone."
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All available articles from » Jürgen Habermas, » Julian Nida-Rümelin, » Peter Bofinger
Main focus of Tuesday, 4. September 2012
The high-level visits between Europe's leaders continue apace as France's President François Hollande travels to Rome today to discuss the debt crisis with Prime Minister ... » more
The high-level visits between Europe's leaders continue apace as France's President François Hollande travels to Rome today to discuss the debt crisis with Prime Minister Mario Monti. Commentators criticise Paris for following too closely in the footsteps of crisis-ridden Southern Europe and note that Hollande's crisis policy lacks even the full support of the French Left.
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Frankfurter Allgemeine Zeitung - Germany | Tuesday, 4. September 2012
In the vote on the European fiscal compact slated for the beginning of October in the French parliament, President Hollande faces the problem that not all the left-wing parliamentarians back him, notes the conservative Frankfurter Allgemeine Zeitung, saying there is little chance of a united Left front emerging in France: » more
In the vote on the European fiscal compact slated for the beginning of October in the French parliament, President Hollande faces the problem that not all the left-wing parliamentarians back him, notes the conservative Frankfurter Allgemeine Zeitung, saying there is little chance of a united Left front emerging in France: "The pressure to cut spending is regarded [by a number of left-wingers] as a dictate imposed by the Germans, as interference in French politics. For this reason party discipline has been imposed on the socialist MPs. The Greens and the Communists, who belong to the extended 'presidential majority', are acting coy. But this is just a foretaste of what will happen if the government doesn't manage to stop rising unemployment and prevent the social plans already announced by many companies. Now Hollande must fight against the very expectations he himself created during the election campaign."
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All available articles from » Günther Nonnenmacher
El País - Spain | Tuesday, 4. September 2012
It is in Germany's own interests to seek a swift solution to the euro crisis, economist Manuel Sanchis i Marco points out in the left-liberal daily El País: » more
It is in Germany's own interests to seek a swift solution to the euro crisis, economist Manuel Sanchis i Marco points out in the left-liberal daily El País: "Unless there is a change in the current approach, the countries that are fulfilling institutional dictates in unfavourable circumstances are heading straight for an exit from the euro. The Eurozone would shrink into a Deutschmark zone. … In such a situation the consequences for the German economy and its historical and political responsibility would be enormous. It would be a sad thing for Europe to find that only the prospect of the Chinese real estate bubble bursting, with the ensuing decline in German exports and German recession, can prompt Chancellor Merkel to adopt a pro-European approach. … Germany must find a European path out of the euro crisis - one which preserves German interests as well as those of the euro. … After all, you can't have your cake and eat it."
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All available articles from » Manuel Sanchis i Marco
La Repubblica - Italy | Tuesday, 4. September 2012
Political expert Marc Lazar sees today's crisis meeting between Hollande and Monti in Rome as a chance to strengthen the Rome-Paris axis. But both have their own domestic problems to wrestle with, Lazar writes in the left-liberal daily La Repubblica: » more
Political expert Marc Lazar sees today's crisis meeting between Hollande and Monti in Rome as a chance to strengthen the Rome-Paris axis. But both have their own domestic problems to wrestle with, Lazar writes in the left-liberal daily La Repubblica: "It has been obvious for months that both countries are pursuing the goal of changing Germany's mind, but on other points their views differ. … Mario Monti favours European federalism despite a growing EU scepticism [in Italy] which borders on xenophobia. For his part François Hollande has to contend with the [leftist alliance] Front de gauche, the Greens and even a faction of his own [socialist] party that opposes the adoption of the EU fiscal compact. The result is that despite its economic weakness and uncertain political future, Monti's Italy is making itself heard in Europe again while Hollande's France, which is based on solid institutions and is doing better than Italy economically, must first resolve internal problems before it can take on the role its rightful role within the EU."
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All available articles from » Marc Lazar
Le Figaro - France | Tuesday, 4. September 2012
France is torn between the northern and southern European identities, and President Hollande is on the verge of opting for the wrong side, the conservative daily Le Figaro criticises: » more
France is torn between the northern and southern European identities, and President Hollande is on the verge of opting for the wrong side, the conservative daily Le Figaro criticises: "For weeks and months, François Hollande has promised the French that they would maintain the advantages from which they benefit now, that they would not have to bend over backwards in service of some ineluctable globalisation and that they could continue producing French goods even with the 35-hour work week and record labour costs. The countries of Southern Europe put the same discourse into practice ten years ago, only to find themselves on the brink of bankruptcy. France, however, now needs to restore its work ethic, balance its budget and increase competitivity, as Gerhard Schröder and then Angela Merkel did in Germany. Rather than following Kierkegaard's advice: 'I conceived it as my task to create difficulties everywhere," François Hollande preferred to take the easy route, only to smash into reality head-on."
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All available articles from » Yves de Kerdrel
Público - Portugal | Friday, 31. August 2012
Prompted by the sovereign debt crisis Portugal's government on Thursday announced plans to privatise its airport company Ana and the state-owned airline Tap. The liberal daily Público calls on Lisbon to adopt a sensible approach in this process: » more
Prompted by the sovereign debt crisis Portugal's government on Thursday announced plans to privatise its airport company Ana and the state-owned airline Tap. The liberal daily Público calls on Lisbon to adopt a sensible approach in this process: "The privatisation programme has reached a delicate point. The privatisation of Ana and Tap raises the question of how Portugal intends to position itself in the international traffic network. For a peripheral country far more is at stake here than just business - it is also a balancing act between isolation and inclusion. … To know whether Tap will continue to play a key role in Africa and above all in Brazil is a top priority. Is selling all the airports, with the private monopoly this will create, the solution that will best meet the needs of the entire nation? How will the government select potential candidates and what will be the key criteria? … After all, the strategic future of the country is at stake here."
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Süddeutsche Zeitung - Germany | Thursday, 23. August 2012
Europe is facing what are perhaps the most important weeks in its recent history, the left-liberal daily Süddeutsche Zeitung writes and calls on all parties to close ranks: » more
Europe is facing what are perhaps the most important weeks in its recent history, the left-liberal daily Süddeutsche Zeitung writes and calls on all parties to close ranks: "The German Constitutional Court will deliver its ruling, the troika will present its report, then comes the EU summit on October 18. Now, [ahead of his meeting with German Chancellor Angela Merkel on Friday] Greek Prime Minister Antonis Samaras is opening what is perhaps the final act in this currency drama, cleverly setting the tone, promoting, promising, showing contrition and understanding - but he has long since ceased to be in a position where he can decide the fate of his country. He can only influence the mood. The choreography of the coming weeks makes it clear that Europe can only overcome the crisis through the combined efforts of all its participants. If someone decides not to play along - the Constitutional Court, the Bundestag, the French president - then Greece's fate is sealed. If any one of these agents is of the opinion that he doesn't have to do his bit to save the single currency (for example cooperating in the urgently needed reform of the European banking union), this would also prevent a solution."
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All available articles from » Stefan Kornelius
El País - Spain | Thursday, 23. August 2012
Financial investor Nicolas Berggruen, Pimco CEO Mohamed A. El-Erian and economist Nouriel Roubini warn in the left-liberal daily El País of the consequences of an uncontrolled collapse of Europe's single currency: » more
Financial investor Nicolas Berggruen, Pimco CEO Mohamed A. El-Erian and economist Nouriel Roubini warn in the left-liberal daily El País of the consequences of an uncontrolled collapse of Europe's single currency: "If the Eurozone totally fragments, Europe also fails as the single market and the European Union may also collapse. In the short run, fragmentation would be the economic and financial equivalent of a cardiac arrest for Europe. Cross-border flows of goods, services and capital would be disrupted as currency denomination concerns overwhelm the normal valuation calculus. ... Germany and the core need to decide boldly whether they believe that the Eurozone can survive and in what format. If the answer is yes, then the pursuit of a less imperfect union would need to be accompanied by massive official financing - both fiscal and from the European Central Bank. ... If, instead, they were to decide both that the eurozone is not viable as is and that a smaller union is not achievable, the costs of breaking up disorderly later rather than breaking up now would be much larger."
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All available articles from » Nicolas Berggruen, » Mohamed A. El-Erian, » Nouriel Roubini
Irish Independent - Ireland | Wednesday, 22. August 2012
The bursting of the real estate bubble in 2009 continues to have dramatic repercussions for the Irish economy and there is still no sign of light at the end of the tunnel, writes the conservative daily the Irish Independent: » more
The bursting of the real estate bubble in 2009 continues to have dramatic repercussions for the Irish economy and there is still no sign of light at the end of the tunnel, writes the conservative daily the Irish Independent: "The collapse in house prices leads to falls in consumer wealth and demand, which in turn, causes incomes to fall. As unemployment rises, the fall in income for those who lose their jobs is direct and immediate. But the collapse in demand also leads to lower general tax revenue and increases in welfare spending. The government budget deficit increases. ... The decision to extend what was originally a temporary guarantee that was designed only to prevent an evident bank run, into an open-ended bondholder bailout of what turned out to be massively insolvent Irish banks, blew up the budget deficit to levels that a nation lacking a sovereign currency could not repay."
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All available articles from » David McWilliams
La Stampa - Italy | Wednesday, 22. August 2012
The rating agency Moody's said in a report on Tuesday that the crisis countries of the Eurozone have made progress with their structural reforms. But Italy's politicians are wasting valuable time under the transitional technocratic government with their pointless banter, the liberal daily La Stampa criticises: » more
The rating agency Moody's said in a report on Tuesday that the crisis countries of the Eurozone have made progress with their structural reforms. But Italy's politicians are wasting valuable time under the transitional technocratic government with their pointless banter, the liberal daily La Stampa criticises: "The rating agency's assessment is no reason to start celebrating. ... Because all optimism quickly fades at the thought of the upcoming election campaign and its protagonists. We are talking about a political class that nine months ago agreed not to govern and not to oppose. It has left it up to the technocrats to drag the cart out of the mud. So when democracy was suspended it was done with the parties' blessing. We will make good use of this time, they pledged. They would use it to reform electoral law, for example. But nine months haven't been enough to produce a consensus. ... What we see now is the pitiful scenario of a marketplace where all that counts is who teams up with whom and what colour his tie is. ... There is not a single concept for the future of the country, for an institutional basis on which Italy can build."
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All available articles from » Mattia Feltri
WOZ - Die Wochenzeitung - Switzerland | Thursday, 16. August 2012
According to recent Eurostat figures, on average almost a quarter of European youths aged between 15 and 24 are unemployed. In Greece and Spain that figure rises to over 50 percent. Business-friendly politicians are willing to accept such mass youth unemployment, the left-leaning weekly newspaper WOZ writes: » more
According to recent Eurostat figures, on average almost a quarter of European youths aged between 15 and 24 are unemployed. In Greece and Spain that figure rises to over 50 percent. Business-friendly politicians are willing to accept such mass youth unemployment, the left-leaning weekly newspaper WOZ writes: "There most certainly are alternatives to the prospect of long-term poverty for millions of youths: an across-the-board reduction of working hours instead of a raise in the retirement age, sensible employment programmes and support for community work financed by fair taxation of all income classes, instead of the dismantling of the welfare state. ... Capital - and its politicians - reject such proposals offhand. For them the growing reserve army of young labourers is also an effective means of introducing wage and pension dumping across the generations. Many older citizens and most unions still fail to grasp this fact. The protesting youths with their often very imaginative initiatives are way ahead of them. And their resistance also highlights what creative potential society is losing out on."
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All available articles from » Pit Wuhrer
Jornal de Negócios - Portugal | Tuesday, 21. August 2012
Since returning from his summer holidays Portuguese Prime Minister Pedro Passos Coelho has repeatedly stressed that Portugal will emerge from the recession in 2013. The business paper Jornal de Negócios warns about the dangers of risky prognoses: » more
Since returning from his summer holidays Portuguese Prime Minister Pedro Passos Coelho has repeatedly stressed that Portugal will emerge from the recession in 2013. The business paper Jornal de Negócios warns about the dangers of risky prognoses: "Predicting growth, especially when the economic situation is so uncertain, is always a risk. All it takes is a couple of problems with our key trading partners and things could go very wrong. Just consider what an impact the Spanish quasi-tragedy is having on Portugal's exports. ... Has Passos Coelho risked too much? We probably won't know for sure for a couple of years, but there are signs that seem to corroborate his optimism. … The pressure to spread good news is great. But if there are no certainties it's better not to make such predictions public. Because the loss of its credibility is the last thing a government needs."
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All available articles from » Camilo Lourenço
Savon Sanomat - Finland | Tuesday, 21. August 2012
The right-wing populist Finnish opposition politician Timo Soini sees the splitting up of the Eurozone into two parts, a northern and southern one, as inevitable. The liberal daily Savon Sanomat doesn't believe in such a scenario: » more
The right-wing populist Finnish opposition politician Timo Soini sees the splitting up of the Eurozone into two parts, a northern and southern one, as inevitable. The liberal daily Savon Sanomat doesn't believe in such a scenario: "Soini sees the Eurozone in its current form as untenable. The euro, he says, can only survive if the countries that are in better control of their situation are willing to help the weaker countries. Soini is right about that. The bailouts for weaker euro countries, most recently for Spain, have failed to convince the markets. No one can say for sure right now how long the props will hold. Meanwhile the construction of new supports is proving increasingly difficult in political terms. ... But if the Eurozone does begin to collapse the most likely scenario is not the division Soini foresees. It is more likely that Greece, the country worst hit by the crisis, would have to leave. However Greece's exit would not mean the collapse of the entire Eurozone."
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De Tijd - Belgium | Thursday, 16. August 2012
With a negative growth of 0.6 percent, the Belgian economy shrank three times faster than expected in the second quarter of this year. The country now figures among the weak performers of the Eurozone along with Spain and Italy. The country's inactive government is mainly to blame, writes the business paper De Tijd: » more
With a negative growth of 0.6 percent, the Belgian economy shrank three times faster than expected in the second quarter of this year. The country now figures among the weak performers of the Eurozone along with Spain and Italy. The country's inactive government is mainly to blame, writes the business paper De Tijd: "You can't draw far-reaching conclusions on the basis of a single quarter. But if our country's economic growth continues to be disappointing in the third quarter, the alarm bells will have to start ringing. Because when the economy shrinks it triggers a downwards spiral: fewer jobs, budget gaps, dwindling confidence among entrepreneurs and consumers, etc. The forecasts from June that the Belgian economy would grow by 0.6 percent this year were a fata morgana in which the government was only too happy to believe. So with its quick review of the budget in July, it saw no need to introduce structural measures to stimulate the economy. Now this lack of foresight is making itself felt."
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All available articles from » Stefaan Michielsen
Diário de Notícias - Portugal | Wednesday, 15. August 2012
Portugal and other crisis countries in southern Europe are particularly hard hit by recession, and the German economy is no longer capable of curbing recession in the Eurozone, the liberal-conservative daily Diário de Notícias comments: » more
Portugal and other crisis countries in southern Europe are particularly hard hit by recession, and the German economy is no longer capable of curbing recession in the Eurozone, the liberal-conservative daily Diário de Notícias comments: "On the same day when the Portuguese statistics office announced that unemployment had reached the critical 15 percent mark in Portugal, the figures published by Eurostat also fuelled new concerns: the recession in the second quarter reached 3.3 percent, the highest level since 2009. Of the 17 single currency countries, only Greece is in a worse position than Portugal. Economic performance has sunk across the Eurozone. Even the German economy, the motor of Europe, grew by just 0.3 percent. Faced with these alarming figures Prime Minister Coelho tried to send a message of hope. However he chose his words very carefully: there was no promise of economic growth for 2013, only the promise that the recession would end."
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La Repubblica - Italy | Wednesday, 15. August 2012
Despite a new complaint filed by eurosceptics against the ESM bailout mechanism, Germany's Constitutional Court plans to stick to its current schedule and announce its decision on the conformity of the new rescue fund with the German constitution on September 12. This is good news but doesn't change the fact that the Constitutional Court is holding the Eurozone hostage, the left-liberal daily La Repubblica comments: » more
Despite a new complaint filed by eurosceptics against the ESM bailout mechanism, Germany's Constitutional Court plans to stick to its current schedule and announce its decision on the conformity of the new rescue fund with the German constitution on September 12. This is good news but doesn't change the fact that the Constitutional Court is holding the Eurozone hostage, the left-liberal daily La Repubblica comments: "Once again the fate of the monetary union is in the hands of the German Constitutional Court. Karlsruhe [where the Court resides] is limiting the government's room for manoeuvre because every agreement Berlin signs with Brussels must previously have received the blessing of parliament. … Although as far as the legitimacy of the government of a democratic country is concerned, there's nothing to be said against this, it also means that on a regular basis Europe is being held hostage by a non-EU institution which it did not appoint and over which it has no jurisdiction. … Moreover this results in a contradiction. In the name of the German constitution the judges of Karlsruhe must preserve German sovereignty at the same time as Germany is calling on other EU countries to give up sovereignty in order to save the monetary union."
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All available articles from » Andrea Bonanni
Il Sole 24 Ore - Italy | Wednesday, 15. August 2012
While according to figures released by the European statistics agency Eurostat on Tuesday the Eurozone is approaching a recession, in France economic growth is merely at zero and Germany has registered moderate growth. But these exceptions are no cause for optimism, the liberal-conservative business paper Il Sole 24 Ore writes: » more
While according to figures released by the European statistics agency Eurostat on Tuesday the Eurozone is approaching a recession, in France economic growth is merely at zero and Germany has registered moderate growth. But these exceptions are no cause for optimism, the liberal-conservative business paper Il Sole 24 Ore writes: "The gloomy prognoses have only in part proved to be right. Because in France and in Germany, the core of the strong countries, growth may have slowed down, but less than expected. … The quarterly figures reflect a two-speed Eurozone, or rather a Eurozone of two opposing directions. … While the debt countries, and surprisingly also Finland, are floundering, others are continuing to grow, albeit at a slower pace than before. … However this doesn't refute the theory that the crisis of the peripheral states will slowly but surely extend across the entire monetary union. The downward trend has been confirmed, particularly in Germany, where economic growth is based above all on the purely mathematical logic of the gross domestic product: as long as exports decline at a slower pace than imports, the curve goes upwards."
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More from the press review on the subject » Economic Policy, » Economy, » Germany, » France, » Europe
All available articles from » Riccardo Sorrentino
Blog Nachdenkseiten - Germany | Wednesday, 15. August 2012
According to a forecast by the Ifo Institute published on Monday, Germany will register the world's biggest export surplus, at 210 billion dollars. But this is no cause for celebration, writes Jens Berger on his blog Nachdenkseiten, because in the long term the country is digging its own grave: » more
According to a forecast by the Ifo Institute published on Monday, Germany will register the world's biggest export surplus, at 210 billion dollars. But this is no cause for celebration, writes Jens Berger on his blog Nachdenkseiten, because in the long term the country is digging its own grave: "Above all within the Eurozone, Germany's foreign trade surpluses are seen as the main reason for the current euro crisis. ... If an economy continually exports more than it imports, currency evaluations or devaluations act as a corrective force and the countries that consistently import more than they export necessarily become indebted to those that export more than they import. ... Whereas the 'dysfunctional duo' comprising China and the US at least has the possibility of changing the exchange rate in compensation and to account for the constant wage hikes in China, the situation in Germany looks significantly bleaker. ... Wages there must rise faster than in the rest of Europe. Only then can Germany compensate for its world-class import deficit ... and stave off the threat of bankruptcy."
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All available articles from » Jens Berger
Neue Zürcher Zeitung - Switzerland | Wednesday, 15. August 2012
The risk of a prolonged recession above all comes from the countries of Southern Europe, which are in dire need of structural reform, the liberal-conservative daily Neue Zürcher Zeitung contends, praising the reform efforts in the Baltic region: » more
The risk of a prolonged recession above all comes from the countries of Southern Europe, which are in dire need of structural reform, the liberal-conservative daily Neue Zürcher Zeitung contends, praising the reform efforts in the Baltic region: "The Baltic states have done extraordinarily well in the last few quarters. This is the fruit of recent reforms. In the face of the latest financial crisis Estonia, Latvia and Lithuania have had to make painful internal revisions, and thanks to falling salaries and prices - in combination with flexible labour markets - they have found their way back to the path of recovery. Such success stories should be borne in mind when complaints that the problem countries are crumbling under the pressure of enforced austerity programmes grow loud. Because the fact is there is no alternative to the austerity policy, which together with reform measures must boost the competitiveness of the individual economies in the long run."
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More from the press review on the subject » Economic Policy, » Economy, » Europe, » Baltic States
All available articles from » Nicole Rütti
The Economist - United Kingdom | Tuesday, 14. August 2012
The inflation policy of the European Central Bank is also to blame for the impending recession in the Eurozone, Ryan Avent argues in the blog of the liberal weekly The Economist: » more
The inflation policy of the European Central Bank is also to blame for the impending recession in the Eurozone, Ryan Avent argues in the blog of the liberal weekly The Economist: "The ECB has permitted this dangerous slowdown because it focuses obsessively on inflation, and consumer price inflation has been above 2% since late 2010. That's a potentially fatal error. Plummeting demand will eventually bring inflation down, at the cost, perhaps, of unsustainably painful contractions around the periphery. Meanwhile, the ECB's choice to preside over a steady slowdown in demand growth, and a consequent squeeze on the periphery, is exacerbating the financial crisis and putting great pressure on ECB officials to take all sorts of extraordinary action. The inflation obsession is leaving the central bank more involved in the economy and more politically overextended than it would be if it focused on maintaining stable growth in demand."
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All available articles from » Ryan Avent
Jornal de Negócios - Portugal | Monday, 13. August 2012
Since the beginning of Portugal's adjustment programme prescribed by the troika incomes have gone down by an average of 30 percent owing to cuts in social benefits and changes to labour laws. Nonetheless the ECB is right to expect further measures aimed at lowering labour costs, the liberal business daily Jornal de Negócios writes: » more
Since the beginning of Portugal's adjustment programme prescribed by the troika incomes have gone down by an average of 30 percent owing to cuts in social benefits and changes to labour laws. Nonetheless the ECB is right to expect further measures aimed at lowering labour costs, the liberal business daily Jornal de Negócios writes: "The ECB has proposed a range of interesting measures for crisis-stricken countries. One measure in particular is being given special consideration: lowering salaries and income as a means of reducing company production costs and making exports cheaper. This measure is already being implemented in Portugal (average net wages have gone down by 107 euros in the last two years) and will soon affect Spain and Italy. ... It is the most controversial and drastic measure, but not the only one that should deserves attention. …. Salary cuts are a stopgap measure, but are necessary to save jobs. Saving companies in a country with an unemployment rate of 16 percent is a worthy cause, even if it's at the expense of the workers. Or isn't it?"
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All available articles from » Camilo Lourenço
ABC - Spain | Friday, 10. August 2012
Five years after the outbreak of the international financial crisis the politicians still haven't got the situation under control, the conservative daily ABC writes, recalling August 9, 2007, the day the crisis began with the announcement that the French bank BNP Paribas was in trouble: » more
Five years after the outbreak of the international financial crisis the politicians still haven't got the situation under control, the conservative daily ABC writes, recalling August 9, 2007, the day the crisis began with the announcement that the French bank BNP Paribas was in trouble: "Hardly anyone, not to say no one, thought back then that the most serious economic crisis since the Great Depression of the 1930s was about to begin. … At a political level the crisis has brought down governments of all stripes on both sides of the Atlantic, including the Republicans in the US, Berlusconi in Italy and Zapatero in Spain. That five years on the crisis still hasn't been overcome testifies to the incompetence of most Western governments - who are completely at odds with each other over whether economic stimulus or austerity packages will bring recovery. However some have been more successful than others. The US solved its banking problems at lightning speed and Germany is sticking to its austerity policy despite the recession, while the Spanish Socialists simply denied the crisis."
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Politis - Cyprus | Thursday, 9. August 2012
Columnist Giorgos Tzivas writes in the liberal daily Politis that Cyprus's woes are not due to the crisis but to people's consumer habits and their inability to distinguish between what is needed and what is superfluous: » more
Columnist Giorgos Tzivas writes in the liberal daily Politis that Cyprus's woes are not due to the crisis but to people's consumer habits and their inability to distinguish between what is needed and what is superfluous: "Crisis, crisis, crisis. This word is used constantly and everywhere to avoid calling a spade a spade. ... With their lack of judgement, it's clear people will see crises everywhere they look - although the only crisis that exists is a crisis of values. We've transformed our economy, our politics and our very lives into a realm entirely devoid of judgement. ... We had no idea what - or how much - we needed. Now we must get a grip on ourselves whether we like it or not. Only by judging correctly can we avoid the black hole of licentiousness, where our brains have always judged according to quantity and not quality."
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All available articles from » Giorgos Tzivas
To Vima Online - Greece | Thursday, 9. August 2012
Former German chancellor Helmut Schmidt said on Tuesday in a talk show that the Germans cannot lead Europe because of their Nazi past. In saying this Schmidt summed up Berlin's true ambitions, writes columnist Giorgos Malouchos in the left-liberal online paper To Vima: » more
Former German chancellor Helmut Schmidt said on Tuesday in a talk show that the Germans cannot lead Europe because of their Nazi past. In saying this Schmidt summed up Berlin's true ambitions, writes columnist Giorgos Malouchos in the left-liberal online paper To Vima: "Why is he trying to tell his own country to forget its dream of dominating Europe? For a single reason: This is precisely what Germany has been aiming for with its crisis management for almost three years now. ... It is highly likely that Schmidt's voice won't be heard. ... Many still entertain the illusion that Germany's policy of the last three years is financially motivated and follows the logic of 'putting things in order'. But Berlin is using the crisis to achieve what Helmut Schmidt referred to: European dominance. And this is also the reason why Berlin refuses to change its policy even though there is not the slightest doubt that it is leading us to disaster."
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All available articles from » Giorgos Malouchos
Tvnet - Latvia | Wednesday, 8. August 2012
Despite the ongoing euro crisis Europe must continue to believe in its strengths, writes journalist Otto Ozols on the web portal tvnet.lv: » more
Despite the ongoing euro crisis Europe must continue to believe in its strengths, writes journalist Otto Ozols on the web portal tvnet.lv: "Yes, Europe is in a financial crisis right now. But other states like the US are too. And despite this Europe has a considerably more healthy and better educated society. … Right now Europe is ahead of other regions in terms of development and is also dealing with the problems more developed states have to contend with. Experience has shown that Europe has the power to solve its problems on its own. It has waded through financial, economic and political crises in the last ten years and survived them all. So there's no reason to get hysterical and panic. … Europe takes care of its people and is building its progress not on ruthless capitalism and brute external force like the US or the slavery of comparatively cheap labour as in China. It also doesn't have as many mineral resources as Russia. This is precisely why it makes sense to believe in this Europe."
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Diário Económico - Portugal | Tuesday, 7. August 2012
Portuguese bonds are currently Europe's most popular government bonds, according to the Bloomberg and European Federation of Financial Analysts Societies indexes. So far this year they have generated 28 percent yields. This is above all thanks to the government's reforms, writes the liberal business paper Diário Económico: » more
Portuguese bonds are currently Europe's most popular government bonds, according to the Bloomberg and European Federation of Financial Analysts Societies indexes. So far this year they have generated 28 percent yields. This is above all thanks to the government's reforms, writes the liberal business paper Diário Económico: "If investors continue to be as venturesome as they have been Portugal could even make its comeback on the capital markets in September 2013 as planned. Who would have thought it? Those who invested in Portuguese bonds on the secondary market this year attained yields of 28 percent - a profit margin that would turn even gurus like Warren Buffet green with envy. ... And what is the reason for this success? The radical enactment of the adjustment programme, which is not very popular here in Portugal but is music to the ears of those outside the country who invest in our government debt."
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All available articles from » Pedro Sousa Carvalho
Financial Times Deutschland - Germany | Tuesday, 7. August 2012
The British-Dutch oil company Shell wants to transfer up to 15 billion dollars from Europe to the US, among other destinations, for fear of losses due to the euro crisis, as Simon Henry, Shell's Chief Financial Officer, told the daily newspaper The Times on Monday. An alarmingly candid warning signal, writes the business paper Financial Times Deutschland, even if objectively there is no reason for the move: » more
The British-Dutch oil company Shell wants to transfer up to 15 billion dollars from Europe to the US, among other destinations, for fear of losses due to the euro crisis, as Simon Henry, Shell's Chief Financial Officer, told the daily newspaper The Times on Monday. An alarmingly candid warning signal, writes the business paper Financial Times Deutschland, even if objectively there is no reason for the move: "The perception of danger is always subjective, and is influenced by many factors: talk of countries being expelled from the Eurozone and the endless wrangling between politicians over the right strategy for the crisis. ... And the more people talk that way, the quicker the fears can become a self-fulfilling prophecy. However we're not there yet by a long shot. On the contrary: as a currency area, the Eurozone still shows more net inflows than outflows. ... Nevertheless it is uncommon for Royal Dutch Shell to be speaking so openly about its cash reserves transfer from the Eurozone. Until now, such movements were kept hush-hush."
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Hospodárske noviny - Slovakia | Monday, 6. August 2012
The head of the European Central Bank, Mario Draghi, came in for massive criticism on the weekend - particularly in Germany - over his propoals for a greater role for the ECB in the euro bailout. And it's no wonder, writes the business paper Hospodarske noviny: » more
The head of the European Central Bank, Mario Draghi, came in for massive criticism on the weekend - particularly in Germany - over his propoals for a greater role for the ECB in the euro bailout. And it's no wonder, writes the business paper Hospodarske noviny: "Already at the start of last week Germany declared that it didn't agree with Draghi's plans because they overstep the ECB's mandate. ... This forced Draghi to capitulate. And he has yet to propose any genuinely concrete steps. Whereas the markets were still on the upswing before his press conference, the euro quickly lost two percent after it amid widespread disappointment. And it was even worse for Draghi himself. He gambled away his credibility by saying things without consulting Germany beforehand. And Germany, it would seem, is still firmly in control of the development of the euro crisis."
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All available articles from » Ronald Ižip
Ependytis - Greece | Sunday, 5. August 2012
The business paper Ependytis is surprised to see how passively the leaders of the Eurozone are behaving this month even though the future of the Monetary Union is at stake: » more
The business paper Ependytis is surprised to see how passively the leaders of the Eurozone are behaving this month even though the future of the Monetary Union is at stake: "They act like nothing important is going on. As if there weren't urgent tasks to be fulfilled, as if the existence of the Eurozone, which they so eagerly defend, did not hang in the balance. Let's just let August go by without doing anything; we'll get down to real business in September! We'll let Greece sweat a bit, and Italy and Spain too, with their spiralling credit costs, … and little Cyprus can stew under a tough austerity package as punishment for its sins. It's enough that good habits aren't being broken: the summer holidays of the elite, the lack of action. ... Europe goes on holiday in August, but not the Europeans, or not all of the them. Europe takes a break while the Europeans worry. Europe sleeps while the Europeans have nightmares. The European leaders are recovering from the exertions of their indecisiveness."
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Main focus of Friday, 3. August 2012
The ECB will buy the bonds of crisis-stricken state only if they apply for assistance from the euro bailout bond and fulfil the conditions that ... » more
The ECB will buy the bonds of crisis-stricken state only if they apply for assistance from the euro bailout bond and fulfil the conditions that entails, ECB chief Mario Draghi explained on Thursday. With this statement he is breaking his promise to save the euro and ruining the credibility of the ECB, some commentators admonish. Others say it is only right that countries are expected to bear more responsibility for their own fate in the crisis.
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Diário Económico - Portugal | Friday, 3. August 2012
It was dishonest of Draghi not to make good on what he had pledged last week, in the eyes of the liberal business paper Diário Económico: » more
It was dishonest of Draghi not to make good on what he had pledged last week, in the eyes of the liberal business paper Diário Económico: "He began by saying that he would do whatever it took to save the euro, but then he did nothing. ... How normal this has become at the EU institutions: first they study the problem then wait and see what happens. ... The markets don't like encoded messages or people who say one thing and then do another. But this is precisely the way the EU politicians do things: declarations of love for the euro but nothing to back them up. ... The credibility of the EU institutions has been destroyed. This ECB decision was clearly influenced by pressure from Germany and once again Germany's orthodox financial approach has won the day. ... As far as Germany is concerned it would be a sacrilege for the ECB to buy bonds. Draghi wanted to take this path, but has pulled back. Now the bank will only intervene after crisis countries ask the fund for help."
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All available articles from » Bruno Proença
De Tijd - Belgium | Friday, 3. August 2012
With his catastrophic communication policy Draghi has gambled away the ECB's credibility, the liberal daily De Tijd criticises: » more
With his catastrophic communication policy Draghi has gambled away the ECB's credibility, the liberal daily De Tijd criticises: "What got into Draghi? Does he really think that he can get away with telling investors - those of London City, mind you - that 'whatever it takes' will be done to save the euro one week, only to go back on his words the next? Someone has to tell this Italian that investors are a very excitable bunch. By making promises in London that he couldn't keep, Draghi has destroyed the credibility of the ECB. And that's a bad thing. ... The yields on Spanish bonds rose to 7.17 percent yesterday as a result of Draghi's blunder. Draghi will no doubt find this highly irrational once more. But faced with such wretched communication skills it's entirely rational that the investors are running scared."
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All available articles from » Kurt Vansteeland
De Groene Amsterdammer - Netherlands | Friday, 3. August 2012
For two years now politicians, the media and economists have been warning of the collapse of the euro. But how bad is the situation in reality, asks the Amsterdam professor of media science Frank de Vree in the left-leaning weekly De Groener Amsterdammer: » more
For two years now politicians, the media and economists have been warning of the collapse of the euro. But how bad is the situation in reality, asks the Amsterdam professor of media science Frank de Vree in the left-leaning weekly De Groener Amsterdammer: "In this financial crisis the media and politicians seem to have given in too quickly to a crisis rhetoric fed by the greed for sensational news. This gives broad scope to extreme positions and party interests, one hype follows the next and debates turn into cacophonic events. And as so often in the economic sphere, crisis reports turn into self-fulfilling prophecies. If everyone calls out that the situation is getting worse, then it gets worse. While the mechanisms and forces that cause the shocks on the financial markets or benefit from them for the most part remain unclear, we citizens have lost track of what's going on. We don't know what the real situation is or whether everyone is a loser in this crisis, as we are being led to believe. What remains is a sense that we, as Europe, have become the plaything of uncontrollable or at least invisible financial forces and processes."
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All available articles from » Frank van Vree
Corriere della Sera - Italy | Friday, 3. August 2012
ECB chief Draghi does well to make countries take their fate into their own hands, writes the liberal-conservative daily Corriere della Sera: » more
ECB chief Draghi does well to make countries take their fate into their own hands, writes the liberal-conservative daily Corriere della Sera: "With their downhill run the markets are punishing Draghi for not keeping his promise. But the markets are wrong. ... An unlimited ECB aid programme for Italy and Spain of the kind Paul Krugman and many other experts around the globe are calling for would be in contradiction of the EU treaties. ... Unconditional ECB support would also torpedo the debt ceiling that the countries in question have agreed to under the pressure of rising borrowing costs. Because political Europe stubbornly refuses to act jointly in the crisis, the power of decision Draghi lays claim to has advantages that may be rewarded by less jittery financial markets. Firstly, he is leaving all the doors open to the ECB and secondly, he is reminding the political leaders of a key truth: saving the euro depends not just on the ECB but also on the governments and their voters."
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All available articles from » Francesco Daveri
El País - Spain | Friday, 3. August 2012
The ECB has indicated that it is willing to buy massive amounts of government bonds of crisis countries - but only once they have officially applied for help. This decision will have major repercussions for Spanish society, the left-liberal daily El País fears: » more
The ECB has indicated that it is willing to buy massive amounts of government bonds of crisis countries - but only once they have officially applied for help. This decision will have major repercussions for Spanish society, the left-liberal daily El País fears: "For Spain, the consequences are clear. Now that the door of direct intervention by the ECB has closed, the government will have to think about applying for help from the bailout fund and when the best time to do so would be. … After the banking rescue the government insisted that the Spanish economy wouldn't need a second bailout. But now the conditions for refinancing Spain's debt make it seem inevitable that the government will have to apply for help from the ECB, breaking yet another of its emphatic promises. ... It's difficult to avoid the perception that the single currency will be maintained at the expense of draconian measures in Spain and Italy, with unforeseeable consequences for society."
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Vilniaus diena - Lithuania | Thursday, 2. August 2012
Japan has long years of experience in fighting a serious financial crisis, but Europe still won't learn its lesson from this, laments Karolis Urbonas of Vilnius' Social Dynamics International institute in the daily newspaper Vilniaus diena: » more
Japan has long years of experience in fighting a serious financial crisis, but Europe still won't learn its lesson from this, laments Karolis Urbonas of Vilnius' Social Dynamics International institute in the daily newspaper Vilniaus diena: "The Japanese crisis from 1990 to 1995 bore all the hallmarks of today's crisis: the private sector was highly indebted, real estate prices were inappropriately high and despite very low central bank rates no one wanted to take out loans. … Japan's government realised that the textbook theories didn't work and sought alternatives. The logic was simple: If the privates sector doesn't take loans and monetary policy measures remain ineffectual (lower interest rates, money printing) then the state itself must borrow money and invest it in creating demand and boosting the economy. ... The proposals coming from Europe and the US for solving the crisis, such as printing money and lowering interest rates to almost zero, are ineffective. The only way out of the balance sheet crisis is state intervention."
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All available articles from » Karolis Urbonas
Main focus of Thursday, 2. August 2012
According to media reports, ECB chief Mario Draghi plans to present a double strategy today, Thursday, for curbing the debt crisis. The plan is for ... » more
According to media reports, ECB chief Mario Draghi plans to present a double strategy today, Thursday, for curbing the debt crisis. The plan is for both the ECB and the ESM bailout mechanism to purchase the bonds of struggling countries. Despite the danger of inflation, commentators favour a stronger role for the ECB because they see the central bank as a more credible player than the European governments.
More from the press review on the subject » EU Policy, » Fiscal Policy, » Europe
All available articles from » Stefan Kornelius
Süddeutsche Zeitung - Germany | Thursday, 2. August 2012
Germany must finally commit to a concrete strategy for fighting the debt crisis even though it faces a choice between bad and even worse options, writes the left-liberal daily Süddeutsche Zeitung: » more
Germany must finally commit to a concrete strategy for fighting the debt crisis even though it faces a choice between bad and even worse options, writes the left-liberal daily Süddeutsche Zeitung: "Some of these are calculable in euro and cents, some are not, because political costs bear no price tags. A fleeting feeling of national triumph can end in bitter political isolation and a dangerous European political balancing act. ... The really bad option would be the collapse of the European currency system. Whether Greece's exit from the Eurozone is already part of this makes for a splendid debate. ... The bad option involves the intervention of the Central Bank. Since a banking license [for the permanent ESM bailout fund] can only be introduced through contractual changes for which there is neither the time nor the political energy, the ECB will have to intervene directly. Politicians will have to exploit all possible mechanisms to avoid letting the crisis states off the hook when it comes to implementing reforms that are so crucial to Europe's long-term recovery. This however calls for trust among states. The nations of Europe and their leaders should at least be able to come up with that much."
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Diário de Notícias - Portugal | Thursday, 2. August 2012
Greater responsibility in solving the euro crisis is what the liberal-conservative daily Diário de Notícias hopes today's meeting of the ECB governing council will produce: » more
Greater responsibility in solving the euro crisis is what the liberal-conservative daily Diário de Notícias hopes today's meeting of the ECB governing council will produce: "On the table is the proposal to grant the ESM bailout mechanism a banking licence, even though thanks to Germany's constitutional court the mechanism is not even in force yet. ... Its current firing power of 500 billion euros (which can be boosted to a maximum of 700 billion euros) won't be enough if Spain or Italy need help. ... As expected, the German bookkeepers, pointing to the danger of inflation, are against an unlimited euro bailout fund. They should be reminded that inflation is only a potential risk whereas the damage Berlin has done with its austerity dictates is real. Giving the ESM a banking license would only be a temporary solution anyway. The main thing would be to turn the ECB into a proper central bank that doesn't hesitate to use financial instruments when the public welfare is at stake - as is unquestionably the case here."
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All available articles from » Viriato Soromenho-Marques
La Vanguardia - Spain | Thursday, 2. August 2012
ECB chief Mario Draghi must live up to the high expectations he fuelled last week at the meeting of the governing council today, warns the liberal daily La Vanguardia: » more
ECB chief Mario Draghi must live up to the high expectations he fuelled last week at the meeting of the governing council today, warns the liberal daily La Vanguardia: "The main weapon of the ECB is its credibility. The president of the ECB is therefore obliged today to fulfil the expectations he awakened last week when he said the institution would do whatever it takes to save the euro and that what it does will be enough. All political and economic observers interpreted these words to the effect that the monetary authority is willing to fire up mechanisms to stabilise the debt market and allow reasonable financing for the members of the monetary union, in particular Spain and Italy. Both countries, which are suffering from the distrust of the financial markets, could see their current financing problems worsen to the point where they are unsustainable if Mario Draghi doesn't get a grip on the situation today."
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Delo - Slovenia | Thursday, 2. August 2012
Europe still hasn't come up with a solution to the euro crisis, writes the left-liberal daily Delo in disbelief: » more
Europe still hasn't come up with a solution to the euro crisis, writes the left-liberal daily Delo in disbelief: "The discussions about the euro crisis increasingly resemble those about global warming. All the politicians are warning of a catastrophe of biblical proportions which we won't escape if we don't act immediately. We watch on as words and threats inflate, one fateful summit after another produces ever new solutions, all of which fail - and meanwhile the monetary union is melting away like the glaciers. ... We have to ask ourselves whether all the fears - as with the environmental problems - are pure speculation. One simply refuses to believe that the accumulated global intelligence of the 21st century can't find a solution to the problem it itself refers to as the debt crisis of the Eurozone."
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All available articles from » Damijan Slabe
Blog EUROPP - United Kingdom | Wednesday, 1. August 2012
Writing on the blog of the London School of Economics Hugo Brady of the Center for European Reform proposes the idea of a 15-year political union that would span three legislative periods of the European Parliament, starting in 2014. This, he says, would give the EU members time to implement reforms and make the monetary union sustainable: » more
Writing on the blog of the London School of Economics Hugo Brady of the Center for European Reform proposes the idea of a 15-year political union that would span three legislative periods of the European Parliament, starting in 2014. This, he says, would give the EU members time to implement reforms and make the monetary union sustainable: "At present, Eurozone voters neither want a collapse of the euro (which would be catastrophic) nor a federal super-state. But they might be persuaded of the merits of a third option - a temporary loss of economic sovereignty for three electoral cycles, which could secure their living standards for a generation. This would buy the kind of time from the markets that governments really need to fix Europe's broken banking system, re-design the common currency and realise the slow-burning benefits of wide-ranging economic reform. It would boost the confidence of businesses, banks and consumers in Europe that are currently too scared to invest, lend and spend as normal. And it would help free the global economy from introspection, in turn creating new export demand to brighten Europe's growth outlook and make its debt burden more manageable."
