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Ways out of the debt crisis

The EU has put together billions in bailout packages for Greece, Ireland and Portugal but now more euro countries are encountering difficulties. The European press discusses whether fiscal discipline will help more than pooling the debt - and who will foot the bill.

Neue Zürcher Zeitung - Switzerland | Wednesday, 22. February 2012

State bankruptcy simply postponed

Going bankrupt now rather than later would have been better for both Greece and the Eurozone, writes the liberal-conservative Neue Zürcher Zeitung, considering it likely ... » more

Going bankrupt now rather than later would have been better for both Greece and the Eurozone, writes the liberal-conservative Neue Zürcher Zeitung, considering it likely "that the country will become insolvent and have to leave the Eurozone anyway in the not too distant future, but will only suffer unnecessarily in the meantime. Or that the Greek bailout will transform the Eurozone into a transfer union the survival of which will have to be guaranteed by increasingly large support payments without the disadvantaged regions finding a way out of their plight. Neither prospect is edifying. A solution which released Athens into insolvency, gave it the chance of genuine debt restructuring negotiations and led at least to the suspension of Greece's Eurozone membership would have been braver and more promising. But as things stand now the hope of Greece recovering is so tiny that it would be tantamount to a miracle if it did."

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More from the press review on the subject » Fiscal Policy, » Greece, » Europe
All available articles from » Peter A. Fischer

Rzeczpospolita - Poland | Wednesday, 22. February 2012

Athens loses its sovereignty

In return for the billions in aid money Greece must fulfil strict requirements and relinquish control over the economy to foreign auditors. The country has renounced its statehood unnecessarily, the conservative daily Rzeczpospolita admonishes: » more

In return for the billions in aid money Greece must fulfil strict requirements and relinquish control over the economy to foreign auditors. The country has renounced its statehood unnecessarily, the conservative daily Rzeczpospolita admonishes: "This means surrendering a key part of its national sovereignty - and doing so beyond the scope of the European treaties. ... Better results would certainly be obtained with a structured reorganisation of the country. But neither the Greek politicians nor the people had the courage for such a step. Instead of getting down to work they opted either for partial slavery or insurgency. The Union has forced Greece to agree to permanent external control of its budget. ... You can say what you want about this requirement but one thing is certain: no sovereign country would accept such a situation, no matter how committed it is to the construction of a common Europe."

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Greece
All available articles from » Andrzej Talaga

NRC Handelsblad - Netherlands | Wednesday, 22. February 2012

Agreement like the Treaty of Versailles

With the terms it has stipulated for the bailout package Europe has de facto colonised Greece, the liberal daily NRC Handelsblad warns. "The Treaty of ... » more

With the terms it has stipulated for the bailout package Europe has de facto colonised Greece, the liberal daily NRC Handelsblad warns. "The Treaty of Versailles of 1919, the peace treaty with which the allies foisted unbearable reparations on Germany, the opposite of peace was achieved. So it would make better sense if the countries now regarded as the colonial masters were to adopt a more unobtrusive stance rather than rubbing salt into the wounds. The [Dutch] finance minister Jan Kees de Jager has failed to understand this. Even before the negotiations on the 130 billion euro bailout he called for the 'permanent presence of the troika in Athens'. This was uncalled for. Greece is already under supervision. … Moreover he said would be 'unwise' for elections to take place in April. … It is not just a matter of bad style to kick a man when he's down. It's also in one's own interest to depict the humiliation as a compromise. Adopting an excessively harsh stance only breeds a desire for revenge."

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Greece, » Netherlands, » Europe

Lidové noviny - Czech Republic | Wednesday, 22. February 2012

Greek bailout just a ruse

The second so-called bailout package for Athens can't be taken seriously, the conservative daily Lidové noviny complains: » more

The second so-called bailout package for Athens can't be taken seriously, the conservative daily Lidové noviny complains: "The official goal of the bailout is to revive the economy, increase competitiveness and lower public debt. What we have now is the opposite. Who is going to invest in a country that is collapsing? … Fears are justified that Greece won't be able to keep its promises. The two traditional major parties that have been taking turns in power for generations and were the only ones willing to sign the bailout deal can garner no more than a third of the votes. It's almost as if the package had been deliberately designed to put Athens in a hopeless situation that leaves it no alternative but to say goodbye to the Eurozone."

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Greece, » Europe
All available articles from » Lenka Zlámalová

euinside - Bulgaria | Tuesday, 21. February 2012

Greece lies in coma

At best, the 130-billion-euro EU bailout package will put insolvent Greece in an induced coma, the online portal euinside writes: » more

At best, the 130-billion-euro EU bailout package will put insolvent Greece in an induced coma, the online portal euinside writes: "Imagine a patient who needs a lifesaving surgery. Everyone is aware that even if the operation is successful the best the patient can hope for is to remain on mechanical ventilation. However, still alive. Something like that has happened to Greece in the last 24 hours. After a 14-hour 'operation' the machine is turned on and the patient is breathing, though entirely dependent on another's will. The optimistic scenario is that the patient will start breathing on his own in two years and in eight years he will be able to walk. Nobody was ready to discuss the pessimistic scenario after the exhausting night. EU Economic and Monetary Affairs Commissioner Olli Rehn looked tired but relieved, and made the best description of the situation: "In the past two years and again this night I have learned that marathon is indeed a Greek word.'"

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All available articles from » Ralitsa Kovacheva

Gazeta Wyborcza - Poland | Wednesday, 22. February 2012

Earn money on the crisis with Eurogeddon

The polish economist Krzysztof Rybiński has started up the Eurogeddon Fund, with which investors can earn money on the euro crisis. A daring but simple project, writes Grzegorz Zalewski, stock market expert at the environmental bank BOŚ, in a commentary for the liberal daily Gazeta Wyborcza: » more

The polish economist Krzysztof Rybiński has started up the Eurogeddon Fund, with which investors can earn money on the euro crisis. A daring but simple project, writes Grzegorz Zalewski, stock market expert at the environmental bank BOŚ, in a commentary for the liberal daily Gazeta Wyborcza: "Rybiński is putting his previous achievements on the line. If he is not able to sell this fund successfully he will no longer be taken seriously by his colleagues in the branch. He announced the fund that goes by the name Eurogeddon quite a while ago, but I'm disappointed at the end result. I thought this would be a project that would arouse my intellectual interest. The fact is it's a simple, not to say primitive investment fund, that earns money using short positions [loan transactions based on falling prices] or gold purchases. Quite honestly, it looks every bit like an amateur product lacking any sort of finesse."

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More from the press review on the subject » Financial Markets, » Poland, » Europe
All available articles from » Grzegorz Zalewski

Le Monde - France | Monday, 20. February 2012

End of the Eurozone simply too costly

The fact that the Euro Group is doing so much to rescue the economic flyweight Greece shows just how fragile the common currency is, writes the left-liberal daily Le Monde: » more

The fact that the Euro Group is doing so much to rescue the economic flyweight Greece shows just how fragile the common currency is, writes the left-liberal daily Le Monde: "Greece's plight shows that the eurozone still seeks a workable mixture of flexibility, discipline and solidarity. The eurozone is in a form of limbo: it is neither so deeply integrated that break-up is inconceivable, nor so lightly integrated that break-up is tolerable. Indeed, the most powerful guarantee of its survival is the costs of breaking it up. Maybe that will prove sufficient. Yet if the eurozone is to be more than a grim marriage sustained by the frightening costs of dividing up assets and liabilities, it has to be built on something vastly more positive than that. Given the economic divergences and political frictions revealed so starkly by this crisis, is that now possible?

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Greece, » Europe
All available articles from » Martin Wolf

Naftemporiki - Greece | Tuesday, 21. February 2012

Bailout deal no cause for joy

Athens' insolvency has been averted for now, but the Greeks still face many uncertainties, the conservative business paper Naftemporiki stresses: » more

Athens' insolvency has been averted for now, but the Greeks still face many uncertainties, the conservative business paper Naftemporiki stresses: "The decision of the Euro Group ends a long period of unease and uncertainty regarding our economic situation and our relationship with our EU partners. But it doesn't guarantee that better times will ensue in this chapter of our history titled 'the debt crisis and other crises'. To put it simple: no matter how much we yearn for a glimmer of hope we shouldn't draw rash conclusions and seek the light where there is none. The only thing we can count on are the next elections. This prospect will no doubt help us feel better."

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Greece, » Europe, » Global
All available articles from » Nikos Frantzis

Cinco Días - Spain | Tuesday, 21. February 2012

Greece not mature enough yet

The new rescue package by no means solves all Greece's problems, writes the business paper Cinco Días: » more

The new rescue package by no means solves all Greece's problems, writes the business paper Cinco Días: "Although the Eurozone's backing is good news - all the more so after the long succession of fallouts and reconciliations on the part of Europe's leaders in recent months regarding the agreement - the Greek problem continues to be far from resolved. In view of Athens' disastrous political and economic management ever since its ordeal began the idea is beginning to gain hold that Greece doesn't just need an economic solution but profound political renewal. But unlike the economic problem the latter cannot be resolved by means of external supervision or cash injections. It requires a process of maturation, and in some cases the creation of new structures and institutions the establishment of which will take some time." 

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Greece, » Europe

Der Standard - Austria | Tuesday, 21. February 2012

Germany's crisis profits sink

The deal in Brussels brings down not only Greece's interest payments but also those of struggling Portugal, the left-liberal daily Der Standard writes, but points out that this also means Germany will earn a little less from the crisis: » more

The deal in Brussels brings down not only Greece's interest payments but also those of struggling Portugal, the left-liberal daily Der Standard writes, but points out that this also means Germany will earn a little less from the crisis: "The creditors for the euro bailout measures will give the Greeks cheaper loans after all, and accept lower yields. … [Portugal's prime minister] Passos Coelho will also benefit indirectly from this. The interest paid by Portugal, which is also receiving billions in loans, will soon sink to a similar level. And this is only fair, because up to now states with top ratings like Germany have earned a pretty sum with the 'bailout business': on the one hand because of the high interest they were able to charge for loans, and on the other because of the cheaper market rates at which they themselves could take out loans as a result of the crisis in southern Europe. According to a study by economics researchers based in Cologne, Germany has saved 45 billion euros without having to do anything for it, simply thanks to the market. This demonstrates how inextricably and paradoxically intertwined everything is in the Eurozone."

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More from the press review on the subject » Fiscal Policy, » Greece, » Portugal, » Europe
All available articles from » Thomas Mayer

Blog A Europa desalinhada - Portugal | Monday, 20. February 2012

Kostas Karkagiannis on Greece's harmful clientele system

Greece's main problem is its long-standing clientele system, writes Greek journalist Kostas Karkagiannis in the Blog A Europa desalinhada: » more

Greece's main problem is its long-standing clientele system, writes Greek journalist Kostas Karkagiannis in the Blog A Europa desalinhada: "Perhaps you're sick of hearing about the Greek crisis, and Europe's leaders are pretty sick of it, too. You no doubt think that Greece's problems are of a financial nature: not competitive enough, huge debts and gigantic deficits, a public sector that works counter-productively. And you're right, but that's just the tip of the iceberg. The heart of the problem is the anarchic and poorly functioning judiciary. And then there's a clientele system that is based on political favours, the exchange of time-tested services, corruption and a monstrous bureaucracy. It serves only its own interests, smothering any entrepreneurial spirit and crushing the Greek populace. … In Greece the social contract has been based for at least 35 years on the following principle: the citizen votes for a certain party, and in return the small fry get a job in the public service and the big fish get expensive government contracts."