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Jornal de Negócios - Portugal | Tuesday, 31. July 2012
The criticism levelled by Euro Group boss Jean-Claude Juncker against Berlin's conduct in the euro crisis has provoked a series of fierce counterattacks among the ruling coalition in Germany. This is a dangerous dispute that will only increase doubts about the euro, the business paper Jornal de Negócios warns. "Juncker accused Germany of treating the Eurozone as its subsidiary. … The response was not long in coming: » more
The criticism levelled by Euro Group boss Jean-Claude Juncker against Berlin's conduct in the euro crisis has provoked a series of fierce counterattacks among the ruling coalition in Germany. This is a dangerous dispute that will only increase doubts about the euro, the business paper Jornal de Negócios warns. "Juncker accused Germany of treating the Eurozone as its subsidiary. … The response was not long in coming: Christian social CSU secretary general Alexander Dobrindt described the remark as the height of impertinence. … His party colleague Hans Michelbach criticised ECB chief Draghi, who announced that he would do whatever was necessary to save the euro. … This barrage of public nonsense points to a dangerous trend in the Euro Group. It is reigniting old animosities that the EU project is there to prevent. … The Germans must finally understand that the euro is a now political project, not just a monetary one: the survival of Europe depends upon it. … As things stand now distrust of the euro is only being spurred, and with it the collapse of the EU's economy."
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Frankfurter Allgemeine Zeitung - Germany | Friday, 27. July 2012
The signals coming from the ECB about buying up government bonds of crisis-stricken countries are a source of concern for the conservative daily Frankfurter Allgemeine Zeitung: » more
The signals coming from the ECB about buying up government bonds of crisis-stricken countries are a source of concern for the conservative daily Frankfurter Allgemeine Zeitung: "It has moved into a grey area in monetary policy - dangerously close to indirect financing of sovereign debt. … It's understandable that the markets are celebrating. They are desperately seeking buyers for these risky bonds. Draghi may hope that the announcement will be enough to bring down the high yields. But how often have we seen both verbal and concrete interventions fall flat. Even Draghi's own "big Bertha", a three-year financing for banks, had only a fleeting impact. Draghi has shown that he's capable of anything. If the crisis continues to escalate he could quite conceivably fly in the face of Germany's euro protectors, think up a new name for a canon and intervene with full force. But this wouldn't solve the debt crisis. Only the states can do that by putting their budgets on the path to recovery and making their economies more competitive."
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Blog EUROPP - United Kingdom | Friday, 27. July 2012
Michelle Everson, a professor of law, questions the sense of establishing a centralised European bank supervisory authority. It would only increase the European Union's democratic deficit and bolster technocratic structures, she argues in the blog of the London School of Economics: » more
Michelle Everson, a professor of law, questions the sense of establishing a centralised European bank supervisory authority. It would only increase the European Union's democratic deficit and bolster technocratic structures, she argues in the blog of the London School of Economics: "In the face of heightening sovereign and financial debt crises and loudly expressed fears of contagion within the Eurozone, its members, together with the European Commission, have drawn yet one more rabbit from their hat, committing themselves to the creation of a banking union by the end of this year. Certainly, this time around, remedial proposals designed to save the Euro and Union have been set in a broader political context, whereby immediate crisis-busting measures, so we are promised, will be complemented by a decade-spanning roadmap for deeper political integration within Europe. Nevertheless, given the currently rather sketchy nature of existing political-integration proposals - or, more importantly, their inherently 'commissarial' or technocratic nature - this rabbit, too, ... is also predicated upon a radical expansion in the technocratic governance structures of the EU."
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Irish Independent - Ireland | Thursday, 26. July 2012
The main reason behind the debt crisis is the lack of mutual trust between European countries, the conservative daily the Irish Independent writes: » more
The main reason behind the debt crisis is the lack of mutual trust between European countries, the conservative daily the Irish Independent writes: "When you look at the lack of any permanent solution for the eurozone it does come down to what seems to be a total breakdown in trust between the creditor and debtor countries. The creditor countries ... don't believe that the debtor countries will stick to their word. ... From the perspective of the peripheral countries, there is a real grievance that the creditor countries don't appear willing to accept their responsibility for careless lending in the boom. Someone needs to knock heads together. The euro's economic problem is recession and no growth; its financial problem is too much debt; and its political problem is that there's no one to knock heads together."
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Corriere della Sera - Italy | Wednesday, 25. July 2012
There is also a positive aspect to the euro crisis, according to historian Ernesto Galli della Loggia. In the liberal-conservative daily Corriere della Sera he explains that it is finally exposing the ideological facade of the EU that has allowed it to ignore the differences between the countries of Europe for so long. "The concept of Europe on which the Treaty of Rome was based has in effect overlooked two essential aspects: » more
There is also a positive aspect to the euro crisis, according to historian Ernesto Galli della Loggia. In the liberal-conservative daily Corriere della Sera he explains that it is finally exposing the ideological facade of the EU that has allowed it to ignore the differences between the countries of Europe for so long. "The concept of Europe on which the Treaty of Rome was based has in effect overlooked two essential aspects: the existence of a Mediterranean Europe on the one hand and a German Europe on the other. These are two different Europes that have been united by shared values for centuries, but have also been separated by profound conflicts. However the common values were almost exclusively the preserve of an elite, while the conflicts reach deep into society. First the EEC and later the EU managed for years to conceal the divide between these two Europes. They did this with the help of the purportedly unifying ideology of the West on the one hand and the allegedly solid prospects of growth based on capitalism on the other. But this thin veil only covered the divide rather than bridging it. … Geography, politics, and along with them history have now regained the upper hand. The true capitals of the continent - Berlin, Paris, Madrid and Rome - have once again taken the place of the artificial capital, Brussels."
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NRC Handelsblad - Netherlands | Wednesday, 25. July 2012
The warning from rating agency Moody's that Germany, Luxembourg and the Netherlands could face a credit status downgrade must be taken seriously, the liberal daily NRC Handelsblad argues: » more
The warning from rating agency Moody's that Germany, Luxembourg and the Netherlands could face a credit status downgrade must be taken seriously, the liberal daily NRC Handelsblad argues: "The Netherlands is lagging behind in economic growth, also in comparison with the European Union average. But above all it is battling excessive private sector debt, and Moody's is not the first to warn about this. The Dutch politicians are playing deaf for fear of being forced to introduce unpopular measures. The problem of mortgage interest payments being fully tax deductible and mortgages being financed free of transfer fees is being tackled on a minor scale only. So it's too little, too late when it comes to combating the major cause of private debt. The message the politicians must convey now in the election campaign [ahead of the parliamentary elections on September 12] is that the crisis affects everyone, citizens and state alike. Otherwise Moody's will teach us this more harshly."
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Blog Démystifier la finance - France | Monday, 23. July 2012
The negative outlook for Germany, the Netherlands and Luxembourg is the product of a faulty analysis by the rating agency, writes Georges Ugeux in his blog Démystifier la finance with the daily Le Monde: » more
The negative outlook for Germany, the Netherlands and Luxembourg is the product of a faulty analysis by the rating agency, writes Georges Ugeux in his blog Démystifier la finance with the daily Le Monde: "The analysis is completely wrong. Despite the claims of the moody rating agency, a Greek exit … would not affect European banks - for a very simple reason: the private sector held [Greek] risk bonds amounting to 100 billion euros and accepted an exchange that reduced the debt by 80 percent. This leaves the private finance sector with an outstanding sum of 20 billion euros, which will very probably be repaid. Spread among 400 creditors that leaves each with an average of 50 million. There are certainly a few European banks that bought into Greek banks, but not ones in Germany and the Netherlands, and certainly not ones in Luxembourg. Two of them, however, are in France."
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Dagens Nyheter - Sweden | Wednesday, 25. July 2012
Sweden's healthy state finances mean it is currently paying almost no interest on government loans. The liberal daily Dagens Nyheter sees this as a huge chance for the government to boost the economy through sound investments: » more
Sweden's healthy state finances mean it is currently paying almost no interest on government loans. The liberal daily Dagens Nyheter sees this as a huge chance for the government to boost the economy through sound investments: "In a situation in which already high levels of unemployment are rising further and in which the euro crisis seems to be getting worse, the state needs to invest in the future. Due to the low cost of borrowing this would be inexpensive and would boost business activity and gear up the economy for the future. More expansive policies would also have a positive influence on other EU countries. It is only fitting that states that have this opportunity should boost their economies in bad times. We should therefore get the ball rolling on economically sound infrastructural projects, whether this means extending the Swedish power grid, improving rail transport or building a new underground system."
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Berlingske - Denmark | Wednesday, 25. July 2012
The euro crisis has long been shaking the foundations of the entire project of the EU, according to the right-liberal daily Berlingske, which calls for non-euro countries like Britain, Denmark and Sweden to shoulder part of the responsibility: » more
The euro crisis has long been shaking the foundations of the entire project of the EU, according to the right-liberal daily Berlingske, which calls for non-euro countries like Britain, Denmark and Sweden to shoulder part of the responsibility: "It would be nice if they would all show some commitment to working together for the future of the euro. It would be even better if those same countries would offer genuine help, so that Germany and others were not forced to bear unnecessary burdens. This could be in the form of concrete financial aid, but also a political effort to shore up the project's survival. ... Everything else would be very bad indeed. And the total collapse of the Eurozone and the EU would be an evil borne by generations to come - whether they were members of the monetary union or not. The will to work together best manifests itself in times of crisis. So Denmark and others should get thinking about what they can do to help."
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Financial Times - United Kingdom | Tuesday, 24. July 2012
With an eye on the crisis-ridden economies of Spain and Greece, Martin Feldstein, professor of economics at Harvard University, explains in a guest column for the liberal daily Financial Times that the solution could lie in devaluing the single currency: » more
With an eye on the crisis-ridden economies of Spain and Greece, Martin Feldstein, professor of economics at Harvard University, explains in a guest column for the liberal daily Financial Times that the solution could lie in devaluing the single currency: "A lower value of the euro would reduce the prices of eurozone exports and raise the cost of imports, reducing or eliminating the current account deficits of the peripheral European countries, since about half of their trade is with countries outside the eurozone. The weaker euro would also boost Germany's net exports, raise German wages and prices and reduce the trade imbalance within the eurozone. The increase in peripheral country net exports would also raise their gross domestic product and so reverse their recessions that were caused by higher taxes and cuts in government spending. That would make it politically easier to achieve the needed fiscal consolidations. And shifting from recession to growth would raise business incomes and employment, reducing the volume of bad loans and mortgage defaults now hurting the banks."
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El Mundo - Spain | Tuesday, 24. July 2012
There is no reason why Spain should still be under such pressure from the financial markets after its government implemented the recent austerity package, according to the conservative daily El Mundo, which calls for the ECB to step in: » more
There is no reason why Spain should still be under such pressure from the financial markets after its government implemented the recent austerity package, according to the conservative daily El Mundo, which calls for the ECB to step in: "It's irrational that [the financial markets] should ignore the Spanish government's reforms. So we must turn our attention to Germany and the ECB. It's up to them to put an end to this pressure which is battering our nation. Germany cannot hide behind a contradiction: on the one hand endorsing euro loans, on the other allowing Spain to totter on the edge of the abyss. The only explanation is that Germany intends to sever itself from a number of EU states. And say goodbye to an EU which is suffering under the design flaw of having no financial institution to assume ultimate responsibility. Merkel must allow [ECB president] Draghi to exert an influence over the markets, as he did for the second time months ago, and alleviate this unbearable situation."
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Público - Portugal | Tuesday, 24. July 2012
The US rating agency Moody's has confirmed the top AAA credit rating of Germany, the Netherlands and Luxembourg for now, but lowered their outlook from "stable" to "negative". It justified the move by pointing to uncertainties about the future of the Eurozone. This means the prospect of Greece going bankrupt is more frightening than certain people are willing to admit, the liberal daily Público concludes: » more
The US rating agency Moody's has confirmed the top AAA credit rating of Germany, the Netherlands and Luxembourg for now, but lowered their outlook from "stable" to "negative". It justified the move by pointing to uncertainties about the future of the Eurozone. This means the prospect of Greece going bankrupt is more frightening than certain people are willing to admit, the liberal daily Público concludes: "Moody's assessment is indicating precisely the opposite of what the German Minister for Economics Philipp Rösler claimed when he said that the prospect of an Athens exit from the euro had 'long since lost its sting'. The [rating agency's] warning, which is now putting pressure on even the burgeoning German economy, shows that this scenario remains a scary one - and will do for some time to come. And how is Portugal faring in these difficult times? Not well. Now that we have reached the middle of the year the implementation of the budget plans is showing cracks that the government either refuses to see or underestimates because it is confident about the correctness of its approach. But as we will see in a few months' time, the problems with the budget will cause a lot of trouble and discontent."
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Il Sole 24 Ore - Italy | Tuesday, 24. July 2012
If the European Central Bank (ECB) doesn't intervene now to halt the escalating European debt crisis the monetary union is doomed, warns Roberto Napoletano in the liberal-conservative business paper II Sole 24 Ore: » more
If the European Central Bank (ECB) doesn't intervene now to halt the escalating European debt crisis the monetary union is doomed, warns Roberto Napoletano in the liberal-conservative business paper II Sole 24 Ore: "The European Central Bank must do its bit to rescue the euro - and do it now. A radical shift in thinking is required because the Greek crisis has taught us that it's not enough to announce the limited purchase of government bonds. It must be made clear to the financial markets that there are no limits to either the power or the resources of the ECB. If we find the courage and the energy to do this, we will save the euro. If not, no one, I repeat no one, will have anything to smile about because sooner or later even the so-called AAA countries will pay a heavy price for the destruction they have caused with their short-sightedness. … The excuse that the ECB lacks the powers for such intervention doesn't apply, because the imperative of protecting the Eurozone gives the Bank the necessary authority. The Bundesbank, too, will be forced to recognise this."
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Phileleftheros - Cyprus | Monday, 23. July 2012
At the end of June Cyprus became the fifth country to seek formal assistance from the euro bailout fund. The country's biggest economic problems only began after it joined the Eurozone, Kostas Gouliamos, vice-chancellor of the European University Cyprus in Nicosia, argues in the Sunday edition of the liberal daily Philelefteros: » more
At the end of June Cyprus became the fifth country to seek formal assistance from the euro bailout fund. The country's biggest economic problems only began after it joined the Eurozone, Kostas Gouliamos, vice-chancellor of the European University Cyprus in Nicosia, argues in the Sunday edition of the liberal daily Philelefteros: "What our country is experiencing today are the consequence of its accession to the Eurozone. Shrewd analysts have said quite correctly that the Cypriot economy's liquidity requirements were transformed into credit and speculation requirements on the part of the banks when Cyprus joined the euro. Before the euro the economy was characterised by low levels of borrowing both by private households and the public sector, but just a couple of years after joining, the economy was drowning in debt. It's telling that back in 2000 private debt in Cyprus was at less than 60 percent of the gross national product (GDP), while by 2007 it had already risen to 200 percent, and in 2011 it climbed to 308.7 percent. This private debt burden belongs mainly to the banks, and now the people of Cyprus must carry the burden through the national budget."
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Neue Zürcher Zeitung - Switzerland | Saturday, 21. July 2012
Germany's leading role in the euro crisis is provoking resentment in other EU countries. This raises the question of whether the country wants to maintain its role in the event that the deeper EU integration German Chancellor Angela Merkel is calling for actually comes about, Eric Gujer writes in the liberal-conservative Neue Zürcher Zeitung: » more
Germany's leading role in the euro crisis is provoking resentment in other EU countries. This raises the question of whether the country wants to maintain its role in the event that the deeper EU integration German Chancellor Angela Merkel is calling for actually comes about, Eric Gujer writes in the liberal-conservative Neue Zürcher Zeitung: "The thankless task of watchdog will almost automatically fall to Germany; only it has the necessary economic and political clout. The new question for Germany is therefore also whether Berlin really wants to be forced into the role of headmaster, constantly admonishing partners who live beyond their means and putting them under pressure. The future structure of the EU depends on the far-sightedness of Germany policy: whether it becomes a robust entity based on nation states in which each member assumes responsibility for itself, or a supranational construction that requires constant supervision by a supreme power. The second option can't be in Germany's interest because disciplinarians may be necessary, but they're also unpopular."
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Phileleftheros - Cyprus | Thursday, 19. July 2012
Cyprus's rapidly increasing credit requirements and the economic policy of President Dimitris Christofias are causes of serious concern for the liberal daily Phileleftheros: » more
Cyprus's rapidly increasing credit requirements and the economic policy of President Dimitris Christofias are causes of serious concern for the liberal daily Phileleftheros: "We started with 1.8 billion euros to save the Laiki Bank - and within a few days there's talk of the state needing 15 billion euros. … No need to worry - everything's fine. … But within a matter of weeks the billions we needed have mushroomed so that without really realising it we could soon need as much as Spain. … Is Dimitris Christofias entitled to talk about the economic crisis and explain to others what needs to be done? The president who led us into the bailout mechanism, who brought the troika to Cyprus and ruined our lives? The president who doesn't have enough money to pay the people who work for the government and who is breaking into the pensions of ordinary citizens? At least out of respect for the institutions he should stay quiet until the presidential elections in February and stop gabbling on about clever solutions."
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Diário Económico - Portugal | Thursday, 19. July 2012
Portugal took in two billion euros with the sale of short-term bonds on Wednesday. The increasingly favourable conditions are a sign of Portugal's gradual reconciliation with the financial markets, the business paper Diário Económico concludes: » more
Portugal took in two billion euros with the sale of short-term bonds on Wednesday. The increasingly favourable conditions are a sign of Portugal's gradual reconciliation with the financial markets, the business paper Diário Económico concludes: "The investors demanded the lowest interest rates since 2010, or in other words yields similar to those before Portugal sought help from the euro bailout fund. The interest rates are continually dwindling. … But the acid test is yet to come: Portugal will probably return to the capital markets with longer-term bonds next year. In view of the current interest rates on the markets this may prove to be a mistake. But there is still time to deepen the reconciliation with the investors. A further reduction of the budget deficit and improved prospects for economic growth are needed. And naturally we must hope that the EU decision makers don't come up with any more nonsense that worsens the general conditions."
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Le Soir - Belgium | Wednesday, 18. July 2012
On Tuesday Belgium joined the group of Eurozone countries that can borrow money at negative interest rates. But what sounds at first like good news really shows what a dire state the Eurozone is in, the left-liberal daily Le Soir comments: » more
On Tuesday Belgium joined the group of Eurozone countries that can borrow money at negative interest rates. But what sounds at first like good news really shows what a dire state the Eurozone is in, the left-liberal daily Le Soir comments: "The fact that investors are willing to accept no yields on their investments means that distrust has reached a worryingly high level. The banks would rather lose money than place it with another bank. Why? Because they don't rule out the possibility of a collapse of the Eurozone. ... And there is a second reason for not celebrating the negative interest rates: namely that they destabilise certain players on the financial markets. They cause major difficulties for insurers and pension funds that have guaranteed their clients specific yields. In short, the negative interest rates are, when examined closely, not good news at all. They herald a serious disease for which there is no cure far and wide."
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Il Sole 24 Ore - Italy | Tuesday, 17. July 2012
The IMF sees the European debt crisis as the greatest risk for the global economy at the moment and called on Monday for a strengthening of the European Central Bank to prevent the crisis from escalating even further. New powers for the ECB could soothe the panic on the markets, the liberal-conservative business paper Il Sole 24 Ore writes: » more
The IMF sees the European debt crisis as the greatest risk for the global economy at the moment and called on Monday for a strengthening of the European Central Bank to prevent the crisis from escalating even further. New powers for the ECB could soothe the panic on the markets, the liberal-conservative business paper Il Sole 24 Ore writes: "According to the IMF's estimates the yields on the bonds of countries like Italy or Spain are at least 200 basis points [two percentage points] too high. … Merely giving the ECB the authority to step in as and when it sees fit would be enough to prevent this impact. The awareness of the possibility of ECB intervention in a debt crisis would make redundant any fears about the country in question exiting the Monetary Union. The panic effect would be pre-empted, and, consequently, so would any increase in interest rates on government bonds. Paradoxically, the mere possibility that the ECB can buy government bonds would suffice to make its intervention superfluous."
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El País - Spain | Tuesday, 17. July 2012
According to the most recent estimates of the IMF, Spain's economy will also contract in the coming year. The left-liberal daily El País says the government's poor communication policy is to blame: » more
According to the most recent estimates of the IMF, Spain's economy will also contract in the coming year. The left-liberal daily El País says the government's poor communication policy is to blame: "The IMF's prognosis is realistic. Credit won't start flowing until the end of 2013, and even then only if the bank bailout in the first quarter of next year is successful. Foreign investors are leaving Spain because of the low growth prospects and uncertainties about the financial reform. … There are also other factors that are lowering confidence. One of them is the government's abysmal information policy, which is translating into a loss of credibility. … Vague indications are not the way to win the markets' trust. And it will be more difficult to ask the ECB for something the Spanish and the IMF take for granted: that it puts an end to the fluctuations in borrowing costs while the bank bailout is realised and the details of the banking union are sorted out."
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Der Standard - Austria | Tuesday, 17. July 2012
The International Monetary Fund came out on Monday in favour of a banking union and a European-wide deposit insurance programme as a key step in solving the euro crisis. But whether such measures can be justified constitutionally seems to be a matter of indifference for the IMF, the left-liberal daily Der Standard writes: » more
The International Monetary Fund came out on Monday in favour of a banking union and a European-wide deposit insurance programme as a key step in solving the euro crisis. But whether such measures can be justified constitutionally seems to be a matter of indifference for the IMF, the left-liberal daily Der Standard writes: "With Europe's export success Christine Lagarde at its helm, the International Monetary Fund wants to give wings not only to the ECB, but also to further integration of the Monetary Union. At the last summit Lagarde got worked up over European regionalism, saying in response to Germany's reservations that she could no longer stand to hear the words 'constitutional court'. That illustrates current attitudes regarding the principle of constitutionality. European treaties are first broken, then sloppily patched up. The risks of the ECB and the bailout funds with regard to the crisis states already far exceed one trillion euros. Such a community of liability was never agreed on. If it is now rushed through one should be thankful that at least one constitutional court [the German] addressed the question of its legality."
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Financial Times - United Kingdom | Monday, 16. July 2012
A public debate is raging between economists in Germany. At the instigation of the daily Frankfurter Allgemeine Zeitung, roughly 180 academics associated with Hans-Werner Sinn, ... » more
A public debate is raging between economists in Germany. At the instigation of the daily Frankfurter Allgemeine Zeitung, roughly 180 academics associated with Hans-Werner Sinn, the chairmain of the Ifo Institute in Munich, are voicing strong criticism of the resolutions taken by the EU summit at the end of June. Commentator Wolfgang Münchau compares in the liberal daily Financial Times the "euro debates in the UK in the late 1990s and in the northern Eurozone today. Back then, the anti-euro campaigners in the UK highlighted the shortcomings in the construction of the Eurozone - an analysis that turned out to be correct - and also correctly predicted the euro would require a political union to succeed in the long run. There was also emotional stuff about the Queen on banknotes. But it was an internally consistent position. I did not share that view but I recall admitting back then that if you do not accept political union, logically you should not accept the euro either. There was never a purely economic case for the currency."
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Jornal de Negócios - Portugal | Monday, 16. July 2012
After Portugal's Constitutional Court vetoed the government's austerity measures the latter sees itself forced to look for alternative solutions for balancing the country's budget deficit. The business paper Jornal de Negócios calls for swift action: » more
After Portugal's Constitutional Court vetoed the government's austerity measures the latter sees itself forced to look for alternative solutions for balancing the country's budget deficit. The business paper Jornal de Negócios calls for swift action: "Finance Minister Gaspar has already given it to be understood that the current programme for reaching the deficit target must be adjusted, without calling the time plan into question. Our Prime Minister has promised that there are no plans for tax hikes. … Any solution will require difficult negotiations with the troika. The next inspection by the creditors isn't until August, but to wait with the plans that long would be a mistake because the financial markets will tolerate no uncertainty. … The government should head them off by negotiating a solution now that can be presented to the Portuguese and the markets."
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Der Standard - Austria | Monday, 16. July 2012
In an interview with news magazine Der Spiegel Euro Group chief Jean-Claude Juncker spoke out in favour of a directly elected EU president, saying this would promote integration. But even such a leader cannot take the place of lacking will of EU countries to cooperate productively, writes the left-liberal daily Der Standard: » more
In an interview with news magazine Der Spiegel Euro Group chief Jean-Claude Juncker spoke out in favour of a directly elected EU president, saying this would promote integration. But even such a leader cannot take the place of lacking will of EU countries to cooperate productively, writes the left-liberal daily Der Standard: "New election systems would be just as ineffective as miracle cures [like the rapid introduction of the euro] for overcoming the citizens' distrust of European integration. Apart from the fact that most governments would never allow key positions in Brussels to be filled without having their say, the emotional and cultural preconditions for a pan-European election campaign are lacking. There is no doubt that the EU states - or at least the single currency states - need to pull together. But the path towards such integration remains stony and frustrating. Squabbling heads of government and laborious compromises are an ugly sight and only intensify euroscepticism. But there's no alternative to somehow muddling through and pulling together - and the dream of a powerful EU president won't change that."
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Jyllands-Posten - Denmark | Friday, 13. July 2012
To fight the crisis the German Institute for Economic Research (DIW) on Wednesday proposed the idea of mandatory bonds which could later be bought back with interest once the economic situation permits it. The liberal business daily Jyllands-Posten sees this as an original idea: » more
To fight the crisis the German Institute for Economic Research (DIW) on Wednesday proposed the idea of mandatory bonds which could later be bought back with interest once the economic situation permits it. The liberal business daily Jyllands-Posten sees this as an original idea: "Force is never desirable, but the DIW deserves credit because it has worked seriously on the basis of solid scientific research to come up with models for solving the crisis that offer an alternative to the International Monetary Fund or the European Central Bank. … In view of the 25 million unemployed [in the EU] and a record level of unemployment among young people, academic potential must be exploited and unusual approaches considered while focusing on the objectives of generating growth and employment and improving public finances. It's clear that the European welfare state model has had its day and should have been adjusted to the new reality long before the crisis began."
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La Repubblica - Italy | Friday, 13. July 2012
The former Italian Prime Minister Silvio Berlusconi plans to run for election again in 2013, the parliamentary party leader of Berlusconi's PdL party, Fabrizio Cicchito, has said on Thursday, confirming reports in the media. The scandal-plagued ex-prime minister's new bid for office is a frightening prospect for Europe, writes the left-liberal daily La Repubblica: » more
The former Italian Prime Minister Silvio Berlusconi plans to run for election again in 2013, the parliamentary party leader of Berlusconi's PdL party, Fabrizio Cicchito, has said on Thursday, confirming reports in the media. The scandal-plagued ex-prime minister's new bid for office is a frightening prospect for Europe, writes the left-liberal daily La Repubblica: "Europe has received the news of Berlusconi's return to politics a little incredulously, but above all with great concern, almost as if an old spectre it believed it had ridden itself of for good had returned. … Berlusconi's resignation was seen by Europe as a decisive step towards saving the country and the Monetary Union. There is silence now at the official level but the announcement of Berlusconi's candidature confirms the worst fears many heads of government had already expressed in confidence about the credibility and endurance of the country [in its battle against the crisis] in the post-Monti era."
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More from the press review on the subject » Domestic Policy, » Elections, » Italy, » Europe
All available articles from » Andrea Bonanni
Postimees - Estonia | Thursday, 12. July 2012
Estonia's Supreme Court dismissed a complaint brought by the Estonian Chancellor of Justice Indrek Teder against the ESM euro bailout fund on Thursday, leaving the Estonian parliament free to ratify the ESM and fiscal compact. The conservative daily Postimees is relieved because it was against the Estonian parliament blocking the ESM: » more
Estonia's Supreme Court dismissed a complaint brought by the Estonian Chancellor of Justice Indrek Teder against the ESM euro bailout fund on Thursday, leaving the Estonian parliament free to ratify the ESM and fiscal compact. The conservative daily Postimees is relieved because it was against the Estonian parliament blocking the ESM: "For us it would be better if Germany, the Netherlands and Finland assumed parliamentary control of the ESM. Because the interests of these countries jointly cover our own, and in this area their competence exceeds ours. Estonia blocking the ESM would at best be self-delusion because Estonian policies are decided at the party headquarters. A negative decision from the country's Supreme Court would have set a dangerous precedent. The court would have become a major instance in European policy, similar to Karlsruhe in Germany, whereby in Germany the Constitutional Court has proven itself as a balancing factor."
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All available articles from » Ahto Lobjakas
Irish Independent - Ireland | Thursday, 12. July 2012
Ireland adjusted its GDP growth rate for 2011 upwards on Thursday, from 0.7 to 1.4 percent. The conservative daily The Irish Independent praises Ireland's budget discipline, saying Greece would do well to take it as an example: » more
Ireland adjusted its GDP growth rate for 2011 upwards on Thursday, from 0.7 to 1.4 percent. The conservative daily The Irish Independent praises Ireland's budget discipline, saying Greece would do well to take it as an example: "Dublin has so far easily passed every quarterly review of its programme while Greece has stumbled through, frequently missing targets that resulted in delayed aid payments. But Ireland's success has as much to do with an austerity programme that predates its bailout by over two years and other advantages taken for granted such as an efficient tax system. While not quick enough to ultimately avoid the humiliation of having to ask for help, Ireland began to reverse a decade of reckless policy decisions in mid-2008 and had already dished out three austerity budgets by the time the troika came to town."
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More from the press review on the subject » Fiscal Policy, » Economy, » Ireland
Le Quotidien - Luxembourg | Wednesday, 11. July 2012
At their meeting on Tuesday the finance ministers of the Euro Group gave their current boss Jean-Claude Juncker a new mandate for a maximum of two and a half years. For Juncker this is a triumph even though he is said to be weary of the post, the left-liberal daily Le Quotidien concludes: » more
At their meeting on Tuesday the finance ministers of the Euro Group gave their current boss Jean-Claude Juncker a new mandate for a maximum of two and a half years. For Juncker this is a triumph even though he is said to be weary of the post, the left-liberal daily Le Quotidien concludes: "The German Finance Minister Wolfgang Schäuble, who had seriously flirted with the post, was left empty-handed. The harmony between Europe's two most powerful countries [Germany and France] seems a little dented, something Juncker, who was always distrustful of the Merkozy duo's dominance, no doubt regards with satisfaction. But Juncker's greatest triumph is the compromise he made contingent on his agreement to stay in office. The precondition stipulated by the [Luxembourg] prime minister will no doubt open the doors of the ECB Executive Board to the head of Luxembourg's central bank, Yves Mersch, after several failed attempts. This clever move by Juncker, his 'sacrifice', will consolidate Luxembourg's place on the European stage."
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All available articles from » Christiane Kleer
Il Sole 24 Ore - Italy | Thursday, 12. July 2012
Italy's head of government Mario Monti on Wednesday ceded the post of Economic and Finance Minister he had occupied temporarily to his deputy Vittorio Grilli. At the same time he warned Italy not to let down its defences because the country remained in a state of war. Monti is wise not to beat around the bush with his people, the liberal-conservative business paper Il Sole 24 Ore writes: » more
Italy's head of government Mario Monti on Wednesday ceded the post of Economic and Finance Minister he had occupied temporarily to his deputy Vittorio Grilli. At the same time he warned Italy not to let down its defences because the country remained in a state of war. Monti is wise not to beat around the bush with his people, the liberal-conservative business paper Il Sole 24 Ore writes: "War is a heavy word and should not be used carelessly. Monti even talked of a bitter war yesterday. And this is precisely what we are dealing with. … In the world, on the financial markets, in Europe and in our own country, where every change provokes bitter resistance, Italy is fighting for its life. … Eight months ago the country was ready to capitulate. The Monti government saved it, but the war hasn't been won yet. To win it Europe must be convinced of our strong will and the financial markets must signal with reductions in interest rates that they are taking Italy out of their line of fire. If one of these two conditions isn't fulfilled there will unfortunately be no peace."
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All available articles from » Guido Gentili
Die Presse - Austria | Thursday, 12. July 2012
The German Institute for Economic Research (DIW) proposed in a study published on Wednesday the introduction of mandatory bonds and short-term special levies for the wealthy as a means of easing the strain on the German budget. The liberal-conservative daily Die Presse is amazed at this call for expropriation: » more
The German Institute for Economic Research (DIW) proposed in a study published on Wednesday the introduction of mandatory bonds and short-term special levies for the wealthy as a means of easing the strain on the German budget. The liberal-conservative daily Die Presse is amazed at this call for expropriation: "All in all the DIW is indubitably a serious institution. This makes its proposal to finance the budget deficit through measures only used under martial law or in the German Democratic Republic all the more surprising. … Let's take the car keys away from the wealthy! They can always buy a new car. And do they really need their huge villas? When the states mismanaged by their irresponsible political pals are in a bad way, surely they can make do with a council house instead. After all, we all know: possessions are a burden. Those who see this as pure polemics are mistaken. Once the state violates ownership rights no one is safe. And this call from the DIW for the expropriation of the people demonstrates how serious the current sovereign debt crisis has become."
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All available articles from » Franz Schellhorn
Blog Lse Europp - United Kingdom | Wednesday, 11. July 2012
Despite the ongoing debt crisis, the euro could have a brilliant future as a new reserve currency, writes Alexander Görlach, chief editor of the magazine The European, in the blog of the London School of Economics: » more
Despite the ongoing debt crisis, the euro could have a brilliant future as a new reserve currency, writes Alexander Görlach, chief editor of the magazine The European, in the blog of the London School of Economics: "Should we succeed in establishing common financial policies, common supervision of banks and a European Minister of Finance, it will be possible to create the necessary structures to organize future debt within a common European framework. Over time, the current differences of the European economies - which paradoxically already subside within a common economic zone - will balance themselves out. … These steps will also succeed in regaining the trust of the infamous financial markets: In Europe, problems are addressed at the root and not overplayed by starting the money presses at the European Central Bank. ... Europe is well on its way in the right direction. If the heads of states now embark on the path towards more integration and sacrifice some national sovereignty for common financial policies, the Euro will be the next global reserve currency. And nobody will even remember this crisis."
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All available articles from » Alexander Görlach
Le Soir - Belgium | Tuesday, 10. July 2012
The authoritarian behaviour of the Romanian government and the mistrust of the European citizens in the euro crisis both demonstrate the loss of political legitimacy, the left-liberal daily Le Soir comments: » more
The authoritarian behaviour of the Romanian government and the mistrust of the European citizens in the euro crisis both demonstrate the loss of political legitimacy, the left-liberal daily Le Soir comments: "The expressions of protest that brought the nationalist parties to power in Central Europe and boosted the popularity of populists who favour a narrow-minded Eastern European parochialism are reflected in the doubts of the intellectual class regarding the European Union's disoriented and divided leaders. Europe is in the midst of an economic crisis, an institutional crisis and a legitimacy crisis. … The first two will never have a lasting solution without a significant boost in the democratic legitimacy both of Europe's institutions and of the leaders who demand it. Neither in Brussels nor in Bucharest is European democracy a finished work. Rather it is stagnating to a worrying degree."
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All available articles from » Jurek Kuczkiewicz
Main focus of Wednesday, 11. July 2012
At their meeting in Brussels the Euro Group finance ministers have initiated the expansion of the ESM, paving the way for the bailout mechanism to ... » more
At their meeting in Brussels the Euro Group finance ministers have initiated the expansion of the ESM, paving the way for the bailout mechanism to purchase government bonds in future. Euro Group chief Jean-Claude Juncker also sees the direct recapitalisation of ailing banks as a possibility. This development of the ESM is precisely what the struggling states need, commentators write, evoking an experiment with Spain as the guinea pig.
More from the press review on the subject » Fiscal Policy, » Financial Markets, » Europe
Delo - Slovenia | Wednesday, 11. July 2012
The comment by Slovenian Prime Minister Janez Janša to the effect that his country is potentially facing a Greek scenario is feeding speculation that Slovenia will become the sixth country in the Monetary Union to apply for EU bailout funds. The Slovenian Finance Minister Janez Šušteršič stressed at the meeting with his colleagues in Brussels that things won't go that far, but the left-liberal daily Delo sees the whole episode as a major gaffe: » more
The comment by Slovenian Prime Minister Janez Janša to the effect that his country is potentially facing a Greek scenario is feeding speculation that Slovenia will become the sixth country in the Monetary Union to apply for EU bailout funds. The Slovenian Finance Minister Janez Šušteršič stressed at the meeting with his colleagues in Brussels that things won't go that far, but the left-liberal daily Delo sees the whole episode as a major gaffe: "The question is whether the political elite is competent enough to launch the country's reform agenda. In times of crisis the head of government bears a responsibility to avoid dangerous ideological statements and actions. The coalition partners bear the responsibility of setting his limits in this respect. And the opposition has the responsibility to enter a dialogue with those parties that are willing to save Slovenia and not to lose sight of the country's best interests. Something similar to what is happening with the banks is also happening with Slovenia. This could convey the impression that someone wants to turn the state into a 'bad bank' simply to open up the last remaining hunting ground for the oligarchs."
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All available articles from » Janez Markež
Spiegel Online - Germany | Tuesday, 10. July 2012
In a televised interview broadcast on Sunday, German President Joachim Gauck challenged Chancellor Angela Merkel to do a better job explaining to the people her policies on the euro crisis. In normal times Gauck would be regarded as a pain in the neck but today he is a godsend for democracy, writes Jakob Augstein in his column for the news portal Spiegel Online: » more
In a televised interview broadcast on Sunday, German President Joachim Gauck challenged Chancellor Angela Merkel to do a better job explaining to the people her policies on the euro crisis. In normal times Gauck would be regarded as a pain in the neck but today he is a godsend for democracy, writes Jakob Augstein in his column for the news portal Spiegel Online: "Never has the German president been as valuable as he is today. When things were grim at Bellevue Palace the idea made the rounds that the office of president should be abolished. Because Wulff, the bargain hunter, had become firmly ensconced there. People asked: why do we need a president in the first place? After 100 days in office, Joachim Gauck has provided the answer: the president is the corrective in the crisis. … What Gauck brings to the business of politics is a resource in short supply right now: trust. The country now has a couple of Protestants at its helm. Gauck is the strict father and Merkel the shrewd mother. Democracy can only benefit from the tensions between the two."
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All available articles from » Jakob Augstein
Rzeczpospolita - Poland | Monday, 9. July 2012
According to a report by the German news magazine Der Spiegel, the European Central Bank rejects the proposals by the EU Commission regarding the tasks of a future European Banking Authority. Brussels is demanding that the EBA supervise the banks in all 27 EU states. The conservative daily Rzeczpospolita fears for the autonomy of the Polish banks: » more
According to a report by the German news magazine Der Spiegel, the European Central Bank rejects the proposals by the EU Commission regarding the tasks of a future European Banking Authority. Brussels is demanding that the EBA supervise the banks in all 27 EU states. The conservative daily Rzeczpospolita fears for the autonomy of the Polish banks: "A large part of the Polish banking sector is dependent on foreign banks. If a pan-European banking authority is introduced, it will focus on the situation of parent banks and not on the subsidiaries in the countries in the periphery [of the EU]. Such an authority however also makes it easier to introduce obligations on capital accumulation that hold for the entire group, and not for the individual banks that act as part of this group. As a consequence, Polish capital will be used to bail out the ailing parent banks."
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All available articles from » Pawel Pelc
taz - Germany | Monday, 9. July 2012
Almost 300 German economists are currently squabbling over the question of whether the Eurozone should rescue ailing banks. This has the effect of demystifying the expertocraty and freeing its slaves, including the German politicians, writes the leftist daily tageszeitung: » more
Almost 300 German economists are currently squabbling over the question of whether the Eurozone should rescue ailing banks. This has the effect of demystifying the expertocraty and freeing its slaves, including the German politicians, writes the leftist daily tageszeitung: "Because it shatters the self-image cherished by the economists that they are engaged in a science that pronounces 'truths'. … This exposes what all the mathematical formulas and pseudo-objectivity of the laws of nature were supposed to conceal: economic theories are always driven by interests. They are part of a struggle over power - and the distribution of wealth. … It also does the politicians good to see the economists totally embattled. Because up to now they have put too much faith in the expertocracy. But if it's so obvious that no 'truths' can be expected from those quarters, the primacy of politics applies once more."
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All available articles from » Ulrike Herrmann
Cinco Días - Spain | Monday, 9. July 2012
After Spain recently officially requested assistance for its banks, the finance ministers of the Euro Group must fight to ensure that the bank rescue operation is at all successful at their meeting this Monday, writes the business daily Cinco Días: » more
After Spain recently officially requested assistance for its banks, the finance ministers of the Euro Group must fight to ensure that the bank rescue operation is at all successful at their meeting this Monday, writes the business daily Cinco Días: "It is a month ago today since Spain agreed with the Euro Group to apply for assistance with the recapitalising of part of its financial sector. Four weeks that have only confirmed the fears of the Spanish government. Because if the operation miscarries, the worst-managed part of the private sector would burden the state and put the country in danger of having to be bailed out completely. … If this vicious circle isn't broken [at today's meeting] or if the markets don't interpret it as having been broken, it seems unlikely that the Eurozone's first experiment with a bank bailout will have a positive outcome."
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Der Standard - Austria | Monday, 9. July 2012
Today's meeting of Eurozone finance ministers could reach a compromise on the successor to Jean-Claude Juncker as head of the Euro Group. According to media reports, a rotation model is in the offing whereby the German Finance Minister Wolfgang Schäuble and his French counterpart Pierre Moscovici would share the tasks. The left-liberal daily Der Standard believes Schäuble is the best candidate: » more
Today's meeting of Eurozone finance ministers could reach a compromise on the successor to Jean-Claude Juncker as head of the Euro Group. According to media reports, a rotation model is in the offing whereby the German Finance Minister Wolfgang Schäuble and his French counterpart Pierre Moscovici would share the tasks. The left-liberal daily Der Standard believes Schäuble is the best candidate: "Of course there were reservations among certain partners right from the start. The most powerful finance minister in the Eurozone, the man who decides over the fate of the bailout fund, could not also act as chairman, they said. But it has also long been clear that France, the second-largest economy in the euro, would tip the scales. … As a rule the 'small' countries are the better mediators, even if they have less power. Nevertheless: so far no one has come up with an alternative to Schäuble. The German European from Freiburg would be a superb choice: physical proof that Germany fully backs the euro, so to speak.”
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All available articles from » Thomas Mayer
Delo - Slovenia | Monday, 9. July 2012
In times of crisis, paying tribute to the German-French reconciliation should be more than just a symbolic gesture, and the EU finance ministers need to bear this in mind at their meeting today, the left-liberal daily Delo contends: » more
In times of crisis, paying tribute to the German-French reconciliation should be more than just a symbolic gesture, and the EU finance ministers need to bear this in mind at their meeting today, the left-liberal daily Delo contends: "The problem is that until now the EU's measures haven't solved the crisis, but only deepened it. No one dares say where the border is that marks the beginning of the end of the Monetary Union, a border that must not be crossed. The only thing the EU is concerned with is saving itself from the crisis. And that is not only a debt, finance and banking crisis, but a genuine European political crisis that has shaken the very equilibrium of the old continent. And now, in the midst of that crisis, we have the celebrations marking the 50th anniversary of the German-French reconciliation, which is seen as the cornerstone of the EU. The appreciation that is now being shown for the achievements of the past decades should for that reason be more than just symbolic. ... Half a decade after the reconciliation mass in Reims attended by Konrad Adenauer and Charles de Gaulle, Europe once more faces historic challenges."
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All available articles from » Peter Žerjavič
La Vanguardia - Spain | Friday, 6. July 2012
Mario Monti's No to the purchase of Spanish and Italian bonds is a dangerous stance, the liberal daily La Vanguardia warns after the ECB chief's statements on Thursday: » more
Mario Monti's No to the purchase of Spanish and Italian bonds is a dangerous stance, the liberal daily La Vanguardia warns after the ECB chief's statements on Thursday: "A good measure but a disappointing speech. This is how the meeting of the European Central Bank could be summed up, which yesterday cut the base interest rate from one percent to a historically low 0.75 percent in a bid to reactivate the economy. … If from a technical point of view these measures are good, why did the market react so aggressively? Basically because in the press conference that followed ECB president Mario Draghi refused to budge regarding the supportive purchase of Spanish and Italian debts. This is nothing new in the ECB's policy, but given the difficult situation in Southern Europe it seems lacking in solidarity and dangerous of Draghi to take a distanced stance regarding the public debt of problem states. … Draghi has caused a considerable increase in the yields and a marked decline in share prices on the increasingly jittery financial markets."
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All available articles from » José Antich
Diário de Notícias - Portugal | Friday, 6. July 2012
Miguel Frasquilho, an MP of the ruling centre-right coalition in Portugal, on Thursday became the first politician to officially admit that the country will have difficulties meeting the agreed deficit target for 2012. The daily Diário de Notícias pokes fun at this "news": » more
Miguel Frasquilho, an MP of the ruling centre-right coalition in Portugal, on Thursday became the first politician to officially admit that the country will have difficulties meeting the agreed deficit target for 2012. The daily Diário de Notícias pokes fun at this "news": "Who would have believed it? Miguel Frasquilho has officially confirmed that owing to plunging tax revenues it will hardly be possible to reduce the deficit to 4.5 percent, as planned. And that it will perhaps take another two years to reach the three percent target. … Up to now all the demands (for more money, lower interest rates or more time) in reaction to this fact had been denounced as an outrage and were a thorn in the side of [Prime Minister] Passos Coelho and Finance Minister Vitor Gaspar. That's only logical when officially everything was going according to plan. But now it turns out that the dose of medicine prescribed [the austerity package] has considerably weakened the patient."
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Le Temps - Switzerland | Friday, 6. July 2012
The ECB as well as the central banks of China and the UK introduced additional support measures on Thursday, but market reactions have been negative on the whole. That shows that too much is being expected of the central banks, writes the liberal daily Le Temps: » more
The ECB as well as the central banks of China and the UK introduced additional support measures on Thursday, but market reactions have been negative on the whole. That shows that too much is being expected of the central banks, writes the liberal daily Le Temps: "The disappointment is enormous because the expectations were too high, not only on the part of the financial community, which is always on the lookout for credit facilities that can support the stock markets for a while. The pressure, calls for assistance and other exhortations also came from the public and political spheres. … This is a rare, even unique, situation and additional proof that the role of the ECB has changed. Even though its president Mario Draghi denies it, he has largely overstepped his key mandate of guaranteeing price stability. … Will the roles that the central banks are being given today be revoked once Europe and the rest of the world are definitively out of this crisis? Nothing is less sure. In the meantime, these banks have never been more deserving of their names."
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All available articles from » Servan Peca
De Tijd - Belgium | Friday, 6. July 2012
After the cut in the base interest rate ECB President Mario Draghi announced on Thursday that the bank does not plan to take further measures to solve the euro crisis, such as purchasing the government bonds of crisis countries. This brings the Eurozone down to earth with a bump, the business paper De Tijd comments: » more
After the cut in the base interest rate ECB President Mario Draghi announced on Thursday that the bank does not plan to take further measures to solve the euro crisis, such as purchasing the government bonds of crisis countries. This brings the Eurozone down to earth with a bump, the business paper De Tijd comments: "Draghi swept away all the optimism of last week's euro summit with his speech. The ECB is obviously of the opinion that it has done enough and that now it's up to the politicians to tackle the Eurozone's problems. … From the orthodox financial perspective this view is understandable. But the consequence will be that when the next fire flares up in the Eurozone the fire brigade won't be at the ready. And the permanent ESM bailout fund is not yet fully in place. This is the dangerous situation that is making the markets so nervous and causing the decline of the euro. The mill will keep on grinding until a plausible plan with concrete steps is on the table. The euro crisis will continue as long as the European leaders fail to come up with such a plan."
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All available articles from » Jean Vanempten
Der Standard - Austria | Friday, 6. July 2012
The ECB's bringing the base interest rate down to a record low of 0.75 percent on Thursday won't be effective because in the present situation it will boost neither investment nor consumption, the left-liberal daily Der Standard contends: » more
The ECB's bringing the base interest rate down to a record low of 0.75 percent on Thursday won't be effective because in the present situation it will boost neither investment nor consumption, the left-liberal daily Der Standard contends: "Lowering the interest rate is like drinking beer. The first pint may tickle the palate, the second lift your mood. But the fifth or sixth, at most, is too much of a good thing. Lowering the interest rate to 0.75 percent will convince few businesses to invest in projects. And if it does, the quality of the investment must be extremely dubious if it's only profitable at an interest rate of under one percent. For that reason the ECB's decision to cut the interest rate will not usher in a new trend in the Eurozone. Economic recovery is not being smothered by high short-term financing costs, but because the future of the Monetary Union is being put in question and political insecurity is dampening investments and consumption."
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All available articles from » Lukas Sustala
Irish Independent - Ireland | Thursday, 5. July 2012
Ireland made a comeback on Europe's financial markets on Thursday. Two years after its banks plunged the country into a crisis it sold government bonds to the tune of 500 million euros. If it demonstrates the necessary willingness for reform, Irish society will get its ailing economy back on track, the conservative daily Irish Independent writes: » more
Ireland made a comeback on Europe's financial markets on Thursday. Two years after its banks plunged the country into a crisis it sold government bonds to the tune of 500 million euros. If it demonstrates the necessary willingness for reform, Irish society will get its ailing economy back on track, the conservative daily Irish Independent writes: "On balance, the economy appears to be stabilising although the consequences of the recession will be felt for a long time to come. Ireland is now in a phase of transition and restructuring. In rebuilding our economy, we are also rebuilding our international reputation and it is important to remember that despite the challenges, Ireland remains open for business and indeed, offers an attractive location for investment and trading. Change is good, and while transition is often difficult, ultimately our ability and willingness to deliver reform will determine the pace and scale of Ireland's recovery."
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More from the press review on the subject » Economy, » Ireland
Diário Económico - Portugal | Thursday, 5. July 2012
Portugal's public-sector warning strikes enter a new round today, Thursday. Ultimately the crisis-ridden country will suffer the most, writes the business paper Diário Económico: » more
Portugal's public-sector warning strikes enter a new round today, Thursday. Ultimately the crisis-ridden country will suffer the most, writes the business paper Diário Económico: "Not only the pilots of the state-run airline TAP, but also the railways, the state-owned bus company in Lisbon and even the doctors will go on strike. ... The loser is Portugal itself: it will be harmed by the cancellation of dozens of services and the image of labour protests and social unrest, which will lead to a loss of revenues not only in the tourist sector. These strikes seem to meet with little understanding among the people, who are the worst hit by them. ... But the unions can't be dissuaded. And all of this comes at a time when Portugal is struggling to meet its budget targets and is preparing for the fifth inspection by the troika. Taking all this together, it looks like the government is facing a 'hot summer."
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Kurier - Austria | Thursday, 5. July 2012
The Austrian parliament voted in favour of the ESM bailout fund and the fiscal compact on Wednesday. But the heated debate in the National Assembly and above all the speeches made by right-wing populist Karl Heinz Strache of the FPÖ were shameful, writes the liberal daily Kurier: » more
The Austrian parliament voted in favour of the ESM bailout fund and the fiscal compact on Wednesday. But the heated debate in the National Assembly and above all the speeches made by right-wing populist Karl Heinz Strache of the FPÖ were shameful, writes the liberal daily Kurier: "Terms with negative historical connotations were misused. Hitler consolidated his dictatorship in Germany with enabling acts (Strache). Dollfuß [Austrian chancellor from 1932 to 1934] eliminated parliament in the same way in Austria. If Strache is comparing the attempt to stabilise Europe's financial architecture with the 1930s he has fully disqualified himself from holding any responsible position. … The politicians and the people need to ask the following question: are we prepared to live in solidarity with other nations as part of a European community? This could bring many advantages but will cost us money and sovereignty. The Austrians need to be informed about this and a majority must really want it. We need a clear Yes from the Austrians to more Europe. The government must promote this."
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All available articles from » Helmut Brandstätter
Simerini - Cyprus | Monday, 2. July 2012
One day after Cyprus took over the EU Council presidency representatives of the troika made up of the EU, IMF and ECB travelled to the Mediterranean island to analyse its finances and assess how much money Nicosia will require from the euro bailout fund. The conservative daily Simerini looks at the chances that this visit offers: » more
One day after Cyprus took over the EU Council presidency representatives of the troika made up of the EU, IMF and ECB travelled to the Mediterranean island to analyse its finances and assess how much money Nicosia will require from the euro bailout fund. The conservative daily Simerini looks at the chances that this visit offers: "The daily life of the Cypriots will change. The current situation resembles that of a patient who has suffered an accident and is now being x-rayed. He is still dazed from the accident. Slowly the impact is becoming apparent. ... The sooner we understand what state the economy is in the more quickly and efficiently we can rebuild it by introducing reform and an economic model that helps it to regain its balance and competitiveness. Under these circumstances the troika and the austerity programme are not a punishment but a chance to rebuild the economy and the state."
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All available articles from » Giannos Charalampidis
La Repubblica - Italy | Tuesday, 3. July 2012
The Finnish government announced on Monday that it plans to veto the purchase of government bonds by the ESM European bailout fund agreed at last week's EU summit. The Dutch government also expressed criticism of the move. The reservations of the two countries show that the resolutions reached at the summit are not ready to be put into practice, the left-liberal daily La Repubblica writes: » more
The Finnish government announced on Monday that it plans to veto the purchase of government bonds by the ESM European bailout fund agreed at last week's EU summit. The Dutch government also expressed criticism of the move. The reservations of the two countries show that the resolutions reached at the summit are not ready to be put into practice, the left-liberal daily La Repubblica writes: "Prime Minister Jyrki Katainen's threat not to approve the strategy for sinking borrowing costs needn't be taken literally. But it makes clear how hotly disputed the details of the bailout mechanism will be. ... For example the contents of the memorandum which the debtor countries must sign in exchange for the purchase of their bonds haven't yet been clarified. Nor is it clear whether these purchases will be a one-off or a permanent measure. Neither has the role of the ECB as the 'agent' of the ESM been defined. All these apparent technicalities are nonetheless vital details and must be dealt with at the summit of the Euro Group ministers on July 9. It's foreseeable that Germany will play a key role here. And it could be that Berlin is the addressee of the messages from Finland and the Netherlands."
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Business Insider - United Kingdom | Sunday, 1. July 2012
Only a drastic devaluation of the euro can help Europe overcome its debt crisis, Bruce Krasting argues on the economics blog Business Insider commenting on last week's EU summit. He contends that both the crisis countries and Germany would profit from such a move: » more
Only a drastic devaluation of the euro can help Europe overcome its debt crisis, Bruce Krasting argues on the economics blog Business Insider commenting on last week's EU summit. He contends that both the crisis countries and Germany would profit from such a move: "There is one currency option left. Devalue the Euro by 20++%. This would make a difference. It would go a long way towards stabilizing the real economies of Europe. It would create inflation, something that is sorely needed to devalue the real size of Europe's debts. Germany would agree to this as it preserves their export-competitive position within the EU, and improves it outside of the EU. The technocrats in Brussels would love it; it's the only thing left that would preserve the monetary union."
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Main focus of Monday, 2. July 2012
Europe's crisis countries are optimistic after the EU summit in Brussels. Spain hopes for a retroactive bailout for its banks, while Italy can expect less ... » more
Europe's crisis countries are optimistic after the EU summit in Brussels. Spain hopes for a retroactive bailout for its banks, while Italy can expect less stringent terms should it seek help from the bailout mechanism. Even Chancellor Angela Merkel returned strengthened from Brussels, commentators write, lamenting that the summit perpetuates the policy of small steps.
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Financial Times - United Kingdom | Sunday, 1. July 2012
Without the introduction of joint bonds the future of Europe hangs by a thread, writes the liberal business paper Financial Times with an eye to the EU summit: » more
Without the introduction of joint bonds the future of Europe hangs by a thread, writes the liberal business paper Financial Times with an eye to the EU summit: "The most important event last week was probably not the agreement at the summit anyway, but the statement by Ms Merkel that there will be no Eurozone bonds 'for as long as I live'. My belief is that this statement reveals she is not serious about political union, to which she has been paying lip-service over the past few weeks. ... If Ms Merkel is right and there are no Eurozone bonds in her lifetime, the Eurozone will not survive. Without Eurozone bonds or a change in ECB policy, Italy's and Spain's debt - and Eurozone membership - is not sustainable. That was as true on Wednesday as it is today."
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Il Sole 24 Ore - Italy | Sunday, 1. July 2012
According to media reports German Chancellor Angela Merkel was virtually blackmailed into making concessions by the heads of government of Italy and Spain at the EU crisis summit at the end of last week. In truth Merkel relented only on formal, unimportant points while secretly scoring a major victory, the liberal-conservative business paper Il Sole 24 Ore writes: » more
According to media reports German Chancellor Angela Merkel was virtually blackmailed into making concessions by the heads of government of Italy and Spain at the EU crisis summit at the end of last week. In truth Merkel relented only on formal, unimportant points while secretly scoring a major victory, the liberal-conservative business paper Il Sole 24 Ore writes: "The Brussels summit was unanimously hailed as a triumph of European common sense over Germany's arrogant pigheadedness. Yet Merkel only made a couple of concessions and achieved more than generally believed. … Because in exchange for her allowances Merkel has pushed through the principle of a European supervisory authority. In the grips of a storm of Euro enthusiasm evderyone rejoiced. But more Europe means less sovereignty. That looks simple on paper but the problems will emerge in the coming months when it becomes clear that - de facto - it's not about yielding sovereignty to Luxembourg or Cyprus but to Germany."
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Les Echos - France | Monday, 2. July 2012
The EU summit in Brussels showed no sign of the sort of radical reorientation in European policy aspired to by French President François Hollande, the liberal business paper Les Echos notes: » more
The EU summit in Brussels showed no sign of the sort of radical reorientation in European policy aspired to by French President François Hollande, the liberal business paper Les Echos notes: "The Brussels summit did not fail as it might have, and that in itself is a success. Under pressure from Mario Monti, the 17 member states managed to reach a compromise. The decisions taken will calm the markets and allow the European bailout fund to help banks and repurchase debt. ... So it seems that the goal of lowering the prohibitive interest rates imposed on Rome and Madrid has been reached. However two insights have somewhat dampened enthusiasm. The first is that, yet again, Europe has adopted the tactic of small steps rather than long strides. The second is that taken together the results of this summit and France's budget for 2013 show that the reorientation of the European policy evoked before the presidential elections was just a joke."
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NRC Handelsblad - Netherlands | Sunday, 1. July 2012
Many European media have expressed doubt over the success of last week's EU summit. But at least it set an important course, writes the liberal daily NRC Handelsblad: » more
Many European media have expressed doubt over the success of last week's EU summit. But at least it set an important course, writes the liberal daily NRC Handelsblad: "The principle of equality can tempt other member states to look to their own interests. Why, for example, should Belgium encourage its population to buy government bonds when the tax-shy Italians don't dare to make the investment? There is a risk that budget discipline will converge at a level somewhere between the North and the South - in short: at less discipline. However all of these remarks and warnings are obsolete when you bear in mind that the European leaders have fewer - and above all no viable - options. Simply not give in to Monti's and Rajoy's bluff? Sounds daring, but it would have been an enormous risk. It seems that the 'vicious circle' [between the banking sector and the individual states], as the President of the European Council Herman Van Rompuy said, has been broken. Nevertheless a relapse is possible."
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Main focus of Friday, 29. June 2012
Meeting at the EU summit, the Eurozone heads of state and government reached an agreement early on Friday morning on bank supervision and easier access ... » more
Meeting at the EU summit, the Eurozone heads of state and government reached an agreement early on Friday morning on bank supervision and easier access to the bailout fund for crisis states. In return, Spain and Italy lifted their blockade against the European Growth Pact. Europe is limping from one summit to the next, commentators write, criticising the reluctance to form a political union.
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Handelsblatt - Germany | Friday, 29. June 2012
Italy's Prime Minister Mario Monti and his Spanish counterpart Mariano Rajoy have managed to secure easier access to the ESFS and ESM bailout funds for states that need to lower the interest rates on their government bonds. But this summit, too, has fallen short of a true breakthrough, the business paper Handelsblatt laments: » more
Italy's Prime Minister Mario Monti and his Spanish counterpart Mariano Rajoy have managed to secure easier access to the ESFS and ESM bailout funds for states that need to lower the interest rates on their government bonds. But this summit, too, has fallen short of a true breakthrough, the business paper Handelsblatt laments: "To sum up last night: the default risk for Europe's taxpayers in saving the euro has once again increased. To what extent we don't know, because the decisions made last night haven't been laid out in detail yet. … This latest marathon of negotiations also shows that the euro rescuers still don't have a grip on the crisis three years after it began. Once again the interests of the two camps - on the one hand the financially strong countries led by Angela Merkel; on the other the struggling states led by Mario Monti - clashed resoundingly. The Chancellor and EU Council President Herman Van Rompuy obviously weren't prepared for the southern Europeans' rebellion."
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24 Chasa - Bulgaria | Wednesday, 27. June 2012
Whereas many EU countries are up to their necks in debt Bulgaria has a firm grip on its finances, with public debt at roughly 16 percent of GDP. But most foreign investors are completely unaware of this, the daily 24 Chasa laments, arguing that the country badly needs to work on its image: » more
Whereas many EU countries are up to their necks in debt Bulgaria has a firm grip on its finances, with public debt at roughly 16 percent of GDP. But most foreign investors are completely unaware of this, the daily 24 Chasa laments, arguing that the country badly needs to work on its image: "As one of the few EU countries with stable finances and which firmly observes EU regulations, Bulgaria should engage in an aggressive advertising campaign to benefit from the euro crisis. To prevent the Greeks, who are now looking for safe and stable countries where they can relocate their billions, from overlooking Bulgaria altogether. ... What good does our financial stability do us if no one ever hears about it? The foreign investments that considerably raised our GDP in the years before the crisis have run dry, and that is due to our country's poor image. ... Only if Bulgaria improves its image can it lead its people to prosperity."
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Magyar Narancs - Hungary | Friday, 29. June 2012
If the member states are not willing to transfer sovereignty rights to Brussels the EU won't be able to survive in the long term, journalist Mátyás Eörsi predicts in the left-liberal weekly Magyar Narancs: » more
If the member states are not willing to transfer sovereignty rights to Brussels the EU won't be able to survive in the long term, journalist Mátyás Eörsi predicts in the left-liberal weekly Magyar Narancs: "Many people today believe that in view of the profound crisis in several member states it is impossible to set major reforms in motion. They are wrong: the history of the EU is a history of crises - remember that World War II led to the creation of the predecessor organisation, the European Coal and Steel Community. ... Ever since its founding the EU has been marked by a contradiction: on the one hand it wants to be a super-state and maintain its role as an economic and political heavyweight, on the other its member states want a Europe of nations and are not willing to relinquish their competences to Brussels. This has led to the impossible situation that Luxembourg's Prime Minister Jean-Claude Juncker once so aptly summarised: 'We all know what needs to be done but we don't know how we're supposed to win the next elections if we do it.' ... If the member states insist on their keeping their powers to themselves the EU will not be able to fulfil its tasks, which in turn will lead to its erosion."
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La Repubblica - Italy | Friday, 29. June 2012
The EU is trailing from one summit to the next without really tackling the rescue of the euro, the left-liberald daily La Repubblica writes: » more
The EU is trailing from one summit to the next without really tackling the rescue of the euro, the left-liberald daily La Repubblica writes: "If no one knows the answer they skip the question and move on to the next - after all, there's plenty of them. European summits are governed by this principle above all when the summit in question is regarded as crucial. Yet again, the protagonists of the umpteenth Brussels therapy have no answer to the central question of how to save the euro. Not because saving the euro is impossible. On the contrary, it would suffice to complement the currency with a political union - right now, not later. But no European leader dares to try and sell a Euro state to his or her voters. Neither today nor tomorrow. ... So each euro summit ends up simply bringing things down to the lowest common denominator. The top priority now is to save the mechanism that justifies their existence. In other words: the goal of each summit is simply to have an excuse to hold another one."
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To Vima Online - Greece | Friday, 29. June 2012
Germany won't change its stance even if the euro collapses, the left-liberal online paper To Vima laments, commenting on the EU summit in Brussels: » more
Germany won't change its stance even if the euro collapses, the left-liberal online paper To Vima laments, commenting on the EU summit in Brussels: "We must finally realise that what many countries in Europe, as well as the international economy, perceive as a highly dangerous crisis, Berlin sees as a chance to increase its political, economic and institutional clout. We must finally stop underestimating the German leadership by claiming that it doesn't really know what it's doing. It knows perfectly well what it's doing, but we don't want to admit it. ... The Germans are incapable of governing their own strength. They have always been blinded by it. And now they are blinded by the 'dream' of a Europe under Germany's leadership. ... They won't give up this dream, even in the last moments of the downfall. … We will all pay for this intoxication with their own power. Europe will pay, and in the end the Germans will pay, too."
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Delo - Slovenia | Friday, 29. June 2012
The heads of state and government at the EU summit have agreed on a 120 billion euro growth package. But the politicians' major hurdles are yet to come, the left-liberal daily Delo warns: » more
The heads of state and government at the EU summit have agreed on a 120 billion euro growth package. But the politicians' major hurdles are yet to come, the left-liberal daily Delo warns: "In these uncertain times the perspective can change within a few months. Despite the crisis summits that have been held on a regular basis ever since the debt crisis began two and a half years ago, there is still no sign of a convincing solution to the crisis. The danger that the Monetary Union will collapse is greater than ever. Expectations of this changing were already low before the summit. ... The first day of the summit was marked by disagreement about how to fight the crisis. The blessing now given for the growth and employment pact to help the Mediterranean countries was more or less a routine step. But the true challenge, namely the introduction of measures to prevent the debt crisis from spreading further, still lies ahead."
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Il Sole 24 Ore - Italy | Thursday, 28. June 2012
The unbridgeable gap between Paris and Berlin could cause the EU summit to run aground, fears the liberal-conservative business paper Il Sole 24 Ore: » more
The unbridgeable gap between Paris and Berlin could cause the EU summit to run aground, fears the liberal-conservative business paper Il Sole 24 Ore: "Those who want more solidarity from Berlin the day after tomorrow must be willing to transfer sovereignty in the areas of budget, taxation and bond policy to Brussels today. Too bad that Hollande has affirmed just the contrary: first solidarity, and the day after tomorrow we'll see about surrendering sovereignty. This antithesis is founded in the DNA of each country. Germany has always had a federal orientation, France has always been the defender of national sovereignty. Precisely the lack of clarity about what one will receive in exchange for such a major transfer of sovereignty feeds doubt in the other countries - including the northern ones. A profession of faith in an increasingly stringent discipline is being demanded today to secure Germany's goodwill tomorrow: is it really possible in our thoroughly secularised Europe to demand that countries convert to German beliefs without knowing what they will receive in return?"
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ABC - Spain | Thursday, 28. June 2012
The single currency threatens to collapse unless the EU summit sends a clear message that fiscal union is on the way, the conservative daily ABC warns: » more
The single currency threatens to collapse unless the EU summit sends a clear message that fiscal union is on the way, the conservative daily ABC warns: "Now there is no getting around the truth. The EU is facing an unavoidable decision. The governments must realise that they must sacrifice a part to save the whole. Otherwise a catastrophe could result. This is what is at stake at the EU summit in Brussels today. The euro is not just a currency. All over the world it has become a symbol for Europe. If the euro goes down, Europe will go down with it. … The politicians have all the instruments in their hands to set up a banking union that would be a first step towards a fiscal union, as demanded by Germany and other countries. It would be inexcusable if this two-day summit failed to give a clear signal to this effect."
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Sme - Slovakia | Thursday, 28. June 2012
The EU heads of state and government meet to discuss a reform of the Monetary Union in Brussels today. Merkel's unambiguous rejection of euro bonds in advance of the meeting is only logical, writes the liberal daily Sme: » more
The EU heads of state and government meet to discuss a reform of the Monetary Union in Brussels today. Merkel's unambiguous rejection of euro bonds in advance of the meeting is only logical, writes the liberal daily Sme: "Merkel is first and foremost a German, and then a European. She formulated her refusal in drastic terms: As long as she lives, there will be no euro bonds; Germany won't be harmed for the sake of rescuing Europe. … For Merkel, euro bonds are unconstitutional both in Germany and in Europe. This makes any discussion redundant. If the euro bonds do eventually come it would only be if Brussels has the national budgets under its control. Only then would the chancellor be happy."
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Jyllands-Posten - Denmark | Thursday, 28. June 2012
Europe's governments lack the will to find a long-term solution to the crisis, the liberal-conservative daily Jyllands-Posten complains, fearing that a two-speed Europe will be the result: » more
Europe's governments lack the will to find a long-term solution to the crisis, the liberal-conservative daily Jyllands-Posten complains, fearing that a two-speed Europe will be the result: "In essence the goal has always been to solve the crisis only in the moment. No EU summit to date has sought a long-term solution to the debt crisis. … Regardless of what is decided now in Brussels, it's clear that Europe will advance at different speeds in the coming year. Germany will define the agenda in the euro countries. And it no longer fears the consequences if one or several countries exit the Eurozone. The UK is growing more and more distanced from the EU, and here in Denmark the government and the pro-European parties in parliament have serious doubts about Denmark's future role within the EU."
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Financial Times Deutschland - Germany | Wednesday, 27. June 2012
Europe has reached a crossroads with the Brussels summit, Wolfgang Münchau writes in the liberal business paper Financial Times Deutschland, fearing that the the lack of an economic union worth the name will be the euro's downfall: » more
Europe has reached a crossroads with the Brussels summit, Wolfgang Münchau writes in the liberal business paper Financial Times Deutschland, fearing that the the lack of an economic union worth the name will be the euro's downfall: "I don't believe that Europe's political leadership really understands the crisis, not even Merkel. If she did she'd use other words to describe it. The bottom line is that this is not a crisis of bad budgeting, not even in Greece. Nor is it a crisis of poor economic policy decisions, as the Chancellor said recently in the Bundestag about Spain. ... The cause of this crisis is a monetary union without transfers or a common economic policy. ... If the euro fails, it will be solely because it was not embedded in a true economic union: its banks are supervised and recapitalised nationally and each country issues its own bonds. The clauses included in the Treaty of Maastricht and later in the Stability and Growth Pact are a fair weather construction that can never withstand a dangerous hurricane."
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Cicero - Germany | Wednesday, 27. June 2012
Columnist Gunter Hofmann analyses in the online edition of the political monthly Cicero the EU's democratic deficit and a possible referendum on a change to the German Basic Law that would allow the transfer of more national competences to the EU: » more
Columnist Gunter Hofmann analyses in the online edition of the political monthly Cicero the EU's democratic deficit and a possible referendum on a change to the German Basic Law that would allow the transfer of more national competences to the EU: "Until now the word from Berlin has been that only a 'policy of small steps' is correct, and that there can be no alternative to this policy. Now, suddenly, it appears we must dare to take the biggest step conceivable, perhaps very soon. A step of such magnitude that it would not be possible without a referendum! This new goal was announced with just as little warning or discussion as each new bailout for Greece, Spain, Italy or Cyprus. That means: this ignorance vis-à-vis the Bundestag is only the tip of the iceberg. ... Just as the Frankfurter Allgemeine Zeitung recently spoke of an 'anatomy of holding back', one is now tempted to evoke an 'anatomy of refusal': the refusal to name goals, to present alternatives, to make clear what we would win and what we would lose if Europe fails once and for all, and to subject one's own policies to debate. The recent ruling from Karlsruhe against the 'side-stepping' of parliament and the judges' urgent advice to President Joachim Gauck not to sign the new law right away - all of these are interventions in a brand of politics that does not really live up to its democratic tasks. Europe is too important to be allowed to fizzle out in this way."
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Politis - Cyprus | Tuesday, 26. June 2012
The euro partners are negotiating the terms of an emergency loan for Cyprus after the country applied for assistance from the euro bailout fund on Monday. The liberal daily Politis tries to see a positive side to resorting to the EU rescue mechanism: » more
The euro partners are negotiating the terms of an emergency loan for Cyprus after the country applied for assistance from the euro bailout fund on Monday. The liberal daily Politis tries to see a positive side to resorting to the EU rescue mechanism: "Cyprus seeking help from the EU bailout fund is not exactly the best outcome. It means that we are heavily indebted and suffering the consequences of an irresponsible economic policy. … Resorting to the bailout fund also means a loss of sovereignty, at least in day-to-day economic policy. The bailout mechanism could however help our economy if our politicians don't start with their populism again. We need a sensible and transparent economic policy, we must modernise and adjust to the standards of northern European economies. Our economy must become more productive and competitive. We are facing difficult times. But we'll get through them."
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Hospodárske noviny - Slovakia | Wednesday, 27. June 2012
Ahead of the summit in Brussels planned for Thursday and Friday, leading representatives from the EU and the ECB have drawn up a reform paper that paves the way for deeper integration of the Union under the aegis of EU Council President Herman Van Rompuy. The business paper Hospodárske noviny is less than enthusiastic about the idea: » more
Ahead of the summit in Brussels planned for Thursday and Friday, leading representatives from the EU and the ECB have drawn up a reform paper that paves the way for deeper integration of the Union under the aegis of EU Council President Herman Van Rompuy. The business paper Hospodárske noviny is less than enthusiastic about the idea: "What is being born in Brussels is by no means an inevitable reform. It is a silent coup that will castrate the nation states. In the context of the crisis, the EU is turning into a political union ruled by Germany. … The proponents of this course of action argue that integration is imperative, otherwise the Union won't survive. But if this Union explodes one day it will be because it's unnatural, artificial and centralised. And because it lacks the support of the people. This means the Union is basically an illegal construction."
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De Morgen - Belgium | Wednesday, 27. June 2012
The proposals by European Council President Herman Van Rompuy on the construction of a genuine fiscal union are cause for hope, writes the left-liberal daily De Morgen: » more
The proposals by European Council President Herman Van Rompuy on the construction of a genuine fiscal union are cause for hope, writes the left-liberal daily De Morgen: "This may not be the ultimate coup that will catapult Europe out of the crisis. But it can mean a big step in the right direction. It would be nothing less than a minor revolution for Europe to be able to decide for itself in future how much a country may spend per year and force member states to adjust their budgets accordingly. In the long term a true budgetary union will even require a sort of European finance ministry. And it's only logical to set up a sole authority to supervise several thousand European banks at the same time. Because if at the end of the day the EU has to pay the piper, it might as well start calling the tune right now."
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Imerisia - Greece | Tuesday, 26. June 2012
German Chancellor Angela Merkel has rejected proposals to pool Europe's debt with drastic words. There will be no joint liability in Europe "as long as I live", she said at a meeting on Tuesday. The left-liberal business paper Imerisia expresses annoyance at the Germans' unbending stance: » more
German Chancellor Angela Merkel has rejected proposals to pool Europe's debt with drastic words. There will be no joint liability in Europe "as long as I live", she said at a meeting on Tuesday. The left-liberal business paper Imerisia expresses annoyance at the Germans' unbending stance: "What a Europe! Instead of taking serious action and making joint decisions based on compromise the political leaders are engaging in an ineffectual and dangerous contest to see who can produce the worst cacophony. … The main protagonists are the Germans. They are peerless in their intolerance, their attacks go way beyond well-intentioned criticism and every agreement between partners is broken. All this is mainly done to impress the voters; because apparently the campaign for next year's parliamentary election has unofficially already begun. As harsh as it may sound, Greece of all countries is practically being treated like a punching bag."
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All available articles from » Thanasis Lirtsogiannis
Blog Charlemagne's Notebook - United Kingdom | Tuesday, 26. June 2012
German Chancellor Angela Merkel will hardly agree to a future mutualisation of Europe's debts, writes blogger Charlemagne on the website of the liberal-conservative weekly The Economist: » more
German Chancellor Angela Merkel will hardly agree to a future mutualisation of Europe's debts, writes blogger Charlemagne on the website of the liberal-conservative weekly The Economist: "Mr Van Rompuy's report does not pretend to be a 'roadmap' to greater fiscal federalism. It is, instead, a proposal to talk about one. European officials argue that just getting Mrs Merkel to agree in principle to discuss things like the mutualisation of debt would be a big achievement, as would getting the French to talk about surrendering the powers of the Fifth Republic. Yet talking is one thing, agreeing quite another - and there is still no sign of accord among leaders."
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Jornal de Negócios - Portugal | Tuesday, 26. June 2012
Portugal's liberal-conservative government has reaffirmed its resolve to adhere to the plan of lowering its budget deficit for 2012 to 4.5 percent, but the business paper Jornal de Negócios suspects this will be more difficult than expected: » more
Portugal's liberal-conservative government has reaffirmed its resolve to adhere to the plan of lowering its budget deficit for 2012 to 4.5 percent, but the business paper Jornal de Negócios suspects this will be more difficult than expected: "Observing the budget plan for the past five months has raised major questions. Can the government stick to the agreed deficit target until the end of the year? The cutbacks in the salaries and pensions of public servants - originally intended as a temporary emergency measure - are not enough to balance out the plunging tax revenues. If this trend continues, by the end of December the country will be more than two billion euros short of the deficit agreed with its creditors. … The 'uncertainties' of [Finance Minister] Gaspar are a sign that either there are further austerity measures to come or that more time and money will be demanded of the creditors to push the deficit below the three percent level."
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All available articles from » João Cândido da Silva
Phileleftheros - Cyprus | Monday, 25. June 2012
Cyprus became the fifth country to seek assistance from the euro bailout fund on Monday after the country's banking sector has come under increasing pressure owing to its close financial ties with Greece. The liberal daily Phileleftheros fears that Cyprus will pay a high price for this help: » more
Cyprus became the fifth country to seek assistance from the euro bailout fund on Monday after the country's banking sector has come under increasing pressure owing to its close financial ties with Greece. The liberal daily Phileleftheros fears that Cyprus will pay a high price for this help: "The fund is on the one hand a bailout mechanism, but on the other a mechanism of subjugation. And this doesn't bode well for countries that are forced to make use of it. In the beginning the bailout mechanism is relatively flexible, but it becomes increasingly unbending. The best example of this is Greece. The creditors are just doing their job. And so usury is a standard practice. … Once the usurious interest rates have landed you in a situation of complete dependence the creditors' terms of repayment become merciless. The relationship becomes the equivalent of that between a drug dealer and a drug addict! The measures are tough and humiliating."
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All available articles from » Marios Christodoulou
Cinco Días - Spain | Tuesday, 26. June 2012
Prominent Italian politicians like ex-prime minister Silvio Berlusconi recently explained that there would be benefits to the country exiting the Eurozone. Such anti-European statements could further jeopardise Italy's stability, the left-liberal business paper Cinco Diás warns: » more
Prominent Italian politicians like ex-prime minister Silvio Berlusconi recently explained that there would be benefits to the country exiting the Eurozone. Such anti-European statements could further jeopardise Italy's stability, the left-liberal business paper Cinco Diás warns: "[Prime Minister] Mario Monti is stuck between two comedians. [The blogger and actor] Beppe Grillo, a professional comedian and leader of what is purportedly the second-strongest party in the country, [the Movimento 5 Stelle], wants Italy to exit the Eurozone and not pay its debts. And Silvio Berlusconi is also using anti-European slogans for his comeback bid. … He is now proposing that either Germany or Italy should leave the euro. ... The danger is that the euroscepticism of the second- and third-strongest political forces could damage Italy's image. The investors could drive up the interest rates on government bonds by worrying about what will happen once the Monti era comes to an end: even less confidence, a deepening recession and greater doubts about the survival of the euro."
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Delo - Slovenia | Tuesday, 26. June 2012
The question of whether to step up integration as a means of coping with the euro crisis is firmly on the agenda at the EU summit in Brussels on Thursday and Friday. After all the EU's unsuccessful attempts to solve the crisis, the left-liberal daily Delo does not have much hope that the summit will be productive: » more
The question of whether to step up integration as a means of coping with the euro crisis is firmly on the agenda at the EU summit in Brussels on Thursday and Friday. After all the EU's unsuccessful attempts to solve the crisis, the left-liberal daily Delo does not have much hope that the summit will be productive: "Should a banking, fiscal and political union emerge according to the development plans, one in which the countries can no longer unilaterally determine their own budgets (without Brussels' blessing), the democratic construct of the Union will need a new foundation. The upcoming EU summit represents another chance for change. Expectations are high, but they will be difficult to fulfil. Preliminary ideas for the future development of the Eurozone are on the table. No one knows how willing states like France will be to relinquish their sovereignty in further key areas. That also goes for the notorious belt-cinching. The price we pay on the Old Continent is that with the institutional strengthening of the Eurozone, the EU will have a core and a periphery made up of the 'rest'. "
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Blog Politblog - Switzerland | Monday, 25. June 2012
Ueili Maurer, a member of the Swiss Federal Council and the national-conservative Swiss People's Party (SVP), recently stated in an interview with the weekly newspaper Zeit that no one "who hasn't completely lost their marbles" wants to become part of the EU now. Maurer's frank words could well put Switzerland at a disadvantage one day, writes the Politblog of the liberal daily Tages-Anzeiger: » more
Ueili Maurer, a member of the Swiss Federal Council and the national-conservative Swiss People's Party (SVP), recently stated in an interview with the weekly newspaper Zeit that no one "who hasn't completely lost their marbles" wants to become part of the EU now. Maurer's frank words could well put Switzerland at a disadvantage one day, writes the Politblog of the liberal daily Tages-Anzeiger: "What if the patient recovers and gets back on its feet again? What if the EU - according to the motto 'what does not kill me makes me stronger' - gains in tempo and clout? … Imagine the outcry in the SVP if - in 10 or 20 years' time - the then EU Commission president says that no one 'who hasn't completely lost their marbles' would now dare to go it alone. People would say it was blackmail - and a lack of respect. If Switzerland then sucks up to Brussels and asks for membership and full participation in the world's most important market, no one should be surprised if Brussels turns up its nose."
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All available articles from » Matthias Chapman
Spiegel Online - Germany | Monday, 25. June 2012
German Chancellor Angela Merkel must show at the EU summit at the end of the week that she has confidence in Europe, writes the news portal Spiegel Online, predicting that a common European government is inevitable: » more
German Chancellor Angela Merkel must show at the EU summit at the end of the week that she has confidence in Europe, writes the news portal Spiegel Online, predicting that a common European government is inevitable: "If the Germans voted today they would drop Europe cold. Merkel must woo the people - even if at the end of the day it could cost her her job. ... There will be no getting around a referendum [on the changes to the German Basic Law to allow for an extension of the competences of the EU]. ... The banking union and euro bonds are merely emergency measures with which the smouldering flames of the crisis can be smothered. After that the Germans will have a new Basic Law and the continent will have a common government, a common policy and a common destiny. That is the consequence of the entire European integration process since the Treaties of Rome. It's too late to turn back now."
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All available articles from » Jakob Augstein
taz - Germany | Monday, 25. June 2012
The heads of state and government of the four major euro states Germany, France, Italy and Spain convened in Rome on Friday for a crisis meeting. But they failed to tackle the burning issues in their talks, the leftist daily taz criticises: » more
The heads of state and government of the four major euro states Germany, France, Italy and Spain convened in Rome on Friday for a crisis meeting. But they failed to tackle the burning issues in their talks, the leftist daily taz criticises: "The [financial markets] won't be swayed by either the growth programme, the transaction tax or any envisaged steps towards greater integration. For them the only thing that counts is how the governments of the Eurozone react if in the next few days once again Spanish - followed by Italian - bonds come under mounting pressure. This is the question where the arduous show of unity at the four-way summit ended. … Euro bonds, euro bills, the role of the ECB: all these highly charged terms were left unmentioned and the major questions unanswered. Instead the Europeans can rejoice that perhaps very soon a banking union will be formed, followed by the fiscal union in another couple of years and political union. But will there still be a euro by then?"
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La Stampa - Italy | Monday, 25. June 2012
EU Council President Herman Van Rompuy has now also spoken out in favour of a European banking union in an interview published in the Welt am Sonntag. Van Rompuy is understandably pinning his hopes on the driving force of the European Central Bank, which faces a colossal task, writes the liberal daily La Stampa: » more
EU Council President Herman Van Rompuy has now also spoken out in favour of a European banking union in an interview published in the Welt am Sonntag. Van Rompuy is understandably pinning his hopes on the driving force of the European Central Bank, which faces a colossal task, writes the liberal daily La Stampa: "A growing burden rests on the shoulders of [ECB chief] Mario Draghi. The danger that he may have to pay for the mistakes of others is increasing. … The banking union is the only solution. Among the proponents of the project Draghi will play a decisive role at the EU summit [at the end of the week]. … The task at hand is to put together the cornerstones of the banking union, from harmonised fiscal policies to political union. The crucial issue here is the sequence in which this is done. For Hollande, the banking union has top priority because he opposes political union, whereas Merkel fears that a banking union without political integration will be very costly for the Germans."