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More from the press review on the subject » Domestic Policy, » Justice, » Society, » Greece
All available articles from » Kostas Karkagiannis

Le Soir - Belgium | Saturday, 18. February 2012

Monti reduces Pope's tax privileges

Italy's Prime Minister Mario Monti informed the Vatican on Thursday that in future real estate belonging to the Church will also be subject to taxes. Finally a European head of government is heeding the will of the people and scrapping outdated privileges, writes the left-liberal daily Le Soir: » more

Italy's Prime Minister Mario Monti informed the Vatican on Thursday that in future real estate belonging to the Church will also be subject to taxes. Finally a European head of government is heeding the will of the people and scrapping outdated privileges, writes the left-liberal daily Le Soir: "The times are hard for the people of Europe. But the austerity measures that have been imposed will only be accepted if they are just and proportional. The austerity must be carried out in an ethical way, and our leaders must show that everyone is expected to contribute and that privileges are being curtailed. ... Popular revolutions always start with a sense of flagrant injustice and inequality. The leaders must be courageous and implement the austerity measures equitably, without protecting anyone. They will only be all the more legitimate and respected for doing so. Impossible? Each day Monti proves the contrary. He gives us hope that it's possible to turn the situation around with a dignified, resolute but also just handling of this unprecedented crisis."

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More from the press review on the subject » Fiscal Policy, » Religion, » Tax Policy, » Italy, » Europe, » Vatican
All available articles from » Béatrice Delvaux

The Times - United Kingdom | Monday, 20. February 2012

130 billion for Athens saves Germany

After lengthy negotiations the states of the Eurozone seem ready to grant Greece a second bailout package of 130 billion euros when they meet today, Monday. But the main objective of the loan is to rescue Germany, the conservative daily The Times writes: » more

After lengthy negotiations the states of the Eurozone seem ready to grant Greece a second bailout package of 130 billion euros when they meet today, Monday. But the main objective of the loan is to rescue Germany, the conservative daily The Times writes: "Given the damage Greece's exit could cause in Germany, it is in Germany's best economic interest that Greece remains in the euro. But this would require the Eurozone - that is, mainly Germany - to fund the gap between Greece's imports and its exports until it has made up its huge loss of competitiveness. Some economists say this will simply be impossible if Greece stays within the Eurozone and cannot devalue its currency. Even optimists admit that it could take a decade. And it is very hard to believe the German people would be prepared to foot the bill for that long even if the Greeks were to hand over the running of their economy to Berlin."

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Economic Policy, » Germany, » Greece, » Europe

ABC - Spain | Friday, 17. February 2012

Hatred should not be allowed to destroy Europe

The fact that even a friend of Germany like President Karolos Papoulias has attacked the German Minister of Finance worries the conservative daily ABC: » more

The fact that even a friend of Germany like President Karolos Papoulias has attacked the German Minister of Finance worries the conservative daily ABC: "Of course it is also true that while Germany's popular press has committed barbarities like recommending that Greece 'sell its islands' or 'auction off the acropolis', the German politicians have always insisted on respect and circumspection. Meanwhile the Greek politicians have competed with the worst of the press in an orgy of anti-German hate tirades. The images of burning German flags or Merkel dressed in Nazi uniform certainly won't help to promote German solidarity with Greece. Primitive hatred is gaining the upper hand against the European friendship which few in Greece embody as President Papoulias does. The Union was forged after two major wars precisely to quash hatred. Let us not allow hatred to be exploited once more to pit us against each other and divert attention from our responsibilities and failures." 

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More from the press review on the subject » Fiscal Policy, » Social movements, » Society, » Germany, » Greece, » Europe

Kathimerini - Greece | Thursday, 16. February 2012

Germans not fascists, Greeks not lazy

Germany is not only home to politicians like Schäuble und Merkel, who are being cast as "the enemy" in Greece at present, but also to Goethe, Marx, Brecht and Thomas Mann, columnist Xenia Kounalaki reminds her compatriots in the conservative daily Kathimerini, warning them not to overgeneralise in their anger at the Germans: » more

Germany is not only home to politicians like Schäuble und Merkel, who are being cast as "the enemy" in Greece at present, but also to Goethe, Marx, Brecht and Thomas Mann, columnist Xenia Kounalaki reminds her compatriots in the conservative daily Kathimerini, warning them not to overgeneralise in their anger at the Germans: "Those who are familiar with German culture cannot understand this rage. To see the remarks of Finance Minister Wolfgang Schäuble or the annoying articles of the tabloid Bild as representing the attitude of the entire German people or the entire German press is just as unfair and overgeneralising as the stereotype of the lazy Greek who sits around in cafés all day and lives beyond his means. … The way some people are trying to reduce the tradition of an entire country to such unfortunate comparisons as: today's Germany - the fourth Reich, Goebbels - Scäuble, Hitler - Merkel is simply absurd."

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More from the press review on the subject » International Relations, » EU Policy, » Fiscal Policy, » Germany, » Greece
All available articles from » Xenia Kounalaki

Correio da Manhã - Portugal | Friday, 17. February 2012

As inflexible in mentality as in the crisis

The current crisis in Portugal isn't just about numbers, it's also about people's mentalities, writes the tabloid Correio da Manhã: » more

The current crisis in Portugal isn't just about numbers, it's also about people's mentalities, writes the tabloid Correio da Manhã: "You've only got to look at the outraged reactions to the new system of geographic mobility in the public sector. The government's idea: if there's no work where they live, civil servants must move where they're needed. In fact there's nothing simpler: if you have to choose between moving and unemployment, especially in a country that's as small as a chamber pot, no reasonable person will give it a second thought. Particularly if you've got a family to feed. But in Portugal people have a unique take on things: the dream of the average Portuguese is to live on the first floor, work on the second, take your holidays on the third and retire to the old age home on the fourth. And when the time comes, to have the undertakers up on the fifth. ... Reforming the country isn't hard, but changing people's mentalities is all the more difficult."

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More from the press review on the subject » Society, » Portugal
All available articles from » João Pereira Coutinho

Naftemporiki - Greece | Thursday, 16. February 2012

Europe is indebted to Greece

The conservative business paper Naftemporiki firmly rejects the demands of several Eurozone countries that Greek politicians be obliged to pursue a stringent austerity programme, as well as other attempts to interfere with the democratic processes in Greece: » more

The conservative business paper Naftemporiki firmly rejects the demands of several Eurozone countries that Greek politicians be obliged to pursue a stringent austerity programme, as well as other attempts to interfere with the democratic processes in Greece: "Italy's Prime Minister Mario Monti is another European who has stated his opinion on the political situation in Greece. He indirectly rejected the idea of early elections and advocated the formation of an Italian-style government of technocrats. … The catastrophic mistakes we have made in accumulating debt and attempting to overcome the debt crisis are well known. But at least as regards democracy, we have no creditors but many debtors. We are talking about an 'asset' that was created in this country thousands of years ago, the fundamental components of which have been generously distributed across the globe."

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More from the press review on the subject » EU Policy, » Domestic Policy, » Fiscal Policy, » Germany, » Greece, » Europe
All available articles from » Nikos Frantzis

Blog Nachdenkseiten - Germany | Thursday, 16. February 2012

Fiscal pact makes EU too German

The EU aims to counter economic imbalances with the fiscal pact passed on January 31 at its Brussels summit. But the pact is tailored solely to German requirements, Jens Berger points out in the blog Nachdenkseiten: » more

The EU aims to counter economic imbalances with the fiscal pact passed on January 31 at its Brussels summit. But the pact is tailored solely to German requirements, Jens Berger points out in the blog Nachdenkseiten: "Why, for example, does a negative net external asset position amounting to more than 35 percent of a country's GDP represent an imbalance, while there is no limit whatsoever on positive external assets? … States like Germany with positive external asset positions are without doubt hugely dependent on economic developments in countries with negative external asset positions. If there's trouble there, the Germans might as well write off part of their claims and assets abroad, which would naturally have a negative impact on the German economy. … Europe has been told to become more German. But who is supposed to buy all the German exports if Europe becomes more German and its people have less and less money in their pockets?"

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More from the press review on the subject » EU Policy, » Economic Policy, » Europe, » Central Asia
All available articles from » Jens Berger

Rzeczpospolita - Poland | Thursday, 16. February 2012

Europe's economy stable in the crisis

According to preliminary estimates by the statistics office Eurostat, the Eurozone's fourth-quarter GDP in 2011 declined by 0.3 percent year on year. But although this decrease is less than expected the euro crisis is far from over, writes the conservative daily Rzeczpospolita: » more

According to preliminary estimates by the statistics office Eurostat, the Eurozone's fourth-quarter GDP in 2011 declined by 0.3 percent year on year. But although this decrease is less than expected the euro crisis is far from over, writes the conservative daily Rzeczpospolita: "Does that mean that as ever the analysts have exaggerated with their doom and gloom prognoses? It should be recalled that none of the problems lying at the heart of the crisis have been solved. The spectre of a Greek bankruptcy still haunts the markets, and talk is growing ever louder that Portugal will soon follow suit. In addition there has been no progress to speak of in the economies of Italy or Spain. The mountains of debt that have increased with every passing year of crisis can't be eliminated all that easily - not even with radical austerity programmes."

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All available articles from » Waldemar Grzegorczyk

El País - Spain | Tuesday, 14. February 2012

Merkel sets France's course

In the campaign for the French presidency both candidates should be clear about the fact that it's Germany that calls the shots in Europe, the left-liberal daily El País observes: » more

In the campaign for the French presidency both candidates should be clear about the fact that it's Germany that calls the shots in Europe, the left-liberal daily El País observes: "The economic and financial crisis affecting part of Europe is changing the rules of domestic politics and forcing even Paris to recognise that notwithstanding France's fondness of casting itself in the most flattering role, the one who calls the tune is Ms. Merkel. And the candidates should bear this in mind. … Nicolas Sarkozy and François Hollande share the same obsession: Germany. But for now Hollande is presenting himself as the stronger option vis-à-vis the Chancellor. Since he has no miracle solution to the Eurozone crisis at hand, the Socialist candidate is vowing left, right and centre that with him at the helm the situation would change; that he will compel Ms. Merkel to renegotiate the fiscal compact she has just foisted on her partners."

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More from the press review on the subject » EU Policy, » Elections, » Germany, » France

Magyar Narancs - Hungary | Wednesday, 15. February 2012

Péter Felcsuti doubts Keynes is the solution to the crisis

Europe has elected the Keynesian approach to overcome the economic crisis, notes former bank director Péter Felcsuti in the online edition of the left-liberal weekly ... » more

Europe has elected the Keynesian approach to overcome the economic crisis, notes former bank director Péter Felcsuti in the online edition of the left-liberal weekly Magyar Narancs. However he doubts that this is the right approach. "We must be aware that every crisis emerges as the result of a loss of confidence and ends once confidence is restored. So if increased government spending boosts demand, confidence returns, and the whole operation can be deemed successful. But if it fails, the patient dies or at least falls into a coma. … In reaction to the economic and financial crisis the European states have applied the Keynesian approach, with the result that many EU member states have become indebted owing to overspending. The government money pumped into the economy has not restored the confidence of the major players. Consequently neither the economy has been boosted nor have tax revenues increased. As the main buyers of government bonds the banks have been 'infected' by the high levels of public debt. In response the banks have cut down on granting loans, which has been a shock for the real economy. And ever since this process has turned into a vicious circle."