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All available articles from » Stefano Lepri
Il Sole 24 Ore - Italy | Friday, 22. June 2012
In Rome, a crisis summit involving Germany, France, Italy and Spain takes place this Friday. Rome should play the role of mediator to speed up economic and political integration in Europe, writes the liberal-conservative business paper Il Sole 24 Ore: » more
In Rome, a crisis summit involving Germany, France, Italy and Spain takes place this Friday. Rome should play the role of mediator to speed up economic and political integration in Europe, writes the liberal-conservative business paper Il Sole 24 Ore: "The euro is in crisis because the Lisbon treaty stipulates the supranationality of monetary policy but leaves tax, economic and fiscal policy to the national governments. … If the political causes of the crisis lie in the inter-state logic of the Lisbon treaty, the crisis can only be overcome when this logic is called into question. Italy can play a key role here by calling states with resurging demands for sovereignty to order and saying clearly that it's not enough to demand an expansive economic policy, as Hollande's France is doing, without addressing the issue of how this policy is to be managed. … Nor is it enough to point to the need for greater integration, as Chancellor Merkel recently did, and then oppose political measures that would advance that integration."
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All available articles from » Sergio Fabbrini
Financial Times - United Kingdom | Friday, 22. June 2012
The G20 meeting in Mexico ended with empty promises that won't solve the European debt crisis in the long term, fears the former US Treasury Under Secretary David McCormick in the liberal business paper Financial Times, and he draws parallels with the American debt crisis at the end of the18th century: » more
The G20 meeting in Mexico ended with empty promises that won't solve the European debt crisis in the long term, fears the former US Treasury Under Secretary David McCormick in the liberal business paper Financial Times, and he draws parallels with the American debt crisis at the end of the18th century: "What Europe needs is an Alexander Hamilton moment and a corresponding constitution to replace the Maastricht treaty. From 1776-1789, America was managed by a loose Articles of Confederation and its states were overly indebted like Europe's today. In 1790, after the constitution was ratified, Hamilton became the first US Treasury Secretary and in order to create fiscal union chose to convert state debt to federal debt and backed it with federal taxes and a loan from abroad. He made the debt burden manageable by restructuring the debts at substantial haircuts and by establishing a sinking fund analogous to the one now proposed by the 'wise men' in Germany. This plan could close the funding gaps and alter the course of the worsening crisis."
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Spiegel Online - Germany | Thursday, 21. June 2012
German Chancellor Angela Merkel's crisis policies will lead straight to the biggest bankruptcy the world has ever seen, columnist Wolfgang Münchau fears in the news portal Spiegel Online: » more
German Chancellor Angela Merkel's crisis policies will lead straight to the biggest bankruptcy the world has ever seen, columnist Wolfgang Münchau fears in the news portal Spiegel Online: "A sudden end to the euro would be ruinous, particularly for Germany. First off, the European single market would not survive a return to fluctuating exchange rates. The German export industry could not recover from such a change. Add to that the threat of financial collapse. ... Angela Merkel's policy of procrastination is even more ruinous. With every month the burden on Germany's system increases. … If Spain and Italy now also seek the aid of the bailout fund, then Germany and France together would stand surety for more than four billion euros of debt. That's more than the annual income of both countries put together. We are heading straight for the biggest bankruptcy in history. I know only two solutions by which this scenario can be avoided: either the European Central Bank takes over the debts, or they are partially mutualised through euro bonds and a banking union. Merkel's policy leads us into Dante's Inferno. 'Abandon all hope, ye who enter here.'"
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De Volkskrant - Netherlands | Thursday, 21. June 2012
At the G20 summit in Mexico several heads of government have called on Europe to quickly resolve the euro crisis by establishing a political union. Such expectations are unrealistic, the left-liberal daily De Volkskrant objects: » more
At the G20 summit in Mexico several heads of government have called on Europe to quickly resolve the euro crisis by establishing a political union. Such expectations are unrealistic, the left-liberal daily De Volkskrant objects: "European integration, a European leadership and euro bonds are supposed to put a quick end to the crisis. That heads of government like Obama (US), Singh (India) and Calderón (Mexico) are calling for a European political union testifies to a lack of realism on their part. Not only is this political union unachievable, it is also unnecessary. With a package of measures Europe has already established a system for dealing with future crises. … Now it's just a question of how Europe can buy the time needed for Italy and Spain to reform their economies and get their finances in order. Because we're talking about a lot of money here, there are major doubts that this can be achieved. But futuristic visions of a political union won't fill the gap."
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All available articles from » Xander van Uffelen
Público - Portugal | Thursday, 21. June 2012
Italian Prime Minister Mario Monti called at the G20 summit in Mexico for the EFSF bailout fund or its successor, the ESM, to be allowed to purchase the bonds of crisis-stricken states as a means of lowering their borrowing costs. Germany, too, should realise that this is a sensible strategy, writes the liberal daily Público: » more
Italian Prime Minister Mario Monti called at the G20 summit in Mexico for the EFSF bailout fund or its successor, the ESM, to be allowed to purchase the bonds of crisis-stricken states as a means of lowering their borrowing costs. Germany, too, should realise that this is a sensible strategy, writes the liberal daily Público: "It's still too early to tell whether Berlin will approve this plan, but the mere expectation of such an option was enough to reduce the pressure on Spanish bonds. For the first time in weeks there seems to be more on the horizon than just vague expressions of commitment to a fiscal union, banking union or euro bonds. This progress is probably owing to the fact that Germany seems to have realised that it must make some compromise to prevent a chaos scenario which could also damage its own economy. … Merkel and Germany symbolise the struggling crisis management. … It's one thing to be the target of criticism from Greece or Spain - but it's quite another to have to admit one's own faults to Washington or Beijing."
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La Tribune - France | Thursday, 21. June 2012
France wants to introduce euro bonds, Germany wants to strengthen budget discipline. The two positions should be reconciled with the introduction of "euro bills", write the financial experts Christian Hellwig and Thomas Philippon in the liberal business paper La Tribune: » more
France wants to introduce euro bonds, Germany wants to strengthen budget discipline. The two positions should be reconciled with the introduction of "euro bills", write the financial experts Christian Hellwig and Thomas Philippon in the liberal business paper La Tribune: "Politicians should view euro bonds and austerity measures as complementary components of a global strategy. For that reason we recently proposed the introduction of 'euro bills', that is common short-term debt securities for the Eurozone countries, through which long-term discipline and short-term stability may be reconciled. They would resemble the Treasury Bills issued by US Treasury Department. The market for safe and easily accessible capital in euros created in this way would enable the states to refinance part of their debts, for example ten percent of GDP, in the short term through a fixed interest rate. Nevertheless the states would have to finance the rest of their debts in the long term and without a common protection. And the renewal of debt guarantees could be made contingent on the implementation of a sustainable financial policy."
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Dienas Bizness - Latvia | Tuesday, 19. June 2012
The European debt crisis continues to pose a threat to financial stability, writes the business paper Dienas Bizness, proposing that Latvia should position itself with other Baltic countries as a safe haven for investments: » more
The European debt crisis continues to pose a threat to financial stability, writes the business paper Dienas Bizness, proposing that Latvia should position itself with other Baltic countries as a safe haven for investments: "Investors will always need to find a place where they can place their assets. And the number of safe havens has continually dwindled in Europe recently with the uncertain situation in the South. For that reason attention is now focused on the North. Latvia should propose itself as an investment location together with its Baltic neighbours, and form a common Baltic region together with Scandinavia, all the while taking care not to succumb to illusions. In itself the country offers few interesting investment prospects, nevertheless it is part of a region with solid financial policies and has a population that doesn't feel the need to make a violent display of its dissatisfaction on the street."
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Financial Times Deutschland - Germany | Wednesday, 20. June 2012
EU Commission President José Manuel Barroso has been sharply criticised for Europe's crisis management at the G20 summit in Mexico. But the harsh words are justified, writes the liberal business paper Financial Times Deutschland: » more
EU Commission President José Manuel Barroso has been sharply criticised for Europe's crisis management at the G20 summit in Mexico. But the harsh words are justified, writes the liberal business paper Financial Times Deutschland: "The lessons that were handed out to Europe at the G20 especially by the emerging countries - with barely suppressed glee - are understandable. Often enough in the past they have been on the receiving end of instructions and requirements from the EU. Now the Europeans must get used to this unaccustomed tone. And to the new global balance of power. It is also true, however, that it's not just the rebuked Europeans who are facing major difficulties. For the time being other states with their own set of woes - like the US - can hide behind the euro crisis. But that will change if the Eurozone really does manage to get a grip on its problems. And that, in turn, could be aided by the reprimand the Europeans received at the G20 summit. Because pressure from the outside unites in times of doubt."
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Corriere della Sera - Italy | Wednesday, 20. June 2012
The interest rates on Spanish and Italian government bonds rose again at the beginning of the week. To prevent the crisis from spreading further the EU must tap its gold reserves, economist Alberto Quadrio Curzio writes in the liberal-conservative daily Corriere della Sera: » more
The interest rates on Spanish and Italian government bonds rose again at the beginning of the week. To prevent the crisis from spreading further the EU must tap its gold reserves, economist Alberto Quadrio Curzio writes in the liberal-conservative daily Corriere della Sera: "Given the threat of the crisis spreading like wildfire, the goal now is to stop the panic and promote growth. In both cases, using the Eurozone's gold reserves, which amount to 347 million ounces, could help. At the current gold price and dollar value they are worth around 433 billion euros. … The original proposal to use the gold reserves as collateral for a common European financial fund for the introduction of European government bonds failed owing to Germany's opposition to euro bonds. But one could consider using the gold reserves as a guarantee for the rescue fund of the debtor countries. … Because the objections to this are more psychological than economic in nature, the time seems to have come to rebut them before it's too late."
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Rzeczpospolita - Poland | Wednesday, 20. June 2012
The participants of the G20 summit decided on Tuesday to boost the bailout fund of the International Monetary Fund (IMF) to 456 billion dollars. The Polish law professor Robert Gwiazdowski sees this as a questionable measure and writes in an opinion piece for the conservative daily Rzeczpospolita: » more
The participants of the G20 summit decided on Tuesday to boost the bailout fund of the International Monetary Fund (IMF) to 456 billion dollars. The Polish law professor Robert Gwiazdowski sees this as a questionable measure and writes in an opinion piece for the conservative daily Rzeczpospolita: "Now that so much money has been wasted the international politicians are hoping for a miracle to prevent bankruptcies. … Because where is all this money to come from when everyone but the Chinese is deep in debt? Normally only a miracle could produce it! Of course, faith can move mountains. But what is this belief that countries can be satisfied just by giving them money based on? … Because according to the official biographies of the politicians, they were already dreaming of a career in politics in their school days. But apparently they didn't pay enough attention to their lessons."
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La Vanguardia - Spain | Wednesday, 20. June 2012
The agreements reached among the G20 representatives in Mexico are a promising start to the summit meetings of the coming weeks, writes the liberal daily La Vanguardia: » more
The agreements reached among the G20 representatives in Mexico are a promising start to the summit meetings of the coming weeks, writes the liberal daily La Vanguardia: "Europe is moving. According to internal sources the EU will renegotiate the terms of the Greek bailout to make them more viable. A member of the ECB said that there may already be agreements on the banking union in the second half of the year. … These weeks of intense summit activity must produce results. The G20 has proved to be a good starting point. In these difficult times, with an obvious lack of institutions, the EU is showing that it wants greater cohesion. Germany and France have differing points of view. But the Right and Left have always coexisted in the European project. They must now learn to pull in the same direction once more."
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Neue Zürcher Zeitung - Switzerland | Tuesday, 19. June 2012
The German Constitutional Court ruled on Tuesday that the German government may no longer act on matters concerning the European bailout fund, the ESM, without consulting parliament. The liberal-conservative daily Neue Zürcher Zeitung welcomes the judgement because it strengthens national legislatures vis-à-vis Brussels: » more
The German Constitutional Court ruled on Tuesday that the German government may no longer act on matters concerning the European bailout fund, the ESM, without consulting parliament. The liberal-conservative daily Neue Zürcher Zeitung welcomes the judgement because it strengthens national legislatures vis-à-vis Brussels: "People in Brussels seem confident that the constitutional law of the most important donor country can be stretched until it corresponds to the requirements of the Euro rescuers. ... In principle this assessment may even be correct. ... Nevertheless the price for that would be too high. A lively discussion is taking place in Germany on just where the limits are when it comes to to solidarity. While at first attention focused primarily on the financial burden, now political aspects are increasingly taking the forefront. And there is little willingness to surrender further sovereignty. Both the government and the opposition would do well to heed this sentiment, otherwise they'll pay for it at the next parliamentary elections."
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All available articles from » Eric Gujer
Le Figaro - France | Tuesday, 19. June 2012
French President François Hollande has proposed to lead Europe out of recession by increasing public sector investments. A misguided idea, writes economist Rémy Prud'homme in the conservative daily Le Figaro: » more
French President François Hollande has proposed to lead Europe out of recession by increasing public sector investments. A misguided idea, writes economist Rémy Prud'homme in the conservative daily Le Figaro: "The Spanish banking crisis that has rocked all of Europe is first and foremost a crisis of public investment: regional, politicised banks have financed enormous public works that have pushed them to the brink of bankruptcy. This is the occasion to reflect on the dangerous myth of 'future expenditures'. As far as public finances go, investment spending does have a better press than administrative expenditures, both on the Left and on the Right. ... So it is now time to break with the firmly established myth that public investment automatically creates jobs today and growth tomorrow. This myth has served its time. ... It is time for a thorough and unprejudiced examination of each public investment project and an honest account of its costs and the benefits. We are less in need of lyrical visionaries than of competent accountants."
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All available articles from » Rémy Prud'homme
Il Sole 24 Ore - Italy | Tuesday, 19. June 2012
At the G20 summit in Mexico the row over how to solve the crisis in Europe is simmering. The two-day meeting of the heads of government and state began with the participants blaming each other for the crisis. Europe is right to defend itself against the pointed finger of its G20 partners, writes the liberal-conservative business paper Il Sole 24 Ore: » more
At the G20 summit in Mexico the row over how to solve the crisis in Europe is simmering. The two-day meeting of the heads of government and state began with the participants blaming each other for the crisis. Europe is right to defend itself against the pointed finger of its G20 partners, writes the liberal-conservative business paper Il Sole 24 Ore: "German Chancellor Angela Merkel, who prefers to give lessons rather than receive them, has stressed repeatedly that the US needs to takes steps to balance its budget, and the emerging economies, starting with China, need to revalue their currencies. … Although mutual accusations are the worst basis for an international summit, it is nonetheless true that despite all its global ramifications the crisis of the Eurozone is and remains a European crisis. Europe wants to tackle it in its own fashion, without making all too large concessions forced by the financial markets. … It is taking its time, and Obama's attempt to solve the crisis for Europe won't change this one bit."
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All available articles from » Alessandro Merli
Kaleva - Finland | Tuesday, 19. June 2012
Europe's voters have had enough of the ongoing cuts in public spending, comments the liberal daily Kaleva in view of the overwhelming Socialist victory in the French parliamentary elections: » more
Europe's voters have had enough of the ongoing cuts in public spending, comments the liberal daily Kaleva in view of the overwhelming Socialist victory in the French parliamentary elections: "The election results in France mean that an alternative will now be tested for overcoming the euro crisis. The result also represents a glimmer of hope for European social democrats and other parties on the moderate Left. ... Aside from France, the Social Democrats have become the most popular party in Sweden as well, while the Left Party is also on the rise there. Meanwhile, in Germany the SPD and Greens won the state elections in North Rhine Westphalia. ... While there are different reasons for the rise of the Left in each country, in all of them it seems that voters have had enough of public spending cuts as a panacea for the economic crisis. They now want a different approach."
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El País - Spain | Tuesday, 19. June 2012
The mistakes that have led to the debt crisis in Southern Europe were made in the North and can only be corrected there, warns economist Paul Krugman in the left-liberal daily El País: » more
The mistakes that have led to the debt crisis in Southern Europe were made in the North and can only be corrected there, warns economist Paul Krugman in the left-liberal daily El País: "Ever since Greece hit the skids, we've heard a lot about what's wrong with everything Greek. Some accusations are true, some are false, but all are beside the point. Yes, there are big failings in Greece's economy, politics and society. But those failings aren't what caused the crisis that is tearing Greece apart and that threatens to spread across Europe. No, the origins of this disaster lie farther north, in Brussels, Frankfurt and Berlin, where officials created a deeply flawed monetary system, then compounded its problems by substituting moralizing for analysis. ... The only way the euro might - might - be saved is if the Germans and the European Central Bank realize that they're the ones who need to change their behavior, spending more and, yes, accepting higher inflation. If not - well, Greece will basically go down in history as the victim of other people's hubris."
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Jyllands-Posten - Denmark | Monday, 18. June 2012
At the summit meeting that begins today, Monday, in Mexico, the group of the 20 most important industrial and emerging nations will focus above all on he euro crisis. But the G20 is hardly the right place for solving Europe's problems, writes the liberal-conservative daily Jyllands-Posten: » more
At the summit meeting that begins today, Monday, in Mexico, the group of the 20 most important industrial and emerging nations will focus above all on he euro crisis. But the G20 is hardly the right place for solving Europe's problems, writes the liberal-conservative daily Jyllands-Posten: "The G20 group has proved itself a reasonable forum for seeking solutions to regulate the financial industry, but it can neither solve Europe's home-made problems nor instil a dynamic that creates global growth and jobs. Some believe the G20 lacks legitimacy because it's not a 'real' international organisation. But that's an irrelevant academic discussion as long as other pressing challenges determine the agenda. And unfortunately the latter are dictated by the financial markets, not by the heads of state and government of the G20 countries."
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Neue Zürcher Zeitung - Switzerland | Saturday, 16. June 2012
Ceding further national sovereignty to the EU is the wrong way to bring Europe together, writes the liberal-conservative daily Neue Zürcher Zeitung, because now "part ... » more
Ceding further national sovereignty to the EU is the wrong way to bring Europe together, writes the liberal-conservative daily Neue Zürcher Zeitung, because now "part of Europe is moving away from its lively patchwork toward post-Soviet-style centralism. ... The Europeans are well versed in shaking off the orders that are imposed upon them. The EU succeeded where [the peace conferences in] Versailles and Potsdam failed. Voluntary federation pacified the continent and created a framework that was stable thanks to its diversity. This is the raison d'être of the Union, not redistribution at the expense of the North combined with the strict education of the Southern Europeans. The European elites are gambling with this heritage if they break with European traditions and decide in favour of fiscal uniformity and political unity. If too much is asked of people who insist on maintaining their independence, the end of the process won't bring integration, but division and disintegration."
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Magyar Narancs - Hungary | Friday, 15. June 2012
The Eurozone has a serious birth defect, writes economist Péter Felcsúti in the online edition of the left-liberal weekly paper Magyar Narancs, in view of the ongoing crisis in the monetary union: » more
The Eurozone has a serious birth defect, writes economist Péter Felcsúti in the online edition of the left-liberal weekly paper Magyar Narancs, in view of the ongoing crisis in the monetary union: "Everything seemed so easy at first. The introduction of the common currency, an end to the risk of exchange rate fluctuations and the associated costs. In short: the stable and cheap currency raised confidence from both an economic and a psychological perspective. This was an enormous boost not only to economic growth but also to cooperation between the members of the Eurozone. ... But the euro had a birth defect: the Monetary Union was not flanked by a fiscal union. Certainly, there were the Maastricht criteria stipulating low budget deficits. However whether countries kept to these criteria or not was only subject to half-hearted checks. ... As the global financial and economic crisis broke out in 2008, the 'hereditary sin' of the common currency quickly came to light. While some countries with disciplined economic and budgetary policy could withstand the crisis, others were incapable of following suit."
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Blog Ignacio Escolar - Spain | Friday, 15. June 2012
People must try to see things from Germany's point of view, writes the Spanish journalist Ignacio Escolar in his blog, defending Angela Merkel: » more
People must try to see things from Germany's point of view, writes the Spanish journalist Ignacio Escolar in his blog, defending Angela Merkel: "Why won't Germany give up its resistance and help little Greece? Why is it still playing Russian roulette when the stakes are so high? We must put ourselves in Germany's position. If Germany pays, Germany wants to make the decisions. The way Germany sees it - and not entirely without reason - the Mediterranean countries have wasted their money, cooked their books, managed their economies irresponsibly and failed to tackle their problems when they still had the chance. Angela Merkel has a strategy: to take advantage of the pressure of rising borrowing costs to tighten the thumbscrews and bring her partners in line with her economic model. She will continue to crank up the pressure without bringing it to breaking point (or at least that's what we hope)."
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Il Sole 24 Ore - Italy | Friday, 15. June 2012
Chancellor Merkel's government statement is an oracle that allows for a positive outcome, writes the liberal-conservative business paper Il Sole 24 Ore: » more
Chancellor Merkel's government statement is an oracle that allows for a positive outcome, writes the liberal-conservative business paper Il Sole 24 Ore: "Europe is hanging on Angela Merkel's every word as if she was a sibyl. Her oracle continues to be bleak and contains the umpteenth rejection of further integration. Yet it also points to the possibility of setting up a European bank supervision authority. … The call for a stronger role for the European Central Bank (ECB) offers not just a glimmer of hope but also implies the key admission that the major problem was swept under the carpet when the euro was born: it is a contradiction that the ECB, which plays the role of lender of last resort for banks encountering financial difficulties, lacks the powers and information needed to differentiate between those institutions that are worth saving and those that are beyond recovery. … The challenge now is to draw Merkel out of her shell on this. It may be the last chance."
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Politis - Cyprus | Thursday, 14. June 2012
Cyprus, which like Spain is battling a crisis in its banking sector, will take over the rotating presidency of the EU Council on July 1. On Thursday Russian media reported that Russia will give the country a new loan of up to five billion euros. The liberal daily Politis can't understand why Nikosia is turning to Russia for a loan: » more
Cyprus, which like Spain is battling a crisis in its banking sector, will take over the rotating presidency of the EU Council on July 1. On Thursday Russian media reported that Russia will give the country a new loan of up to five billion euros. The liberal daily Politis can't understand why Nikosia is turning to Russia for a loan: "How much money will our Russian and Chinese friends give us? And if we need more will we borrow from them again? Is this what the responsible economic policy of a European state looks like? No one wants bailout mechanisms and austerity packages. But they are the appropriate path for a country that feels it is part of the EU. … We can't take over the EU Council presidency in 15 days' time while knocking at the doors of one non-EU country after another asking for credit. This would be a display of political and ideological short-sightedness."
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Neue Zürcher Zeitung - Switzerland | Friday, 15. June 2012
Ahead of the elections in Greece the Swiss National Bank (SNB) stated on Wednesday that it would continue to maintain the exchange rate for one euro at 1.20 Swiss francs. This is the only viable course right now, writes the liberal-conservative daily Neue Zürcher Zeitung: » more
Ahead of the elections in Greece the Swiss National Bank (SNB) stated on Wednesday that it would continue to maintain the exchange rate for one euro at 1.20 Swiss francs. This is the only viable course right now, writes the liberal-conservative daily Neue Zürcher Zeitung: "If the usual political suspects and bankers now feel obliged to start saying aloud that politicians can't guarantee a lower limit to the exchange rate indefinitely, this is simply irresponsible. The SNB introduced the lower limit to protect the Swiss economy in an extraordinary situation. It chose to peg the franc to the euro significantly under the real equilibrium rate. If the situation on the financial markets calms down once more, the euro rate should settle somewhere above 1.20 francs. Then the time will come to say goodbye to the fixed exchange rate and return to normal monetary policy. But the rougher the sea is now, the more necessary it will be to defend the lower limit on the exchange rate."
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Frankfurter Rundschau - Germany | Friday, 15. June 2012
In her government statement on the G20 summit on Monday and Tuesday in Mexico, German Chancellor Angela Merkel warned against overburdening Germany in the crisis. But nothing would strain the country more than the collapse of the Monetary Union, writes the left-liberal daily Frankfurter Rundschau: » more
In her government statement on the G20 summit on Monday and Tuesday in Mexico, German Chancellor Angela Merkel warned against overburdening Germany in the crisis. But nothing would strain the country more than the collapse of the Monetary Union, writes the left-liberal daily Frankfurter Rundschau: "When trust in the European financial system is destroyed, the monetary cycle collapses, banks and insurance companies have to write off their foreign debts and German industry takes a nosedive - all because the new currency would appreciate massively after the end of the euro - then at the very latest it will be clear how narrow-mindedly Merkel acted when the evil could still have been averted. … She refuses to fork out more German tax money for Europe. That is certain to boost her popularity ratings at home and gain her the support of her coalition's parliamentary groups. … Of course it's unfortunate that the customers of Berlin's Sparkasse and the taxpayers in Bochum have to pay for Spanish bank accounts and Italian deficits. But the alternative of letting the euro run aground would be much more costly."
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Die Presse - Austria | Friday, 15. June 2012
Germany will have to confront the unpleasant reality of the situation, writes the liberal-conservative daily Die Presse. Chancellor Merkel should finally get used to the idea of a debt repayment fund through which the Eurozone countries finance the debts of struggling partners via common bonds, the paper writes: » more
Germany will have to confront the unpleasant reality of the situation, writes the liberal-conservative daily Die Presse. Chancellor Merkel should finally get used to the idea of a debt repayment fund through which the Eurozone countries finance the debts of struggling partners via common bonds, the paper writes: "No euro bonds and no debt redemption fund without a fiscal union; this is Merkel's creed. But the chancellor's opposition is gradually crumbling under the pressure. She knows: as the economic motor of a stalling European Union Germany will have to bite the bullet in the end anyway - but the longer Merkel waits, the more expensive it will be. Stop-gap measures for fighting the crisis have already fallen flat in the past. But now the chancellor's policy has a chance: The debt redemption fund could finance austerity measures in the debtor countries. She shouldn't wait until the fiscal union is a reality because by then it may already be too late for the Monetary Union."
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Il Sole 24 Ore - Italy | Thursday, 14. June 2012
The interest rate on Italian government bonds rose again considerably on Wednesday. Because Italy is coming under increasing financial pressure its Prime Minister Mario Monti needs to campaign for the trust of his EU partners, the liberal-conservative business paper Il Sole 24 Ore demands: » more
The interest rate on Italian government bonds rose again considerably on Wednesday. Because Italy is coming under increasing financial pressure its Prime Minister Mario Monti needs to campaign for the trust of his EU partners, the liberal-conservative business paper Il Sole 24 Ore demands: "Hopefully our prime minister will be as victorious during his European tour as our legendary cyclist Fausto Coppi once was. … Germany yesterday once again reiterated its no to euro bonds through its finance minister Schäuble and also resisted Monti's idea of factoring investments out of the deficit. If the euro bonds remain just a dream and the path to a new European Central Bank with more room for manoeuvre remains blocked, other solutions must be sought, including a European bank guarantee and direct access for banks to the bailout fund for indebted countries."
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Diário Económico - Portugal | Thursday, 14. June 2012
As a means of stimulating the economies of crisis-stricken countries, economist Nouriel Roubini on Wednesday proposed to the German government that every German household should receive a gift voucher worth 1,000 euros for a holiday in one of these countries. But as long as Germany continues to capitalise on the crisis this good idea won't be put into practice, the business paper Diário Económico suspects: » more
As a means of stimulating the economies of crisis-stricken countries, economist Nouriel Roubini on Wednesday proposed to the German government that every German household should receive a gift voucher worth 1,000 euros for a holiday in one of these countries. But as long as Germany continues to capitalise on the crisis this good idea won't be put into practice, the business paper Diário Económico suspects: "It is an original approach to curbing the crisis in Europe: Merkel's government should give each German family a travel voucher on condition that they spend it on a holiday in one of the crisis countries. The 'doomsday prophet' is of the opinion that Germany's 'austerity mania' must end; the German government should lower taxes and increase salaries. Europe needs growth, Roubini believes, and he's right. … On the same day Germany auctioned of six-year inflation-indexed bonds at a negative interest rate of 0.31 percent. While Germany continues to profit from the crisis the travel checks will no doubt remain in Merkel's drawer."
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Neue Zürcher Zeitung - Switzerland | Thursday, 14. June 2012
US rating agency Moody's has lowered Spain's credit rating by three notches on Wednesday evening, leaving it barely above junk status. It also warned that a further downgrade may be imminent. The liberal-conservative Neue Zürcher Zeitung is not surprised at the move: » more
US rating agency Moody's has lowered Spain's credit rating by three notches on Wednesday evening, leaving it barely above junk status. It also warned that a further downgrade may be imminent. The liberal-conservative Neue Zürcher Zeitung is not surprised at the move: "That Spain's financing difficulties have increased once more is not simply a result of the general uncertainty but above all the manner in which the bailout is taking place. The EU billions were supposed to free Spain of its enormous bank problem. However at present the EU has no instrument at its disposal for a direct recapitalisation of the banks. This has meant that the ties between the state and the banks remain intact. In fact Spain has actually become even more closely entwined with its banking sector. The financial aid is flowing to the weak institutions, while the state guarantees the loans."
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taz - Germany | Wednesday, 13. June 2012
Austria's Finance Minister Maria Fekter on Monday evening fed speculation that Italy will need to apply for European financial assistance. The Italian government needs support from Berlin because even in its eagerness to introduce reforms it cannot solve the crisis on its own, writes the left-leaning daily taz: » more
Austria's Finance Minister Maria Fekter on Monday evening fed speculation that Italy will need to apply for European financial assistance. The Italian government needs support from Berlin because even in its eagerness to introduce reforms it cannot solve the crisis on its own, writes the left-leaning daily taz: "The bureaucracy is as unwieldy as ever, state funds are being wasted on infrastructure projects and the health system, while the judiciary works at a snail's pace. However on this front the problems for [Prime Minister Mario] Monti are almost insurmountable: in these sectors it takes years for policy to bear fruit. And even if reforms are carried out: will the markets react positively? Italy should considerably loosen job protection regulations, as Monti never stops hearing. This is exactly what Spain has done - yet it is still open to attacks from the markets. Monti's problem isn't the bickering majority in parliament on whose support he relies. Nor is it the gathering headwind from the employers' association about which he complains. It is also not whether this government will still be in power for five or ten months. The crisis must be solved in Berlin: with comprehensive guarantees for the euro."
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Diário Económico - Portugal | Tuesday, 12. June 2012
The decision to forego mandatory spending cuts in exchange for the bailout package for Spain's struggling banks shows that the same standards do not apply for all crisis countries, writes the business paper Diário Económico: » more
The decision to forego mandatory spending cuts in exchange for the bailout package for Spain's struggling banks shows that the same standards do not apply for all crisis countries, writes the business paper Diário Económico: "With Spain the abbreviation PIGS [Portugal, Ireland, Greece and Spain] is now complete. ... Like in George Orwell's Animal Farm, some animals in the EU are simply more equal than others. Unlike Portugal, Ireland and Greece, Madrid will receive billions in aid without having to impose any austerity measures. ... But when Lisbon tries to negotiate better conditions for their own pacts the gentlemen in Brussels have the cheek to label this as abstruse. The pep-talk text message Prime Minister Rajoy sent his economics minister on Saturday says it all: 'Hang in there, Spain is the fourth-largest economy - not Uganda.' This may be true, but when you look at the balance of power and the favourable conditions (or rather lack of conditions) for Spain's bailout package, as a Portuguese you do feel a bit Ugandan."
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All available articles from » Pedro Carvalho
Blog Ignacio Escolar - Spain | Tuesday, 12. June 2012
News agency Reuters reported on Monday that the EU is working out an emergency plan for the event that Greek exits the Eurozone. Ignacio Escoal analyses two different interpretations of this news in his blog: » more
News agency Reuters reported on Monday that the EU is working out an emergency plan for the event that Greek exits the Eurozone. Ignacio Escoal analyses two different interpretations of this news in his blog: "Reuters reports: The EU is preparing emergency plans that include limits on the amount of money that can be withdrawn from cash points and monitoring of capital flows in Greece 'and other countries'. If this is true - and everything points to this being the case - it can only mean two things. The bad version: The EU is trying to scare the Greeks to deter them from voting for Syriza (whose programme should be read in order to understand the situation). Or the even worse version: The possibility of Greece's exit from the Eurozone is already so real that not even the EU's politicians dare to rule it out. … It is unwise to put Greece under pressure with such an undemocratic and risky threat - expelling the country from the Eurozone if Syriza wins would be ruinous for Europe, too. However it is wise to prepare for the unlikely but possible collapse of the euro."
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De Volkskrant - Netherlands | Tuesday, 12. June 2012
The Dutch caretaker Prime Minister Mark Rutte has assured his country that the billions in aid for the Spanish banks will be repaid. That is dishonest, the left-liberal daily De Volkskrant counters: » more
The Dutch caretaker Prime Minister Mark Rutte has assured his country that the billions in aid for the Spanish banks will be repaid. That is dishonest, the left-liberal daily De Volkskrant counters: "A part of the billions that Europe is injecting into Greece, Portugal, Ireland and now Spain will never come back. With this loss the European politicians are preventing a chaotic development that could cause even worse economic fallout. Moreover an integrated Europe also has political goals. Politicians must have the courage to explain these arguments. They must sell Europe and not deceive the voters about the risks. But if they only point to their own wallets they are providing the Eurosceptics with extra ammunition. After all it's clear with Spain, too, that part of the promised 100 billion euros will never be repaid. Anyone who claims the contrary will lose the voters' trust. This will only undermine support for the bailout operations."
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All available articles from » Xander van Uffelen
Les Echos - France | Tuesday, 12. June 2012
With the 100 billion euro bailout plan for Spain's banks Europe is once more launching an emergency rescue operation. But the plan fails to address the underlying causes of the financial crisis, the liberal weekly business paper Les Echos writes: » more
With the 100 billion euro bailout plan for Spain's banks Europe is once more launching an emergency rescue operation. But the plan fails to address the underlying causes of the financial crisis, the liberal weekly business paper Les Echos writes: "The Union's solution is a stop-gap measure that doesn't solve the basic problem. For Spain, the basic problem includes the ailing financial health of certain autonomous regions and the very real risk that the national economy might not withstand the drastic efforts at budgetary restructuring undertaken in the past months. Two issues that could render the injection of additional European funds necessary in the not so distant future. The problem is, however, that as well as being ineffective in the long-term, this short-sighted policy is extremely costly for Europe. … The entire bill now stands at 500 billion euros. The result: the European fire brigade's ability to intervene is dwindling, even as the hour of truth approaches."
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Helsingin Sanomat - Finland | Tuesday, 12. June 2012
The bailout package for Spain is aimed at preventing the financial crisis from spreading throughout the entire Eurozone. The IMF warned on Monday that Finnish banks may also be affected. The liberal daily Helsingin Sanomat complains that expanding the bailout operations entails higher risks for small countries: » more
The bailout package for Spain is aimed at preventing the financial crisis from spreading throughout the entire Eurozone. The IMF warned on Monday that Finnish banks may also be affected. The liberal daily Helsingin Sanomat complains that expanding the bailout operations entails higher risks for small countries: "It is becoming increasingly clear that extending joint liability even further is not an option. It would be particularly dangerous for small Eurozone countries like Finland. The bailout for Spain highlights the fact that the big and small countries are treated differently. Spain was not subject to intervention as Ireland was, which applied for EU funds for the very same reason, nor has Spain been forced to implement its austerity programme as stringently as Belgium, for instance. Furthermore, if the banking and debt crises spread to larger countries, the small countries will be forced into the role of silent paymasters."
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Politiken - Denmark | Tuesday, 12. June 2012
In view of the new bailout plan for Spain's banks on the weekend, the left-liberal daily Politiken demands that a clear distinction be made between states and their banks: » more
In view of the new bailout plan for Spain's banks on the weekend, the left-liberal daily Politiken demands that a clear distinction be made between states and their banks: "The solution is the creation of a banking union within the EU countries. ... The goal is simple: no bank in Europe should be too big to fail. ... Through strict lending and liquidity requirements the banks should be made capable of looking after themselves. Then it would no longer be the taxpayers, but the owners in the form of shareholders, who must bear the losses when speculative deals go awry. A functioning banking system is of fundamental importance for Europe's economy and labour market. For that reason tighter supervision of banks should not be driven by a thirst for revenge, the desire for a planned economy or pure envy."
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The Guardian - United Kingdom | Tuesday, 12. June 2012
After the French Socialists under President François Hollande emerged as the strongest party from the first round of the parliamentary elections on Sunday, the liberal daily The Guardian is optimistic that they will obtain an absolute majority in the National Assembly: » more
After the French Socialists under President François Hollande emerged as the strongest party from the first round of the parliamentary elections on Sunday, the liberal daily The Guardian is optimistic that they will obtain an absolute majority in the National Assembly: "It is not a mandate that the French have bestowed on Mr Hollande with huge enthusiasm. But it nevertheless hands him an opportunity to rule and to make policy that could be of critical importance for France and for Europe. Unlike other recently elected European leaders, Mr Hollande will have some real room for manoeuvre. The key factors here are his solid domestic political base, France's unique leverage over Germany and in Brussels, and the growing perception across the continent that the austerity solution, as crudely conceived and brutally applied so far, is worsening the European economic crisis rather than helping to resolve it."
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Main focus of Monday, 11. June 2012
The Spanish government announced on Saturday that it will apply for help from the euro bailout fund to save its banking sector. The Eurozone plans ... » more
The Spanish government announced on Saturday that it will apply for help from the euro bailout fund to save its banking sector. The Eurozone plans to make 100 billion euros available to this end. According to commentators this won't resolve Spain's and the EU's fundamental problems, but it will buy them valuable time.
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Expresso - Portugal | Monday, 11. June 2012
A year after seeking help from the euro bailout fund Lisbon has not turned into another Athens, despite the fierce debates about the rigid austerity programme and concerns about social unrest, the left-liberal weekly Expresso concludes: » more
A year after seeking help from the euro bailout fund Lisbon has not turned into another Athens, despite the fierce debates about the rigid austerity programme and concerns about social unrest, the left-liberal weekly Expresso concludes: "So how are we doing? After a year there is no precise answer to this question. The only thing that seems to be certain is that we are worse off. It may be that we have pulled back a little from the edge of the abyss, but at the same time we know that we are still far from being on the path to sustainable development. In addition our fate depends on others. We will have to give up all we have to the state to pay off its alleged investments in our joint prosperity. But there is some good news, too: Our exports are doing well and we still live in social peace. But this is not thanks to the government. Instead of taking care of our future prosperity the state should simply try to repair the damage of the past. If it had already done this we could certainly have saved a lot of money."
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All available articles from » Henrique Monteiro
Libération - France | Friday, 8. June 2012
The French Socialists led by President François Hollande emerged as the strongest party from the first round of the country's parliamentary elections. Now his government must finally take action, the left-liberal daily Libération urges: » more
The French Socialists led by President François Hollande emerged as the strongest party from the first round of the country's parliamentary elections. Now his government must finally take action, the left-liberal daily Libération urges: "Let's hope that this government, which has been able to do nothing but serve up symbolic politics and decrees for the last month while the Eurozone burns, unemployment rises and the economy slumps, will receive the requisite legislative elbow room from the voters. Action must be taken urgently in all of these areas. And François Hollande's proposals, which his ministers never stop repeating in interviews, must finally be followed by deeds. It must be made clear how the government plans to reduce the debt and deficit, which areas will be cut and by how much, how the labour market is to be revived, how extensive the tax reform will be and how growth in Europe is to be stimulated."
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El Mundo - Spain | Monday, 11. June 2012
The Spanish Prime Minister Mariano Rajoy said on Sunday that he had negotiated "favourable conditions" for the rescue of Spain's banks. The conservative daily El Mundo says it's up to the markets to interpret these words: » more
The Spanish Prime Minister Mariano Rajoy said on Sunday that he had negotiated "favourable conditions" for the rescue of Spain's banks. The conservative daily El Mundo says it's up to the markets to interpret these words: "Whether you call it a line of credit or a bailout, what matters in the end is how the financial markets interpret this agreement: as a guarantee that our financial system will be reformed or as the discrediting of yet another country in the Eurozone. … But resorting to the bailout should never be a source of satisfaction, much less triumphalism. The interest rates Spain will have to pay, although bearable - at around 1.8 billion euros a year - will oblige the government to tighten the austerity thumbscrew even further, even if postponing the deficit goal by a year gives us a reprieve. One thing is for sure: no one lends 100 billion euros without demanding anything in return."
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Il Sole 24 Ore - Italy | Sunday, 10. June 2012
The bailout for the Spanish banking sector does not fulfill the precondition for saving the euro, writes the liberal-conservative business paper Il Sole 24 Ore, calling for immediate political integration: » more
The bailout for the Spanish banking sector does not fulfill the precondition for saving the euro, writes the liberal-conservative business paper Il Sole 24 Ore, calling for immediate political integration: "The 100 billion euros for the Spanish banks will come from the Eurozone's bailout fund. This means it is tax money from the partner countries. Consequently we are bearing fiscal co-responsibility without a fiscal union, accepting a financial interdependence without a banking union. … The Spanish crisis reveals the inadequacies of national solutions and the need for a political union. And this is needed now, not in 2020, as the major plan for fiscal, financial and political integration [the growth strategy Europe 2020] foresees, which is more a delusion than a genuine plan."
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All available articles from » Carlo Bastasin
Naftemporiki - Greece | Monday, 11. June 2012
The fact that Spain will receive an EU bailout without being forced to implement a tough austerity programme in exchange represents a great opportunity for Greece to renegotiate the terms of its own austerity, in the eyes of conservative business paper Naftemporiki: » more
The fact that Spain will receive an EU bailout without being forced to implement a tough austerity programme in exchange represents a great opportunity for Greece to renegotiate the terms of its own austerity, in the eyes of conservative business paper Naftemporiki: "Without doubt it is a very positive development for Greece. Our country can now also demand the changes needed to give it more time to implement the austerity measures and promote growth. Now the time has come for our country to negotiate sensibly and to resolutely present our creditors with an alternative plan. With threats to break off the austerity programme we will achieve nothing, but only accelerate the negative developments that are already visible. … Whether the country exits the Eurozone or remains inside it depends on us."
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All available articles from » Nikos Bellos
Financial Times Deutschland - Germany | Monday, 11. June 2012
In the run-up to the new elections in Greece next Sunday the liberal business paper Financial Times Deutschland believes the left-wing candidate and potential winner Alexis Tsipras could try to blackmail Europe if he is elected: » more
In the run-up to the new elections in Greece next Sunday the liberal business paper Financial Times Deutschland believes the left-wing candidate and potential winner Alexis Tsipras could try to blackmail Europe if he is elected: "If Tsipras wins, and everything points to him doing just that, we will experience the first rise to power of a demagogue in the euro crisis. ... Tsipras says: 'All of Europe is in danger', as all the countries are interdependent. He wants, he says - and this sentence should be read very attentively - to convince his 'European partners that it is in their interests not to stop financing (Greece)'. 'If we don't convince them - and we are not going to adopt any unilateral measures - but they go ahead and implement unilateral measures, stopping the bailout payments, we will be forced to stop paying our creditors.' ... This is the first time a European partner has used our interdependence to take us hostage, turning its weakness and dependence into a strength. Why didn't anyone do this earlier? One thing must be clear after June 17: Europe must not allow itself to be blackmailed. If the Greeks choose this path, we must let them bear the consequences - or drop them."
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All available articles from » Horst von Buttlar
Gazeta Wyborcza - Poland | Monday, 11. June 2012
The bailout for Spain may not be a cure-all but it's the best solution currently available for servicing the debts in the long term, writes the liberal daily Gazeta Wyborcza: » more
The bailout for Spain may not be a cure-all but it's the best solution currently available for servicing the debts in the long term, writes the liberal daily Gazeta Wyborcza: "The European help for Spanish banks won't resolve the fundamental problems with the Spanish economy, but it allows the Spanish government and ultimately the entire EU to buy the time they need for the reforms to finally produce results. If the Spanish economy begins to grow and become more competitive it can start reducing its debts. It is certainly in a better position than Greece. Spain is a large country and the fifth-largest economy in Europe. If it became insolvent this would lead to a financial catastrophe for the entire Eurozone. This is why the European politicians aren't hesitating to offer help. On the contrary: they are pressing the Spanish prime minister to accept it."
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All available articles from » Witold Gadomski
Eesti Päevaleht - Estonia | Monday, 11. June 2012
The head of the International Monetary Fund, Christine Lagarde, praised Latvia for its stringent austerity programme last week, describing it as a good example for other European crisis countries. Estonia, too, can learn from its neighbour, writes the liberal daily Eesti Päevaleht: » more
The head of the International Monetary Fund, Christine Lagarde, praised Latvia for its stringent austerity programme last week, describing it as a good example for other European crisis countries. Estonia, too, can learn from its neighbour, writes the liberal daily Eesti Päevaleht: "Many Latvians haven't heard much about their country's success story. The statistics show that Latvia was the fastest growing economy in the EU in the first quarter of 2012. Yet the Latvians are still sceptical about their own country because the level of unemployment continues to be high while people can earn far more than what they earn in Latvia abroad. Whether Latvia's economic policy, which is largely identical to that of Estonia, indeed offers a perspective for recovery or is simply a flash in the pan remains to be seen. But one thing is for sure: Latvia's government has better ideas right now than Estonia's."
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The Economist - United Kingdom | Monday, 11. June 2012
Although the Spanish government and its crisis-ridden banks were promised a bailout package of up to 100 billion euros on Saturday, the liberal business magazine The Economist doubts that the measure will suffice to rescue the country: » more
Although the Spanish government and its crisis-ridden banks were promised a bailout package of up to 100 billion euros on Saturday, the liberal business magazine The Economist doubts that the measure will suffice to rescue the country: "How will the bailout affect Spain's ability to borrow in the markets? Cleaning up the banking system would be a positive step but it is not enough on its own. The country's economy is expected to shrink this year and the next. The bank bailout is unlikely to reverse the downward momentum, even if it eases the country's credit crunch. If Greece leaves the euro, it is possible that Spain will find itself shut out of the markets."
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Il Sole 24 Ore - Italy | Friday, 8. June 2012
German Chancellor Angela Merkel and British Prime Minister David Cameron called for stronger integration of the Eurozone at a bilateral meeting on Thursday in Berlin. It's all very well for London since it's only protecting its own interests, writes the liberal-conservative business paper Il Sole 24 Ore: » more
German Chancellor Angela Merkel and British Prime Minister David Cameron called for stronger integration of the Eurozone at a bilateral meeting on Thursday in Berlin. It's all very well for London since it's only protecting its own interests, writes the liberal-conservative business paper Il Sole 24 Ore: "David Cameron is campaigning for Europe and the euro as he has never done before. The British prime minister spoke out in favour of euro bonds, a banking union and closer political cohesion yesterday. He charted out the path to save the euro, meaning the path others should take, but not London. … He urged Merkel to follow to the proposals of her euro partners above all because the fate of the British economy depends on the rescue of the currency. But while London urges others to take action it is sealing itself off for its own safety. The most recent example: while David Cameron was extolling the virtues of a banking union, his finance minister George Osborne was busy explaining that London would adopt special protective measures for British financial institutes should such a union come into being."
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More from the press review on the subject » EU Policy, » Fiscal Policy, » Banks, » Germany, » United Kingdom
All available articles from » Leonardo Maisano
La Razón - Spain | Friday, 8. June 2012
Esperanza Aguirre, the conservative president of the region of Madrid, proposed on Wednesday that the number of members in the Madrid regional parliament be halved to cut costs. The conservative and centralist daily La Razón applauds the idea: » more
Esperanza Aguirre, the conservative president of the region of Madrid, proposed on Wednesday that the number of members in the Madrid regional parliament be halved to cut costs. The conservative and centralist daily La Razón applauds the idea: "The direct savings simply in terms of salaries are nothing to be sniffed at: three million euros in Madrid alone, and almost 33 million if the cuts were extended to all the autonomous regions. Factor in all the additional costs incurred by MPs and we can see that it adds up to a considerable sum in these difficult times. The proposal would of course require the support of the Socialists, and would entail a prolonged process including the reform of the regional constitutions. But beyond the red tape, Esperanza Aguirre has certainly addressed a taboo subject that no one can now ignore. The time has come to streamline the costly structure of autonomous regions that live beyond their means and to trim down the inflated parliamentary caste."
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More from the press review on the subject » Domestic Policy, » Federalism, » Spain
L'Express - France | Thursday, 7. June 2012
In view of the desolate situation in many countries of the EU, calls for a pan-European referendum on the future of the Union are growing louder. The last hope lies with the Europeans, the economist Jacques Attali writes in the liberal weekly L'Express: » more
In view of the desolate situation in many countries of the EU, calls for a pan-European referendum on the future of the Union are growing louder. The last hope lies with the Europeans, the economist Jacques Attali writes in the liberal weekly L'Express: "If the coming months see the European Union continue to disintegrate, in keeping with the most pessimistic scenarios that we have been sketching here for years now, it will soon cease to exist altogether. ... The sequence of events is pre-determined: letting Greece go bankrupt, not rescuing the Spanish banks and not responding to the demands that will come from Italy and France. And there you go, 60 years of effort down the drain. What hope remains when the solution is technically so simple (as we've said repeatedly here: with the creation of a federal Eurozone) and yet so impossible politically? The hope that the people will wake up. And how? By means of a Franco-German accord putting the following question to the entire Eurozone in a referendum on the same day: 'Are you ready to relinquish part of your sovereignty to maintain your comfort and well-being?' At least one can dream this will happen.”
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More from the press review on the subject » EU Policy, » EU neighbourhood policy, » Europe
All available articles from » Jacques Attali
Phileleftheros - Cyprus | Wednesday, 6. June 2012
Cyprus' President Dimitris Christofias last week did not rule out the possibility of Cyprus seeking help from the EFSF bailout fund. According to the EU Commission, however, the country doesn't need international financial aid. The liberal daily Phileftheros agrees - provided Cyprus follows the EU's advice: » more
Cyprus' President Dimitris Christofias last week did not rule out the possibility of Cyprus seeking help from the EFSF bailout fund. According to the EU Commission, however, the country doesn't need international financial aid. The liberal daily Phileftheros agrees - provided Cyprus follows the EU's advice: "If Nikosia follows the recommendations the EU made last week, the country has good chances of winning the battle. And this battle begins and ends not with the discussion about the EU bailout mechanism, but with a policy that creates solutions to the crisis. Not temporary solutions, but long-term perspectives. It's clear that the protagonists of the election campaign [ahead of next year's presidential election] will primarily consider the political costs. But in the situation in which we find ourselves now, the costs will be even higher if we simply stand by and watch the developments from the sidelines."
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Blog Coulisses de Bruxelles - France | Thursday, 7. June 2012
The Spanish banking disaster was predictable, writes Jean Quatremer on his blog Coulisses de Bruxelles, saying that the EU must therefore grasp once and for all that a series of hectically convened summit meetings is not going to solve the crisis: » more
The Spanish banking disaster was predictable, writes Jean Quatremer on his blog Coulisses de Bruxelles, saying that the EU must therefore grasp once and for all that a series of hectically convened summit meetings is not going to solve the crisis: "The Eurozone seems to have been taken completely by surprise by the sudden escalation of the Spanish banking crisis. The fact is, however, that the real estate bubble burst three years ago and that the difficulties of Bankia, the third-largest bank in the country that is struggling with unrecoverable mortgages and which the government must now bail out with 23 billion euros, was anything but unforeseeable. Once again the European governments have shown their ability to deny reality (after Greece, Ireland and Portugal, each time saved in extremis) as well as their propensity to lie about the true state of their economies. ... The Union is now aware that a series of 'last-minute summits' is simply not a viable option, and that a common answer to the crisis is what has been needed all along."
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All available articles from » Jean Quatremer
Die Zeit - Germany | Thursday, 7. June 2012
The crisis-ridden Europe sometimes forgets its own success stories, writes Alice Bota in the liberal weekly paper Die Zeit, with an eye to the resplendent Euro 2012 host Poland, whose story should inspire Greece in its present plight: » more
The crisis-ridden Europe sometimes forgets its own success stories, writes Alice Bota in the liberal weekly paper Die Zeit, with an eye to the resplendent Euro 2012 host Poland, whose story should inspire Greece in its present plight: "Many people these days have given up on the Greeks, referring to them with disdainful and angry words as if they were a scourge and not a sovereign people. This way of talking may awaken memories among Poles. Only recently people talked in much the same way about them. They came from Europe's poor house, they were the street urchins the European Union had reluctantly taken in. … Today's Poland has put its sense of shame behind it and is very much on the rise. The country has reinvented itself. … Just a short while ago the National Stadium opened in Warsaw. A European superlative has risen from the ashes of the postwar era, built by architects from Germany and Poland. … That is neither a Polish nor a Greek story, but a European one."
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More from the press review on the subject » History, » Poland, » Europe
All available articles from » Alice Bota
Corriere della Sera - Italy | Thursday, 7. June 2012
Rating agency Moody's downgraded the credit status of the Commerzbank and six other banks in Germany on Wednesday. This step has made clear once more that even Germany is not immune to the consequences of the banking crisis, writes the liberal-conservative daily Corriere della Sera: » more
Rating agency Moody's downgraded the credit status of the Commerzbank and six other banks in Germany on Wednesday. This step has made clear once more that even Germany is not immune to the consequences of the banking crisis, writes the liberal-conservative daily Corriere della Sera: "Moody's downgrade proves that the tables can also turn on the healthiest economy. ... Because the banking sector is at the centre of the crisis. ... And that includes the banking sector of virtuous Germany, too. It's clear why: for years the German financial institutes have been channelling the Germans' savings into indebted countries. ... Consequently Germany is now facing losses of up to 80 billion euros if the euro survives and up to 200 billion if the Monetary Union collapses. Losses that could pose a threat to the budget, particularly since the country would have to somehow try to save its banks."
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More from the press review on the subject » Financial Markets, » Banks, » Germany
All available articles from » Danilo Taino
El Huffington Post - Spain | Thursday, 7. June 2012
Germany is the country with the greatest interest in saving the euro yet it is doing too little to that effect, according to Juan Luis Cebrián, managing director of the media company Prisa. In his blog in the Spanish edition of the left-liberal online newspaper Huffington Post, published for the first time this Thursday, Cebrián writes: » more
Germany is the country with the greatest interest in saving the euro yet it is doing too little to that effect, according to Juan Luis Cebrián, managing director of the media company Prisa. In his blog in the Spanish edition of the left-liberal online newspaper Huffington Post, published for the first time this Thursday, Cebrián writes: "The crisis of the Eurozone has faced Europe with a historical challenge. If the European currency disappeared this would probably cause the entire project of political unity to collapse. Seven decades would be lost, mankind's most important experiment since World War II would have failed. The extent of the catastrophe would be immense. ... It would be far more painful and expensive to give up the euro than to save it. And precisely the country that seems to be most reluctant would be worst hit: Merkel's Germany. More than half of Germany's exports go to the Eurozone, whose bankruptcy would inevitably lead to a recession in Germany."
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All available articles from » Juan Luis Cebrián
Gazeta Wyborcza - Poland | Thursday, 7. June 2012
Banks need to be subject to stricter control, writes Mariusz Zygierewicz, the head of the Polish bank association ZBP, in a commentary for the liberal daily Gazeta Wyborcza. However he criticises several individual proposals put forward by the EU Commission: » more
Banks need to be subject to stricter control, writes Mariusz Zygierewicz, the head of the Polish bank association ZBP, in a commentary for the liberal daily Gazeta Wyborcza. However he criticises several individual proposals put forward by the EU Commission: "These include first of all the right of the financial supervisory authority to intervene early. Among other alternatives it will have the option of appointing special board members. I can understand the Commission's intentions. Nevertheless they risk having the authority intervene far too soon, and it could lead to the effective disappropriation of the bank and its shareholders. Banks would then be dependent on the clemency of the supervisory authority. The second problem is that in the event of a 'bail-in' [participation of creditors in the costs of a bailout], a bank's debts may be converted into shares. But the criteria for such a move have yet to be established."
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All available articles from » Mariusz Zygierewicz
Neue Zürcher Zeitung - Switzerland | Thursday, 7. June 2012
Europe could use the legislation for overcoming the banking crisis right away, writes the liberal-conservative daily Neue Zürcher Zeitung: » more
Europe could use the legislation for overcoming the banking crisis right away, writes the liberal-conservative daily Neue Zürcher Zeitung: "If the decision must be soon made about how to deal with ailing banks in Spain and other crisis countries, it would be best to act as if the new regulations were already in effect. State recapitalisation should only take place under strict conditions. And if the proud Spanish cannot bring themselves to liquidate their own banks and ask for external help, this should only take place by means of a bank subsidy programme. The strict conditions for this must be defined and monitored by experts from the European Central Bank and the Commission, as well as if needs be by the International Monetary Fund."
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More from the press review on the subject » Fiscal Policy, » Banks, » Europe
All available articles from » Peter A. Fischer
Main focus of Wednesday, 6. June 2012
Spain admitted for the first time on Tuesday that it is having difficulties raising money on the financial markets. The possibility of making use of ... » more
Spain admitted for the first time on Tuesday that it is having difficulties raising money on the financial markets. The possibility of making use of the euro bailout fund in a bid to solve the country's bank crisis is increasingly being discussed. For some commentators the step would be a nightmare, while others believe that unlike Greece, Spain can be rescued in this way.
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Magyar Nemzet - Hungary | Wednesday, 6. June 2012
For approximately two years now the EU has been implementing a stringent austerity policy. But with its growth-oriented economic policy the US is faring much better than Europe, which is getting nowhere right now, writes economist István Dedák in the conservative daily Magyar Nemzet: » more
For approximately two years now the EU has been implementing a stringent austerity policy. But with its growth-oriented economic policy the US is faring much better than Europe, which is getting nowhere right now, writes economist István Dedák in the conservative daily Magyar Nemzet: "As far as the near future is concerned there is no sign of a recovery and we can even assume that economic growth will slow down within the EU. … By contrast the US economy is growing once more. … The economic policymakers in the US didn't succumb to the siren song of those who talked of the need to make cuts. They were wiser and put their faith in a growth-oriented policy. … Austerity and economic recovery are mutually exclusive. Those who refuse to believe this should take a look at the economic performance in Spain, Italy and Ireland, where rigorous austerity programmes are being implemented, not to mention the youth unemployment figures there. … If the austerity policy continues in Europe it will bring bitter disappointment."
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All available articles from » István Dedák
La Stampa - Italy | Wednesday, 6. June 2012
The US has warned repeatedly in recent months of the threat posed by the euro crisis to the global economy and called for growth-stimulating measures. These demands conceal the US's fear of Germany growing too strong, the liberal daily La Stampa contends: » more
The US has warned repeatedly in recent months of the threat posed by the euro crisis to the global economy and called for growth-stimulating measures. These demands conceal the US's fear of Germany growing too strong, the liberal daily La Stampa contends: "It's true that the crisis affects all Europe, but it is no less true that Germany is swimming against the current in a flailing Europe. Its industry is thriving, its budget is healthy and the inflation rate is low. Thanks to the weak euro, Germany is also enjoying the benefits of a currency devaluation that can only work to the advantage of the world's second-largest exporter, without tarnishing its image. So Washington is beginning to ask whether Germany's predominance in Europe is really compatible with an 'Atlantic West'. … And whether there is perhaps a danger that Germany under Angela Merkel could be tempted to follow in the footsteps of today's China and set itself up as the world champion in exports, spurred on by a weak euro."
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All available articles from » Vittorio Emanuele Parsi
El Mundo - Spain | Wednesday, 6. June 2012
After Tuesday's G7 telephone conference on the subject of the euro debt crisis, several Spanish newspapers have quoted an anonymous participant from Germany who described the Spanish as too proud to ask Europe for help. Germany is clinging to old prejudices and overlooking the fact that the situation in Spain is quite different to that in Greece, the conservative daily El Mundo complains: » more
After Tuesday's G7 telephone conference on the subject of the euro debt crisis, several Spanish newspapers have quoted an anonymous participant from Germany who described the Spanish as too proud to ask Europe for help. Germany is clinging to old prejudices and overlooking the fact that the situation in Spain is quite different to that in Greece, the conservative daily El Mundo complains: "The wording used by this government representative reveals that Germany sees us according to the old stereotype as a country of impoverished aristocrats that is too proud to ask for the help it is generously being offered. But things aren't that simple. The Rajoy government wants to avoid taking this step [of resorting to the bailout fund] because it could convey the impression on the international stage that Spain is treading the same path as Greece, Portugal and Ireland. And this is not the case because there is an important difference between receiving money to recapitalise a few banks in crisis and being rescued as an entire country. This is why Rajoy is wise to demand that the money should go directly to the banks, without the whole country suffering the stigma of being domineered or bailed out."
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Süddeutsche Zeitung - Germany | Wednesday, 6. June 2012
In the discussion about solutions to the banking crisis in Spain the country's Prime Minister Mariano Rajoy for the first time spoke out in favour of introducing euro bonds on Tuesday in Madrid. But for this project to go ahead France and Germany would have to sacrifice their most precious treasures, the left-liberal daily Süddeutsche Zeitung explains: » more
In the discussion about solutions to the banking crisis in Spain the country's Prime Minister Mariano Rajoy for the first time spoke out in favour of introducing euro bonds on Tuesday in Madrid. But for this project to go ahead France and Germany would have to sacrifice their most precious treasures, the left-liberal daily Süddeutsche Zeitung explains: "Without stronger unity and democratisation in Europe … there should be no euro bonds for financing sovereign debt. Why should the Germans be liable for the debts of other states if they can't have a say in the fiscal, economic and structural policies of those states? To put it rather drastically: If the French have a 35-hour working week, retire at 60 and appoint tens of thousands of new civil servants, should the Germans have to pay for the resulting deficits? Neither the German constitutional court nor the German voters will go along with this. … If the euro and the unprecedented project of a united Europe are to be saved, its two strongest states must sacrifice their most precious assets: Germany its money and France its sovereignty."
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More from the press review on the subject » EU Policy, » Germany, » France, » Europe
All available articles from » Stefan Ulrich
Público - Portugal | Wednesday, 6. June 2012
After the Spanish government admitted on Tuesday that it was having trouble raising money on the financial markets the daily Público is pessimistic about the future: » more
After the Spanish government admitted on Tuesday that it was having trouble raising money on the financial markets the daily Público is pessimistic about the future: "The worst nightmare has come true. There seems to be no doubt any more that Spain will have to receive help. Too big to fail? Nowadays this no longer applies. The government has conceded that is has no choice but to seek Europe's support. According to the president of Santander bank, the Spanish banks need around 40 billion euros in additional capital in the short term. But far worse is the estimate of the Institute of International Finance, which fears that Spanish banks may be facing astronomic losses of up to 260 billion euros in the next two years. The EU and G7 reaffirmed on Monday that under no circumstances will they abandon Spain. But they must hurry. We need an end to the nightmare we are currently experiencing - and we need it tomorrow."
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Blog Giannis Albanis - Greece | Tuesday, 5. June 2012
The crisis in Greece is affecting the country's healthcare system. Many pharmacies are only selling medications for cash. As of this Wednesday cancer patients who cannot afford to pay cash in advance are to receive their medication once again. Blogger Giannis Albanis is amazed at the third-world conditions in his country and mourns the lost Europe of his parents' generation: » more
The crisis in Greece is affecting the country's healthcare system. Many pharmacies are only selling medications for cash. As of this Wednesday cancer patients who cannot afford to pay cash in advance are to receive their medication once again. Blogger Giannis Albanis is amazed at the third-world conditions in his country and mourns the lost Europe of his parents' generation: "The plight of the cancer patients is irrefutable proof that Nigeria (the country Madame Lagarde feels so much pity for) is not somewhere far away but here in our very own country, within the Eurozone. … If for our parents Europe meant prosperity, democracy and the welfare state and Nigeria represented poverty, corruption and authoritarianism, we must now admit that things have changed dramatically for our generation. Here there is misery, corruption and authoritarianism while elsewhere there is a social welfare state and democracy - where, precisely, we don't know. A country where there is no medication for cancer patients does not belong in Europe, certainly not the fantastic Europe of our parents. Greece in 2012 belongs to a different Europe: the continent of the EU and the IMF, that has been destroyed by the markets."
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All available articles from » Giannis Albanis
Die Presse - Austria | Wednesday, 6. June 2012
Spain will have no choice but to seek help from the bailout fund, writes the liberal-conservative daily Die Presse. Unlike with Greece this rescue operation may actually be worthwhile for Europe, the newspaper surmises: » more
Spain will have no choice but to seek help from the bailout fund, writes the liberal-conservative daily Die Presse. Unlike with Greece this rescue operation may actually be worthwhile for Europe, the newspaper surmises: "The chances that the whole thing will work out are … much better than for instance in Greece. Because Spain has a strong industrial base, at least in the north-east of the country, and it has a government that is introducing major reforms (the labour market reform for example). It also has less of a public debt problem than a private debt problem. The banking woes that are weighing so heavily on the government's purse now are largely due to the fact that many jobless Spaniards can no longer pay the over-sized mortgages they took out during the boom. Leaping to the rescue with bailout money here will therefore pay off for Europe. Provided the Spanish themselves want this."
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All available articles from » Josef Urschitz
Irish Examiner - Ireland | Wednesday, 6. June 2012
The Yes vote by the Irish in the referendum on the EU fiscal compact last Thursday has shown how fragile Ireland's society is, writes the liberal daily the Irish Examiner: » more
The Yes vote by the Irish in the referendum on the EU fiscal compact last Thursday has shown how fragile Ireland's society is, writes the liberal daily the Irish Examiner: "[T]he way we apply austerity is by cutting services to those whose protests won't amount to more than a whimper, and by applying bureaucratic techniques to the delivery of what's left. We say no to those without a voice, and we whisper yes to those with power and influence. Despite everything, we've managed to preserve entitlement for some. So if we can't end austerity, let's put it to work instead, in ending entitlement and in ensuring fairer and more equal shares of a humbler cake. We've done what we can for the fragile economy. We must start concentrating, before it's too late, on our fragile society. At least let's start talking about it."
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All available articles from » Fergus Finlay
Main focus of Tuesday, 5. June 2012
EU Monetary Affairs Commissioner Olli Rehn said on Monday that he no longer rules out the possibility of assisting ailing banks like those in Spain ... » more
EU Monetary Affairs Commissioner Olli Rehn said on Monday that he no longer rules out the possibility of assisting ailing banks like those in Spain directly through the future euro bailout fund, the ESM. The move would prevent excessive risk-taking in fiscal policy on the part of debtor states, commentators write, but counsel the EU to impose strict requirements.
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Público - Portugal | Tuesday, 5. June 2012
Portugal has once again received good marks from the troika for its implementation of the austerity measures. It is therefore lamentable that the government is nonetheless acting so hesitantly and not investing in the economy, the daily Público complains: » more
Portugal has once again received good marks from the troika for its implementation of the austerity measures. It is therefore lamentable that the government is nonetheless acting so hesitantly and not investing in the economy, the daily Público complains: "Our prime minister has assured us that the country is no longer on the brink of the abyss. Nonetheless the government continues to act as if it feared that it could plunge into that abyss at any moment. There is a real contradiction between the 'model pupil Portugal' and its economy, which is continually deteriorating under the troika. This is also because the gradual decline is not being countered with a clear approach. … The government has helped out the banks with almost seven billion euros instead of investing the money directly in the economy because it fears being caught up in the storm coming from Spain and Greece. Without doubt there are reasons to act with caution. But the risk is even greater that precisely this sensible and cautious approach could plunge us into the abyss."
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More from the press review on the subject » Domestic Policy, » Fiscal Policy, » Economy, » Portugal
Naftemporiki - Greece | Tuesday, 5. June 2012
With the 17 June elections in mind, politicians in Greece are increasingly evoking the possibility of renegotiating the tough austerity measures with creditors. The conservative business paper Naftemporiki writes that Athens can't reject the austerity package without making a counter-proposal: » more
With the 17 June elections in mind, politicians in Greece are increasingly evoking the possibility of renegotiating the tough austerity measures with creditors. The conservative business paper Naftemporiki writes that Athens can't reject the austerity package without making a counter-proposal: "We never stop hearing that the austerity package must be partially or entirely renegotiated with creditors, without anyone saying specifically how that can be done. ... We can't convince the foreign technocrats to back off on the unpleasant austerity measures if we don't propose comparable measures and a concrete growth plan in return. ... We shouldn't forget that we will have to negotiate with the troika under very difficult conditions after the elections. The next government will have an empty treasury and must request the release of the next tranche in June. Under such conditions this government will not be able to effect a change to the austerity package if the investors don't want it or aren't convinced of its merits."
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All available articles from » Panos Kakouris
Het Financieele Dagblad - Netherlands | Tuesday, 5. June 2012
Speaking at the EU-Russia summit on Monday, EU Council President Herman Van Rompuy announced he would present a plan for the development of the Eurozone by the end of the year. An important initiative, the business paper Het Financieele Dagblad writes: » more
Speaking at the EU-Russia summit on Monday, EU Council President Herman Van Rompuy announced he would present a plan for the development of the Eurozone by the end of the year. An important initiative, the business paper Het Financieele Dagblad writes: "There are actually only two alternatives to get out of this crisis: either we say farewell to the euro or we progress with integration to rectify the structural faults of the Monetary Union. The first option leads to a financial catastrophe, the second to a political one. Nevertheless the second option is the one to adopt. That means that over the course of the year Van Rompuy must convince the political leaders to show their true colours. No easy task, above all because the northern countries will have to compensate for the problems in the south. And that is a bad news for voters. ... Even if forging plans is not a solution to the crisis in itself it is the only way to point the way forward. If the heads of government do decide in favour of the euro, they must accept the consequences and dare to take the necessary steps."
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Neue Zürcher Zeitung - Switzerland | Tuesday, 5. June 2012
Before Spain and Cyprus bail out their ailing banks themselves a direct recapitalisation of their banks though the euro bailout fund (ESM) could be a solution, the liberal-conservative daily Neue Zürcher Zeitung writes. But in that case clear rules would be needed: » more
Before Spain and Cyprus bail out their ailing banks themselves a direct recapitalisation of their banks though the euro bailout fund (ESM) could be a solution, the liberal-conservative daily Neue Zürcher Zeitung writes. But in that case clear rules would be needed: "The direct recapitalisation of banks through the ESM would help to prevent countries like Spain and Cyprus from diving headlong into fiscal and political uncertainty, and it would also prevent yields on sovereign bonds from rising any further. And the negative correlation between national debt and bank solvency would be severed. In addition this would be a targeted support that applied directly to the troubled banks. … As with other forms of state support, the EU Commission must be able to set conditions so as to avoid distortion of competition. Even better would be if the ESM could liquidate banks in return. That will become clear at the very latest when the money for recapitalisation runs out."
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More from the press review on the subject » Banks, » Spain, » Cyprus
All available articles from » Martin Lanz
Dagens Nyheter - Sweden | Tuesday, 5. June 2012
Independent consultants are currently drawing up a report on the situation of the Spanish banking sector. Despite Spain's generally good crisis management the result of the report doesn't bode well for the country, the liberal daily Dagens Nyheter fears: » more
Independent consultants are currently drawing up a report on the situation of the Spanish banking sector. Despite Spain's generally good crisis management the result of the report doesn't bode well for the country, the liberal daily Dagens Nyheter fears: "If the decay in the banking sector could be effectively combated this would strengthen trust in the entire country. But the major concern is that the hole will turn out to be so large that, as in Ireland, it swallows up the entire state budget. This is why one rescue option is that the EU helps to pump capital into the Spanish banks. Spain however wants the money to go directly to the banks rather than the state in a bid to circumvent stringent EU rules. And for precisely this reason Germany is saying no. … Prime Minister Mariano Rajoy claims Spain is not on the brink of an apocalypse. If he solves the bank problems one could actually believe him."
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All available articles from » Gunnar Jonsson
La Vanguardia - Spain | Tuesday, 5. June 2012
Slowly but surely stringent Germany seems to be giving up its resistance to direct recapitalisation of ailing banks via the euro bailout mechanism, the liberal daily La Vanguardia comments with enthusiasm: » more
Slowly but surely stringent Germany seems to be giving up its resistance to direct recapitalisation of ailing banks via the euro bailout mechanism, the liberal daily La Vanguardia comments with enthusiasm: "Albeit with exasperating slowness, Europe finally appears to be moving in a direction that is favourable for Spain. And Chancellor Angela Merkel is changing the course of the German transatlantic vessel so that before the end of the month banks can avail of the European bailout fund directly, without having to go via the states. The discussions among Brussels, Berlin, Paris and Madrid have in recent days created a climate that allows one to conclude that Germany's resistance is lessening, even if the results are not yet tangible. The following message seems to be coming from the German capital: We want Spain and its government to be successful. The rise in share prices - driven by the banks - and the slight reduction in the risk premiums have given Spain a brief reprieve. And that's something in times like these."
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All available articles from » José Antich
Blog Delito de Opinião - Portugal | Monday, 4. June 2012
Although with José María Beneyto a high-ranking politician of Spain's ruling People's Party (PP) has for the first time openly discussed the possibility of Spain availing of the EU's bailout mechanism, things are still proceeding at a snail's pace in Europe, writes Luís Menezes Leitão in his blog Delito de Opinião: » more
Although with José María Beneyto a high-ranking politician of Spain's ruling People's Party (PP) has for the first time openly discussed the possibility of Spain availing of the EU's bailout mechanism, things are still proceeding at a snail's pace in Europe, writes Luís Menezes Leitão in his blog Delito de Opinião: "'Spain needs a bailout package. Who will foot the bill?', a German newspaper wrote recently. It seems the Germans are gradually losing their patience: EU countries are systematically demanding bailouts to save their flailing banks. The Spaniards are not the only ones to have apparently come to terms with the idea of a bailout, no. Now Cyprus has stepped on to the stage as the next candidate. Greece is not yet officially bankrupt, yet the debt crisis is already flooding over Europe like a tsunami. In any case, the inefficiency of the EU institutions remains devastating. With things proceeding in Europe at the current snail's pace, the euro is bound to fail."
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The Times - United Kingdom | Monday, 4. June 2012
Ireland's discipline in dealing with the crisis sets an example for other European countries, writes the conservative daily The Times: » more
Ireland's discipline in dealing with the crisis sets an example for other European countries, writes the conservative daily The Times: "The rewards for Ireland's stoicism are beginning to appear. Business confidence is higher than at any point since the banking crisis, bucking the dismal trend across southern Europe. Exports are showing signs of growth. Bank deposits are safe and growing. In short, the Irish have prescribed harsh medicine for themselves and taken it, and in the process they have shown that austerity offers a plausible path to recovery. ... What Ireland has shown is that a financial crisis, though bloodless, can change the behaviour of ordinary consumers and mortgage borrowers if its true dimensions and implications are acknowledged. In Greece and Spain behaviour needs, likewise, to change. The Irish lesson is clear."
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Kathimerini - Greece | Sunday, 3. June 2012
In a pan-European appeal entitled We are all Greek Jews, prominent intellectuals have called attention to how right-wing populism is booming in a number of European countries, associating the phenomenon with the harsh austerity policy. The conservative daily Kathimerini doubts in its Sunday edition that the appeal will achieve anything: » more
In a pan-European appeal entitled We are all Greek Jews, prominent intellectuals have called attention to how right-wing populism is booming in a number of European countries, associating the phenomenon with the harsh austerity policy. The conservative daily Kathimerini doubts in its Sunday edition that the appeal will achieve anything: "Such slogans don't describe reality but rather a desire, a good intention: We declare that we want to be like others because these 'others' are mostly worse off than us because they are being persecuted or because they live under tough austerity programmes. … But the declaration of an intention, even if it is made publicly, is not that same as putting it into practice. … As the cure the intellectuals propose a European dream or a European vision. In the past decades it has become clear that such things are difficult to realise. The concept of a 'United States of Europe' will remain just a fiction for a long time to come."
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All available articles from » Pantelis Boukalas
La Stampa - Italy | Sunday, 3. June 2012
If the Irish voted Yes to the fiscal compact it is because they were forced to bow to the dictates of Berlin, the liberal daily La Stampa writes: » more
If the Irish voted Yes to the fiscal compact it is because they were forced to bow to the dictates of Berlin, the liberal daily La Stampa writes: "The Irish gritted their teeth and swallowed the bitter pill that Greece has already been prescribed and which now looms large over Spain. ... This time rather than showing its claws, the 'Celtic tiger' - which until now has enjoyed a special economic status in the EU - bowed its head to the yoke spanned by the generalised crisis. ... The true victor is Angela Merkel. Although she has been criticised by many, Irish Prime Minister Enda Kenny is not among them. No sooner were the polling stations closed than he rushed to tell the Chancellor of the result. One could put it a bit bluntly and say that Ireland has put a considerable amount of its sovereignty in German hands."
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All available articles from » Enzo Bettiza
Blog Coulisses de Bruxelles - France | Friday, 1. June 2012
As opposed to the Greeks, the Irish have understood that they will have to redouble their efforts to redress their economy, writes Jean Quatremer in delight at the result of the referendum in his blog Coulisses De Bruxelles: » more
As opposed to the Greeks, the Irish have understood that they will have to redouble their efforts to redress their economy, writes Jean Quatremer in delight at the result of the referendum in his blog Coulisses De Bruxelles: "The fact is that the Irish have understood that they can't ask their partners for help while refusing to make the necessary efforts to revive their economy. A majority of Greeks, by contrast, voted on May 7 for parties that reject the austerity plan, all the while remaining firmly determined (80 percent) to remain in the Eurozone. … A 'no' would have had grave consequences for the former 'Celtic tiger', as it would have barred it from accessing the European Stability Mechanism (ESM), which will succeed the European Financial Stability Facility (EFSF) on July 1. … This provided a strong incentive for voting in favour of the pact.”
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Delo - Slovenia | Monday, 4. June 2012
The Irish have only accepted the EU fiscal compact because they are paralysed with fear, the left-liberal daily Delo laments: » more
The Irish have only accepted the EU fiscal compact because they are paralysed with fear, the left-liberal daily Delo laments: "The government in Dublin was lukewarm in its response to the result while Brussels welcomed it as a rare piece of good news in hard times. But everyone knows that Ireland is crippled by fear, and fear is always a driving force that can often lead to irrational decisions: when people are gripped by fear of terrorism they don't even defend themselves against attacks on their civil rights and freedoms. And in times when people are crippled by the fear of not being able to make ends meet and losing their jobs, they keep their heads down and remain silent. [US Nobel Prize winner in Economics] Paul Krugman said last week that an Irish 'no' to the fiscal pact would send an important message: it would point a finger at Germany and Germany would be forced to deal with the fact that the austerity measures it is demanding are a disaster for the euro. But the Irish failed to seize this opportunity."
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All available articles from » Sasa Vidmajer
NRC Handelsblad - Netherlands | Friday, 1. June 2012
In the list of country-specific recommendations he presented on Wednesday, European Commissioner for Economic Affairs Olli Rehn called on the Netherlands to also introduce structural reforms. The EU member states should adopt a pragmatic approach here and not make a fuss, writes the liberal daily NRC Handelsblad: » more
In the list of country-specific recommendations he presented on Wednesday, European Commissioner for Economic Affairs Olli Rehn called on the Netherlands to also introduce structural reforms. The EU member states should adopt a pragmatic approach here and not make a fuss, writes the liberal daily NRC Handelsblad: "The recommendations will give fresh impetus to the eurosceptics' notion that Brussels is the main enemy of national citizens. In the Netherlands too, the election campaign seems to be dominated by this concept. The list of mandatory proposals is, after all, exceedingly clear. … There is no other option. Those who want to preserve the euro precisely for the sake of national interests can no longer interpret sovereignty as if the guilder were still in use. Moreover the criticism of the limitations on national leeway should not be exaggerated. Total national freedom to make decisions never existed anyway. … The smaller a country is, the more it must adjust to the world around it. This is the way it has always been. The disciplining of the nation states in the EU simply makes this fact more obvious."
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Heti Világgazdaság - Hungary | Friday, 1. June 2012
The crisis of the Eurozone was clearly on the cards already in the planning stages, economist András Inotai writes in the left-liberal weekly paper Heti Világgazdaság: » more
The crisis of the Eurozone was clearly on the cards already in the planning stages, economist András Inotai writes in the left-liberal weekly paper Heti Világgazdaság: "The problems with the euro would have come to light even without the global financial crisis. With the introduction of the common currency the less competitive countries were at a disadvantage from the outset because they no longer had the option of remaining competitive by devaluing their currency. ... Of course, this drawback could have been compensated for with higher economic growth than in Germany, and corresponding wage restraint. But nothing of the sort happened because on the one hand the necessary structural reforms were not implemented, and on the other the people weren't mature enough to accept even modest pay cuts. Moreover, in view of the relatively smooth functioning of the Monetary Union before the crisis the euro states were able to finance their budget deficits with cheap loans. As a result some countries got well over their heads in debt, above all Greece."
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Il Sole 24 Ore - Italy | Friday, 1. June 2012
Draghi's initiative aimed at forming a European banking union comes just at the right moment, the business paper Il Sole writes: » more
Draghi's initiative aimed at forming a European banking union comes just at the right moment, the business paper Il Sole writes: "The debate over the future of the Eurozone received a major boost yesterday. … The European Central Bank has called on the countries of the Monetary Union to forge ahead with political integration, which automatically entails renouncing state sovereignty. The warning signs, the danger of contagion and the capital flight in Athens and Madrid have put the idea of a banking union with centralised supervision back on the agenda. … This would require transferring sovereignty from the periphery to the centre - a step that the member states have stubbornly resisted in recent years because they are clinging to their prerogatives. … Draghi's words come at a decisive moment, because last Wednesday EU Commission President José Manuel Barroso also spoke out in favour of a banking union."
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All available articles from » Romano Beda
Blog 100 Reféns - Portugal | Thursday, 31. May 2012
Only those who know how to cook partridges and Black Iberian fed on a diet of acorns have a chance of getting a lease on the canteen in the Portuguese parliament, according to reports in the media. In these times of crisis in which normal citizens can barely afford a simple meal such menus are a disgrace, writes Tiago Mesquita in his blog 100 Reféns: » more
Only those who know how to cook partridges and Black Iberian fed on a diet of acorns have a chance of getting a lease on the canteen in the Portuguese parliament, according to reports in the media. In these times of crisis in which normal citizens can barely afford a simple meal such menus are a disgrace, writes Tiago Mesquita in his blog 100 Reféns: "The tactlessness of these individuals whom we call MPs has reached an absurd level. They demand sacrifices and pass austerity measures that go far beyond the acceptable while they themselves live in an Olympus of shameless luxury at our expense. … With their jet-set behaviour they are demonstrating how little they care about how the people perceive them, particularly those who practically have to beat each other up for food whenever there's a special discount. And what about whisky and wine? Is there perhaps a disco in the cellar of parliament where they can get plastered and forget the havoc they are wreaking on the country?"
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Les Echos - France | Friday, 1. June 2012
The establishment of a central European bank supervisory authority is long overdue, especially with the insolvency of the Spanish major bank Bankia, the liberal business paper Les Echos writes: » more
The establishment of a central European bank supervisory authority is long overdue, especially with the insolvency of the Spanish major bank Bankia, the liberal business paper Les Echos writes: "The strictest regulation in the world is futile if its application is not monitored on a daily basis by competent watchdogs who are protected from political influence. This is precisely what Mario Draghi is saying. Simply implementing Basel III without removing the influence of Spain's regional politicians over the 'cajas' [savings banks], for example, would be pointless. The Dodd-Frank Act in the US has made it possible to greatly improve financial supervision there. It's time something similar was done in Europe as well. And the only way to do that is to put bank supervision firmly on the European level. The issue is now on the table. And the Bankia disaster shows that it must be tackled without further delay."
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Cinco Días - Spain | Friday, 1. June 2012
Mario Draghi's call for a central bank supervisory authority shows that Spanish Prime Minister Mariano Rajoy's strategy may well be successful, the business paper Cinco Días writes jubilantly: » more
Mario Draghi's call for a central bank supervisory authority shows that Spanish Prime Minister Mariano Rajoy's strategy may well be successful, the business paper Cinco Días writes jubilantly: "The government's offensive in seeking a solution that dispels distrust regarding the Spanish banking system without landing Spain in the group of rescued economies alongside Ireland, Greece and Portugal appears to be bearing its first fruits. Up to now the government has insisted that the financial markets' persecution of Spain is not just a Spanish problem but a European one, and that the response must therefore also be European. This is why Spain has rejected a bailout that would probably have left the country permanently stigmatised and which would send it on a journey whose start is clear but whose end no one can foretell. This stubborn resistance - which has also not been adequately explained - appears to be finally softening the European Union's stance."
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Handelsblatt - Germany | Friday, 1. June 2012
There are two drawbacks to a European banking union as proposed first by the EU Commission and now by ECB chief Mario Draghi, writes the liberal business paper Handelsblatt: » more
There are two drawbacks to a European banking union as proposed first by the EU Commission and now by ECB chief Mario Draghi, writes the liberal business paper Handelsblatt: "One is that a banking union targets the heart of the joint capital market. This means it would involve all 27 EU members and not just the 17 in the Eurozone. And we already saw the kind of fracture this can cause when the British vetoed the fiscal compact. The other drawback: a banking union would demand the solidarity of Europe's savers. But given how difficult it was to persuade the average apolitical German to bail out his own bankers, how are they to be convinced to assume responsibility for the mistakes of the Spanish banks? However they will no doubt be more concerned about the fate of the Hypo-Vereinsbank, a subsidiary of Italy's Unicredit. So at least for the 35 largest financial institutions whose business has long since transcended all borders, there should be a banking union."