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All available articles from » Péter Felcsuti

Il Sole 24 Ore - Italy | Wednesday, 15. February 2012

Distrust of Athens making Brussels blind

The special meeting of Eurozone finance ministers planned for today, Wednesday, has been cancelled by Eurogroup President Jean-Claude Juncker on the grounds that Greece has ... » more

The special meeting of Eurozone finance ministers planned for today, Wednesday, has been cancelled by Eurogroup President Jean-Claude Juncker on the grounds that Greece has not yet fulfilled all conditions for receiving a second bailout package. Taking such a hard line is absolute madness, the business paper Il Sole 24 Ore writes. "Are we being too hard on Greece? Europe is beginning to have doubts. However the negative stance of Germany and the EU Commission will brook no challenge. The new conditions for receiving the 130 billion rescue package are indispensable. The revolts in Athens and the desperation of the people are having little impact on the virtuous citizens of the North. The clash between the blind intransigence of certain parties and the gigantic sacrifices being demanded of the Greeks without further delay has not triggered a short circuit yet - but it may not be long in coming. For now, it's just a meeting that has been cancelled. But the time left for preventing a catastrophe has almost run out."     

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All available articles from » Adriana Cerretelli

Blog Coulisses de Bruxelles - France | Tuesday, 14. February 2012

Greek politicians bear collective responsibiity

Former Greek prime minister Giorgos Papandreou apologised for the rampant corruption in his country in an address to parliament on Sunday night. Jean Quatremer finds such self-criticism commendable in his blog Coulisses de Bruxelles: » more

Former Greek prime minister Giorgos Papandreou apologised for the rampant corruption in his country in an address to parliament on Sunday night. Jean Quatremer finds such self-criticism commendable in his blog Coulisses de Bruxelles: "'Our political system is collectively responsible for all the bureaucrats we hired through favouritism, for the privileges we accorded by law, the scandalous requests we granted, the unionists and businessmen we favoured and the thieves we failed to put behind bars.' These excerpts from his address were brought to our attention by Greek Internet users. No doubt there are more, but curiously there is no trace of them in the dispatches of the news agencies, which is unfortunate. Because it's not every day that a former head of government solemnly recognises the collective responsibility of the political elite for the turmoil in his country and the widespread corruption of public morals. ... Poor Greece!"

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All available articles from » Jean Quatremer

Sme - Slovakia | Tuesday, 14. February 2012

Greed endangers Greece

The main threat to democracy in Greece isn't the violent protests against Athens' austerity policies but the people's unwillingness to accept lower incomes, writes the liberal daily Sme: » more

The main threat to democracy in Greece isn't the violent protests against Athens' austerity policies but the people's unwillingness to accept lower incomes, writes the liberal daily Sme: "Traditionally Greek politics has always had strong extreme-right and extreme-left currents that make no bones about resorting to violence to further their goals. But even more worrying is that the interests of today's extremists overlap with those of the strong public-sector unions. The protesters are the very people who have profited most from the abuse of European subsidies, a distorted market and an ineffectual economy. One can understand these people's disgruntlement at the idea that their incomes could by cut by half, or even more if they're forced to pay taxes. But it's only then that their incomes will correspond to the country's actual economic performance. The real danger comes from the people's unreadiness to make do with less money."

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More from the press review on the subject » Domestic Policy, » Fiscal Policy, » Social affairs, » Unrest / Riots, » Greece
All available articles from » Peter Morvay

Svenska Dagbladet - Sweden | Tuesday, 14. February 2012

Greeks also deserve sympathy

Even if the scenes of burning streets are enough to make you shake your head in wonder, to adopt a superior attitude towards Greece is inappropriate, the conservative daily Svenska Dagbladet writes: » more

Even if the scenes of burning streets are enough to make you shake your head in wonder, to adopt a superior attitude towards Greece is inappropriate, the conservative daily Svenska Dagbladet writes: "Can't they understand anything? The money is gone. The state revenues are too low, the spending too high. Without emergency loans they face a chaotic national bankruptcy. … At the same time we shouldn't get on our moral high horses. Sweden is different, but that doesn't rule out mismanagement or protests against austerity measures. Nevertheless the sacrifices made during the Swedish crisis of the 1990s were a mild breeze in comparison to the storm facing the Greeks for many years to come. Salaries, pensions, taxes: nothing is being left untouched. No wonder people are looking to the future in despair (however it's unfortunately typical that the incendiary Left is exploiting the situation). But the Greeks also deserve our sympathy."

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Unrest / Riots, » Greece

Le Figaro - France | Tuesday, 14. February 2012

Europe also responsible for corruption

Europe clearly bears partial responsibility for Greece's plight, writes political scientist Giorgos Prevelakis in the conservative daily Le Figaro: » more

Europe clearly bears partial responsibility for Greece's plight, writes political scientist Giorgos Prevelakis in the conservative daily Le Figaro: "Is it not unwise to pit Europe and Greece against each other as if they were two clearly separate entities? That would be to forget that thirty years of mutual cooperation in the European Union and sixty in Nato have weaved close bonds between the Greeks and the entire European-Atlantic region. Greece's shortcomings are only too aparant today, ranging from an oversized state to clientelism, corruption, administrative incompetence and lacking competitiveness. But are the Greeks the only ones to blame? Have we not tolerated, not to say encouraged, the cronyism and the distribution of European subsidies to avoid political excesses that would have jeopardised Greece's role in the Western military structure?"

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All available articles from » Giorgos Prevelakis

taz - Germany | Tuesday, 14. February 2012

Portuguese fight together against crisis

Roughly 300,000 people demonstrated in Lisbon against the conservative Portuguese government's austerity drive on the weekend. Although the Portuguese are in a similar position to the Greeks they will overcome the crisis because they act and demonstrate in unison, writes the left-leaning daily taz: » more

Roughly 300,000 people demonstrated in Lisbon against the conservative Portuguese government's austerity drive on the weekend. Although the Portuguese are in a similar position to the Greeks they will overcome the crisis because they act and demonstrate in unison, writes the left-leaning daily taz: "How different things are in Greece. A real mass demonstration has never taken place there because the employees' camp is too divided. Private sector employees envy the public servants, who earn so much more. And each sector is mainly concerned with its own interests. The ferry workers went on strike - and paralysed the tourist branch - without consulting other trade unions. It's every man for himself in Greece. … The Portuguese, on the other hand, are not only demonstrating collectively, they are tackling the reforms collectively. Government and opposition are working together to get the country back on its feet. What would be unthinkable in Greece works without a glitch in Portugal: when taxes are raised, they're collected too, and that's that."

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All available articles from » Ulrike Herrmann

Ta Nea - Greece | Monday, 13. February 2012

Only swift reforms can prevent bankruptcy

The hard-fought approval for the austerity package in the Greek parliament saw the markets rally on Monday morning. But unlike German Chancellor Angela Merkel, her Vice Chancellor Philipp Rösler (Free Democratic Party) and Finance Minister Wolfgang Schäuble (Christian Democratic Party) are still discussing the possibility of Greece going bankrupt or exiting the Eurozone. For this reason the adopted reforms must be quickly implemented to avoid bankruptcy, the left-liberal daily Ta Nea demands: » more

The hard-fought approval for the austerity package in the Greek parliament saw the markets rally on Monday morning. But unlike German Chancellor Angela Merkel, her Vice Chancellor Philipp Rösler (Free Democratic Party) and Finance Minister Wolfgang Schäuble (Christian Democratic Party) are still discussing the possibility of Greece going bankrupt or exiting the Eurozone. For this reason the adopted reforms must be quickly implemented to avoid bankruptcy, the left-liberal daily Ta Nea demands: "Nothing has been conclusively settled yet. We still have a long way to go, with new and even more painful sacrifices than those already made. But we still have hope of success. We must look forward. But we must also learn from the mistakes of the past two years: there must be an end to the relapses we saw with the first austerity package. The major reforms must be implemented so that the international community receives the message it needs. And most importantly, drastic measures must finally be taken against tax evasion. … The people don't object to making sacrifices, but they want justice."

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Neue Zürcher Zeitung - Switzerland | Tuesday, 14. February 2012

The Greeks themselves must want change

The Greek MP's vote in favour of the austerity package was forced and in most cases goes against their convictions, the liberal-conservative Neue Zürcher Zeitung comments, doubting that the reforms can be enacted in their current form: » more

The Greek MP's vote in favour of the austerity package was forced and in most cases goes against their convictions, the liberal-conservative Neue Zürcher Zeitung comments, doubting that the reforms can be enacted in their current form: "Notwithstanding the approval of the package, in the two main parties, Pasok and Nea Dimokratia, there wasn't even a consensus on what should be done to save the country. For this reason alone, the measures stipulated by the creditors can't really make an impact. And neither deploying an EU budget commissioner nor setting up a blocked account will help when it comes to servicing the debts. Then there's the fact that the package is widely regarded as a dictate from abroad, and this will allow the politicians to place the blame for mistakes and omissions elsewhere. The initiative for fundamental change must come from within and be backed by the Greek people. Greece, however, is a long way from such a national act of unity."

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All available articles from » Cyrill Stieger

Der Spiegel - Germany | Monday, 13. February 2012

Timothy Garton Ash recommends Europe should help Germany

Germany will not be able to lead the EU from the crisis without the help of the French and the British, writes the British historian and commentator Timothy Garton Ash in the weekly magazine Der Spiegel, comparing Europe with a car chauffeured by an unwilling German Chancellor Angela Merkel: » more

Germany will not be able to lead the EU from the crisis without the help of the French and the British, writes the British historian and commentator Timothy Garton Ash in the weekly magazine Der Spiegel, comparing Europe with a car chauffeured by an unwilling German Chancellor Angela Merkel: "So far Germany is proving a reluctant, nervous and not very skilful driver. ... We may laugh at Sarko's antics in the front passenger seat ("Non, non, ma chérie! Tout droit, tout droit!'), but he's got the right idea. For David Cameron to consign Britain to the back seat - if not the dog boot - of the European car at this critical moment is folly beyond words. Earlier this week, Merkel again stressed how much Germany wants to see this fellow north European, free-market liberal country return to the heart of European affairs. ... It would be so short-sighted, so plain dumb, for Britain to abandon Germany to its own devices just when it finds itself playing such a decisive role in Europe - a role that it did not seek, for which it is ill-prepared and in which it needs all the help that it can get."

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Trouw - Netherlands | Monday, 13. February 2012

Eurozone countries regain self-confidence

The speculation about Greece exiting the Eurozone was an effective means of putting pressure on the country, the Christian-social daily Trouw writes with renewed optimism: » more

The speculation about Greece exiting the Eurozone was an effective means of putting pressure on the country, the Christian-social daily Trouw writes with renewed optimism: "The open statements that a Greek exit wouldn't be a tragedy also showed that the Eurozone is slowly regaining its self-confidence. There is now the conviction that the euro would survive a Greek bankruptcy, and that Greece's failure wouldn't send Rome, Madrid and Lisbon into a downwards spiral. No one can give any guarantees, but clearly there is now greater confidence that the emergency measures at a national and European level as well as the Eurozone's new agreements will have an impact. Perhaps many also believe that the time of fear has gone on for too long. … Crises don't just pass, but it helps if we let the mood shift from one of pessimism to one of optimism."

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La Stampa - Italy | Monday, 13. February 2012

Athens is a warning for corrupt Italy

The violent protests in Greece are the payback for the rampant corruption in politics and should serve as a lesson for Italy, the liberal daily La Stampa warns: » more

The violent protests in Greece are the payback for the rampant corruption in politics and should serve as a lesson for Italy, the liberal daily La Stampa warns: "We should pay close attention to events in Greece, because they can teach us a few things. The leaders of the two major parties agree with the technocratic prime minister that new sacrifices are inevitable. But the people have no more to give, since the sacrifice has been unevenly distributed. What we have here is a thoroughly corrupt political administration that puts all the burden on the weak, namely those who don't belong to the protected professional associations or the parties' clientele. For the MPs it's easier to increase the tax burden than to cross the interest groups. And worse still, the inability to scrap privileges is blocking any attempt to revive the economy."

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To Vima Online - Greece | Monday, 13. February 2012

Insolvency could unleash chaos

During the mass protests in Greece against the austerity package heavy rioting broke out in Athens and other cities. Several buildings were set alight and the police used truncheons and tear gas against the demonstrators. The scenes of unrest show what awaits Greece if it comes to an uncontrolled bankruptcy, writes the left-liberal online paper To Vima: » more

During the mass protests in Greece against the austerity package heavy rioting broke out in Athens and other cities. Several buildings were set alight and the police used truncheons and tear gas against the demonstrators. The scenes of unrest show what awaits Greece if it comes to an uncontrolled bankruptcy, writes the left-liberal online paper To Vima: "What we saw on Sunday points to a very a dark future indeed, similar or worse than the situation in Argentina a decade ago. Even those who favour halting interest payments and insolvency have recognised the danger. ... Uncontrolled insolvency could lead to blind violence and chaos. For that reason bankruptcy must be avoided at all cost."

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Dagens Nyheter - Sweden | Monday, 13. February 2012

Greeks facing a lot of hard work

The austerity plan is only logical since Greece lived above its means for far too long, writes the liberal daily Dagens Nyheter and urges the Greeks to make a great effort: » more

The austerity plan is only logical since Greece lived above its means for far too long, writes the liberal daily Dagens Nyheter and urges the Greeks to make a great effort: "Salaries have risen markedly since the introduction of the euro, while the amount of economic revenues channelled into social transfers has doubled in the course of a decade. The alternative to cutting public spending would by to use exports to work our way out of the crisis. But as the American professor Ricardo Hausmann has stressed, Greece doesn't produce 'machines, electronic devices or chemicals'. To balance the enormous deficit in the balance of payments the export basis must be made broader. This takes time. The Baltic countries were forced to undergo radical treatment to fight their crisis. Ireland is on the road to recovery after a crash landing. Greece cannot be an impossible case. But even with the support of the EU it will take many years of major effort on its part."

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Correio da Manhã - Portugal | Monday, 13. February 2012

EU austerity drive quells citizens' hopes

The austerity dictate from Brussels will impoverish the Greeks, and that will ultimately work against the entire Eurozone, the tabloid Correio da Manhã warns: » more

The austerity dictate from Brussels will impoverish the Greeks, and that will ultimately work against the entire Eurozone, the tabloid Correio da Manhã warns: "What remains of the draconian austerity package for Greece is the image of violence on Syntagma Square in the heart of Athens. On the same day the German finance minister warned the Greeks that they could not continue being a bottomless pit. The troika is enforcing another dose of poverty with wage cuts and rising unemployment. Europe has allowed the Greek politicians to make a fool of it in recent years: they used the times of a cheap and easy euro to wrack up debts for the country beyond all limits. Now all Europe has to offer is frugality. And the rejection of this painful remedy is causing more poverty. If the EU doesn't start offering citizens a ray of hope it will very soon plunge into the abyss."

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All available articles from » Armando Esteves Pereira

Hospodárske noviny - Slovakia | Friday, 10. February 2012

A brief reprieve for Athens

Greece's submission will give it a reprieve, but not for long, writes the business paper Hospodárske noviny: » more

Greece's submission will give it a reprieve, but not for long, writes the business paper Hospodárske noviny: "The politicians in Athens had no choice but to fulfil the troika's conditions. Otherwise the country would have faced bankruptcy, which would also plunge the entire Eurozone into a storm. Greece needs the 130 billion package. The costs are enormous: high unemployment, dwindling industrial production, pension and salary cuts, spending cuts, weak economic growth, social unrest, an artificial political stability. In return, some of its debts will be waived and bankruptcy avoided. Once again time has been bought. How much remains unclear. But to judge by the experiences of the last two years it won't be very long."

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All available articles from » Ivan Szabó

Tages-Anzeiger - Switzerland | Friday, 10. February 2012

Rescue farce to calm creditors

Previous experience leaves little hope that Greece will be able to implement the austerity measures required of it, the liberal daily Tages-Anzeiger writes, surmising that ... » more

Previous experience leaves little hope that Greece will be able to implement the austerity measures required of it, the liberal daily Tages-Anzeiger writes, surmising that the second rescue package is above all meant to soothe the fears of private creditors. "In view of all the uncertainties, one is led to suspect that with the new rescue plan for Greece the IMF and euro countries are primarily aiming to appease Athens' private creditors. The latter must decide in the next weeks whether to participate in the 'voluntary' credit writedown and exchange their current Greek bonds for new securities with half the value and longer maturities. Such an exchange, and the hoped-for Greek debt relief of 100 billion euros will only have a chance of success if the private creditors are led to believe at least until next month that the crisis-ridden Mediterranean country is now on secure financial footing."

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Les Echos - France | Friday, 10. February 2012

Greece and EU need growth now

Now that the Greek parties have accepted the austerity requirements the country - like the rest of Europe - must find its way back to the path of growth, affirms the liberal daily Les Echos: » more

Now that the Greek parties have accepted the austerity requirements the country - like the rest of Europe - must find its way back to the path of growth, affirms the liberal daily Les Echos: "Good, the country has a bit of a respite. Now it must once more learn to breathe, that is to create more wealth to be able to repay more debt. There's no point getting impatient: the process will take at least a decade. And that doesn't just apply to Greece. All of Europe has slowed down for some time to come. ... Of course it is indispensable that all of the European countries return to a sustainable budget trajectory without being at the mercy of investor hiccups. That is the objective of the European 'fiscal compact' adopted officially at the end of January. But this package won't be enough. If Europe sinks deeper into its 'lost decade', the public accounts of its member countries will remain in the deep red."

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All available articles from » Jean-Marc Vittori

Il Sole 24 Ore - Italy | Friday, 10. February 2012

ECB too passive in the crisis

The head of the European Central Bank, Mario Draghi, confirmed on Monday that the ECB will leave the base interest rate at one percent and won't participate in the restructuring of Greece's debts. The ECB is far too passive, complains the business paper Il Sole 24 Ore: » more

The head of the European Central Bank, Mario Draghi, confirmed on Monday that the ECB will leave the base interest rate at one percent and won't participate in the restructuring of Greece's debts. The ECB is far too passive, complains the business paper Il Sole 24 Ore: "It's clear what the ECB is waiting for: at the end of the month the second cash injection is due, aimed at giving the banking system another boost. But the ECB seems a little too passive in this context. Rather than taking its own steps it simply bows to the circumstances. It hands out money, but only as much as the banks want it to. Moreover the ECB is obliged to adopt a neutral stance regarding individual countries. Yet it allows the market to decide which government bonds and how many to buy in exchange for fresh funds. And with this approach the ECB is conveying the impression that it is failing in its most important task, that of controlling inflation expectations, which is crucial for financial policy. … Draghi has pointed to the uncertainty of the situation on several occasions. But it is still unclear what the ECB intends to do about it. Not only is it not taking the initiative, it doesn't even seem willing to look into the future."

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All available articles from » Riccardo Sorrentino

Naftemporiki - Greece | Friday, 10. February 2012

EU's conduct alienating Greeks

The Eurozone finance ministers demanded that Athens provide further guarantees on Thursday evening before they make their decision next Wednesday on whether to give Greece the second instalment of the rescue package. The conservative business paper Naftemporiki asks what goals the EU partners are pursuing with this strategy: » more

The Eurozone finance ministers demanded that Athens provide further guarantees on Thursday evening before they make their decision next Wednesday on whether to give Greece the second instalment of the rescue package. The conservative business paper Naftemporiki asks what goals the EU partners are pursuing with this strategy: "What are they trying to achieve? Is this another strategic manoeuvre ahead of the vote on the austerity agreement in the Greek parliament [on Sunday] aimed at ruling out any possibility of negative behaviour on the part of the Greek parliamentarians? … One thing's for sure, this approach is causing more and more Greeks to turn their backs on the European project and philosophy. … In addition a growing number of Greeks are less and less afraid of the prospect of Greece exiting the Eurozone. … This is evident in the increased determination of a people to take their fate into their own hands if necessary."

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All available articles from » Nikos Frantzis

Süddeutsche Zeitung - Germany | Thursday, 9. February 2012

Greeks' irresponsible manouevering

The constant delays of the Greek politicians are irresponsible and dishonest, the left-liberal daily Süddeutsche Zeitung complains: » more

The constant delays of the Greek politicians are irresponsible and dishonest, the left-liberal daily Süddeutsche Zeitung complains: "There are no words for how irresponsible this behaviour is towards their own people and also their partners in the Union. … Transparency and candidness are the virtues needed right now, but instead the Greek party machinery is caught up in murky interest games and spreading half-truths about the real state of the country and the role of the rescuers. This type of communication in such an emergency situation leads to only one conclusion: … We urgently need a bad guy who finally voices the ugly word 'insolvency'. The creditors are provoking Greece (with threats like the idea of deploying supervisors from Brussels). And the Greek politicians are provoking with their annoying couldn't-care-less attitude. The result: on both sides the aggression is intensifying."

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All available articles from » Stefan Kornelius

De Morgen - Belgium | Thursday, 9. February 2012

Greece needs Europe's solidarity

The austerity measures enacted in Greece have led to shrinking incomes and social problems, writes the left-liberal daily De Morgen and warns Europe not to drive the country into misery: » more

The austerity measures enacted in Greece have led to shrinking incomes and social problems, writes the left-liberal daily De Morgen and warns Europe not to drive the country into misery: "In just a few months Greece has slipped to the level of a fourth-world country. … The Greek austerity plan is partly based on extra taxes for the workers who no longer have any leeway, never mind the strength to boost the economy. … The European project grew out of the idea that solidarity and cooperation are far better than rivalry and war. What we are now seeing in Greece has little to do with the European dream. … If Europe wants to prove that it is a truly great project then the moment has come to do so, not by holding a knife to the citizens' throats but by offering them clever and caring support."

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All available articles from » Koen Vidal

Ta Nea - Greece | Wednesday, 8. February 2012

Giannis Politis on two German recipes for solving Greek crisis

Germany is divided over the Greek problem, columnist Giannis Politis concludes in the left-liberal daily Ta Nea, considering the mixed signals reaching Greece from Germany: » more

Germany is divided over the Greek problem, columnist Giannis Politis concludes in the left-liberal daily Ta Nea, considering the mixed signals reaching Greece from Germany: "There are two Germanys and two recipes for saving Greece. The first we all know. It is advocated by Angela Merkel, her cronies in government and the banks. They treat us like protestant monks: first meting out harsh punishment and humiliations, then offering redemption. … But even the quasi-religious commitment with which the chancellor is pursuing her tough tactics has not borne fruit. Fortunately there is another Germany - that of Helmut Schmidt and his supporters, who are convinced of the European project. Together with important media, this Germany is calling for an end to the farce of the Greece rescue and proposes rebuilding the country with a new Mashall Plan instead. … It's obvious that the present leadership in Germany is not in possession of the only truth."