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All available articles from » Torsten Riecke
Epikaira - Greece | Thursday, 31. May 2012
Literature Nobel Prize laureate Günter Grass on Saturday published a new poem on current politics, this time backing the Greeks. The weekly Epikaira finds Grass's latest poem soothing: » more
Literature Nobel Prize laureate Günter Grass on Saturday published a new poem on current politics, this time backing the Greeks. The weekly Epikaira finds Grass's latest poem soothing: "The work is deeply moving, both politically and morally. It castigates Europe mercilessly for its behaviour towards our country. … It is balsam for the Greek soul to know that there are after all Germans who dare to tell Berlin and the EU: 'In defiance of you Antigone is wearing black, and across the nation whose guest you were, the people are in mourning.' Even the non-elected technocratic prime minister of Italy, Mario Monti, suspecting that the German threat may hang over his own country too, has expressed sympathy for Greece."
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All available articles from » Giorgos Delastik
Helsingin Sanomat - Finland | Friday, 1. June 2012
The votes in Ireland's referendum on the fiscal compact will be counted today. But Europeans needn't get tied in knots over the result because the pact itself is redundant, writes the liberal daily Helsingin Sanomat: » more
The votes in Ireland's referendum on the fiscal compact will be counted today. But Europeans needn't get tied in knots over the result because the pact itself is redundant, writes the liberal daily Helsingin Sanomat: "One must not forget that from the very start the fiscal compact was a stopgap measure - at least for Germany. It came into being as a dubious compromise at the summit in December after Britain undermined Germany's efforts to amend the treaties underlying the EU. So as not to come out empty-handed, the participants came up with the idea of the fiscal pact. ... The agreement tightens fiscal discipline but achieves nothing that couldn't have been accomplished with the laws that are now planned or in effect."
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All available articles from » Virve Kähkönen
Duma - Bulgaria | Thursday, 31. May 2012
IMF head Christine Lagarde recently called on the Greeks to pay their taxes, even though as an official of an international institution she herself doesn't pay a cent to the tax man. Columnist Alexander Simov explains in the socialist daily Duma why he has had enough of the hypocrisy of the rich: » more
IMF head Christine Lagarde recently called on the Greeks to pay their taxes, even though as an official of an international institution she herself doesn't pay a cent to the tax man. Columnist Alexander Simov explains in the socialist daily Duma why he has had enough of the hypocrisy of the rich: "It's astonishing how the rich, who have caused every crisis in the West, never tire of doling out advice to the poor. First they destroy the banks, then they tell the simple folk that they should learn to get by on less money. First they destroy industry, and then they tell people that unemployment will rise and that they'll have to grin and bear it. First they destroy the environment, then they rant and rave when some damned proletarian forgets to switch off the lights at home on 'Earth Day'. Because the rich are lofty, gallant and clairvoyant beings with a positive take on the world and a good digestion. The poor curmudgeons, by contrast, should just go ahead and sink into their doom-and-gloom mentality, wondering why the world is so unjust and why they're always to blame for everything."
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Blog Ignacio Escolar - Spain | Thursday, 31. May 2012
The yields on Spanish bonds on Wednesday rose to their highest level since the introduction of the euro. Many fear that the EU will now intervene. Ignacio Escolar explains in his blog why seeking help from the bailout fund should be the last resort: » more
The yields on Spanish bonds on Wednesday rose to their highest level since the introduction of the euro. Many fear that the EU will now intervene. Ignacio Escolar explains in his blog why seeking help from the bailout fund should be the last resort: "The problem is that such a bailout would entail the kind of harsh conditions under which Greece, Ireland and Portugal are now suffering. A bailout means that the creditors make the political decisions. And the prime interest of the creditor is to recover his money, not to guarantee the future of the country's economy or the well-being of its population. This is why the bailout is the last resort. … In the best case the Rajoy government will try to hold out until July 1 until the European Stability Mechanism (ESM) takes effect. If a bailout should be necessary, the conditions would be better than under the EFSF fund."
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Jornal de Negócios - Portugal | Thursday, 31. May 2012
The German Minister of Economics Philipp Rösler has been paying a visit to Portugal together with several representatives of German companies since Wednesday. That the Portuguese press has largely ignored a visit which is of particular interest for exporters is distressing, writes the business paper Jornal de Negócios: » more
The German Minister of Economics Philipp Rösler has been paying a visit to Portugal together with several representatives of German companies since Wednesday. That the Portuguese press has largely ignored a visit which is of particular interest for exporters is distressing, writes the business paper Jornal de Negócios: "In a country where nowadays every child is familiar with the word 'export' such a visit should have high news value. Especially if companies involved in the trip are showing their willingness to invest in our economy. But unfortunately this is not the case. … Apparently we are now not just poor, but also ungrateful. Particularly in these hard times, potential investments really deserve plenty of attention. For what could be better proof of trust in a crisis-stricken country than foreign investment plans? And this is all the more true if we want to avoid giving the impression that the Germans are more worried about our future than we ourselves are."
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All available articles from » Camilo Lourenço
The Guardian - United Kingdom | Thursday, 31. May 2012
A no to the fiscal compact in the Irish referendum today would harm the economy, the left-liberal daily The Guardian predicts: » more
A no to the fiscal compact in the Irish referendum today would harm the economy, the left-liberal daily The Guardian predicts: "If it votes no, Ireland will still draw on its 85 billion euro bailout and there was a major debate during the campaign about whether it would be denied access to the successor fund, the European Stability Mechanism. With a domestic economy on a crash diet, caused by both a deflating property bubble and deep spending cuts, Ireland's return to the markets after 2013 when the bailout money runs out is likely to be a bumpy one. It could well need more EU help. Would it risk that by voting no?"
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El Mundo - Spain | Wednesday, 30. May 2012
The head of the Spanish central bank, Miguel Ángel Fernández Ordóñez, announced on Tuesday that he would be stepping down from his post on June 10, a full month before his official term of office ends. Prime Minister Mariano Rajoy of the conservative People's Party forced his resignation to ameliorate the impact of a report written by the central bank chief that shows the government in an unflattering light, the conservative daily El Mundo writes, adding further perspectives: » more
The head of the Spanish central bank, Miguel Ángel Fernández Ordóñez, announced on Tuesday that he would be stepping down from his post on June 10, a full month before his official term of office ends. Prime Minister Mariano Rajoy of the conservative People's Party forced his resignation to ameliorate the impact of a report written by the central bank chief that shows the government in an unflattering light, the conservative daily El Mundo writes, adding further perspectives: "A few hours before Ordóñez threw in the towel, the People's Party used its absolute majority to ensure that the head of the central bank couldn't explain his position in parliament but only in a committee behind closed doors. … The affair involving the central bank chief is connected to the fact that the People's Party and the government failed to launch a parliamentary inquiry into the shabby management of Bankia, which led to the bank being nationalised. The People's Party had a motion for the establishment of a committee of inquiry struck from the agenda."
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Irish Independent - Ireland | Wednesday, 30. May 2012
The Irish will vote on Thursday on whether Ireland should sign the fiscal compact, but the issues are too complex for most people, the conservative daily Irish Independent fears: » more
The Irish will vote on Thursday on whether Ireland should sign the fiscal compact, but the issues are too complex for most people, the conservative daily Irish Independent fears: "The Irish Constitution is something to be treasured but its flaw is that it allows the people to decide on issues that they are not in a position to make well-judged and informed decisions on. We are swayed by emotion and by the general mood, but the hard cold facts are generally the last things we cling to. This is why there is so much hysteria surrounding Thursday's vote, not only in Ireland but also in Europe. It is telling that other European governments don't throw such treaties to the public for them to be torn to shreds in a cloud of misinformation. The result is while other nations in the EU rely on sober analysis, the Irish will decide on its future relationship with Europe depending on how angry or how scared the majority of us are this coming Thursday. Regardless of the outcome, that is something we should all regret."
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Le Soir - Belgium | Tuesday, 29. May 2012
Belgium was able to issue bonds on Monday at very low interest rates of under three percent. But that is not just due to the country's austerity policy, writes the daily Le Soir: » more
Belgium was able to issue bonds on Monday at very low interest rates of under three percent. But that is not just due to the country's austerity policy, writes the daily Le Soir: "You remember: Belgium once had to pay interest rates of more than six percent on ten-year bonds. That was in November. But if the pressure has rapidly decreased, it's not just because we swore to high heaven that we would reduce our deficit. It was also because [ex prime minister] Yves Leterme launched his famous call to purchase government bonds. In just a matter of days the state gathered over 5 billion. The country then flexed its muscles and showed the markets that it would not let itself be intimidated. ... Yes, we have a public debt of almost 100 percent of the GDP, but with their 225 billion in savings the Belgian households will have no difficulty providing for the needs of the state. But virtue is not enough to save the Eurozone, today. What is needed is wealth. That's why growth must be put back on the European agenda on the double."
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Frankfurter Allgemeine Zeitung - Germany | Tuesday, 29. May 2012
IMF boss Christine Lagarde has advised the Greeks to focus on helping themselves by paying their taxes. The conservative daily Frankfurter Allgemeine Zeitung can't understand why this has caused such outrage: » more
IMF boss Christine Lagarde has advised the Greeks to focus on helping themselves by paying their taxes. The conservative daily Frankfurter Allgemeine Zeitung can't understand why this has caused such outrage: "If the Greeks reacted as fiercely towards those responsible for the debt crisis as the political elite is reacting to the plain words of Christine Lagarde, they would put an end to the Greek elite's dastardly game of collective tax evasion. The boss of the International Monetary Fund has only dared to say out loud what everyone in Athens and every real estate agent in Zurich or London already knows: as if it was the most natural thing in the world, Greece's elite avoids paying any taxes and sends billions abroad - and every Greek government lets them get away with it. Naturally there is a lot of anger on the streets of Athens about the cutbacks for normal people. But the anger of taxpayers in the creditor countries is also growing when they see that the bailout money just passes through Greece and is ultimately used to save financial investments elsewhere or drive up house prices."
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All available articles from » Holger Steltzner
Simerini - Cyprus | Monday, 28. May 2012
The government of the Republic of Cyprus is considering the option of seeking assistance from the EU bailout fund. So far the country has been able to keep its head above water only thanks to a loan from Russia. Cyprus has learned nothing from the crisis in Greece, the conservative daily Simerini complains: » more
The government of the Republic of Cyprus is considering the option of seeking assistance from the EU bailout fund. So far the country has been able to keep its head above water only thanks to a loan from Russia. Cyprus has learned nothing from the crisis in Greece, the conservative daily Simerini complains: "It's a myth that an economy can solve its problems through arithmetic feats. … The bailout mechanism would neither solve our problems nor even be good for us unless a strict programme of fiscal discipline with less state intervention is implemented and economic growth boosted beforehand. The introduction of higher taxes is not the solution. They would kill the market and the economy! And they create the conditions for a troika [of creditors] that subjects us to the same harsh and degrading treatment as the citizens of Greece have received."
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All available articles from » Giannos Charalampidis
Financial Times - United Kingdom | Tuesday, 29. May 2012
In the run-up to the Irish referendum on the EU fiscal compact on Thursday, the liberal business paper Financial Times paints a dark picture of the future of a European fiscal union: » more
In the run-up to the Irish referendum on the EU fiscal compact on Thursday, the liberal business paper Financial Times paints a dark picture of the future of a European fiscal union: "It is being marketed as a fiscal union, but it is a fiscal straitjacket. It punishes weak countries when they most need help. A real fiscal union should work as the US does. ... With this treaty, the EU envisages the opposite: cutting spending in the periphery when we most need help. In so doing, it creates lower growth, higher unemployment, more political instability and more capital flows from the periphery to the core. This is all aimed at making the Eurozone more credible. In practice it doesn't. When the risk is deflation, creating yet more deflation makes the euro look like it has a death wish."
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Cinco Días - Spain | Tuesday, 29. May 2012
The Spanish Prime Minister Mariano Rajoy tried to dispel doubts about the stability of the Spanish banking sector in a speech on Monday. But there are growing indications that the beleaguered country will need the help of its European allies and the ECB, writes business paper Cinco Días: » more
The Spanish Prime Minister Mariano Rajoy tried to dispel doubts about the stability of the Spanish banking sector in a speech on Monday. But there are growing indications that the beleaguered country will need the help of its European allies and the ECB, writes business paper Cinco Días: "In government circles concern is spreading that the government's own measures come too late. If these fears penetrate to companies and the citizens they will represent an enormous obstacle to the trust that Spain so urgently needs. To restore that trust Mariano Rajoy is right to demand clear support for the euro and the Spanish economy from Europe. And the European Union is obliged to send a clear message to this effect, to show that Spain can rely on the firm backing of its allies and the joint central bank, the ECB, to overcome the debt crisis and complete the restructuring of its financial sector."
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Diário de Notícias - Portugal | Friday, 25. May 2012
Germany secured fresh capital for the next two years on Wednesday without having to pay any interest for it. That the heavyweights in the EU can continue to borrow on such conditions shows how sick Europe is, writes the daily Diário de Notícias: » more
Germany secured fresh capital for the next two years on Wednesday without having to pay any interest for it. That the heavyweights in the EU can continue to borrow on such conditions shows how sick Europe is, writes the daily Diário de Notícias: "The situation is also scandalous because Germany's terrorist economic policy is the main reason for the panic on the markets. The effective interest rate achieved is not thanks to Germany's economy but the result of an unbending policy that Berlin is foisting on the Eurozone with its austerity dictates. A situation in which crime pays off for Germany, at least as long as the Eurozone doesn't implode. Our prime minister spoke out against euro bonds, thereby taking sides with Germany - and against the opinions of other crisis-stricken countries. This submissiveness is immoral and goes against our national interests. He was elected to serve our interests, not to behave as if Portugal was the westernmost province of Prussia."
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All available articles from » Viriato Soromenho-Marques
Rzeczpospolita - Poland | Friday, 25. May 2012
The Ifo business climate index for Germany, Europe's largest economy, plunged by a surprising three percentage points for the first time in months on Thursday. Europe and the world are facing hard times, the conservative daily Rzeczpospolita fears: » more
The Ifo business climate index for Germany, Europe's largest economy, plunged by a surprising three percentage points for the first time in months on Thursday. Europe and the world are facing hard times, the conservative daily Rzeczpospolita fears: "The crisis is taking down even the strongest. And for two months now the economic data from the US shows that its labour market and industry are weakening, despite all the unconventional measures that its central bank has adopted to boost growth. The Fed pumped billions of dollars into the market, but it wasn't enough. Now the European politicians are having similar ideas and talking more and more about a 'pact for growth'. But no one knows what this magic formula really means. Everyone assumes that the ECB will just switch on the money printer. … However this hasn't helped the economies in the past. And keeping Greece in the Eurozone against the people's will was costly and naïve. But the biggest problem is that no one knows a good solution for dealing with the crisis."
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All available articles from » Jacek Ramotowski
Le Monde - France | Friday, 25. May 2012
The EU heads of state and government clearly want to keep Greece in the Eurozone. But the country's exit is the most reasonable long-term solution ... » more
The EU heads of state and government clearly want to keep Greece in the Eurozone. But the country's exit is the most reasonable long-term solution even if it means the end of the euro, writes economist Jacques Sapir in a commentary in the left-liberal daily Le Monde. "Either the EU countries affirm their willingness to invest in the Greek economy, enabling it to at least partially recover its competitiveness, which has sunk by 35 per cent since 2002. Or it will be necessary to opt for a Greek exit from the Eurozone and a major devaluation (50 per cent) of the drachma. This solution, as hard as it is, is preferable to continuing the austerity policy agreed on by the troika and Greece. ... Such a solution would probably be a death knell for the euro. But this death knell has already sounded with the Spanish crisis and the return of the Irish crisis."
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All available articles from » Jacques Sapir
The Economist - United Kingdom | Friday, 25. May 2012
Above all Germany's crisis policy is endangering the Monetary Union, writes the liberal business magazine The Economist: » more
Above all Germany's crisis policy is endangering the Monetary Union, writes the liberal business magazine The Economist: "Only if Europeans share a sense of common purpose will a grand deal to save the single currency be seen as legitimate. Only if it is legitimate can it last. Most of all, it is a test of Germany. Chancellor Angela Merkel maintains that the threat of the euro's failure is needed to keep wayward governments on the path of reform. But German brinkmanship is corroding the belief that the euro has a future, which raises the cost of a rescue and hastens the very collapse she says she wants to avoid. Ultimately, Europe's choice will be made in Berlin."
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WOZ - Die Wochenzeitung - Switzerland | Thursday, 24. May 2012
A Greek exit from the Eurozone would be a fatal blow to the European project, writes the leftist weekly WOZ: » more
A Greek exit from the Eurozone would be a fatal blow to the European project, writes the leftist weekly WOZ: "If Europe decides to make an example of Greece the consequences for the entire continent will be destructive and do lasting damage to the dream of a united Europe. Six decades of European integration would suddenly be on the line. The continent would be thrown back a century to the times of competing nation states with their respective hegemonies. There is a lot at stake. One can only hope that the decision-makers in Athens, Berlin and Brussels are aware of their historical responsibility."
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All available articles from » Jens Berger
Il Sole 24 Ore - Italy | Thursday, 24. May 2012
Chancellor Merkel and President Hollande didn't come any closer to agreement on the subject of euro bonds, the business paper Il Sole 24 Ore laments: » more
Chancellor Merkel and President Hollande didn't come any closer to agreement on the subject of euro bonds, the business paper Il Sole 24 Ore laments: "Europe against Europe. This is the worst possible starting point for anything at all to be decided at the next EU summit scheduled for the end of June. It's also the worst possible starting point for closing ranks and keeping crisis-stricken Greece afloat. Instead the country is being given to understand that its partners are preparing for its exit, with each of them working out the costs for itself. … Without euro bonds all other measures are nothing but a stopgap solution. … Particularly since they take time and will probably come to nothing anyway."
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All available articles from » Adriana Cerretelli
Protagon - Greece | Thursday, 24. May 2012
Greece has seen capital flight soar since the May 6 election. Within a few days around 700 million euros were reportedly withdrawn from banks. News portal Protagon fears that the money will never return: » more
Greece has seen capital flight soar since the May 6 election. Within a few days around 700 million euros were reportedly withdrawn from banks. News portal Protagon fears that the money will never return: "The largest sums are sent to Switzerland or exotic places where offshore companies are based. Naturally, investing in real estate in the UK is still a secure refuge, as are deposits in the pound sterling, which rose considerably last week. ... If the money withdrawn from Greek accounts hasn't been sent abroad it's stuck under mattresses or behind walls. Every day we wake up to an unprecedented economic situation that is more reminiscent of war than peace."
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All available articles from » Kostas Giannakidis
Trouw - Netherlands | Thursday, 24. May 2012
Austerity and euro bonds are not mutually exclusive, writes the Christian-social daily Trouw commenting on the EU special summit: » more
Austerity and euro bonds are not mutually exclusive, writes the Christian-social daily Trouw commenting on the EU special summit: "A policy aimed at economic stimulus at a European level could quickly lead to EU-financed projects that may be visible, but not very economically productive. The EU heads of government have no alternative but to stick to their agreements for balancing their budgets. Meanwhile they must take advantage of their leeway for investing in future prosperity. This leeway varies from one country to the next. … The weaker countries must benefit from the stronger ones, preferably not through direct money transfers or centrally financed job-creation schemes but perhaps through the issue of European bonds that help reduce the differences in what it costs a country to raise capital."
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Expressen - Sweden | Thursday, 24. May 2012
The crisis countries in the EU urgently need to boost their competitiveness, the liberal tabloid Expressen advises: » more
The crisis countries in the EU urgently need to boost their competitiveness, the liberal tabloid Expressen advises: "The fundamental problem in the crisis countries is that they have lost their competitiveness, particularly vis-à-vis economic giant Germany. Wages and prices have risen too much, harming foreign trade. There are just two ways out of this dilemma: either a country devalues its own currency or it reduces its costs by for example lowering salaries. Iceland opted for the first approach, Latvia took the second. Both now have the worst patch behind them. There is no third way out of the crisis. Sure, Germany can increase salaries, prices and its demand, but in the end it's up to the crisis countries to improve their competitiveness so that their economies can grow once more."
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Les Echos - France | Thursday, 24. May 2012
At the EU summit France's President François Holland has reinforced his demand for euro bonds which would enable debtor states to borrow money at advantageous rates on capital markets. But his proposal does nothing to make Europe's crisis countries more competitive, the liberal business paper Les Echos writes: » more
At the EU summit France's President François Holland has reinforced his demand for euro bonds which would enable debtor states to borrow money at advantageous rates on capital markets. But his proposal does nothing to make Europe's crisis countries more competitive, the liberal business paper Les Echos writes: "In seeking to cast himself in a good light, President Hollande risks making the very same mistake he accused his predecessor of making. By obstinately maintaining in the deadlock over euro bonds - as he did yesterday evening in Brussels - that the only way forward is through more public spending, he is opening the door to disappointment. As Michel Barnier, the EU Commissioner for the Internal Market, explained on May 16 in Aachen, such initiatives will fail to stimulate enduring growth in Europe. The only question worth considering, and quickly, is not that of debt mutualisation, but of the global competitiveness of the Eurozone. As well as the preliminary - albeit painful - question of how differences with Germany can be overcome."
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All available articles from » Jean-Françis Pécresse
Main focus of Wednesday, 23. May 2012
At the EU special summit to be held this evening in Brussels France's President François Hollande will call for the introduction of euro bonds, which ... » more
At the EU special summit to be held this evening in Brussels France's President François Hollande will call for the introduction of euro bonds, which German Chancellor Angela Merkel rejects outright. But without a Franco-German axis the EU will only slip deeper into political crisis, commentators fear.
More from the press review on the subject » EU Policy, » Economic Policy, » Financial Markets, » Germany, » France, » Europe
El País - Spain | Wednesday, 23. May 2012
Large numbers of teachers and pupils went on strike in Spain on Tuesday to protest cuts in the education sector. These cutbacks will only deepen the social divide, the left-liberal daily El País fears: » more
Large numbers of teachers and pupils went on strike in Spain on Tuesday to protest cuts in the education sector. These cutbacks will only deepen the social divide, the left-liberal daily El País fears: "There's little hope that a strike will overturn the government's decisions, but it would be good if it at least showed the same sense of responsibility it demands from others and combined the cuts with measures aimed at using the resources freed in this way effectively. However there is a conspicuous lack of such measures. It won't be easy to minimise the effects of cuts in this sector. In an impoverished population with 2.2 million minors living in households that are threatened by poverty, according to a recent Unicef report, higher tuition fees, fewer daycares, fewer teachers, larger classes and fewer extra lessons for weaker pupils will automatically increase social inequality. These measures will also compromise the quality of public education and threaten to hijack the future of this country."
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More from the press review on the subject » Fiscal Policy, » Social affairs, » Upbringing / Education, » Spain
Kathimerini - Greece | Tuesday, 22. May 2012
A huge media circus accompanied the presentation of Thilo Sarrazin's new book on Tuesday. The former board member of the German Bundesbank has managed to launch an interesting debate on the euro, the conservative daily Kathimerini notes: » more
A huge media circus accompanied the presentation of Thilo Sarrazin's new book on Tuesday. The former board member of the German Bundesbank has managed to launch an interesting debate on the euro, the conservative daily Kathimerini notes: "Many analysts write that he is an intellectual fire-raiser and accuse him of simply aiming to provoke. But with his views he manages to shape the agenda in his country and trigger many interesting debates. Until recently TV presenters avoided the subject of the euro because it was regarded as too dated and boring for the average viewer. But since the publishing of the book the subject has gained a new dynamic and the discussion has been revived."
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All available articles from » Xenia Kounalaki
Público - Portugal | Wednesday, 23. May 2012
The discussion about euro bonds and a new growth offensive at today's EU summit is a sign of a gradual change in European economic policy according to the daily Público: » more
The discussion about euro bonds and a new growth offensive at today's EU summit is a sign of a gradual change in European economic policy according to the daily Público: "A new spectre is hovering over Europe and seems to indicate that Merkel's pointing finger and austerity policy will soon be a thing of the past. … The election in France was enough to make Europe think seriously about the path to chaos it has taken and suddenly start discussing potential alternatives. Let's not fool ourselves, the EU summit won't mark the end of the stringent austerity policy that is smothering the economy and driving up unemployment in Portugal. Nor will the idea of euro bonds be pushed through yet. So it's too soon to pronounce the victory of expansionist economic policy, but at least we can begin to believe that the sanctions imposed by Merkel on weaker countries are doomed to failure."
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Financial Times Deutschland - Germany | Wednesday, 23. May 2012
François Hollande is straining German-French relations with his call for the introduction of euro bonds, but until the president's campaign for the upcoming elections in his country is over he won't back down on his stance, the liberal business paper Fincancial Times Deutschland writes: » more
François Hollande is straining German-French relations with his call for the introduction of euro bonds, but until the president's campaign for the upcoming elections in his country is over he won't back down on his stance, the liberal business paper Fincancial Times Deutschland writes: "He does not simply drop his ideas when Merkel opposes them, which secures him the secret approval of many European leaders. They are happy that the chancellor no longer calls all the shots in Europe. … Parliamentary elections are scheduled for mid-June in France, meaning it is still too early for the president to go back on his campaign positions. And the chancellor will make no concessions before it is clear which positions he will hold to at all costs. So the euro summit on Wednesday will be marked by discrepancies, which is not a bad thing in itself. Things will only get really dicey if the two fail to find common ground after the French elections. Because without an intact Franco-German axis Europe will be up against a brick wall."
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Corriere della Sera - Italy | Wednesday, 23. May 2012
As an alternative to the euro bonds propagated by France, Germany has proposed so-called project bonds that would be used to finance cross-border infrastructure projects. But with this proposal the politicians are fleeing reality, economists Alberto Alesina and Francesco Giavazzi argue in the liberal-conservative daily Corriere della Sera: » more
As an alternative to the euro bonds propagated by France, Germany has proposed so-called project bonds that would be used to finance cross-border infrastructure projects. But with this proposal the politicians are fleeing reality, economists Alberto Alesina and Francesco Giavazzi argue in the liberal-conservative daily Corriere della Sera: "Never have we been so close to the real threat of a collapse of the Monetary Union as we are now. … Given this historical situation, the idea that Europe needs more infrastructures to grow seems quite honestly preposterous. Europe really doesn't suffer from a lack of roads, trains or airports. Our politicians talk about infrastructure in an attempt to evade the real problems: state influence on the economy and difficult labour market reforms. It's high time Europe's leaders asked themselves whether they really want to save the euro or not. If they do, then they need to take action now, but please don't build more roads or railways."
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All available articles from » Alberto Alesina
Sme - Slovakia | Wednesday, 23. May 2012
The Slovakian Prime Minister Robert Fico will back France and speak out in favour of euro bonds at today's EU special summit. But he is in no position to rebel against Germany, writes the liberal daily Sme: » more
The Slovakian Prime Minister Robert Fico will back France and speak out in favour of euro bonds at today's EU special summit. But he is in no position to rebel against Germany, writes the liberal daily Sme: "Of course you can't rule out the possibility that common euro bonds would solve the crisis in Europe. Obama is pushing for just such a debt union, as are Cameron, the International Monetary fund and the Mediterranean countries with France in the lead. ... But it's another question altogether whether such mutual liability is sensible. Because with it Hollande is leading Europe into a political crisis, at the height of the economic one it already faces. It is not possible for Merkel to agree to his demand: she simply can't. ... Quite apart from the fact that the truth lies with Merkel, it is clear: Slovakia, which is so to speak part of the German economic sphere, cannot possibly forge an alliance with Paris against Berlin."
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All available articles from » Peter Schutz
Diário de Notícias - Portugal | Tuesday, 22. May 2012
Portugal is expecting the fourth visit by inspectors sent by its creditors, the EU, the ECB and the IMF, this Tuesday. So far the troika has always given the country the thumbs-up for its implementation of the austerity and reform programme but spoil sport Greece may hurt Portugal's record, the daily Diário de Notícias writes: » more
Portugal is expecting the fourth visit by inspectors sent by its creditors, the EU, the ECB and the IMF, this Tuesday. So far the troika has always given the country the thumbs-up for its implementation of the austerity and reform programme but spoil sport Greece may hurt Portugal's record, the daily Diário de Notícias writes: "The treasurers of our republic will scrutinise the economic data between January and March. They will see that the implementation of the prescribed programme is well under way and the deficits - above all the export deficit - have shrunk considerably. But unfortunately at the expense of rapidly increasing unemployment, a phenomenon the troika must respond to. … The one factor that unfortunately is not in the hands of the protagonists of this story is the outcome of the Greek elections, which will inevitably have a detrimental impact on the Portuguese adjustment programme in the next quarter."
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Público - Portugal | Tuesday, 22. May 2012
French President François Hollande plans to call for the introduction of euro bonds at an informal EU summit on Wednesday, despite resistance to such a move from Germany. His chances of success aren't very high even if Berlin's power has dwindled, writes the daily Público: » more
French President François Hollande plans to call for the introduction of euro bonds at an informal EU summit on Wednesday, despite resistance to such a move from Germany. His chances of success aren't very high even if Berlin's power has dwindled, writes the daily Público: "With the backing he received at the G8 summit, Hollande will try to force Merkel to relent. But an informal meal won't be enough. … Merkel won't consider euro bonds before the elections in France and Greece. … After that Hollande will no longer be campaigning for election and the fate of the Greeks regarding the euro will be sealed. At this point it's too early to say whether the results of the G8 summit and the upcoming EU summit will add up to a growth offensive. But it's becoming clear that a change at the helm of the Eurozone has taken place: the convergence of several member states putting pressure on Berlin is replacing the Merkozy duo. That's not bad news."
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Naftemporiki - Greece | Tuesday, 22. May 2012
The chief economist of the Deutsche Bank, Thomas Mayer, sees the idea of introducing a parallel currency to the euro in Greece, named the "geuro", as a viable alternative for preventing Greece's exit from the Eurozone. But a country with one foot out the door won't be long in leaving, the conservative business paper Naftemporiki fears: » more
The chief economist of the Deutsche Bank, Thomas Mayer, sees the idea of introducing a parallel currency to the euro in Greece, named the "geuro", as a viable alternative for preventing Greece's exit from the Eurozone. But a country with one foot out the door won't be long in leaving, the conservative business paper Naftemporiki fears: "The first impression is that this is an imaginary scenario. But when the scenario comes from a German bank and describes pretty precisely one half of Greece's route out of the euro, there is good cause for concern. … In addition to this scenario there are daily reports of foreign banks preparing for a full Greek exit from the euro and also of the consequences this would have for Italy, Spain, Portugal and the entire Eurozone. … The threat of an exit from the Eurozone is obviously quite real."
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All available articles from » Panos Kakouris
Frankfurter Rundschau - Germany | Tuesday, 22. May 2012
The provocative former board member of the Deutsche Bundesbank Thilo Sarrazin brought out a new book this Tuesday entitled Europa braucht den Euro nicht (Europe doesn't need the euro). This time rather than attacking immigrants he directs his ire at the common currency, arguing that in contributing to the bailout fund Germany is merely seeking to assuage its Holocaust guilt. Sarrazin is a master of resentment because there is always a grain of truth to his arguments, the left-liberal daily Frankfurter Rundschau writes: » more
The provocative former board member of the Deutsche Bundesbank Thilo Sarrazin brought out a new book this Tuesday entitled Europa braucht den Euro nicht (Europe doesn't need the euro). This time rather than attacking immigrants he directs his ire at the common currency, arguing that in contributing to the bailout fund Germany is merely seeking to assuage its Holocaust guilt. Sarrazin is a master of resentment because there is always a grain of truth to his arguments, the left-liberal daily Frankfurter Rundschau writes: "It is true that Germany did not introduce the euro just because of the advantages to its economy. ... Chancellor Kohl agreed to join the Monetary Union also to appease the fears of neighbouring states. That too, mind you, in the interests of Germany. Unfortunately he failed to make that clear back then. It is the underhanded aspect to this decision that lays the groundwork for Sarrazin's polemics. It would have been far better for Kohl to have let the Germans vote on the introduction of the euro! A referendum would have knocked the bottom out of any conspiracy theories in the long term. That is a lesson which Europeans should take to heart for the future."
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All available articles from » Bettina Vestring
Die Presse - Austria | Tuesday, 22. May 2012
In his new book Europa braucht den Euro nicht (Europe doesn't need the euro), former Bundesbank banker Thilo Sarrazin takes aim at the wobbly single currency. The liberal-conservative daily Die Presse publishes an excerpt from the book, which went on sale on Monday: » more
In his new book Europa braucht den Euro nicht (Europe doesn't need the euro), former Bundesbank banker Thilo Sarrazin takes aim at the wobbly single currency. The liberal-conservative daily Die Presse publishes an excerpt from the book, which went on sale on Monday: "Greece, Portugal, Italy, Spain and all those countries in Southern Europe should be glad that they have the euro and can spend euros. But those euros should be earned, not received as a gift or loan from the countries of the North - through whatever indirect channel that may be. Government transfer channels which are not limited to EU structural funds undermine this principle: they create a divide between givers and takers and fuel aversion and reservations among nations. If a country can't or doesn't want to live with the discipline required by the single currency it should be free to return to its national currency whenever it wants to."
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All available articles from » Thilo Sarrazin
ABC - Spain | Monday, 21. May 2012
The new French President François Hollande failed to convince other leaders of his economic policy concepts at the G8 summit, meaning Merkel still has the upper hand, the conservative daily ABC concludes: » more
The new French President François Hollande failed to convince other leaders of his economic policy concepts at the G8 summit, meaning Merkel still has the upper hand, the conservative daily ABC concludes: "It's impossible to talk of winners and losers when it comes to meetings like this last G8 summit because such occasions are designed not to produce winners or losers. But one can certainly talk of those who maintained their position and those who failed to achieve their objectives. And François Hollande fell far short of his. The first to arrive, he managed to secure Obama's support, but even that didn't persuade Angela Merkel to change her opinion. And as everyone knows, her country is the decisive one in Europe. The new French president wants to reverse Europe's economic policy with concerted measures that put stimulus before cuts and growth before austerity. But a glance at the lengthy, confused, redundant and ultimately insubstantial final declaration of the summit is enough to see that he wasn't successful."
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All available articles from » José María Carrascal
Diário Económico - Portugal | Monday, 21. May 2012
The G8 summit at Camp David was nothing but a display of national egoism that ended without any concrete resolutions, writes the liberal business paper Diário Económico: » more
The G8 summit at Camp David was nothing but a display of national egoism that ended without any concrete resolutions, writes the liberal business paper Diário Económico: "The highlight of the G8 summit was that no one did anything. In summary it may be said that Obama, Merkel and Co. just watched the finale of the Champions League together. Otherwise the meeting ended in a void and Europe's fate continues to hang in the balance. Basically each country simply stated its own convictions: The US wants to promote growth with government programmes, Germany wants to stick to austerity while France prefers the idea of euro bonds and England as usual wants none of all this. With weak politicians that appear to live only for their national agendas, it will be difficult to somehow improve the situation."
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All available articles from » Bruno Proença
Imerisia - Greece | Saturday, 19. May 2012
German Chancellor Angela Merkel is said to have recommended to the Greek president that a referendum be held in Greece on whether the country should remain in the Eurozone. Merkel's faux pas has only worsened the situation, writes business paper Imerisia: » more
German Chancellor Angela Merkel is said to have recommended to the Greek president that a referendum be held in Greece on whether the country should remain in the Eurozone. Merkel's faux pas has only worsened the situation, writes business paper Imerisia: "Now the markets are not just wary of the Greek politicians and their crisis policy but also of the Europeans. They're convinced that the Europeans, and in particular the Germans, won't be able to solve the crisis. ... The Germans' dumb approach to tackling the Greek problem serves as proof. These politicians have turned a relatively small debt problem into a crisis of the entire Monetary Union."
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All available articles from » Thanasis Lirtsogiannis
taz - Germany | Monday, 21. May 2012
The heads of state and government of the G8 countries have failed to come up with solutions to the pressing problems of the EU, admonishes the left-leaning daily taz: » more
The heads of state and government of the G8 countries have failed to come up with solutions to the pressing problems of the EU, admonishes the left-leaning daily taz: "It's time to rename G8 the B8 – for 'Baffled Eight'. What US President Obama, French head of state Hollande and Chancellor Merkel have produced at the G8 summit in Camp David isn't worth the paper it's printed on. Platitudes and pro forma compromises are meant to hide the fact that the 'big eight' don't agree on any of the most important points - and that they don't have the slightest idea how to go about solving the euro crisis. … What will happen to Greece? What will become of the Spanish banks? What happens if the people in the crisis countries finally lose their trust altogether and plunder their accounts, as has happened in Athens? How can the rating agencies be induced to keep calm, instead of inflaming the crisis - as they did last week - with new downgrades? … The meeting of the Baffled Eight produced above all the following impression: that of a sense of bafflement.”
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All available articles from » Eric Bonse
Contributors.ro - Romania | Monday, 21. May 2012
Speculation over a Greek euro exit is unsettling Romanians because Greek banks hold roughly a quarter of the shares in local banks. The economist Cristian Socol nevertheless remains optimistic in the blog portal Contributors: » more
Speculation over a Greek euro exit is unsettling Romanians because Greek banks hold roughly a quarter of the shares in local banks. The economist Cristian Socol nevertheless remains optimistic in the blog portal Contributors: "The Euro Group will not let Greece go completely bankrupt because the costs of an uncontrolled bankruptcy would be higher than keeping Greece in the Eurozone. ... In addition, Romania has now learned to deal institutionally with unwanted macro-economic events. There is a crisis management group at the National Bank BNR which is preparing for every scenario. ... Added to that, Romania has one of the most solid banking systems in the EU. And in fact the Greek banks are really quite solvent. ... For that reason we should remain rational, keep calm in our judgements and not get all in a flap at the first negative signs. It is hard to distinguish between passing and permanent threats, but it is important. Otherwise exactly what is written in the macro-economic textbooks will happen: the prophesies will become self-fulfilling."
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All available articles from » Cristian Socol
Welt am Sonntag - Germany | Sunday, 20. May 2012
The Greeks are receiving preferential treatment in Europe simply because 2,500 years ago they invented democracy and the Olympic Games, columnist Berthold Seewald complains in the conservative weekly Welt am Sonntag: » more
The Greeks are receiving preferential treatment in Europe simply because 2,500 years ago they invented democracy and the Olympic Games, columnist Berthold Seewald complains in the conservative weekly Welt am Sonntag: "But the ensuing 2,500 years are ignored: the fact that after the Greek, Celtic, Germanic, Slavic, Avarian, Bulgarian and Turkish invasions, there was hardly anything left; that Greek Orthodoxy has developed neither a monastic work ethos nor commitment to public welfare; that the clan and clientele structures left over from 400 years of Turkish rule are still very much alive. …Two key words determine the rhetorical impact of the problem: democracy and sustainability. Democracy was invented 2,500 years ago in Greece, while sustainability is linked to the realisation that at some point we need to find a balance between the available resources and our needs, because as we all know, our planet's resources are limited. … Greece stands as a reminder of the most important political experiment in history and of the surrender of a society in the distribution of privation. The one is a glorious past, the other a tormented future."
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All available articles from » Berthold Seewald
Corriere della Sera - Italy | Friday, 18. May 2012
The heads of state and government of the G8 will convene at Camp David in the US on Friday evening. The main topic at the summit will be economic and financial policy. The rustic setting of the meeting will provide a fitting backdrop for its drama, speculates the liberal-conservative daily Corriere della Sera: » more
The heads of state and government of the G8 will convene at Camp David in the US on Friday evening. The main topic at the summit will be economic and financial policy. The rustic setting of the meeting will provide a fitting backdrop for its drama, speculates the liberal-conservative daily Corriere della Sera: "When Obama receives the heads of state and government of the G8 at rustic-chic Camp David this evening, the sherpas and diplomats will experience the delights of the boy scout lifestyle as they will be accommodated in wooden bungalows with three-bed rooms under the treetops of the president's Maryland retreat. Some already see this as a metaphor for the fact that the summit brings together an ex-leadership that must adjust to a more Spartan lifestyle now that a deep and enduring crisis is already evoking memories of a war economy. … The summit may take a dramatic turn, not because of the decisions that are made there but because of the things that may be said: for the first time the potential collapse of the Monetary Union will be openly discussed."
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All available articles from » Massimo Gaggi
Jornal de Negócios - Portugal | Friday, 18. May 2012
Greece must leave the Eurozone as soon as possible, writes US economist Nouriel Roubini in the business paper Jornal de Negócios: » more
Greece must leave the Eurozone as soon as possible, writes US economist Nouriel Roubini in the business paper Jornal de Negócios: "The Greek euro tragedy is reaching its final act: it is clear that either this year or next, Greece is highly likely to default on its debt and exit the Eurozone. Postponing the exit after the June election with a new government committed to a variant of the same failed policies (recessionary austerity and structural reforms) will not restore growth and competitiveness. Greece is stuck in a vicious cycle. … The only way to stop it is to begin an orderly default and exit, co-ordinated and financed by the European Central Bank, the European Union and the International Monetary Fund (the 'troika'), that minimizes collateral damage to Greece and the rest of the Eurozone. … Like a doomed marriage, it is better to have rules for the inevitable divorce that make separation less costly to both sides. Make no mistake: an orderly euro exit by Greece implies significant economic pain. But watching the slow, disorderly implosion of the Greek economy and society would be much worse."
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El País - Spain | Friday, 18. May 2012
The new cabinet of French President François Hollande began its official business on Thursday. Now foreign policy will be dictated by politicians who spoke out against a European treaty in 2005, writes the left-liberal daily El País: » more
The new cabinet of French President François Hollande began its official business on Thursday. Now foreign policy will be dictated by politicians who spoke out against a European treaty in 2005, writes the left-liberal daily El País: "It is paradoxical that the current foreign minister, Laurent Fabius, and his colleague responsible for EU policy, Bernard Cazeneuve, were the most outspoken supporters of the No that sunk the European constitution in the 2005 referendum. Today they're all for Europe; for a different Europe, as new Finance Minister Pierre Moscovici explained yesterday. In a double sense: on the one hand they want a growth agenda to complement the fiscal compact. On the other they promise that under the Franco-German leadership the Union will once again become a community in which all the member states and institutions have their say. In other words, they are distancing themselves from the idea of a board of directors."
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Main focus of Wednesday, 16. May 2012
The formation of an expert government in Greece failed on Tuesday, prompting President Karolos Paoulias to call new elections for June. According to commentators, the ... » more
The formation of an expert government in Greece failed on Tuesday, prompting President Karolos Paoulias to call new elections for June. According to commentators, the elections will effectively be a referendum on whether Greece stays in the Eurozone unless Syriza boss and anti-austerity politician Alexis Tsipras finally decides to make some compromises.