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De Volkskrant - Netherlands | Wednesday, 8. February 2012

Don't make Greeks pay for euro's failings

Even if EU Commissioner Neelie Kroes and Dutch Prime Minister Mark Rutte are speculating openly about a Greek withdrawal from the Eurozone, allowing Greece to go bankrupt is a risk move, warns the left-liberal daily De Volkskrant: » more

Even if EU Commissioner Neelie Kroes and Dutch Prime Minister Mark Rutte are speculating openly about a Greek withdrawal from the Eurozone, allowing Greece to go bankrupt is a risk move, warns the left-liberal daily De Volkskrant: "In the countries of the north the euro crisis is being represented as a matter of budget discipline, yet Spain, a problem country, has always strictly adhered to the rules. The fundamental problem of the Eurozone is the enormous gap between the productivity of the northern countries and that of the southern ones. Greece is an extreme case, but Spain and Portugal will have great difficulties bringing their economies up to northern European levels. ... This structural fault of the euro makes northern Europe responsible for the crisis. Greece is rightly being called on to make greater efforts to put its finances in order. But northern Europe can be expected to show solidarity. The Greeks cannot be left to pay the price of the crisis alone."

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All available articles from » Peter Giesen

To Vima Online - Greece | Wednesday, 8. February 2012

Greeks are sick of Europe

Athens should immediately end its talks with the creditors and the troika and start working out a plan B with the Americans, writes the left-liberal online paper To Vima: » more

Athens should immediately end its talks with the creditors and the troika and start working out a plan B with the Americans, writes the left-liberal online paper To Vima: "After the extreme pressure of the last two days and the idea of a 'special blocked account' is there anyone in Greece who still believes that the words 'bailout' and 'solidarity' can be in any way connected to what is being demanded of Athens - with a gun to its head? ... Greece still has the power to blow up the whole thing. And this is the only remaining alternative. What will happen then? After the country has gone through hell - which at this point is inevitable anyway - the same people who are now blackmailing the country and plunging it into the abyss will come back and resume talks. ... The only task for the Greek government now would be to prepare special mechanisms for surviving the days of the big shock. It must turn to international agents like the US, which by the way have remained silent so far."

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Pravda - Slovakia | Wednesday, 8. February 2012

Too much expected of Greece

Europe is putting the Greeks under too much pressure, writes the left-leaning daily Pravda and warns that this could trigger a social explosion that reverberates throughout the continent. "The picture of the European public being presented by the Greeks is unbelievable. The news about the negotiations between the government in Athens and the creditors is constantly accompanied by politicians and investors making disgruntled comments about the lack of progress being made. The remarks are always the same: » more

Europe is putting the Greeks under too much pressure, writes the left-leaning daily Pravda and warns that this could trigger a social explosion that reverberates throughout the continent. "The picture of the European public being presented by the Greeks is unbelievable. The news about the negotiations between the government in Athens and the creditors is constantly accompanied by politicians and investors making disgruntled comments about the lack of progress being made. The remarks are always the same: Athens isn't moving forward, the reforms are inadequate. One hears much less about how harsh the cuts in salaries and pensions already are and how much public spending and debts have already been reduced. The real problem is the unrealistic expectations of the authors of the 'recovery programme'. Cutbacks alone won't trigger new growth but they may cause the already tense social situation to escalate."

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All available articles from » Ivan Lesay

Il Sole 24 Ore - Italy | Wednesday, 8. February 2012

Europe is sick of Athens

Neelie Kroes has said what many are thinking, writes the business paper Il Sole 24: » more

Neelie Kroes has said what many are thinking, writes the business paper Il Sole 24: "The words of the Vice-President of the European Commission, Neelie Kroes, conceal an obvious impatience with the way Greece is behaving. The Netherlands in particular - perhaps even more than Germany and Finland - is toying with the idea of abandoning Athens to its fate. The EU Commissioner's words are no longer an attempt to exert pressure on the Papademos government. In certain European circles the bitterness has taken on a whole new quality. Their trust in Greek politicians has been exhausted. They fear that the upcoming elections in April will only worsen the situation in the debt-stricken country, rather than improving it."

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All available articles from » Romano Beda

Cinco Días - Spain | Tuesday, 7. February 2012

EU must reckon on Greek bankruptcy

German Chancellor Angela Merkel and French President Nicolas Sarkozy cranked up the pressure on Greece to enact the promised reforms on Monday. Europe should start thinking about what will happen if Greece really files for bankruptcy, writes the business paper Cinco Días: » more

German Chancellor Angela Merkel and French President Nicolas Sarkozy cranked up the pressure on Greece to enact the promised reforms on Monday. Europe should start thinking about what will happen if Greece really files for bankruptcy, writes the business paper Cinco Días: "The Eurozone needs an emergency plan to deal with a potential explosion in Greece. Athens' most recent provocation will likely lead to a temporary solution. Otherwise the Greek banks will go bankrupt. And the rest of the Eurozone needs a plan to prevent the panic from spreading in the financial world. Europe's hard liners, led by Germany, have lost their patience with the repeated broken promises of the Greek government. ... But is the rest of Europe really ready to throw in the towel? If that happens it won't just be the Greek government that goes bust."

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All available articles from » Hugo Dixon

Financial Times Deutschland - Germany | Tuesday, 7. February 2012

Blocked account paves way for Greek bankruptcy

With their calls for setting up a special account for Greece German Chancellor Angela Merkel and French President Nicolas Sarkozy have launched a new attempt to strip Athens of its financial sovereignty. The account, to which Greece would not have access, is meant to guarantee payment for creditors. This demand is as impossible as that for an EU budget commissioner for Greece and simply serves to prepare for Greece's bankruptcy, the liberal business paper the Financial Times Deutschland concludes: » more

With their calls for setting up a special account for Greece German Chancellor Angela Merkel and French President Nicolas Sarkozy have launched a new attempt to strip Athens of its financial sovereignty. The account, to which Greece would not have access, is meant to guarantee payment for creditors. This demand is as impossible as that for an EU budget commissioner for Greece and simply serves to prepare for Greece's bankruptcy, the liberal business paper the Financial Times Deutschland concludes: "No one wants to face accusations of not having done everything possible to prevent the first bankruptcy of a Eurozone member. ... Making such unrealisable demands is therefore much more convenient than having to muscle through unpopular rescue packages for Greece in one's own country, especially for Angela Merkel. If the worst comes to the worst and the Greeks refuse to go along with the demands they would then only have themselves to blame for their insolvency and their euro exit. After all they could have accepted the EU budget commissioner, or alternatively the blocked account (and the other reforms and rescue packages)."

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Jornal de Negócios - Portugal | Sunday, 5. February 2012

Stephen Roach on China and India as victims of the euro breakup

China and India could be the next victims of the euro crisis if they don't revise their economic policies, writes economist Stephen Roach in the business paper Jornal de Negócios: » more

China and India could be the next victims of the euro crisis if they don't revise their economic policies, writes economist Stephen Roach in the business paper Jornal de Negócios: "While China is in better shape than India, neither economy is likely to implode on its own. It would take another shock to trigger a hard landing in Asia. One obvious possibility today would be a disruptive breakup of the European Monetary Union. In that case, both China and India, like most of the world's economies, could find themselves in serious difficulty. ... Seduced by the political economy of false prosperity, the West has squandered its might. Driven by strategy and stability, Asia has built on its newfound strength. But now it must reinvent itself. Japanese-like stagnation in the developed world is challenging externally dependent Asia to shift its focus to internal demand. Downside pressures currently squeezing China and India underscore that challenge. Asia's defining moment could be hand."

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All available articles from » Stephen Roach

De Tijd - Belgium | Monday, 6. February 2012

Europe must prevent Greek insolvency

Greece should not under any circumstances be allowed to plunge into a disorderly insolvency, writes the business paper De Tijd: » more

Greece should not under any circumstances be allowed to plunge into a disorderly insolvency, writes the business paper De Tijd: "Europe itself is pursuing a hopeless course because it is relying on a one-sided recipe that doesn't work. Therefore Europe's leaders should assume responsibility and place the country under close supervision while at the same time providing help to avoid the present hopeless situation from further deteriorating. But is there the will to do this? One may surely doubt it. ... Even if Greece approves the reforms it won't solve the debt problem but merely postpone it. The stakes are high in the gambling over Greece right now. But it's questionable whether all the parties truly realise what is at risk. It won't be just Greece's future that is at stake if the country can't service its debts in March, but that of the entire Eurozone."

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More from the press review on the subject » Fiscal Policy, » Greece
All available articles from » Jean Vanempten

Imerisia - Greece | Sunday, 5. February 2012

Austerity drive ultimately hurts all Europe

Government leader Lucas Papademos aims to secure domestic support for the additional austerity measures that the Troika is demanding from Athens today. The business paper Imerisia finds the pressure from Europe unbearable: » more

Government leader Lucas Papademos aims to secure domestic support for the additional austerity measures that the Troika is demanding from Athens today. The business paper Imerisia finds the pressure from Europe unbearable: "Will we allow these hard, unfeeling, unhistorically-minded technocrats to open fire on Greek society and prompt a rebellion? Because what the troika really wants is to incite us to reject the new loan instalment, forcing the country into insolvency. ... These people are dangerous, not just for Greece but for all of Europe, because as Deutsche Bank CEO Josef Ackermann and other serious economics have stressed: if Greece collapses, all of Europe is in danger. ... For that reason Merkel, Sarkozy and Juncker should stop threatening us in this shameless way - which is being met with increasing resentment by a growing number of citizens. Together with the Greek government the trio should seriously look for an advantageous solution for Europe and Greece."

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All available articles from » Thanasis Lirtsogiannis

La Repubblica - Italy | Monday, 6. February 2012

Greece races headlong into bankruptcy

The creditors are demanding that Athens draw up a list of the labour market and tax reforms that have yet to be enacted for the country to receive further loans. But the politicians are not willing to introduce reforms, which means that the fate of the country is sealed, writes the left-liberal daily La Repubblica: » more

The creditors are demanding that Athens draw up a list of the labour market and tax reforms that have yet to be enacted for the country to receive further loans. But the politicians are not willing to introduce reforms, which means that the fate of the country is sealed, writes the left-liberal daily La Repubblica: "Greece is turning once again into a walking menace for the financial markets. After a relatively positive week on Europe's stock markets the Greek Prime Minister Lucas Papademos has turned up with almost empty hands. The credit negotiations will continue but owing to the lack of domestic unity in Greece things do not bode well for them. If the negotiating parties haven't reached an agreement by February 13 the insolvency of Greece will be a fact and national bankruptcy inevitable."

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All available articles from » Valentina Conte

Dinheiro Vivo - Portugal | Sunday, 5. February 2012

Banks like long-term employment contracts

Italy's Prime Minister Mario Monti last Wednesday called on Italy's younger generation to get used to the idea of not having one steady job their whole lives. But this means they will have no long-term security, the online business paper Dinheiro Vivo stresses: » more

Italy's Prime Minister Mario Monti last Wednesday called on Italy's younger generation to get used to the idea of not having one steady job their whole lives. But this means they will have no long-term security, the online business paper Dinheiro Vivo stresses: "Last week he caused an uproar in Italy with the words: 'What a boring prospect it is to spend your whole life doing one job. It is good to change and face new challenges.' Monti, a strict technocrat, had one underlying message with these words: don't expect the state to give you what it gave your parents. ... The statement was greeted by a chorus of grumbling. Children, parents and grandparents all voiced their disapproval - the former because they're unemployed and want stability, the others because they have stability and don't want to give it up. The social networks exploded with comments on the topic. But aside from the numerous verbal excesses, some people made the very valid point: 'Yes, it's boring to work at the same job all your life, but banks like boring people when they grant loans."