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The Times - United Kingdom | Wednesday, 16. May 2012
Newly inaugurated French President François Hollande's first trip abroad led him to Berlin on Tuesday. It is vital that the two countries reach a compromise on overcoming the debt crisis, writes the conservative daily The Times: » more
Newly inaugurated French President François Hollande's first trip abroad led him to Berlin on Tuesday. It is vital that the two countries reach a compromise on overcoming the debt crisis, writes the conservative daily The Times: "Germany is right to demand that other countries make structural reforms to economies, pensions and labour markets. But it also needs to accept that austerity alone will not get the rest of Europe moving. Not every country's plight stems from profligacy: many are suffering from the credit crunch and the adverse effects of having to function in the straitjacket of a single currency that has boosted German exports but made their own economies less competitive. ... Both sides have room to manoeuvre. Both need to compromise in the weeks between now and the Greek election, not pander to electorates. The stakes are too high to do otherwise."
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Financial Times - United Kingdom | Tuesday, 15. May 2012
Leaving the Eurozone could be very hard for Greece's crisis-ridden economy in the short term, but advantageous in the long term, writes the liberal business paper Financial Times: » more
Leaving the Eurozone could be very hard for Greece's crisis-ridden economy in the short term, but advantageous in the long term, writes the liberal business paper Financial Times: "The immediate consequences of Greece leaving or being forced out of the Eurozone would certainly be devastating. ... All existing contracts would need to be redenominated and renegotiated, creating financial chaos. Perhaps most politically devastating, fiscal austerity might actually need to intensify, since Greece still runs a primary deficit, which it would have to correct if EU and International Monetary Fund financing vanished. ... And that would set in motion a process of adjustment that would soon reorientate the economy and put it on a path of sustainable growth. In fact, Greek growth would probably surge, possibly for a prolonged period, if it adopted sensible policies to restore rapidly and sustain macroeconomic stability."
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Süddeutsche Zeitung - Germany | Tuesday, 15. May 2012
Europe's economy needs growth, but not at the expense of future generations, writes political scientist Claus Leggewie in the left-liberal daily Süddeutsche Zeitung, proposing a green growth pact for southern European countries: » more
Europe's economy needs growth, but not at the expense of future generations, writes political scientist Claus Leggewie in the left-liberal daily Süddeutsche Zeitung, proposing a green growth pact for southern European countries: "Instead of strangling Greece, Portugal, Spain and Italy with austerity dictates the EU could for example draw up a Marshall Plan for expanding renewable energy sources in Southern Europe and North Africa. What these countries need is public and private investments in new and sustainable infrastructures rather than repairs on existing energy and transport infrastructures or burrowing holes with job creation schemes only to fill them in again afterwards. … Political ecology must become the benchmark for the governments of both Germany and France. Chancellor Merkel has reiterated her commitment to climate protection and resource efficiency. Now, together with François Hollande and other partners of a 'coalition of the willing', she should develop this into a maxim for European development."
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Sme - Slovakia | Tuesday, 15. May 2012
François Hollande takes over the French presidency from his predecessor Nicolas Sarkozy today and will pay his first official visit to Chancellor Angela Merkel this evening. The two should show a spirit of compromise, writes the former French Minister for Europe Noëlle Lenoir in a commentary published by the liberal daily Sme: » more
François Hollande takes over the French presidency from his predecessor Nicolas Sarkozy today and will pay his first official visit to Chancellor Angela Merkel this evening. The two should show a spirit of compromise, writes the former French Minister for Europe Noëlle Lenoir in a commentary published by the liberal daily Sme: "Hollande's proposal was initially regarded as lèse-majesté against Germany. Now all European leaders ... agree on the need to revive the European economy. Merkel and Hollande will discuss the main question - how to spur economic growth without increasing public debt - on May 15 in Berlin. While Merkel opposes Hollande's proposal to create euro bonds with a view to financing industrial projects, they cannot afford to waste time in reassuring jittery markets with a message of cohesion. Merkel has already welcomed Hollande's ideas for a growth plan for Europe. Hollande, too, will have to make concessions."
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Diário Económico - Portugal | Tuesday, 15. May 2012
Greece's exit from the Eurozone could drag Portugal, Ireland and Spain into the abyss, the liberal business paper Diário Económico fears: » more
Greece's exit from the Eurozone could drag Portugal, Ireland and Spain into the abyss, the liberal business paper Diário Económico fears: "By next month, Greece may already have left the Eurozone. The Germans seem to have had enough of the Greeks' stubbornness and are now willing to risk the split. They gladly pay to see this. And the central bankers, too, have already drawn up their emergency plans. … But no one can predict the far-reaching consequences if this Pandora's box is indeed opened. Will there be enough money to protect Portugal, Ireland and Spain? Or will we experience the domino effect that will put paid to the euro for good? Yesterday's plunging stock markets are proof of how jittery the markets are."
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All available articles from » Bruno Proença
La Stampa - Italy | Tuesday, 15. May 2012
Euro Group chairman Jean-Claude Juncker wants to do "everything possible" to keep Greece in the Eurozone. A noble goal that entails many risks, writes the liberal daily La Stampa: » more
Euro Group chairman Jean-Claude Juncker wants to do "everything possible" to keep Greece in the Eurozone. A noble goal that entails many risks, writes the liberal daily La Stampa: "Europe would do well to think about the alternatives. … The EU has put Greece under too much pressure. … Now Germany and other advocates of austerity must show that Greece's threat to drag the other partners into the abyss if they don't open their purses is empty talk. They must put their cards on the table and say which specific measures they are willing to adopt for struggling countries. … Because otherwise the mounting pressure on the crisis countries will be exposed as merely a bluff. A conclusion that above all the financial markets are already leaning towards."
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Corriere del Ticino - Switzerland | Tuesday, 15. May 2012
Greek President Karolos Papoulias has proposed the formation of a government of experts as a solution to the government crisis in his country. He plans to meet all the party leaders today - with the exception of the leader of the fascists - to discuss this possibility. If the talks fail new elections on June 10 or 17 would likely be inevitable. This is precisely what the boss of the leftist alliance Syriza, Alexis Tsipras, is hoping for, writes the liberal daily Corriere del Ticino: » more
Greek President Karolos Papoulias has proposed the formation of a government of experts as a solution to the government crisis in his country. He plans to meet all the party leaders today - with the exception of the leader of the fascists - to discuss this possibility. If the talks fail new elections on June 10 or 17 would likely be inevitable. This is precisely what the boss of the leftist alliance Syriza, Alexis Tsipras, is hoping for, writes the liberal daily Corriere del Ticino: "If it comes to new elections Greece could well end up in the hands of the radical Left, which according to the polls would gain ground and emerge as the strongest force in parliament. The prospect of an election victory strengthens the position of this party in a country where the political camps are at loggerheads over the austerity measures. This is why Tsipras is taking a gamble and insisting that any new government - be it a cabinet of technocrats or one that emerges from new elections - must annul the austerity programme and instead rely on a consistent bailout package from the European Community and the International Monetary Fund."
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All available articles from » Gerardo Morina
Simerini - Cyprus | Monday, 14. May 2012
According to a recent report by the European Commmission, Cyprus' public debt is constantly growing and could increase by seven points next year, amounting to 78 percent of the country's gross domestic product. The conservative daily Simerini writes that the Cypriot government needs to act quickly before the country is forced to resort to the EU bailout mechanism: » more
According to a recent report by the European Commmission, Cyprus' public debt is constantly growing and could increase by seven points next year, amounting to 78 percent of the country's gross domestic product. The conservative daily Simerini writes that the Cypriot government needs to act quickly before the country is forced to resort to the EU bailout mechanism: "Greece is a classic example of what not to do. Because if no measures are taken those that eventually become necessary are even worse. And if Cyprus becomes a member of the EU bailout mechanism the troika will doggedly introduce the measures - in its own way and with its own weapons. The public sector employees should therefore themselves insist on preventing waste of public funds. … The old times are gone for good. Progress is no longer possible without reforms and budget discipline."
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All available articles from » Giannos Charalampidis
Hospodářské noviny - Czech Republic | Tuesday, 15. May 2012
The financial markets and Europe's politicians are starting to prepare for Greece's exit from the Eurozone, the business paper Hospodářské noviny writes: » more
The financial markets and Europe's politicians are starting to prepare for Greece's exit from the Eurozone, the business paper Hospodářské noviny writes:"While Eurozone representatives were still discussing Greece's future in the zone, the German Chancellor Angela Merkel only spoke of Athens staying in the EU. She made no mention of the Eurozone at all. Certainly, a Greek exit would create huge turbulence on the markets, but the Union is far better prepared for that now than it was two years ago. The politicians are thinking much more about how to deal with the consequences for Spain, Italy and Portugal than about keeping Athens in the Monetary Union at all costs. ... Of course, they are seeking the most politically and economically acceptable variant. But the current behaviour of the Greeks leads one to believe we'll have to buy drachmas for our next Greek holiday."
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All available articles from » Martin Jašminský
De Volkskrant - Netherlands | Monday, 14. May 2012
Greece's President Karolos Papoulias was unable to get the parties to agree on forming a government on Sunday. This makes fresh elections from which the leftist coalition Syriza under Alexis Tsipras could emerge the strongest force all the more likely. Even if it means running the risk of political uncertainty, Europe's leaders should not put Greece under pressure, the left-liberal daily De Volkskrant writes: » more
Greece's President Karolos Papoulias was unable to get the parties to agree on forming a government on Sunday. This makes fresh elections from which the leftist coalition Syriza under Alexis Tsipras could emerge the strongest force all the more likely. Even if it means running the risk of political uncertainty, Europe's leaders should not put Greece under pressure, the left-liberal daily De Volkskrant writes: "Most likely Greece will go in the direction of exiting the Eurozone. Greece will then be barred from foreign loans for years, even more businesses will go bankrupt and there will probably also be a run on the banks because people will want to withdraw their euros before the switch to a new currency. ... New elections in Greece also mean more uncertainty for the rest of the EU. But if European leaders put the Greeks under too much pressure they run the risk of playing into the hands of opponents to austerity. In the end the Greeks must decide the future of their country for themselves."
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All available articles from » Arjen van der Ziel
To Vima Online - Greece | Sunday, 13. May 2012
As Greece still struggles to form a new government the calls for the country's exit from the Eurozone are growing louder. German Finance Minister Wolfgang Schäuble has said that the Eurozone is more resilient now than two years ago and could survive Greece's exit if necessary. The left-liberal online paper To Vima voices deep concern at this latest development: » more
As Greece still struggles to form a new government the calls for the country's exit from the Eurozone are growing louder. German Finance Minister Wolfgang Schäuble has said that the Eurozone is more resilient now than two years ago and could survive Greece's exit if necessary. The left-liberal online paper To Vima voices deep concern at this latest development: "For Greece it would be a great misfortune to lose all that it has struggled so hard to gain with EU membership. It would be a huge national defeat that would plunge us into the abyss, quite apart from the threats to national security [tense relations with Turkey] that arise in such situations. … Each of us is aware of the dangers. The current situation demands that we all join forces in the battle to avoid an unprecedented national defeat. History will free no one of the responsibility for a defeat that could have been avoided."
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i - Portugal | Monday, 14. May 2012
Portugal's liberal-conservative prime minister Pedro Passos Coelho last week exhorted the Portuguese to see the record level of unemployment as an opportunity, provoking fierce criticism which the daily i endorses: » more
Portugal's liberal-conservative prime minister Pedro Passos Coelho last week exhorted the Portuguese to see the record level of unemployment as an opportunity, provoking fierce criticism which the daily i endorses: "In the very week in which the Greeks and French made a stand against Merkel's austerity, Passos Coelho has called on us to embrace a risk culture. He pointed out that unemployment was an opportunity to change our lives. He concluded his brilliant train of thought with the comment that we prefer to be employees rather than entrepreneurs. … You have to be completely removed from our problems to make such statements. … How, in these times of recession, when banks have no funds, thousands of companies are having to close and many Portuguese have no money to buy food, can one expect people to have the daring to change their lives? It's really too bad a proposal to have come from the brain of a prime minister, but it shows what fate awaits us with this government."
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All available articles from » Tomás Vasques
El País - Spain | Monday, 14. May 2012
The crushing defeat suffered by the CDU in the election in the key German state of North Rhine-Westphalia could have an impact on Merkel's Europe policy, writes the left-liberal daily El País, pointing to the fate of her predecessor Gerhard Schröder: » more
The crushing defeat suffered by the CDU in the election in the key German state of North Rhine-Westphalia could have an impact on Merkel's Europe policy, writes the left-liberal daily El País, pointing to the fate of her predecessor Gerhard Schröder: "North Rhine-Westphalia is so important in German politics that the defeat suffered by the SPD there in 2005 anticipated the result of the general elections, paving the way for Angela Merkel. What is happening now needn't automatically have the same consequences, but it is a warning to Angela Merkel, scheduled to meet the new French President François Hollande next Tuesday, who is determined to renegotiate the rules in the Eurozone. This is all unfolding in the context of the complicated political situation in Greece following the parliamentary elections there and Italy's open desire to seek a more balanced option somewhere between austerity and growth."
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Kaleva - Finland | Monday, 14. May 2012
The elections in France and Greece have shown that far from being a passing phenomenon, populism has become a force to be reckoned within Europe, the liberal daily Kaleva writes: » more
The elections in France and Greece have shown that far from being a passing phenomenon, populism has become a force to be reckoned within Europe, the liberal daily Kaleva writes: "One after another the countries of Europe are running into difficulties, making day to day life harder for the man on the street while uncertainty mounts. This is where the populist movements draw their force from. Even if they can't offer a credible political alternative, they allow the people to give the well-off decision-makers a lesson in humility. ... Typical for populists is that they simplify complex things. If you look at what's happening in Europe's economy and try to predict what will come next, it's difficult to find a common strand. The populists react to this state of affairs with slogans the simple people can grasp hold of. ... The classic party landscape is at the end of its tether in Europe. Populism shakes up rigid power structures. The traditional parties are now racking their brains for ways to deal with the new situation. Sweden has chosen the path of isolation. Many other countries are asking how populists can be included in the government and tamed as a result."
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Mladina - Slovenia | Monday, 14. May 2012
The Slovenian parliament passed the government's austerity package for 2012 and 2013 on Friday. Public spending is to be cut by 500 million euros this year and 750 in 2013. Starting June, the salaries of public sector employees will go down by eight percent. But economising measures alone will accomplish nothing, as other countries in Europe have already shown, writes the left-leaning weekly Mladina: » more
The Slovenian parliament passed the government's austerity package for 2012 and 2013 on Friday. Public spending is to be cut by 500 million euros this year and 750 in 2013. Starting June, the salaries of public sector employees will go down by eight percent. But economising measures alone will accomplish nothing, as other countries in Europe have already shown, writes the left-leaning weekly Mladina: "The current government has not dared to undertake systemic changes or structural reforms. All it does is cut spending, which is exactly what Europe has said goodbye to this week. Austerity for austerity's sake has proved the wrong way to go. Yet this is precisely the step Slovenia has chosen to take even though it pulled Greece, Spain and Ireland ever deeper into the crisis maelstrom. By cinching their belts tighter and tighter, these countries have eliminated the little breathing space they had. ... But some countries still obey the financial markets, and not without reason. Because the markets are not nameless figures. Behind them are people, proprietors."
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All available articles from » Grega Repovž
Main focus of Friday, 11. May 2012
The Democratic Left party in Greece has signalled its willingness to enter a coalition with Pasok and Nea Dimokratia during preliminary discussions. The parties all ... » more
The Democratic Left party in Greece has signalled its willingness to enter a coalition with Pasok and Nea Dimokratia during preliminary discussions. The parties all agree that the country should remain in the Eurozone. While some commentators welcome the consensus, others see a Greek exit as the better solution.
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The Economist - United Kingdom | Friday, 11. May 2012
A Greek exit from the Eurozone entails opportunities and risks, both for Greece and for the rest of the euro countries, the liberal weekly magazine The Economist writes: » more
A Greek exit from the Eurozone entails opportunities and risks, both for Greece and for the rest of the euro countries, the liberal weekly magazine The Economist writes: "An exit, and the ensuing default, would lighten its debt, re-establish competitiveness and challenge its politicians to grasp their own destiny. Yet leaving the euro would also create chaos and destroy savings and, as often in the past, its advantages might rapidly inflate away. The rest of the euro zone is also better off with Greece 'in', if only because of the risk of contagion (and the inadequate preparations for that). But again, not at any price. If Greece rejects the second bail-out or falls drastically behind in its programme, its exit could become inevitable."
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Corriere del Ticino - Switzerland | Friday, 11. May 2012
In the aftermath of the elections in France and Greece the debate over the future of the Eurozone has intensified. There are now only two options left: » more
In the aftermath of the elections in France and Greece the debate over the future of the Eurozone has intensified. There are now only two options left: either the Monetary Union collapses or the Eurozone becomes a transfer union, writes the liberal daily Corriere del Ticino: "Europe is at a dead end. The euro crisis can't be resolved with half-hearted measures that merely buy time. Such temporary cures grow more and more expensive and have less and less impact. Europe is facing a choice: either it decides to become a transfer union, an option Germany is fighting against tooth and nail, or it prepares for the dissolution of the Monetary Union, which as long as it is done in an orderly manner needn't be catastrophic. The growing opposition of the citizens to which the recent elections testify doesn't admit another delay. On the contrary, it demands a decision from the European governments."
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All available articles from » Alfonso Tuor
Protagon - Greece | Thursday, 10. May 2012
Greece must remain in the Eurozone and reach a new agreement with its creditors, writes economist Giannis Varoufakis on web portal Protagon: » more
Greece must remain in the Eurozone and reach a new agreement with its creditors, writes economist Giannis Varoufakis on web portal Protagon: "Whether we like it or not, Greece's fate is inextricably entwined with that of the rest of the Eurozone. If we act like we can get along on our own, without Europe's help, we will create a situation that destroys all hope that our voice against the austerity measures will lead to something good. This is the situation: on the one hand it is impossible to comply with the terms of the austerity package. … On the other it's just as impossible for us to finance the development and reform policy needed to get out of the crisis. So what can we do? There's just one solution and it is laden with difficulties: we must renegotiate the terms of the austerity agreement between Greece and its creditors - as a member of the Eurozone."
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Público - Portugal | Friday, 11. May 2012
The problems of the Monetary Union prove that the euro is a utopia that could end up destroying Europe, the daily newspaper Público argues: » more
The problems of the Monetary Union prove that the euro is a utopia that could end up destroying Europe, the daily newspaper Público argues: "For too long we in Europe have believed that problems could be solved by simply sweeping them under the carpet like a lazy housewife. … This week has shown that a collapse of the Monetary Union can't be excluded. … It's not possible to have a common currency without a common government. The current tensions are a direct consequence of this institutional failure. This realisation should prompt the decision-makers to question the viability of the euro. So far all they have done is tried to patch up the problems with a house that is falling apart and proposed unrealistic federalist solutions. The fiscal compact guarantees nothing; the growth programme is pure rhetoric. Europe has been destroyed several times by utopias. The euro appears to be the most recent of these."
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All available articles from » José Manuel Fernandes
Die Presse - Austria | Friday, 11. May 2012
Germany's Bundesbank indicated for the first time on Thursday that it would accept higher inflation rates because of the European debt crisis. But what this really means is that people with savings would foot the bill for the public debt, writes the liberal-conservative daily Die Presse: » more
Germany's Bundesbank indicated for the first time on Thursday that it would accept higher inflation rates because of the European debt crisis. But what this really means is that people with savings would foot the bill for the public debt, writes the liberal-conservative daily Die Presse: "If Europe's central banks loosen the inflation leash it's clear who will pay for the crisis: savers and bondholders. And who will profit: creditors of all kinds, but mostly the state. Whereby one shouldn't be soothed by appeasing phrases such as 'a little inflation': the expropriating effect of inflation is enormous even at unspectacular rates. Over five years, a real inflation of six percent, for example, decreases the value of a thousand euros to 747 euros, and over ten years to just 558 euros, and of course the real value of a thousand euros of public debt too. So it's not hard to guess what form the revitalisation of the economy will really take."
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All available articles from » Josef Urschitz
Hospodárske noviny - Slovakia | Thursday, 10. May 2012
The Eurozone should not transfer more money to Greece while calling for reforms but simply exclude the country from the monetary union, writes the business paper Hospodárske noviny: » more
The Eurozone should not transfer more money to Greece while calling for reforms but simply exclude the country from the monetary union, writes the business paper Hospodárske noviny: "For two years Greece has been traumatising the Eurozone. If the prognoses are correct, the anti-European parties would gain further support in the event of new elections in June. Yet despite the political uncertainty the Greeks are receiving a further tranche of several billions today. The German Finance Minister Wolfgang Schäuble believes Athens has no choice and must press ahead with the reforms. Schäuble is wrong. Athens doesn't have to do anything. It's the Eurozone that needs to make a move. It must stop pumping money into Greece and oust Greece from the Eurozone, thereby ridding itself of a country that is as big as a parasite and behaves like one too."
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All available articles from » Ivan Szabó
La Repubblica - Italy | Thursday, 10. May 2012
The announcement that Greece will receive the withheld portion of the bailout tranche when the financial situation makes it necessary is just an excuse in the eyes of the left-liberal daily La Repubblica: » more
The announcement that Greece will receive the withheld portion of the bailout tranche when the financial situation makes it necessary is just an excuse in the eyes of the left-liberal daily La Repubblica: "Europe is paying out the money bit by bit now and thus sending a clear and ominous message to Athens that at the same time must sound like a warning to the new French president: There is no Plan B. The only alternative to the austerity terms is state bankruptcy and exit from the Monetary Union. … The most passionate defenders of austerity, first and foremost Berlin and Helsinki, even wanted to suspend the bailouts in the event that Athens can't form a majority government. … Only thanks to the mediation of the EU Commission and France has common sense prevailed. … But the Germans couldn't be prevented from using not just words but also measures to admonish the Greeks. … The billion that has been withheld hangs like a sword of Damocles over Athens."
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All available articles from » Andrea Bonanni
Kouti tis Pandoras - Greece | Wednesday, 9. May 2012
According to the most recent surveys the leftist alliance Syriza would emerge the strongest party from fresh elections. On the web portal To Kouti tis Pandoras, blogger Kostas Vaxevanis says he can't understand why people are so afraid of a left-wing government in Greece: » more
According to the most recent surveys the leftist alliance Syriza would emerge the strongest party from fresh elections. On the web portal To Kouti tis Pandoras, blogger Kostas Vaxevanis says he can't understand why people are so afraid of a left-wing government in Greece: "A spectre is haunting Europe. … The ghost of Alexis Tsipras. For all those who haven't understood yet: all Europe is in peril if Tsipras comes into power. And everything our government has so carefully constructed will collapse. … But seriously now, the situation is pretty chaotic. It has been for three years because of the harsh austerity policy. … I'm not trying to defend Tsipras, or Kouvelis, or Kammenos [left- and right-wing leaders who reject the austerity policy]. I simply find it embarrassing for our democracy when - as back in the 1950s - everyone fears that the communists will take away our property and women. … I don't know whether or how Tsipras would govern. But both I and everyone else know exactly how the other politicians governed."
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Blog 100 Reféns - Portugal | Thursday, 10. May 2012
The implementation of the austerity programme in Portugal is probably the worst political measure this country has witnessed since time immemorial, writes Tiago Mesquita in his blog 100 Reféns: » more
The implementation of the austerity programme in Portugal is probably the worst political measure this country has witnessed since time immemorial, writes Tiago Mesquita in his blog 100 Reféns: "If ex-head of government Soares really is the father of this social and economic cemetery he must be ashamed that he didn't abort before it was too late. He is equally to blame. Nonetheless, for the first time I agree with one of his statements: the agreement, which is nothing less than a slow death for a country and its people, should simply be torn up. … To implement it would be political suicide and socio-economic murder. … The crisis is being used as an alibi to conceal the incompetence with which this country has and continues to be managed. The country is a ticking time bomb, and Soares knows it. When it explodes he wants to be on the right side."
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Le Figaro - France | Thursday, 10. May 2012
Europe's policy with regard to Greece must not change even in the wake of the parliamentary elections, writes the conservative daily Le Figaro, because allowing Greece to exit the Eurozone would be fraught with risk: » more
Europe's policy with regard to Greece must not change even in the wake of the parliamentary elections, writes the conservative daily Le Figaro, because allowing Greece to exit the Eurozone would be fraught with risk: "Increasingly you hear that the sacrifices demanded of the Greeks are excessive and undermine the economy. That is no doubt true, and the model may well have to be reworked. But with or without François Hollande's growth pact, Greece will not escape a drastic austerity cure if it wishes to retain the euro. Although it has been consistently opposed by the Left, this political line of give and take Europe has followed until now remains the wisest course. Apart from ensuring Greece's downfall, a euro exit would create a dangerous precedent and give way to an extremely perilous situation for Europe itself. Who can believe that other countries that are most fragile, starting with Spain, will escape the contagion? And that an uncontrolled domino effect would not then sweep away everything in its path? Europe is duty-bound to avoid such a risk."
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All available articles from » Gaëtan de Capèle
Main focus of Wednesday, 9. May 2012
The leftist alliance Syriza under Alexis Tsipras was charged with forming a government in Greece on Tuesday. Before that the head of the conservative Nea ... » more
The leftist alliance Syriza under Alexis Tsipras was charged with forming a government in Greece on Tuesday. Before that the head of the conservative Nea Dimokratia, Antonis Samaras, had failed with his coalition negotiations. Commentators predict Tsipras will likewise be unable to forge a coalition and see Greece's exit from the Eurozone as increasingly likely.
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ABC - Spain | Wednesday, 9. May 2012
The election outcome in Greece may make the country's exit from the » more
The election outcome in Greece may make the country's exit from the
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De Standaard - Belgium | Wednesday, 9. May 2012
Today is Europe Day, and although Europe may have little to celebrate it is far from throwing in the towel, writes the political scientist Hendrik Vos in the liberal daily De Standaard: » more
Today is Europe Day, and although Europe may have little to celebrate it is far from throwing in the towel, writes the political scientist Hendrik Vos in the liberal daily De Standaard: "European policy is tough, and sticky. As soon as a decision has been reached it seems to get stuck in its tracks. Further decisions build on what has already been agreed on. Europe never starts entirely from scratch. For some time now Europe has been slogging through the swamp of the euro crisis. A pitiful slog from summit to summit. It falters, it creaks, it groans, but it does not stop altogether. It doesn't turn around. That's how European politics works. It doesn't have complete freedom to act, but it can make corrections. These are also necessary, as recent months have clearly shown. Political leaders are being voted out of office at an incredible pace. But then again, you don't win an election with austerity. At the same time it is also becoming clear that the economy won't be saved with austerity alone, either. The Union will have to offer the people, first and foremost the Greeks, prospects and hope."
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Kathimerini - Greece | Wednesday, 9. May 2012
Greece should test what it's like to have a left-wing government because only then will it understand what this actually means, writes the conservative daily Kathimerini: » more
Greece should test what it's like to have a left-wing government because only then will it understand what this actually means, writes the conservative daily Kathimerini: "Greek society won't be able to find its balance if it doesn't test the alternative in practice. … So now Tsipras' turn has come. He has the task of forming a government and negotiating with the country's creditors. Those who know Europe well know: if Tsipras pushes for a 'selective waiving of most of the debt', as he has said he will do, the country will be expelled from the Eurozone and perhaps from the EU too. … A major problem is that we won't be able to settle down until we have tried out Mr Tsipras' approach. The biggest problem however is that this test could entail huge risks for the country."
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All available articles from » Alexis Papachelas
euinside - Bulgaria | Tuesday, 8. May 2012
Greece has no time to lose now because its creditors are at the end of their tether, warns the web portal euinside: » more
Greece has no time to lose now because its creditors are at the end of their tether, warns the web portal euinside: "Tsipras has two days to build a majority, but even with the support of the socialists, the communists and the democratic Left he won't be able to achieve this. Then the mandate goes to the Pasok party, which in all likelihood will also fail. … The most likely consequence is fresh elections with an entirely unforeseeable outcome. But wasting time is the last thing Greece can afford to do in its present situation. The reaction of the financial markets makes this clear. For two years now the country has been hanging on from one tranche to the next. But the times when credit was given out of pity without the conditions being fulfilled are over. The deal now is: first cut spending and push through reforms and then you get the money. If the next tranche isn't paid out, the citizens of Greece must be prepared to pay the consequences of their vote."
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All available articles from » Ralitsa Kovacheva
Blog Spiegelfechter - Germany | Wednesday, 9. May 2012
Mirroring the reaction of the financial lobby, numerous German media have registered concern at the election results in Greece and France, writes Jens Berger in his blog Der Spiegelfechter: » more
Mirroring the reaction of the financial lobby, numerous German media have registered concern at the election results in Greece and France, writes Jens Berger in his blog Der Spiegelfechter: "Instead of accepting and respecting the popular vote, the German press prefers to point with feigned distance at the presumed reaction of the financial markets and prophesies a 'crisis of confidence' in the Eurozone. Admittedly, they're not talking about the trust of the citizens but that of financial speculators. Because the citizens lost their trust in politicians representing their interests long ago. Hence it must be asked whether the media, which openly put the interests of the elites and the financial lobby over those of the people, still reflect the free democratic basic order at all. ... The once proud magazine Der Spiegel complains on its online portal about the 'uncertainties after the French and Greek elections'. ... In the same pessimistic tone the newspaper Die Welt fears that 'the election results in France in Greece [will fan] investors' fears of an end to austerity'."
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Main focus of Tuesday, 8. May 2012
The Greek conservative party Nea Dimokratia returned its mandate to form a coalition government on Monday. With 18.9 percent of the vote it had emerged ... » more
The Greek conservative party Nea Dimokratia returned its mandate to form a coalition government on Monday. With 18.9 percent of the vote it had emerged as the strongest party from Sunday's parliamentary elections. Now the left coalition Syriza will be charged with forming a government. Commentators fear Greece will soon be ungovernable and pin their hopes on austerity opponent François Hollande.
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Le Soir - Belgium | Tuesday, 8. May 2012
After the failed attempt to form a government in Greece, France's future president François Hollande must make his move, writes the left-liberal daily Le Soir: » more
After the failed attempt to form a government in Greece, France's future president François Hollande must make his move, writes the left-liberal daily Le Soir: "We must accept the election results and respect them like the other components of a democracy. We must not condemn the Greeks and their country - the Germans in particular must take this to heart as well as other nations of the Eurozone with top grades from the rating agencies. But above all we must get to work and seek a solution! … François Hollande criticised the austerity policy very harshly and very frequently during the election campaign. He repeatedly used Greece as a negative example of its effects. As the freshly elected French president he should turn his attention to the Greek problem and prove that he has what it takes and can do more than churn out empty phrases! Greece and Europe would certainly be thankful for any initiative he takes. And if he's successful this could secure him the authority he still lacks on the international stage."
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All available articles from » Maroun Labaki
Financial Times - United Kingdom | Tuesday, 8. May 2012
Greece runs the risk of chaos and a forced exit from the Eurozone should it decide against the austerity plan in the aftermath of Sunday's elections, fears the liberal daily Financial Times: » more
Greece runs the risk of chaos and a forced exit from the Eurozone should it decide against the austerity plan in the aftermath of Sunday's elections, fears the liberal daily Financial Times: "The Greek problem is now so acute that it cannot be 'fixed' through a few cleverly-drafted clauses, added to an EU treaty. It demands real, crunchy and dangerous decisions. Specifically, will Greece press ahead and make further billions of euros worth of budget cuts, within months, as demanded by its most recent bailout deal? If Greece refuses to do this, then the IMF has made clear that it will not authorise the release of the next tranche in aid to Greece. That, in turn, would mean that the Greek government simply ran out of money. Managed, if painful, cuts to pensions and wages would then be replaced by something much more chaotic and dangerous. The forced exit of Greece from the euro would also become much more likely."
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Neue Zürcher Zeitung - Switzerland | Tuesday, 8. May 2012
The election results in France and Greece are being interpreted as a political mood swing against the tough austerity policy, but the liberal-conservative daily Neue Zürcher Zeitung considers the hopes for growth without belt-tightening illusory: » more
The election results in France and Greece are being interpreted as a political mood swing against the tough austerity policy, but the liberal-conservative daily Neue Zürcher Zeitung considers the hopes for growth without belt-tightening illusory: "Elected politicians from left to right would be well advised to recognise the laws of simple financial arithmetic. Just like private debtors, governments too can only spend more than they take in as long as someone is willing to finance this. … A return to a sound financial policy that deserves the confidence of investors is an indispensable requirement for growth. If Europe paralyses itself with ideological trench warfare and nationalist shadow-boxing its rivals in the East and West will be only too happy. A prosperous future can't be built on this basis. Europe urgently needs to confront the realities of its situation."
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All available articles from » Peter A. Fischer
Público - Portugal | Tuesday, 8. May 2012
The elections in Greece are more important for Europe than those in France because they show whether democracy functions in times of crisis, writes the liberal daily Público: » more
The elections in Greece are more important for Europe than those in France because they show whether democracy functions in times of crisis, writes the liberal daily Público: "There is a major difference between a seismic tremor and an earthquake. Therefore the results of the elections in France will be of far less significance for posterity than the elections in Greece. Hollande's victory will weaken Brussels' austerity dictates, but not change them radically. … As far as Greece is concerned the fears are growing that the country is becoming ungovernable. … France has demonstrated a clear political unity without calling itself into question. However Greece in its desperate situation has destroyed its unity. In this way Greece has become a test balloon for the future of democracy in countries like Portugal."
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Die Presse - Austria | Tuesday, 8. May 2012
The consequences of the Greek elections will be dire, fears the liberal-conservative daily Die Presse: » more
The consequences of the Greek elections will be dire, fears the liberal-conservative daily Die Presse: "To all intents and purposes there can be no talk of a happy end. Because Greece's problem isn't just debts, it is also the dogged stance that has led to the political standstill we are now witnessing. ... You don't need the Oracle of Delphi to see where this will end. If the agreed steps for restructuring the economy really are blocked by the now strengthened populist parties in parliament, the next tranche of emergency loans scheduled for June will hang in the balance. If it comes to fresh elections, the necessary reforms for restructuring the country's policy on expenditures and revenues will ground to a halt for several more months. The standstill will be prolonged and the European donor countries will no longer be able to justify domestically transferring further bailout funds to Athens."
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All available articles from » Wolfgang Böhm
Main focus of Monday, 7. May 2012
François Hollande is the new president of France. The Socialist won out against his conservative rival, the incumbent Nicolas Sarkozy, in the run-off vote on ... » more
François Hollande is the new president of France. The Socialist won out against his conservative rival, the incumbent Nicolas Sarkozy, in the run-off vote on Sunday. Hollande's victory will change Europe, commentators write, placing high expectations on the new head of state.
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The Times - United Kingdom | Monday, 7. May 2012
After the presidential elections in France and the parliamentary elections in Greece on Sunday the conservative daily The Times calls for a European growth strategy: » more
After the presidential elections in France and the parliamentary elections in Greece on Sunday the conservative daily The Times calls for a European growth strategy: "There is no way of resolving this crisis except by cutting spending in the short term and creating the conditions for growth. These aims can work against each other, but they are both essential. In particular, because the option of currency devaluation is not open to Eurozone members, the only immediate option is to squeeze domestic costs. At the Europe-wide level this is holding back growth and only adding to the suffering of families unaccustomed to living on handouts. But it does not mean that austerity is the wrong path for individual countries, including Britain. ... EU governments must acknowledge that restoring public finances, while essential, is not enough: they must also create the conditions for growth."
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Basler Zeitung - Switzerland | Monday, 7. May 2012
With the new French president there is the possibility of major changes in Europe's crisis policy, the conservative Basler Zeitung writes: » more
With the new French president there is the possibility of major changes in Europe's crisis policy, the conservative Basler Zeitung writes: "With his election campaign and his calls for a growth pact he has already got things moving within the EU. ... He will stress this to be able to continue moving forward. Yet France's new president is no less patriotic than his predecessor. Hollande will try to set a new example for European crisis policy. His form of 'socialism' is an alternative to dominant economic liberalism that threatens tough confrontations. Behind Hollande's jovial façade and friendly manner is a man who knows exactly what he wants - and when the time has come to get it. Otherwise he would never have become president."
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All available articles from » Rudolf Balmer
Naftemporiki - Greece | Monday, 7. May 2012
The winner of the elections in Greece is the left-wing alliance Syriza, which according to estimates will be the second-strongest faction in the parliament. Syriza doesn't want the country to repay its debts but wants it to remain in the monetary union. For their part the supporters of the austerity programme have narrowly missed a parliamentary majority. The conservative business paper Naftemporiki urges the parties to focus on forming a viable government: » more
The winner of the elections in Greece is the left-wing alliance Syriza, which according to estimates will be the second-strongest faction in the parliament. Syriza doesn't want the country to repay its debts but wants it to remain in the monetary union. For their part the supporters of the austerity programme have narrowly missed a parliamentary majority. The conservative business paper Naftemporiki urges the parties to focus on forming a viable government: "The people have sent an ambivalent message: yes to Europe and no to austerity. … The problems that existed before the elections still exist now and urgently need answers. … The time for the parties to act has come, and they must now prove that Greece's political landscape is capable of renewal and presenting solutions through parliamentary procedures that require joint positions and a consensus. Time is running out. In the next few days there will be rapid developments both within the country and outside it."
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All available articles from » Nikos Frantzis
Expresso - Portugal | Monday, 7. May 2012
The discount campaign staged by Portugal's largest supermarket chain on May 1 has triggered a fierce debate about price politics in the food sector. Retailers certainly didn't do their customers any favours with this strategy, the left-liberal weekly Expresso concludes: » more
The discount campaign staged by Portugal's largest supermarket chain on May 1 has triggered a fierce debate about price politics in the food sector. Retailers certainly didn't do their customers any favours with this strategy, the left-liberal weekly Expresso concludes: "Did they lose or make money with this campaign? If they lost money this means that they were guilty of price dumping and that their profit margins are so large that they can afford to lose money voluntarily. … And if they feel so socially obliged to their penny-pinching customers why don't they give a 10 percent discount for the next six months to a year rather than launching a one-off 50 percent promotion that turned us into a fourth-world country for a day?"
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All available articles from » Miguel Sousa Tavares
Kurier - Austria | Monday, 7. May 2012
In the Greek elections the proponents of the austerity programme appear to have fallen short of a majority in parliament. But punishing the two parties Nea Dimokratia and Pasok for their belt-tightening measures and switching allegiance to the radical parties is no solution, writes the left-liberal daily Kurier: » more
In the Greek elections the proponents of the austerity programme appear to have fallen short of a majority in parliament. But punishing the two parties Nea Dimokratia and Pasok for their belt-tightening measures and switching allegiance to the radical parties is no solution, writes the left-liberal daily Kurier: "Behind the beacon of the angry voters was more than the mere wish to send all those politicians to the devil who have caused the biggest loss of wealth in decades. Many of the Greeks who this time voted for the far left or the distinctly unappetising far right simply wanted an end to the austerity that is tightening the belt to the point of suffocation. Less cuts and job losses and more growth - that's what they want. But with growth it's the same as with world peace - everybody wants it but the formula still hasn't been invented. And the radical parties whose only demand is 'Stop the debt repayments' certainly won't provide it."
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All available articles from » Ingrid Steiner-Gashi
Delo - Slovenia | Monday, 7. May 2012
The strict austerity measures for combating the financial crisis have prompted the hardest-hit to vote their governments out of office, writes the daily Delo. "The ... » more
The strict austerity measures for combating the financial crisis have prompted the hardest-hit to vote their governments out of office, writes the daily Delo. "The cuts have led to a drop in GDP in countries on the so-called European periphery, from Latvia to Spain, and the unemployment figures of certain southern EU countries have risen dangerously close to those of the 1930s. Unemployment has already reached 24 percent in Spain, and even 50 percent among those under 25. And things look bad in Greece and Ireland, too. But sooner or later the crisis on Europe's edge will also hit the centre of the European Union, including Germany. ... The announced social and political shocks have set in. The measures for fighting the crisis implemented so far have provoked increasing anger, and the people's lack of trust in their politicians has caused several governments to fail."
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All available articles from » Mija Repovž
Main focus of Friday, 4. May 2012
ECB head Mario Draghi has called on European governments to do more for growth and the fight against unemployment in Europe. A lowering of the ... » more
ECB head Mario Draghi has called on European governments to do more for growth and the fight against unemployment in Europe. A lowering of the base interest rate was not up for discussion at the meeting of the ECB's General Council in Barcelona on Thursday. While some commentators express disappointment, others support the present course and oppose solutions aimed at providing cheap loans.
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Le Monde - France | Friday, 4. May 2012
The ECB met in Spain without proposing any solutions for the crisis-ridden country, the left-liberal daily Le Monde writes, calling for a change of course in the direction of growth policy: » more
The ECB met in Spain without proposing any solutions for the crisis-ridden country, the left-liberal daily Le Monde writes, calling for a change of course in the direction of growth policy: "You can understand the anger of the Spanish, because many Europeans feel much the same way. Theoretically they've done everything right, fulfilled all the requirements. For 18 months they have been doing exactly what Berlin, Brussels and Frankfurt have stipulated: making drastic cuts in state expenditures, raising taxes, reforming the labour market and so on. ... And what are the results? So far nothing short of disastrous. ... Everywhere the feeling is spreading that the situation is extremely convoluted. So far no government has survived an election. ... As far as France is concerned we'll know more on that score on Sunday. So it's no wonder the mood is changing and people are saying that the most important thing isn't debt reduction but promoting growth. More growth will bring higher tax revenues that are necessary to service the public debt."
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All available articles from » Alain Frachon
Cinco Días - Spain | Friday, 4. May 2012
In view of the reserved monetary policy of the ECB, José Luis Martínez Campuzano, a strategist for the Citigroup in Spain, warns in the business paper Cinco Días of the threat posed by rising risk premiums on government bonds: » more
In view of the reserved monetary policy of the ECB, José Luis Martínez Campuzano, a strategist for the Citigroup in Spain, warns in the business paper Cinco Días of the threat posed by rising risk premiums on government bonds: "Were you surprised by the announcements made after the meeting of the European Central Bank yesterday? I don't think so. You may be disappointed. We all are to a greater or lesser extent. ... And what if the financial markets react with rising risk premiums? Spain is one example, where the yields on government bonds are rising at the same time as Mariano Rajoy's government is passing the very measures demanded by the markets. Mario Draghi also praised the reforms in Spain, even if it wasn't clear whether he considered them adequate. And this raises a second question: When can they be considered adequate? No doubt you can't answer that. Neither can I. But right now we're caught up in a vicious circle in which all of us - the entire Eurozone - are the losers."