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More from the press review on the subject » Domestic Policy, » Labour market, » Italy

Trends Tendances - Belgium | Friday, 3. February 2012

Brunos Colmant on Europe's youth as victims of the crisis

In their negotiations for resolving the European debt crisis the European heads of state and government tend to forget that in the long term Europe's youth will foot the bill, economics professor Bruno Colmant admonishes in the business paper Trends Tendances: » more

In their negotiations for resolving the European debt crisis the European heads of state and government tend to forget that in the long term Europe's youth will foot the bill, economics professor Bruno Colmant admonishes in the business paper Trends Tendances: "Debts are a mortgage on the prosperity of future generations, indisputably hindering their democratic participation. Consequently our European community will doubtless be confronted with vigorous ideological debates that have been smothered by the favourable economic trend of the past 30 years. The coming years will be marked by increasing tensions between an individualist capitalism and collective forces that campaign against speculation and call for higher taxes and inflationary measures. This conflict will be intensified by the social tensions arising from the already visible unequal distribution of wealth among the generations. Because for all these scenarios the truth is that the young are the victims."

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All available articles from » Bruno Colmant

De Volkskrant - Netherlands | Friday, 3. February 2012

Europe's pressure to economise worsens crisis

The fiscal pact agreed at the most recent EU summit forces Eurozone countries to reduce their budget deficits, writes the left-liberal daily De Volkskrant, and fears that Europe's pressure on states to cut spending will only escalate the crisis: » more

The fiscal pact agreed at the most recent EU summit forces Eurozone countries to reduce their budget deficits, writes the left-liberal daily De Volkskrant, and fears that Europe's pressure on states to cut spending will only escalate the crisis: "Europe continues on the path towards an unprecedented crisis. The decision to bow to German demands paves the way for economic stagnation and social chaos. ... The goal should be to end the imbalances among the different economies and improve our competitiveness. But instead the economy is being put under more pressure. ... First Greece and now Portugal are on the brink of bankruptcy. Portugal has followed the German recipe and cut spending to the point of destroying its economy so that it will never be able to repay its debts. ... And Spain is not much better off than Portugal. There is no reason for Europe to heave a sigh of relief. To use Prime Minister Rajoy's words: the worst is still to come."

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All available articles from » Steven Adolf

Le Point - France | Thursday, 2. February 2012

Italy paves Europe's way out of crisis

The yield on ten-year Italian bonds dropped on Wednesday to levels not seen since October 2011. Investors seem to have gained renewed confidence in Italy, making the country a model for how to save Europe, writes the weekly magazine Le Point: » more

The yield on ten-year Italian bonds dropped on Wednesday to levels not seen since October 2011. Investors seem to have gained renewed confidence in Italy, making the country a model for how to save Europe, writes the weekly magazine Le Point: "The Super Mario duo - Monti and Draghi - has undertaken to transform Italy and the Eurozone. ... Italy is paving the way for reforming the Southern European model of credit-based growth and the Eurozone's institutions. Mario Monti's shock therapy has dissipated doubts as to whether the Mediterranean countries can transform their economic model and achieve more production, investment and innovation. Mario Draghi's monetary policy reconciles the need for austerity measures and debt reduction on the one hand and growth on the other. The two Marios remind us that there is still room for manoeuvre. The debt and euro crisis is the result of antiquated economic models and institutions which the Europeans must now transform."

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All available articles from » Nicolas Baverez

Magyar Hírlap - Hungary | Wednesday, 1. February 2012

Hungary makes right decision

The Hungarian government's decision to endorse the EU fiscal compact was a sensible one, writes the right-wing conservative daily Magyar Hírlap: » more

The Hungarian government's decision to endorse the EU fiscal compact was a sensible one, writes the right-wing conservative daily Magyar Hírlap: "For the average citizen the results in Brussels are difficult to comprehend. Until now the problem for Hungary, or more precisely its government, was that the EU was concerning itself with the independence of the media and central bank and even interfering with matters regarding the democratic legal system. Now on top of everything else we're supposed to draw up our budget according to EU stipulations. But the government has made a good decision. It has considered the interests of investors, the markets and the EU, which means its well on its way to returning to the European fold. Or more precisely, not just the European fold but also the European Union's framework of rules."

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All available articles from » Csaba Szajlai

Mladá fronta Dnes - Czech Republic | Wednesday, 1. February 2012

Nečas betrays his own government's ideals

The No of Czech Prime Minister Petr Nečas to the EU fiscal compact is paradoxical according to the liberal daily Mladá fronta Dnes, because the government is pursuing essentially the same goals as the agreement: » more

The No of Czech Prime Minister Petr Nečas to the EU fiscal compact is paradoxical according to the liberal daily Mladá fronta Dnes, because the government is pursuing essentially the same goals as the agreement: "The spirit and words of the fiscal compact speak against Nečas' decision. The agreement deprives no one of their sovereignty; it simply introduces automatic sanctions for major budget deficits. This is precisely what we want. ... But Nečas must take into account the strong eurosceptic wing of the Civic Democrats (ODS), whose king and spokesman is President Václav Klaus. He knows how to exploit his powers to the max. ... Nečas knows that the advantages of the pact outweigh the disadvantages, but it will be difficult to convince his party colleagues of this. He doesn't even want to try. But he must if he intends to act responsibly here."

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All available articles from » Martin Komárek

24 Chasa - Bulgaria | Tuesday, 31. January 2012

Bulgaria first needs reforms

Bulgaria has signed the fiscal pact for greater budget discipline. But to adhere to the new budget rules and to benefit from them on the long term the EU's poorest country must first implement drastic reforms, writes the daily 24 Chasa: » more

Bulgaria has signed the fiscal pact for greater budget discipline. But to adhere to the new budget rules and to benefit from them on the long term the EU's poorest country must first implement drastic reforms, writes the daily 24 Chasa: "In signing the fiscal pact, Bulgaria has committed itself to a sound budget policy. But what about the commitment to introducing pressing reforms? The pension reform should have been implemented three years ago, there hasn't even been a proper debate over the healthcare reform and the administrative reform has been limited to closing down a few offices and institutes. Without reforms the European fiscal pact won't make us one bit more prosperous or competitive. It could serve those in government as a good basis for distinguishing themselves as genuine reformers. But first they must be clear that that's what they really want."

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All available articles from » Svetla Kostadinova

Lietuvos rytas - Lithuania | Wednesday, 1. February 2012

Hazy fiscal pact unnecessary

In fact there's no need for the fiscal compact, the liberal daily Lietuvos rytas affirms: » more

In fact there's no need for the fiscal compact, the liberal daily Lietuvos rytas affirms: "Our politicians never stop repeating that Lithuania will adhere to the fiscal pact because it's the right thing for the country to do. ... Certainly, it would be unreasonable to deny that it is important to prevent excessive indebtedness. But it is difficult to say if Lithuania really needs a new intergovernmental treaty to that end. And if the treaty is adhered to one should remember the slogan that 'the devil is in the detail'. Last week warnings even came from the Ministry of Finance and the Ministry of the Economy that some of the agreement's provisions could be disadvantageous to Lithuania. Moreover, the final  wording of the treaty isn't even known yet."

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Main focus of Tuesday, 31. January 2012

EU countries adopt fiscal pact

All EU states, with the exception of the UK and the Czech Republic, agreed to adopt a fiscal compact for more budget discipline at the ... » more

All EU states, with the exception of the UK and the Czech Republic, agreed to adopt a fiscal compact for more budget discipline at the EU summit on Monday. But the agreement hardly improves on existing law, some commentators write, while others fear it will imperil the economic upswing.

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Blog Charlemagne's Notebook - United Kingdom | Tuesday, 31. January 2012

Fiscal pact slows economy

The fiscal pact agreed in Brussels could even worsen the economic problems in these times of crisis,  blogger Charlemagne fears on the website of the liberal-conservative weekly The Economist: » more

The fiscal pact agreed in Brussels could even worsen the economic problems in these times of crisis,  blogger Charlemagne fears on the website of the liberal-conservative weekly The Economist: "But did the leaders achieve anything useful to stem the crisis in the latest of their interminable summits? Their compact - now called the 'treaty on stability, coordination and governance in the Economic and Monetary Union', has as its main aim the imposition of balanced-budget rules on members. This may be a useful discipline in good times. But many worry that, at a time of widespread crisis, such pro-cyclical rules risk imposing too much austerity too widely, thus deepening the looming of recession and making it even harder to balance budgets. This may explain why leaders suddenly want to be seen talking about their plan for growth and jobs, particularly in tackling the problem of youth unemployment."

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La Stampa - Italy | Tuesday, 31. January 2012

Europe still lacking a plan

The debt crisis and automatic sanctions for deficit sinners will hardly help resolve the European debt crisis, writes the liberal daily La Stampa: » more

The debt crisis and automatic sanctions for deficit sinners will hardly help resolve the European debt crisis, writes the liberal daily La Stampa: "The fiscal pact overlaps rather obscurely with economic and financial legislation already adopted by the EU after lengthy negotiations. ... The pact basically adds virtually nothing new to the existing rules apart from obliging the individual countries to enshrine budget discipline in their legislation and if possible in their constitutions. ... There is no reason to believe that Europe won't bring the crisis under control, but yesterday's summit still hasn't erased the haphazard impression European governments have so far conveyed. Hopefully this will change with the next summit."

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All available articles from » Franco Bruni

El País - Spain | Tuesday, 31. January 2012

No solution to euro crisis in sight

The EU summit on Monday in Brussels has fallen short of expectations, the left-liberal daily El País observes: » more

The EU summit on Monday in Brussels has fallen short of expectations, the left-liberal daily El País observes: "Seventeen summits have been convened since the outbreak of the financial crisis. All of them with the goal of ending the euro crisis. But the fact is that they haven't even solved the Greek problem. Yesterday the decision about cutting Greek debt was basically postponed yet again. This is not exactly a proof of competent handling of the situation. Nor has the problem of the huge cost of financing the debt of countries like Italy, Spain or even France been resolved. Economic recovery, or even effective budget balancing, will be impossible as long as the risk premium [for insuring against defaults on government bonds] remains above 300 basis points (as is the case in Spain and Italy)."

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Financial Times Deutschland - Germany | Tuesday, 31. January 2012

Alan Greenspan sees capitialism's bad name as unjustified

The free-market economy has improved everyone's lives since its beginnings, writes the former chairman of the US Federal Reserve, Alan Greenspan, in the liberal Financial Times Deutschland: » more

The free-market economy has improved everyone's lives since its beginnings, writes the former chairman of the US Federal Reserve, Alan Greenspan, in the liberal Financial Times Deutschland: "During the past century, for example, competitive-market-driven economic growth created resources far in excess of those required to maintain subsistence. That surplus, even in the most aggressively competitive economies such as America's, has been mainly employed to improve the quality of life: advances in health, greater longevity and pension systems that go with it, a universal system of education and vastly improved conditions of work. We have used much of the substantial increases in wealth generated by our market-driven economies to purchase what most would view as greater civility. ... The often-assailed greed and avarice associated with capitalism are in fact characteristics of human nature, not of market capitalism, and affect all economic regimes."