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All available articles from » José Luis Martínez Campuzano
La Stampa - Italy | Friday, 4. May 2012
ECB boss Mario Draghi has formulated his demand for a growth pact for the Eurozone in concrete terms while warning at the same time of the dangers of departing from the austerity policies. However this long awaited change in direction was prompted by necessity rather than a sudden change of heart, writes the liberal daily La Stampa: » more
ECB boss Mario Draghi has formulated his demand for a growth pact for the Eurozone in concrete terms while warning at the same time of the dangers of departing from the austerity policies. However this long awaited change in direction was prompted by necessity rather than a sudden change of heart, writes the liberal daily La Stampa: "Instead of demanding sacrifices from the citizens with a stern expression Europe is beginning to show the monetary union a more friendly face. ... If the prerequisites and promises are fulfilled, the division of labour between the EU and the member states could soon change. The former would take care of expenditures while the member states assume control of the budgets. A reversal of roles that wouldn't be the result of a sudden change of opinion and sense of responsibility on the part of the governments but rather the fact that reality leaves us no other choice. Because the states don't have a cent left and only Brussels and Frankfurt are in a position to invest billions to get things back on track."
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All available articles from » Luigi La Spina
Sol - Portugal | Friday, 4. May 2012
It is dangerous to try to encourage growth merely by supplying easy money, writes the liberal weekly Sol: » more
It is dangerous to try to encourage growth merely by supplying easy money, writes the liberal weekly Sol: "To economise or to boost growth? This is a heated debate. Supposedly intelligent people claim we are digging our own grave with the austerity measures. They clamour for loans for companies. Unfortunately the assumption that pumping fresh cash into the economy will solve all our problems is wrong. It's true that the economy needs more loans, but it was precisely the easy loans and cheap money that triggered the crisis. We can't return to the times of cheap money. Those who see loans as a magic recipe for growth forget that a company can't borrow money it won't be able to pay back later. … This has always been our problem. … We need profitable investments that are sound and create wealth. Portugal needs to attract investors: through political and social stability, less red tape, a more efficient justice system, competitive salaries and flexible labour laws."
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All available articles from » José António Saraiva
Le Monde - France | Monday, 30. April 2012
The euro crisis and the French presidential elections have brought Europeans closer together, write the French political scientists Maxime Lefebvre and Vivien Schmidt in the left-liberal daily Le Monde: » more
The euro crisis and the French presidential elections have brought Europeans closer together, write the French political scientists Maxime Lefebvre and Vivien Schmidt in the left-liberal daily Le Monde: "The crisis of the Eurozone is an important step towards Europeanisation: it obliges nations both individually and collectively to strive for the necessary economic convergence that must accompany the monetary union, which had been very largely obscured after the treaty of Maastricht. Attitudes to the European fiscal pact have become a major topic in the French presidential campaign. Merkel's support for Sarkozy and the SPD's for François Hollande has highlighted an unprecedented interdependency between domestic political debates in France and Germany. ... It is unnecessary to pitch Europe against the individual nations. Instead the construction of Europe must be reinforced by a renewed democratic approach aimed at politicising the debate so as to better legitimise European politics and the Union as a whole. Whatever its outcome, the election will have contributed to this process."
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All available articles from » Maxime Lefebvre, » Vivien Schmidt
Irish Independent - Ireland | Wednesday, 2. May 2012
In the run-up to the Irish referendum on the ratification of the EU fiscal compact on May 31, the conservative daily Irish Independent points its ... » more
In the run-up to the Irish referendum on the ratification of the EU fiscal compact on May 31, the conservative daily Irish Independent points its finger at the culprits of the crisis, namely the Irish themselves. The referendum, it writes, "takes place against the background of the economic crisis which struck the world in 2008 and has since defied all attempts at solution. It has wreaked most of its greatest devastation on the European mainland, but our own offshore island has experienced some of its worst effects. Ireland also stands out as one of the countries which have suffered - in the events which preceded the crisis and in the feeble efforts to overcome it - from the misgovernment which we the people permitted and even encouraged. This is no time to beat about the bush. We elected governments which made no attempt to regulate the financial system. We trusted banks which continued to lend recklessly while they careered down the path to insolvency. All of us share the responsibility for our ills to some degree, and it behoves us to take special care and pains as we struggle to cure them."
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Jornal de Negócios - Portugal | Wednesday, 2. May 2012
In Portugal, thousands of people took part in May 1st demonstrations to protest the mounting encroachments on labour and social rights and the rising unemployment which the liberal-conservative government's stringent austerity programme entails. Trade unions and employers' associations alike should use the transformation process to reconstruct the foundations of the economy, the business paper Jornal de Negócios points out: » more
In Portugal, thousands of people took part in May 1st demonstrations to protest the mounting encroachments on labour and social rights and the rising unemployment which the liberal-conservative government's stringent austerity programme entails. Trade unions and employers' associations alike should use the transformation process to reconstruct the foundations of the economy, the business paper Jornal de Negócios points out: "The trade unions must recognise that there can be no social welfare state without the creation of prosperity and jobs and without salaries finally being adjusted to productivity. For their part the employers' associations must understand that without motivated and qualified employees their companies cannot be successful. Do either of these parties realise what opportunities we have here?"
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More from the press review on the subject » Fiscal Policy, » Labour market, » Economy, » Portugal
All available articles from » Camilo Lourenço
ABC - Spain | Wednesday, 2. May 2012
Despite tough austerity measures and record levels of unemployment, a relatively small number of people took to the streets for the May Day demonstrations in Spain, the conservative daily ABC notes: » more
Despite tough austerity measures and record levels of unemployment, a relatively small number of people took to the streets for the May Day demonstrations in Spain, the conservative daily ABC notes: "Not even with a tailwind of 250 new jobless per hour have the trade unions managed to achieve lift-off. The social discontent exists for sure, but it's flying below the radar, unexpressed through the conventional channels - more like a kind of collective depression. The government is making itself unpopular with its harsh austerity measures, without a detectable rise in support for the Socialists. And the muscle-flexing of the trade unions has revealed rather puny muscles. A climate of pessimism prevails, and the failure of the Left is still too fresh in people's minds for it to capitalise on the growing disenchantment. The low-key May Day demonstrations highlight the trade unions' image problem and the fact that those responsible for the wreckage can't cast themselves in the role of heroes again yet."
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Financial Times - United Kingdom | Monday, 30. April 2012
While the Spanish government is restructuring its budget with cuts, voices are growing louder in Europe calling for more to be done to stimulate growth. The liberal business paper Financial Times agrees completely: » more
While the Spanish government is restructuring its budget with cuts, voices are growing louder in Europe calling for more to be done to stimulate growth. The liberal business paper Financial Times agrees completely: "It is encouraging that this week some politicians and the president of the European Central Bank, Mario Draghi, put more emphasis on how to revive the economy. But while calls for growth are gathering momentum, there is still little agreement on the exact prescriptions that will get the continent back in shape. The illusion is still strong that Europe can be revived without addressing problems such as the longstanding current-account imbalances. Without broader European support - read Germany - the reformist drive of Mr Rajoy and his colleagues in the periphery are bound to fail. Citizens may have been favourable to their initial message of austerity for a higher cause, but they will not tolerate being led into a dead-end."
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El País - Spain | Monday, 30. April 2012
German Chancellor Angela Merkel talked in an interview on Saturday of a "European growth agenda", which is being widely interpreted as cautious approval of the growth pact under discussion in the EU. Finally things are moving in the right direction in the fight to overcome the crisis, the left-liberal daily El País comments enthusiastically: » more
German Chancellor Angela Merkel talked in an interview on Saturday of a "European growth agenda", which is being widely interpreted as cautious approval of the growth pact under discussion in the EU. Finally things are moving in the right direction in the fight to overcome the crisis, the left-liberal daily El País comments enthusiastically: "The need to pave the way for recovery was already stressed by the president of the ECB, Mario Draghi, last week. But more significant is the fact that German Chancellor Angela Merkel, a passionate advocate of the austerity policy as the only way of achieving stability, has now also voiced support for the idea of a European growth agenda. Merkel's momentous about-turn on this doesn't come from nowhere. It is a response to several powerful factors, beginning with the increasing likelihood that François Hollande will win the French elections and withdraw French support for never-ending European austerity. ... The attempt to stabilise the Eurozone by extending Prussian discipline to all Europe seems like a prolonged nightmare."
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Gazeta Wyborcza - Poland | Monday, 30. April 2012
Rating agency Standard & Poor's lowered the credit status of Spain by two notches on Thursday and placed it on a negative outlook. In a commentary for the daily Gazeta Wyborcza, economist Rafał Benecki of the Polish bank ING BSK sees difficult times ahead for Spain: » more
Rating agency Standard & Poor's lowered the credit status of Spain by two notches on Thursday and placed it on a negative outlook. In a commentary for the daily Gazeta Wyborcza, economist Rafał Benecki of the Polish bank ING BSK sees difficult times ahead for Spain: "The Spanish government now has a problem because it is trying to implement an austerity programme that has negative consequences for growth. The austerity measures it has carried out are having a double impact on the country: on the one hand they improve the budget situation but on the other they slow down growth [because there are fewer investments]. This in turn has a negative impact on the deficit because tax revenues dwindle. … By the end of the year the country's deficit may reach 80 percent of the GDP. Spain's situation may not be as bad as that in Italy or Greece, but it is getting worse - and further downgrades can't be ruled out."
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Sol - Portugal | Friday, 27. April 2012
Share prices fell sharply on Monday mainly in response to the political and democratically legitimate decisions in France and The Netherlands as well as the recession in Spain. The volatile financial markets obviously have a hard time with democratic decisions, the liberal weekly Sol writes: » more
Share prices fell sharply on Monday mainly in response to the political and democratically legitimate decisions in France and The Netherlands as well as the recession in Spain. The volatile financial markets obviously have a hard time with democratic decisions, the liberal weekly Sol writes: "The fall of the Dutch government and the victory of the Socialist candidate Hollande in the first round of the French presidential elections were the decisive political factors in this new round of market jitters. ... The crisis was diagnosed and treatment prescribed by the German-French mandate and meekly accepted by other countries. ... Now it is affecting not just the economically fragile countries with high levels of state debt like Portugal or Greece but the heart of the eurozone: mighty France and the inconsiderate Netherlands. Chickens ultimately always come home to roost."
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Le Point - France | Thursday, 26. April 2012
Many French people have let themselves be seduced by escapist positions that have little to do with reality, writes the liberal weekly Le Point with an eye to the Presidential elections in France in which extreme right and far left parties received one third of the vote: » more
Many French people have let themselves be seduced by escapist positions that have little to do with reality, writes the liberal weekly Le Point with an eye to the Presidential elections in France in which extreme right and far left parties received one third of the vote: "Together they dream of a France far removed from reality that knows nothing of the crisis or public debt and derides the world of finance from whom it borrows billions each day just to make ends meet. The French voters did not abstain from casting their ballots, and that's all for the better. But many of them preferred to use their vote to distance themselves from the realities of the world. ... The crisis in France is progressively becoming that of a country locked within its borders, its certitudes and the contemplation of its failures. France is shutting itself away in a dilapidated ivory tower, away from Europe, the world of finance, the markets, globalisation and other phantoms. It's time the country overcame its fears and confronted reality."
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The Daily Telegraph - United Kingdom | Friday, 27. April 2012
After the British government officially slipped back into a recession on Wednesday the conservative Daily Telegraph calls for a more aggressive growth strategy: » more
After the British government officially slipped back into a recession on Wednesday the conservative Daily Telegraph calls for a more aggressive growth strategy: "The austerity programme does command the confidence of the markets, and that remains crucial. It is this that allows the Government to borrow at attractive rates, which in turn gives the Bank of England the freedom to keep the cost of borrowing low. It would be madness to jeopardise that during such a hesitant recovery. That does not mean the Chancellor should simply be sitting tight and waiting for lift-off. We have argued consistently for a more aggressive growth strategy involving targeted tax breaks and a serious assault on red tape to help instil business confidence. If companies - especially large corporations - started investing the cash they are hoarding, and banks began to lend again, it would do much to stimulate recovery. Mr Osborne must continue to focus all his energies on creating an economic climate in which they feel able to do so."
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Cinco Días - Spain | Friday, 27. April 2012
ECB President Mario Draghi called for a "growth pact" for the Eurozone on Wednesday. In the French election campaign this call has been hailed as a turning point, which according to the business paper Cinco Días is an overstatement: » more
ECB President Mario Draghi called for a "growth pact" for the Eurozone on Wednesday. In the French election campaign this call has been hailed as a turning point, which according to the business paper Cinco Días is an overstatement: "The presidential candidate François Hollande sees this as a sign that his ideas are gaining ground. But Draghi's statement does not hail a radical change in direction. What he means when he talks of a growth pact has nothing to do with Hollande's plans. ... The term 'growth pact' may sound new, but in fact it's nothing that the central banks haven't already repeatedly called for: the governments must introduce reform, and the longer they wait, the greater the damage will be. Euro bonds, major investment programmes and incentives from Germany can help, but they won't change the fact that France needs reforms. If Hollande the candidate ignores this fact, Hollande the president will be the first to get a nasty surprise."
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Main focus of Thursday, 26. April 2012
Speaking in the European Parliament on Wednesday, ECB President Mario Draghi called for a "growth pact" for the Eurozone. Commentators approve of the proposal, ... » more
Speaking in the European Parliament on Wednesday, ECB President Mario Draghi called for a "growth pact" for the Eurozone. Commentators approve of the proposal, saying that austerity measures alone won't end the debt crisis.
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Cinco Días - Spain | Thursday, 26. April 2012
The Spanish government and the Spanish Football Federation signed an agreement on Wednesday obliging clubs to repay their high debts to the state - 673 million euros - in the coming year. The business paper Cinco Días approves: » more
The Spanish government and the Spanish Football Federation signed an agreement on Wednesday obliging clubs to repay their high debts to the state - 673 million euros - in the coming year. The business paper Cinco Días approves: "The fact that the government even had to stress that football's debts 'must be paid by football' shows how important is is in the current budget situation to make clear that the tax office is not willing to make unjustified exceptions for anyone. ... Of course we mustn't forget that Spanish football represents an important source of income for the treasury. In times of austerity, the tax authorities and the state can't spare a single euro. ... So the iron fist the government is applying to get the budget under control must be complemented by the consistent message that all Spaniards share the responsibility of balancing the budget and there can be no exceptions."
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Financial Times Deutschland - Germany | Thursday, 26. April 2012
ECB chief Mario Draghi's call for a new European growth pact is a good idea but the details need to be quickly worked out, writes the liberal business paper Financial Times Deutschland: » more
ECB chief Mario Draghi's call for a new European growth pact is a good idea but the details need to be quickly worked out, writes the liberal business paper Financial Times Deutschland: "What does he mean by 'growth pact'? And how can it be made compatible with the current formula of austerity, austerity, austerity we are supposed to adhere to? For now, the ECB chief has left it to others to find the answers to these questions. ... After all, growth policy can mean many things, from the more long-term project of opening service markets that have so far been closed to faster, debt-financed government spending programmes. ... The discussion launched by Mario Draghi must provide quick answers to these questions. ... Recapitalisation measures for the European Investment Bank (EIB) and the issue of loans for transnational infrastructural projects are for example one efficient way of addressing the task in hand. Speedy reallocation of EU structural and regional funding is another."
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Les Echos - France | Thursday, 26. April 2012
The UK registered a double-dip recession in the first quarter of this year for the first time since 2009, according to recent figures put out by the Office for National Statistics in London. Prime Minister David Cameron is now really in a tight spot, the business paper Les Echos writes: » more
The UK registered a double-dip recession in the first quarter of this year for the first time since 2009, according to recent figures put out by the Office for National Statistics in London. Prime Minister David Cameron is now really in a tight spot, the business paper Les Echos writes: "The UK is under considerable pressure from the rating agencies to preserve its precious triple A. All the more so after its finances worsened last March. Even though the government achieved its objective of a deficit of 8.3 percent for the 2011-2012 fiscal year that ended in March, it seems unlikely that it will reach its goal of 7.6 percent for 2012-2013 without additional austerity measures. But they, in turn, would impede growth and hence reduce tax revenues. It's a balancing act for the British government, which unlike the countries in the south of the Eurozone has so far managed to avoid the wrath of the markets."
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Jornal de Negócios - Portugal | Thursday, 26. April 2012
Portugal's President Aníbal António Cavaco Silva appealed for social cohesion in his crisis-stricken country in a speech marking the 38th anniversary of the Portuguese "Carnation Revolution" on Wednesday. But he forgot to denounce the injustices resulting from the government's austerity policy, which threaten to undermine solidarity in the country, the business paper Jornal de Negócios points out: » more
Portugal's President Aníbal António Cavaco Silva appealed for social cohesion in his crisis-stricken country in a speech marking the 38th anniversary of the Portuguese "Carnation Revolution" on Wednesday. But he forgot to denounce the injustices resulting from the government's austerity policy, which threaten to undermine solidarity in the country, the business paper Jornal de Negócios points out: "If anyone poses a threat to our most important value, social and political cohesion, it's [Prime Minister] Passos Coelho. This cohesion is not a given. It requires the constant attention of those in power and measures that maintain a sense of fairness in these times of austerity. ... It's important to be realistic. ... The reality shows that the austerity programme is affecting some more than others, and precisely this circumstance paves the way for failure and discord."
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Ta Nea - Greece | Thursday, 26. April 2012
The euro crisis has caused the downfall of several governments in the past couple of years, also as a result of the austerity policy, the left-liberal daily Ta Nea observes: » more
The euro crisis has caused the downfall of several governments in the past couple of years, also as a result of the austerity policy, the left-liberal daily Ta Nea observes: "Papandreou (Greece), Berlusconi (Italy), Cowen (Ireland) , Radičová (Slovakia), Pahor (Slovenia), Rutte (the Netherlands) - within a year the euro crisis has swallowed up so many prime ministers that the European landscape resembles a political cemetery. The political elites have been trying to save the European currency for two years now - with a devastating austerity policy. ... And the crisis isn't just affecting the South. For the first time a government in the North - whose countries form the very core of the euro - has collapsed under the pressure of the crisis. … The euro countries long believed that the European currency made them immune to crises. But now the crisis has hit the hard core of the monetary union. And once again a maxim from economic history has been confirmed: the currency cannot define the fate of a country; it is the country that defines the fate of the currency."
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La Repubblica - Italy | Thursday, 26. April 2012
Draghi's call for a growth pact goes in the right direction, writes the left-liberal daily La Repubblica: » more
Draghi's call for a growth pact goes in the right direction, writes the left-liberal daily La Repubblica: "The crisis in the Netherlands, the preliminary results of the French presidential election, the unexpectedly deep recession in Spain and Italy are bringing about the first steps towards a policy that seeks to avoid the downwards spiral of excessive austerity measures and recession. Because ultimately this spiral will hinder the rebalancing of the budgets of the southern EU countries. Draghi's call highlights the fear of such a turn of events, as does Berlin's praise for [Italian President] Giorgio Napolitano, who called for more growth. At present it's all just words, but we haven't heard such words for some time. The point is not to pitch growth against austerity. ... The austerity policy needs to be complemented with measures that seem immediately plausible to the financial markets, but don't spur further tax hikes."
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All available articles from » Tito Boeri
Financial Times - United Kingdom | Thursday, 26. April 2012
In view of the political developments in France and the Netherlands, the liberal daily Financial Times calls for an end to austerity policies: » more
In view of the political developments in France and the Netherlands, the liberal daily Financial Times calls for an end to austerity policies: "Both citizens and elites in Europe seem to feel the need to stop this nonsense. The collapse of the Dutch government and the victory of François Hollande in the first round of the French presidential elections point in the same direction: a rebellion against austerity. But this could be just the beginning: upcoming elections in Greece, next month's Irish referendum and the French legislative elections in June might well turn this into a major crisis. Looking at the damage that angry citizens have inflicted on the EU in the past decade, European leaders would do well to take their anxieties seriously."
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All available articles from » José Ignacio Torreblanca
Knack - Belgium | Wednesday, 25. April 2012
The election results in France and the Dutch government crisis are signs of growing protest at Europe's strict budget rules, writes the left-liberal weekly newspaper Knack: » more
The election results in France and the Dutch government crisis are signs of growing protest at Europe's strict budget rules, writes the left-liberal weekly newspaper Knack: "Surveys show there is a chance that after the elections the reins will pass to the Dutch Socialist Party, which like Wilders' PVV rejects the tough European budget rules. On May 6 the Greeks will also go to the polls. According to Greek pollsters the parties that are now implementing Europe's budget orders will lose their majority. ... But Europe has no answer, and clings to its 'six packs' and other budget agreements. European integration has reached its limits and has now been struck at its core. ... The European Union has run aground."
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All available articles from » Rik Van Cauwelaert
Lidové noviny - Czech Republic | Wednesday, 25. April 2012
The collapse of the Dutch government was unnecessary, according to the conservative daily Lidové noviny: » more
The collapse of the Dutch government was unnecessary, according to the conservative daily Lidové noviny: "The German pressure for budgetary discipline has claimed yet another victim - Dutch Prime Minister Mark Rutte of all people, German Chancellor Angela Merkel's closest ally when it comes to pushing through austerity. The Netherlands showcases how the fiscal compact won't solve the problems of the Eurozone but on the contrary, only exacerbate the situation and trigger unnecessary political crises. ... True, the budget deficit has deepened in the past two years of economic stagnation, rising to roughly five percent of the gross national product. But even the rating agencies are sticking to the country's top credit rating. ... It was the Germans and the Dutch who demanded lower deficit limits. And the EU Commission appears determined to apply them - regardless of who is brought down in the process."
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All available articles from » Lenka Zlámalová
Le Monde - France | Wednesday, 25. April 2012
The government in the Netherlands fell on Monday because right-wing populists refused to accept EU austerity measures, while in the French presidential elections the right-wing extremist Marine Le Pen won almost 20 percent of the vote in the first round. These are clear signs that people reject Germany's austerity policy, the left-liberal daily Le Monde contends: » more
The government in the Netherlands fell on Monday because right-wing populists refused to accept EU austerity measures, while in the French presidential elections the right-wing extremist Marine Le Pen won almost 20 percent of the vote in the first round. These are clear signs that people reject Germany's austerity policy, the left-liberal daily Le Monde contends: "If not even the model pupils are able to apply the Eurozone's budgetary measures without causing a government crisis, then who can? ... The next few days will be decisive for Europe. The citizens are expressing their frustration and fear of the cuts that budgetary discipline entails in a reasonable way: through political channels. In a way Ms. Merkel is right: Europe is all about domestic politics nowadays. But the message sent by her fellow European citizens, first and foremost the French, doesn't tally with her ideas. They are signalling their rejection of the German crisis management model which puts austerity before stimulating economic growth."
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Der Standard - Austria | Wednesday, 25. April 2012
The destructive policies of the right-wing populists make joint government impossible, writes the left-liberal daily Der Standard with reference to Geert Wilders, who rejected the austerity programme prescribed by the EU: » more
The destructive policies of the right-wing populists make joint government impossible, writes the left-liberal daily Der Standard with reference to Geert Wilders, who rejected the austerity programme prescribed by the EU: "This is what happens when right-wing extremists or populists are allowed to share power - if only indirectly. Sooner or later their destructive, aggressive potential develops. You can't govern a state with them because generally they're not for something but against it to varying degrees: against Islam, against the Jews, against foreigners, against immigrants and so on. But they're all 'against the EU in its current form' - from Haider's FPÖ in Austria to Strache's Northern League in Italy, the Front National in France and Vlaams Belang in Belgium. It's just surprising that again and again there are conservatives willing to ally themselves with them."
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De Standaard - Belgium | Tuesday, 24. April 2012
After the Dutch governing coalition formed by the conservative-liberal People's Party for Freedom and Democracy (VVD) and the Christian Democrats (CDA) tendered its resignation to the Dutch Queen on Monday, rating agency Moody's warned that the country's credit status could be downgraded. The liberal daily De Standaard bemoans the decline of the political culture in this once exemplary neighbouring country: » more
After the Dutch governing coalition formed by the conservative-liberal People's Party for Freedom and Democracy (VVD) and the Christian Democrats (CDA) tendered its resignation to the Dutch Queen on Monday, rating agency Moody's warned that the country's credit status could be downgraded. The liberal daily De Standaard bemoans the decline of the political culture in this once exemplary neighbouring country: "Within the traditional parties of the middle, there is a frightening lack of leading figures who are able and willing to make clear to the population where the right balance lies between austerity and boosting growth, giving it prospects for the future and hope. The [right-wing populist] PVV and the [socialist] SP will profit from this. ... The Netherlands, once a model country, has lost the sense of its status in Europe and the world. This is bad news for the EU. As one of the four Eurozone countries with the top AAA credit rating, the Netherlands is too important to become the umpteenth problem country."
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La Stampa - Italy | Tuesday, 24. April 2012
The potential change of government in France, the government crisis in the Netherlands and the disappointing economic data for the Eurozone caused share prices to dip by an average of three percent on Monday, with French and Dutch bonds increasingly coming under pressure. Germany's financial policy dictatorship is coming to an end, writes the liberal daily La Stampa: » more
The potential change of government in France, the government crisis in the Netherlands and the disappointing economic data for the Eurozone caused share prices to dip by an average of three percent on Monday, with French and Dutch bonds increasingly coming under pressure. Germany's financial policy dictatorship is coming to an end, writes the liberal daily La Stampa: "The true loser [of the first round of the French presidential elections] is Angela Merkel, who gave outgoing president Nicolas Sarkozy her full-hearted support. With her - perhaps hypothetical - goal of budget stability only attainable through great sacrifice, Merkel symbolises orthodox financial management. But financial as well as socio-political developments are moving in the opposite direction, towards less stability. The Merkel formula that presents austerity measures as the only cure no longer seems sustainable. The predominance of her criteria is clearly being called into question, without however anyone knowing what could replace them in order to save the positive effects that globalisation has had in addition to the many negative ones."
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El País - Spain | Tuesday, 24. April 2012
The Dutch Prime Minister Mark Rutte tendered his government's resignation on Monday after the right-wing populist Geert Wilders withdrew his party's support for the minority government. The left-liberal daily El País fears that European consensus in the area of financial policy will be further undermined: » more
The Dutch Prime Minister Mark Rutte tendered his government's resignation on Monday after the right-wing populist Geert Wilders withdrew his party's support for the minority government. The left-liberal daily El País fears that European consensus in the area of financial policy will be further undermined: "After seven weeks of negotiations Wilders withdrew his vital support for the government in an attack against the 'bureaucrats in Brussels'. In doing so he is trying to cast his party as an opponent of immigration, but not as right-wing in economic terms. ... The solution to this situation is either a broad consensus in parliament that could be proposed by Rutte today - or early elections in June or September that would lead to lengthy coalition talks. This would mean that the strict Netherlands would delay its ratification of the European rescue fund and the fiscal compact and inject even more uncertainty into an already highly uncertain situation in Europe."
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Il Sole 24 Ore - Italy | Sunday, 22. April 2012
The theory of Nobel laureate in economics Paul Krugman that Europe is committing economic suicide is wrong according to Guido Rossi. In the business paper Il Sole 24 Ore, the legal expert rejects Krugman's theory that Europe's only alternative now is to dissolve the monetary union: » more
The theory of Nobel laureate in economics Paul Krugman that Europe is committing economic suicide is wrong according to Guido Rossi. In the business paper Il Sole 24 Ore, the legal expert rejects Krugman's theory that Europe's only alternative now is to dissolve the monetary union: "Dear Mr Krugman, the euro is not a barbaric relic, like the gold standard in the 1930s. Your comparison doesn't work. On the contrary, it is the common currency of a Europe that will only save itself if it relentlessly continues its process of integration by underpinning the euro with a common financial and fiscal policy and at the same time working towards a federalised Europe, a United States of Europe. Because only then can the European Central Bank be granted the true powers of a central bank and begin to issue common European bonds, euro bonds. ... Whether US politicians and intellectuals like it or not, this is Europe's only path out of the crisis."
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Corriere della Sera - Italy | Friday, 20. April 2012
Faced with the persisting economic crisis in Europe Germany must give up its egoistic stance, writes Italian diplomat Antonio Puri Purini in the liberal-conservative daily Corriere della Sera, calling on German Chancellor Angela Merkel to be more cooperative: » more
Faced with the persisting economic crisis in Europe Germany must give up its egoistic stance, writes Italian diplomat Antonio Puri Purini in the liberal-conservative daily Corriere della Sera, calling on German Chancellor Angela Merkel to be more cooperative: "The chancellor is hiding behind the complexities of the legislation negotiated with her partners [on the fiscal pact]. But given the markets' euro scepticism this is the time to head the European debate in a different direction, to seek a unified strategy. ... The government of the most important country in Europe can't confine itself to playing the accountant and continually reminding indebted countries of their obligations. This short-sightedness is surprising in a state that has always been a protagonist on the European stage. The country that benefits most from globalisation is the one that is sealing itself off the most, and is avoiding the task that befits it in view of its political clout."
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Berliner Zeitung - Germany | Thursday, 19. April 2012
Member countries of the IMF have already agreed to supply around 320 of the targeted 400 billion dollars to be kept in reserve for crisis loans, IMF head Christine Lagarde announced on Wednesday. But Europe should solve its crisis on its own and not go begging to the IMF, writes the left-liberal Berliner Zeitung: » more
Member countries of the IMF have already agreed to supply around 320 of the targeted 400 billion dollars to be kept in reserve for crisis loans, IMF head Christine Lagarde announced on Wednesday. But Europe should solve its crisis on its own and not go begging to the IMF, writes the left-liberal Berliner Zeitung: "In fact the prosperous Europeans can and must help themselves. Instead they borrow money from emerging nations whose populations can only dream of living standards like those in Germany, France, or even Spain. With money from China, India and Brazil, the IMF is planning to massively expand its resources and erect a global firewall to complement the European one. But the fact that of all people the Germans are pushing for this plan is surprising. In Europe, where its own money is in demand, the German government explains that you can't solve a debt crisis simply by pumping in additional billions. And now it is loudly exhorting the other IMF members to do their bit towards amassing a fund of one trillion dollars. … The Europeans have the potential to stem their crisis on their own. In so doing they would fulfil their responsibility vis-à-vis the global economy.”
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La Stampa - Italy | Thursday, 19. April 2012
Italy's Prime Minister Mario Monti presented the long awaited economic and financial programme for the next three years on Wednesday. Unfortunately the plans are lacking in substance, the liberal daily La Stampa complains: » more
Italy's Prime Minister Mario Monti presented the long awaited economic and financial programme for the next three years on Wednesday. Unfortunately the plans are lacking in substance, the liberal daily La Stampa complains: "The most worrying thing about the government document and Mario Monti's speech is the complete lack of clarity even regarding concrete issues such as infrastructure and the public administration, and not just regarding abstract concepts such as future obligations, trust and warnings to citizens and parties. It's a kind of triumph for the use of modal verbs of possibility, which can cover anyone and anything. A linguistic form that deserves to be studied - merely for the audacity with which it blends two monsters of our times: the convoluted language of European bureaucracy and the election manifesto style of the parties, full of good intentions and wonderful goals, but sadly lacking any reference to the means and instruments for achieving them."
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Il Sole 24 Ore - Italy | Thursday, 19. April 2012
In the report presented on Wednesday on the Greek bailout the EU Commission has reiterated the need for the mutualisation of the Eurozone countries' public debts. But so far Berlin has refused to take this possible path out of the crisis, the business paper Il Sole 24 Ore complains: » more
In the report presented on Wednesday on the Greek bailout the EU Commission has reiterated the need for the mutualisation of the Eurozone countries' public debts. But so far Berlin has refused to take this possible path out of the crisis, the business paper Il Sole 24 Ore complains: "The crisis is real and threatens to get worse. The measures adopted so far are not enough to end it. Neither the fanatical austerity nor the permanent but insufficiently endowed bailout mechanism are enough. … A European growth strategy with at least partial consolidation of the debt is the mantra heard from many quarters, but not in Germany. However the rejection game threatens to turn dangerous. Because this economic inactivity could soon be compounded by political changes [like a new government in France], resulting in an explosive combination that makes things even easier for speculators. … That could finally bring Merkel to her senses."
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All available articles from » Romano Beda
Blog A Europa desalinhada - Portugal | Wednesday, 18. April 2012
The International Monetary Fund on Wednesday warned about a new debt crisis in Europe that could have global repercucussions. Under the leadership of its new director, French lawyer Christine Lagarde, the IMF is taking a more critical stance towards Europe than a year ago, writes Caroline de Gruyter in the blog A Europa desalinhada in the weekly Expresso: » more
The International Monetary Fund on Wednesday warned about a new debt crisis in Europe that could have global repercucussions. Under the leadership of its new director, French lawyer Christine Lagarde, the IMF is taking a more critical stance towards Europe than a year ago, writes Caroline de Gruyter in the blog A Europa desalinhada in the weekly Expresso: "At Christmas the IMF boss gave the German chancellor a small piece of jewellery from Hermès as a gift. Merkel also had a gift for Lagarde: a Beethoven CD by the Berlin Philarmonic. However the personal relationship between the two women will be put to the test now that after two years of intense involvement in European crisis management, the IMF is beginning to express its displeasure. It remains unclear whether China, Canada or Brazil will join the others at the helm, because the IMF is very different today to what it was a year ago. For [former IMF boss] Dominique Strauss-Kahn the shining role of 'euro saviour' was an opportunity because he wanted to be the next French president. But with Lagarde the IMF has become an unreliable partner."
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Neue Zürcher Zeitung - Switzerland | Wednesday, 18. April 2012
The International Monetary Fund (IMF) has forecast 3.5 percent growth for the global economy in 2012. But while the emerging economies are growing rapidly the industrialised states are stagnating. Journalist Peter A. Fischer argues in the liberal-conservative Neue Zürcher Zeitung that increasing spending won't revive the economy in Europe: » more
The International Monetary Fund (IMF) has forecast 3.5 percent growth for the global economy in 2012. But while the emerging economies are growing rapidly the industrialised states are stagnating. Journalist Peter A. Fischer argues in the liberal-conservative Neue Zürcher Zeitung that increasing spending won't revive the economy in Europe: "When states are battling a recession and are already spending less than they actually could, and when the possibilities for using monetary policy to counter the trend have all been exhausted then fiscal policy shouldn't also slow down growth, runs the argumentation. … But unfortunately this economic policy advice isn't helping Europe either right now. Most states here are suffering not from an economic deficit but from a credibility deficit. Their creditors doubt - quite rightly - that they will ever be able to recoup in full the money they have invested in government bonds. … Growth without austerity is therefore no longer an option in most EU countries. The priority now is to restore lost credibility."
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Der Standard - Austria | Wednesday, 18. April 2012
Spain's catastrophic economic situation is not a result of overspending, writes US Keynesian economist Paul Krugman in the daily Der Standard, but rather a consequence of the global financial crisis. His advice: » more
Spain's catastrophic economic situation is not a result of overspending, writes US Keynesian economist Paul Krugman in the daily Der Standard, but rather a consequence of the global financial crisis. His advice: Spain should leave the Eurozone: "Spain's fiscal problems are a consequence of its depression, not its cause. Nonetheless, the prescription coming from Berlin and Frankfurt is, you guessed it, even more fiscal austerity. This is, not to mince words, just insane. Europe has had several years of experience with harsh austerity programs, and the results are exactly what students of history told you would happen: such programs push depressed economies even deeper into depression. ... What is the alternative? ... Well, in the 1930s the essential condition for recovery was exit from the gold standard. The equivalent move now would be exit from the euro, and restoration of national currencies. You may say that this is inconceivable, and it would indeed be a hugely disruptive event both economically and politically. But continuing on the present course, imposing ever-harsher austerity on countries that are already suffering Depression-era unemployment, is what's truly inconceivable."
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De Tijd - Belgium | Monday, 16. April 2012
With his call for the European Central Bank (ECB) to play a stronger role in the euro crisis Sarkozy is distancing himself dangerously from Germany's position, the business paper De Tijd warns: » more
With his call for the European Central Bank (ECB) to play a stronger role in the euro crisis Sarkozy is distancing himself dangerously from Germany's position, the business paper De Tijd warns: "In the event of Sarkozy winning a second term in office the close-knit Berlin-Paris axis will break up. ... Sarkozy is of course having to contend with weak growth and high unemployment. The famed German model doesn't work in France. But the French president's claim that the ECB has done nothing to resolve the euro crisis is too simplistic. ... [The socialist presidential candidate] Hollande also wants to tackle 'the way the ECB intervenes'. When he presented his proposals two weeks ago Sarkozy swept them from the table. Now the two gentlemen seem to be taking the same line. For the Eurozone this means that the Franco-German engine will not just splutter, but threatens to come to a complete standstill."
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More from the press review on the subject » Domestic Policy, » Fiscal Policy, » Elections, » Germany, » France, » Europe
All available articles from » Jean Vanempten
Les Echos - France | Friday, 13. April 2012
According to the ECB Monthly Bulletin published on Thursday, Europe's inflation rate for 2012 will exceed two percent. That will impede growth, writes the liberal business paper Les Echos: » more
According to the ECB Monthly Bulletin published on Thursday, Europe's inflation rate for 2012 will exceed two percent. That will impede growth, writes the liberal business paper Les Echos: "Growth will hardly exceed zero at the start of 2012, and demand doesn't look set to be any better. Rising prices will be seasonal in part, but above all they will be concentrated on raw materials, energy and food. Hence the bulk of inflation will be imported, here as in the rest of Europe. That means first and foremost that inflation is not about to disappear, as it depends on complex climactic and geopolitical trends. And secondly it means that the burden will have a negative impact both on business margins and household buying power. As a result it will contribute to slowing down recovery."
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All available articles from » Jean-Françis Pécresse
Main focus of Thursday, 12. April 2012
The yields on Spanish and Italian bonds rose significantly on Tuesday, causing shares to plummet on Europe's stock markets. Some commentators argue that the prospect ... » more
The yields on Spanish and Italian bonds rose significantly on Tuesday, causing shares to plummet on Europe's stock markets. Some commentators argue that the prospect of financial aid from Europe is preventing indebted countries from reforming their public finances. Others believe that the pressure to economise is hardly helpful for debt-stricken states.
More from the press review on the subject » EU Policy, » Fiscal Policy, » Financial Markets, » Italy, » Spain, » Europe
Público - Portugal | Wednesday, 11. April 2012
In recent months amidst the euro crisis Germany has been accused of dictating Europe's policies. This may be partially true as regards the efforts to fight the euro crisis but when it comes to European foreign policy the small EU states are coming into their own, write the Portuguese ex-EU commissioner António Vitorino and the Latvian ex-president Vaira Vike-Freiberga in the daily Público: » more
In recent months amidst the euro crisis Germany has been accused of dictating Europe's policies. This may be partially true as regards the efforts to fight the euro crisis but when it comes to European foreign policy the small EU states are coming into their own, write the Portuguese ex-EU commissioner António Vitorino and the Latvian ex-president Vaira Vike-Freiberga in the daily Público: "In this Europe, the important moves are now sometimes made in Stockholm or Warsaw, not only in Berlin, Paris, or London. And, with major foreign-policy issues on Europe's doorstep - whether in Egypt, Belarus, or now Syria - useful European initiatives are to be welcomed, regardless of where they originate. ... Germany might be getting all of the attention in this time of crisis, but the last year has been a reminder that Europe is most effective and influential when the small countries get involved and join forces with - and even lead - the big ones. ... So, Poland and Sweden: Europe needs your leadership. ... Other EU states need to follow their example in order to make European foreign policy truly effective and influential."
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All available articles from » António Vitorino, » Vaira Vike-Freiberga
NRC Handelsblad - Netherlands | Wednesday, 11. April 2012
The yields on Spanish government bonds rose significantly on Tuesday, rocking European stock markets. The crisis continues to pose a major threat for Europe, the liberal daily NRC Handelsblad warns: » more
The yields on Spanish government bonds rose significantly on Tuesday, rocking European stock markets. The crisis continues to pose a major threat for Europe, the liberal daily NRC Handelsblad warns: "Greece was just about manageable, but can Europe deal with Spain's crisis? If the fourth-largest economy in the Eurozone is forced to resort to the European bailout fund this will likely be a setback of all the countries of the Eurozone. ... Spain is facing far greater cutbacks than the Netherlands and finds itself in the same predicament: too many cutbacks could have a negative impact on the economy. Hopefully Spain will be able to drag itself out of the swamp without direct help from Europe. If not, things will just have to take their course. The European bailout fund will have to fulfil its task, if only to prevent more countries from turning into another 'Spain'."
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Jornal de Negócios - Portugal | Monday, 9. April 2012
The common symbols on the euro banknotes could prevent the disintegration of Europe as a political entity even in the event that the Eurozone does collapse, writes US economist Robert J. Shiller in the business paper Jornal de Negócios: » more
The common symbols on the euro banknotes could prevent the disintegration of Europe as a political entity even in the event that the Eurozone does collapse, writes US economist Robert J. Shiller in the business paper Jornal de Negócios: "Every currency union chooses symbols of common cultural values for its coins and notes, and these symbols become part of the sense of shared identity. ... The euro notes feature bridges as they appeared throughout Europe in various epochs, rather than images of actual structures that might seem to imply preferential regard for some countries. ... But the bridges remain symbols of European culture, in which presumably all Europeans share. ... Even if the Eurozone breaks up, each European country could adopt a different currency but retain common symbols. ... If Europe can keep these symbols alive, even a Eurozone breakup would not have the dire political consequences for Europe that so many predict."
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More from the press review on the subject » Integration, » Weltanschauung, » Europe
All available articles from » Robert J. Shiller
ABC - Spain | Tuesday, 10. April 2012
Spanish Prime Minister Mariano Rajoy announced further cutbacks amounting to ten billion euros in the country's healthcare and education systems on Monday. These areas need to be reformed in the medium term, writes the daily ABC in support of the measure: » more
Spanish Prime Minister Mariano Rajoy announced further cutbacks amounting to ten billion euros in the country's healthcare and education systems on Monday. These areas need to be reformed in the medium term, writes the daily ABC in support of the measure: "Sooner or later we will have to think about how major public services like education and healthcare are to be financed. Faced with the decision between what is desirable and what is possible, a responsible politician should opt for the latter. This is the right approach to tackling the financial crisis of the welfare state. For any democratic government maintaining the current model for health and education would inevitably lead to the immediate collapse of these two pillars of society. The mistake has been to believe that because these are social benefits efficiency criteria could be ignored. And that because they are universal benefits it wasn't necessary to set priorities. The current crisis forces us to conclude otherwise."
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More from the press review on the subject » Fiscal Policy, » Health Policy,
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