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Basler Zeitung - Switzerland | Tuesday, 31. January 2012

Rolf Weder on economics as a scapegoat

The participants at the World Economic Forum in Davos devoted part of their discussions to the question of whether the science of economics has played a part in the current economic crisis. But instead of pinning the blame on faulty economic analyses politicians should first tidy up their own back yards, writes economist Rolf Weder in the conservative Basler Zeitung: » more

The participants at the World Economic Forum in Davos devoted part of their discussions to the question of whether the science of economics has played a part in the current economic crisis. But instead of pinning the blame on faulty economic analyses politicians should first tidy up their own back yards, writes economist Rolf Weder in the conservative Basler Zeitung: "For years economists have been pointing out that where property rights are lacking, such as with globally owned goods like the world's oceans and climate, the market cannot function correctly. And so economists have constantly admonished politicians to introduce rules on a global level. For their part, however, the politicians have done just the opposite. In this way the global fishing industries have been subsidised with billions upon billions, rather than being taxed so as to prevent the over-fishing of the oceans. In my view the ladies and gentlemen present at Davos should devote much more of their time to such matters, rather than eternally discussing the role of our discipline in the debt and euro crisis."

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Main focus of Monday, 30. January 2012

Athens rejects German budget controls

Athens has rejected the German proposal for an EU budget commissioner to be appointed to oversee Athens' finances. If the debt-stricken country continues to resist ... » more

Athens has rejected the German proposal for an EU budget commissioner to be appointed to oversee Athens' finances. If the debt-stricken country continues to resist it will have to leave the Eurozone, some commentators write, while others doubt the measures called for by Germany will be at all productive.

More from the press review on the subject » EU Policy, » Fiscal Policy, » Germany, » Greece, » Europe

Público - Portugal | Friday, 27. January 2012

George Soros recommends ECB insurance for government bonds

The European Central Bank has failed to remedy the financial disadvantages of highly indebted euro states with the low-interest euro loans it issued in December, writes US investor George Soros in an article published in the daily Público: » more

The European Central Bank has failed to remedy the financial disadvantages of highly indebted euro states with the low-interest euro loans it issued in December, writes US investor George Soros in an article published in the daily Público: "Indeed, that supposed solution leaves half the eurozone relegated to the status of Third World countries that have become highly indebted in a foreign currency. Instead of the International Monetary Fund, it is Germany that is acting as the taskmaster imposing tough fiscal discipline on them. This will generate both economic and political tensions that could destroy the European Union. ... My proposal is to use the European Financial Stability Facility (EFSF) and the European Stability Mechanism (ESM) to insure the European Central Bank against the solvency risk on any newly issued Italian or Spanish treasury bills that it may buy from commercial banks. ... For the first time in this crisis, the European authorities would undertake an operation for which they have more than sufficient resources. Coming as a positive surprise to the markets, it would reverse their mood. After all, markets do have moods; indeed, that is what the authorities have to learn in order to deal with financial crises."

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Neue Zürcher Zeitung - Switzerland | Friday, 27. January 2012

Sweden points the way out of euro crisis

Speaking at the World Economic Forum in Davos, British Prime Minister David Cameron has called for tempo and resolution in resolving the euro crisis. The liberal-conservative daily Neue Zürcher Zeitung cites the Nordic Countries as models for socially compatible economic development: » more

Speaking at the World Economic Forum in Davos, British Prime Minister David Cameron has called for tempo and resolution in resolving the euro crisis. The liberal-conservative daily Neue Zürcher Zeitung cites the Nordic Countries as models for socially compatible economic development: "At the start of the 1990s Sweden and Finland were over-sized welfare states beset by an economic and banking crisis just as severe as the one faced today by Europe's problem states. Today these countries are among the richest and most successful in Europe, without having sacrificed their social cohesion. ... The view that to be successful in the future Europe must be permanently reformable while ensuring a certain social cohesion has interesting implications: for example, that while economic prosperity may require success-oriented inequality, an overly large gap between the elite and the rest of the population will only harm growth. Or that burdening the middle class with ever-higher taxes is counter-productive."

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More from the press review on the subject » Economic Policy, » Finland, » Sweden, » Europe

La Repubblica - Italy | Thursday, 26. January 2012

Saving the euro won't save Europe

The euro crisis is the main topic at Davos, but the economic rescue of Europe should not drive the political European project into the background, writes historian Timothy Garton Ash in a guest commentary in the left-liberal daily La Repubblica: » more

The euro crisis is the main topic at Davos, but the economic rescue of Europe should not drive the political European project into the background, writes historian Timothy Garton Ash in a guest commentary in the left-liberal daily La Repubblica: "If we are witnessing the euro being saved, this is a triumph of fear, not of hope. Other great moments of the European project - the introduction of the single market, 1989, successive enlargements, the launch of the euro itself - were driven by hope. Here, it is fear that has led Germany and others to do the minimum necessary: fear that the costs of collapse would be higher than the unpalatable, resented alternative of 'bailing out' the countries in trouble. ... Above all, we have to recognise that saving the euro is no substitute for the larger political project, of which it was once meant to be both core and catalyst. The politics of fear may have saved the euro. We need a politics of hope to find a European answer to the Arab spring."

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All available articles from » Timothy Garton Ash

Polityka Online - Poland | Thursday, 26. January 2012

Germany should not be overburdened

At the annual meeting of the World Economic Forum in Davos, German Chancellor Angela Merkel stressed on Wednesday that Germany cannot save the euro on its own. The left-liberal news portal Polityka Online agrees: » more

At the annual meeting of the World Economic Forum in Davos, German Chancellor Angela Merkel stressed on Wednesday that Germany cannot save the euro on its own. The left-liberal news portal Polityka Online agrees: "Germany may be the biggest member of the euro club, nevertheless it is far too small to save the single currency on its own. The GDP of our neighbour to the west is not even one fifth that of the entire Union, and merely around a quarter of that of the Eurozone. The hopes being placed in Germany border on the absurd. Certainly, the country has benefited greatly from European integration, and of course it must do all it can to bail out the euro. But you can't expect it to bear every burden that is heaped upon its shoulders. Moreover, it is in Poland's interest that Germany [as Poland's biggest trading partner] should not encounter serious difficulties of its own in assuming the costs of the European crisis."

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All available articles from » Cezary Kowanda

The Times - United Kingdom | Thursday, 26. January 2012

Economy better off thanks to the ECB

The major topics at the World Economic Forum are the collapse of several EU states and the possible failure of the euro, but the prospects for Europe are by no means as dismal as just a few weeks ago, writes the conservative daily The Times: » more

The major topics at the World Economic Forum are the collapse of several EU states and the possible failure of the euro, but the prospects for Europe are by no means as dismal as just a few weeks ago, writes the conservative daily The Times: "Why? Not because of the political leaders, who continue to be torn between the desire for greater union and the fear of being punished by their voters in upcoming elections, but because of action by the European Central Bank. In December, the ECB began offering unlimited three-year loans to banks that were facing an imminent credit crunch. Its three-year long-term financing operation (LTFO) is injecting €489 billion of liquidity into a system that had almost frozen up. This operation - on a similar scale to Tarp (Troubled Asset Relief Program) in America in 2008 - is allowing banks to meet their short-term needs and also to maintain domestic lending to consumers and businesses."

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All available articles from » Camilla Cavendish

Der Standard - Austria | Wednesday, 25. January 2012

Austria's wavering course hurts EU

The Austrian Finance Minister Maria Fekter (ÖVP), spoke out against an extension of the ESM bailout fund on Monday, only to change her position on Tuesday with the comment that the extension was "conceivable" and "could meet with consensus". The constant wavering is detrimental to the EU, writes the liberal daily Der Standard: » more

The Austrian Finance Minister Maria Fekter (ÖVP), spoke out against an extension of the ESM bailout fund on Monday, only to change her position on Tuesday with the comment that the extension was "conceivable" and "could meet with consensus". The constant wavering is detrimental to the EU, writes the liberal daily Der Standard: "It seems the Austrian government still believes it can hide the gravity of the situation behind half-truths and vague reassurances. But this strategy has been exposed and discredited at the very latest since the Greek fiasco, in which not a single promise has been honoured to this date. One rescue loan follows the next, while the chances of this money ever being repaid are nearing zero. The truly frightening thing is that by hiding the truth in this way the government not only undermines its own credibility - its domestic policy already takes care of that - but also erodes people's trust in the Union as a whole."

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All available articles from » Andreas Schnauder

Frankfurter Allgemeine Zeitung - Germany | Wednesday, 25. January 2012

Greece doesn't deserve ESM money

While Italy and the EU Commission have spoken out clearly in favour of endowing the permanent ESM crisis mechanism with more than 500 billion euros, Germany is hesitating. And quite rightly, the conservative daily Frankfurter Allgemeine Zeitung comments, calling for reforms to come before rescue loans: » more

While Italy and the EU Commission have spoken out clearly in favour of endowing the permanent ESM crisis mechanism with more than 500 billion euros, Germany is hesitating. And quite rightly, the conservative daily Frankfurter Allgemeine Zeitung comments, calling for reforms to come before rescue loans: "Why must the 'eternal' euro crisis fund be increased if the Greeks, Irish, Portuguese, Spanish and Italians are all making huge cutbacks and reforming, as we constantly hear? With good reason Germany hesitates to go along with the demands for the ESM permanent crisis fund to be boosted to a trillion euros. The so far largely unsuccessful euro bailout policy doesn't exactly support the theory that the markets are impressed by high sums. ... The elites in Athens seem unwilling to dispense with their privileges and battle corruption and tax evasion. After all, the EU will pay even if Greece doesn't deliver. And who is under siege? Who is under pressure to provide 'more Europe'? The ECB and the solid EU states, first and foremost Germany."

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All available articles from » Holger Steltzner

Les Echos - France | Wednesday, 25. January 2012

ECB head Draghi saves Eurozone

The head of the ECB, Mario Draghi, took up his post three months ago in the midst of the European debt crisis. With one of his first acts in office Draghi has temporarily saved the euro, writes the liberal business paper Les Echos: » more

The head of the ECB, Mario Draghi, took up his post three months ago in the midst of the European debt crisis. With one of his first acts in office Draghi has temporarily saved the euro, writes the liberal business paper Les Echos: "In particular the introduction of the Long Term Refinancing Operation shows that the novice has quickly become emancipated. This loan provided to European banks for three years at an interest rate of one percent is in fact unique. In view of its first results it seems to be very efficient. At the end of December 500 billion were pumped into the banking system in this way - a double success for Mario Draghi: by providing more oxygen for the ailing banks he has not only saved the continent from a catastrophe but also - at least for the time being - answered the tricky question of how the euro countries are to be financed."

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All available articles from » François Vidal

Il Sole 24 Ore - Italy | Wednesday, 25. January 2012

Empty promises won't secure a fund

A well endowed bailout fund is a prerequisite for further support from international partners, the business paper Il Sole 24 Ore writes, agreeing with IMF boss Christine Lagarde's demand: » more

A well endowed bailout fund is a prerequisite for further support from international partners, the business paper Il Sole 24 Ore writes, agreeing with IMF boss Christine Lagarde's demand: "Show me the money and I'll believe you. This kind of doubting Thomas demand is typical of the financial markets. Unfortunately it has become all the more urgent because of the EU's failure to keep its promises. Two months ago the political leaders announced that the volume of the EFSF bailout fund would grow to up to one billion thanks to leverage and other financial mechanisms. But not everyone can do the multiplying of bread and fish trick. The promise wasn't kept. Now the time for hard cash has come. If Europe wants the help of the IMF and the G20 - and it most certainly does - then it must demonstrate that Europe itself has already accomplished the most demanding financial feat."

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Tages-Anzeiger - Switzerland | Wednesday, 25. January 2012

Monti's austerity plans under attack

In protest at the rising cost of diesel, motorway tolls and social security contributions, lorry drivers in Italy paralysed transport across large sections of the country on Tuesday. The liberal daily Tages-Anzeiger sees this and other planned strikes as a first major attack against Mario Monti's government: » more

In protest at the rising cost of diesel, motorway tolls and social security contributions, lorry drivers in Italy paralysed transport across large sections of the country on Tuesday. The liberal daily Tages-Anzeiger sees this and other planned strikes as a first major attack against Mario Monti's government: "But worse still is that this strike has laid bare the political isolation of technocrat Monti. His main weakness is his lack of political backing from society. The transport company lobby is not the only one to have realised this; other interest groups like the mafia and the populists of the Northern League or Italia dei Valori will challenge Monti with increasing frequency in future. If the major parties also start backing off, the miracle of the Monti government will soon be over. Monti urgently needs an economic success. This is also crucial if the monetary union is to be saved. Therefore the pressure on other EU countries, namely Germany, to honour Monti's reform drive and ease the austerity requirements is mounting."

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All available articles from » Luciano Ferrari

The Times - United Kingdom | Wednesday, 25. January 2012

Euro crisis main focus in Davos

Key business players, experts and politicians from around the world gather today in the Swiss resort of Davos for the World Economic Forum. In addition to the official keynote topic of the economic power shift to the East and to the South, the repercussions of the euro crisis will take the limelight, writes the conservative daily The Times: » more

Key business players, experts and politicians from around the world gather today in the Swiss resort of Davos for the World Economic Forum. In addition to the official keynote topic of the economic power shift to the East and to the South, the repercussions of the euro crisis will take the limelight, writes the conservative daily The Times: "Europe is back in the centre of the stage. There is no more pressing and no more important economic question than finding a durable solution to the euro crisis. Though European politicians have taken tentative steps in the direction of such a solution, they have yet to find the answer. A disorderly break-up of the euro would have calamitous consequences for all the Davos delegates, no matter their country of origin. ... If any progress can be made towards solving the debt crisis, something good will have taken place in the snow."

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Cinco Días - Spain | Tuesday, 24. January 2012

Spain and Italy won't meet austerity targets

Spain's central bank has predicted negative growth of 1.5 percent for the country in 2012. Similar figures were announced today by the IMF. The left-liberal business paper Cinco Días warns that neither Spain nor Italy will be able to adhere to the austerity measures stipulated by Brussels: » more

Spain's central bank has predicted negative growth of 1.5 percent for the country in 2012. Similar figures were announced today by the IMF. The left-liberal business paper Cinco Días warns that neither Spain nor Italy will be able to adhere to the austerity measures stipulated by Brussels: "Whether it's owing to lack of political will or financial difficulties, neither Spain nor Italy - and probably not France either - will be able to meet the targets for consolidating their budgets. In both cases a stimulus programme would surely be desirable, as well as increasing the bailout fund in order to avoid further risks regarding debt repayment, no matter how much Germany and the Netherlands oppose such plans. ... Neither Spain nor Italy have managed to reduce their public deficit by more than one percentage point per year so far. ... To expect Spain to bring its deficit down from 8.2 percent to 3 percent within two years is naïve and could plunge the economy into a dangerous downward spiral."

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Il Sole 24 Ore - Italy | Tuesday, 24. January 2012

Hope rests on ESM

The Finance ministers of the Eurozone states agreed on a treaty establishing the permanent European Stability Mechanism (ESM) late on Monday evening. The bailout fund is to succeed the temporary European Financial Stability Facility (EFSF) in July 2012 and make 500 billion euros available to indebted Eurozone countries. The ESM is a decisive step towards emerging from the crisis, the business paper Il Sole 24 Ore concludes: » more

The Finance ministers of the Eurozone states agreed on a treaty establishing the permanent European Stability Mechanism (ESM) late on Monday evening. The bailout fund is to succeed the temporary European Financial Stability Facility (EFSF) in July 2012 and make 500 billion euros available to indebted Eurozone countries. The ESM is a decisive step towards emerging from the crisis, the business paper Il Sole 24 Ore concludes: "The EFSF has a fundamental flaw that can only be corrected by the new ESM. The loans that are made available to debt-stricken countries place a burden on the budgets of individual countries. ... The distribution reflects the loan guarantees given. The ESM on the other hand is a financial institution endowed with capital that is collected from each of the states of the Eurozone. Moreover the statute foresees that the ESM will be able to guarantee the bonds issued by the funds itself. This formula could relieve struggling countries of the burden of the already issued EFSF bonds."

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Ta Nea - Greece | Monday, 23. January 2012

Seek out and punish tax evaders

The Greek government published a 170-page-long list of 4,152 tax evaders on the Internet on Sunday, including ex-politicians, artists and athletes. They owe the Greek state roughly 15 billion euros in total. The left-liberal daily Ta Nea calls for a concrete plan to collect the money owed: » more

The Greek government published a 170-page-long list of 4,152 tax evaders on the Internet on Sunday, including ex-politicians, artists and athletes. They owe the Greek state roughly 15 billion euros in total. The left-liberal daily Ta Nea calls for a concrete plan to collect the money owed: "This list is impressive. ... But equally impressive are the two questions it raises. Firstly: Why did the state allow the already huge mountain of debt to increase instead of reacting earlier? And Secondly: what punishment will be handed down to those who continue to refuse to pay - which is probably the case with most of these people? To answer the first question one must seek those responsible. And to answer the second, the sentence simply needs to be fixed. Only then will the list not only remain impressive but also perform a meaningful function."

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Neue Zürcher Zeitung - Switzerland | Friday, 20. January 2012

Dirk Leuffen and Hanno Degner see peace in Europe under threat

In the European debate over democracy and prosperity ensuring peace as an engine of European unity should not be forgotten, the political scientists of the University of Constance Dirk Leuffen and Hanno Degner warn in the liberal-conservative daily Neue Zürcher Zeitung: » more

In the European debate over democracy and prosperity ensuring peace as an engine of European unity should not be forgotten, the political scientists of the University of Constance Dirk Leuffen and Hanno Degner warn in the liberal-conservative daily Neue Zürcher Zeitung: "In the course of the efforts to overcome the sovereign debt crisis the success story of the European Union so far seems to have reached a turning point. The crisis poses at least two threats to peace in the Union. On the one hand the disintegration of the community menaces the institutional basis for peaceful cooperation. And on the other the limitations on democracy imposed by the globalised financial markets endanger peace. Already the internal protests are taking on an increasingly violent character, and it cannot be ruled out that a further weakening of democratic structures will promote instabilities and threaten inter-state peace. ... The 'salutary triad' of prosperity, democracy and peace has defined post-war Europe's success. Now the challenge is to preserve it."

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Süddeutsche Zeitung - Germany | Friday, 20. January 2012

Euro crisis has changed world order

The US has turned down the IMF's call for more money in the battle against the European debt crisis. Now the IMF must turn to the emerging economies for the funds, writes the left-liberal daily Süddeutsche Zeitung: » more

The US has turned down the IMF's call for more money in the battle against the European debt crisis. Now the IMF must turn to the emerging economies for the funds, writes the left-liberal daily Süddeutsche Zeitung: "In the Republican primaries, every candidate could expect thunderous applause for the call 'No bail-out for Europe'. Obama would hurt his election chances if he joined in with the IMF recapitalisation initiative. So the remaining potential allies are - in addition to non-Eurozone states like the UK - China, India and Brazil and the emerging economies whose influence in the IMF the Europeans had sought to limit until recently. The nouveaux riches will demand a price for bailing out the old elite. China, for instance, will likely demand the lifting of the weapons embargo. ... This gives an idea of how far-reaching the impact of the European debt crisis that has been escalating for three years really is."

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Hospodářské noviny - Czech Republic | Friday, 20. January 2012

Jacques Rupnik on the Czechs' irrational attitude to Europe

The Czechs' attitude to Europe in the current crisis is irrational, laments the French political scientist Jacques Rupnik, himself a native of Prague, in an interview with the business paper Hospodářské noviny: » more

The Czechs' attitude to Europe in the current crisis is irrational, laments the French political scientist Jacques Rupnik, himself a native of Prague, in an interview with the business paper Hospodářské noviny: "It is also in the interest of the Czechs that a solution to the crisis be found as soon as possible. If the Eurozone were to collapse it would have major repercussions for the country. But this isn't just a question of finances, the consequences are above all of a political nature. They concern the question of our long-term orientation, where we want to belong. If we depart from the European mainstream we can't turn around later and complain: 'What's going on? Now others are making decisions for us!' We've got to decide: do we stay in Europe and have a hand in the decision-making, or do we exit and watch what happens from the sidelines? But by no means can we say: 'I may be outside but I also want to have my say'."

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Lidové noviny - Czech Republic | Thursday, 19. January 2012

Small victory for Czech opponents to euro

The Czechs will vote in a referendum on their country's accession to the fiscal union, the government decided on Wednesday against the will of Foreign Minister Karel Schwarzenberg's pro-American coalition TOP 09. The conservative daily Lidové noviny believes the decision to hold a referendum is a small victory for the country's euro adversaries: » more

The Czechs will vote in a referendum on their country's accession to the fiscal union, the government decided on Wednesday against the will of Foreign Minister Karel Schwarzenberg's pro-American coalition TOP 09. The conservative daily Lidové noviny believes the decision to hold a referendum is a small victory for the country's euro adversaries: "In any case things have got off to a good start, even if much remains to be done to see the referendum through. TOP 09 could still conjure up a major crisis, even if that's rather unlikely. Also necessary is a deal with the [opposition] Social Democrats on how the referendum is to be carried out. Things may well look very different in five years' time in the Eurozone, making a referendum superfluous. Nevertheless yesterday's decision marked a small victory for those who want to retain the Czech koruna. And the bond of a referendum will be more permanent than the declaration of a government that may well not survive the next elections."

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All available articles from » Daniel Kaiser

Le Monde - France | Tuesday, 17. January 2012

Edouard Tétreau on the destructive dream of the rating agencies

The European states are allowing themselves to be pitted against each other by the rating agencies instead of concentrating on their own strengths, complains the business consultant Edouard Tétreau in the left-liberal daily Le Monde: » more

The European states are allowing themselves to be pitted against each other by the rating agencies instead of concentrating on their own strengths, complains the business consultant Edouard Tétreau in the left-liberal daily Le Monde: "The Balkanisation of Europe by S&P: it must be great to be able to play Germany off against France, Spain against the UK and Italy against Austria from the safety of an office in London. Do the rating agencies want a Europe at war? In any event Europe's utter ruin would make their day. Despite all appearances nothing would be worse for the agencies' business than a successful Europe whose states, enterprises and private households were so rich that they no longer needed financial markets - or rating agencies. The absolute horror scenario would be a system in which the European banks no longer speculated, but returned to their original field: transforming the Europeans' abundant savings into business equity and profitable loans for states and local municipalities. Real banks, that is, ones that would be able to send the brokers on Wall Street and the City of London packing."

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Delo - Slovenia | Wednesday, 18. January 2012

Slovenia's debt brake calms markets

The heads of all Slovenian parliamentary parties reached a general consensus on amending the constitution to include a debt brake, however the upper limit for government debt has yet to be agreed. The left-liberal daily Delo sees the debt cap as a step in the right direction: » more

The heads of all Slovenian parliamentary parties reached a general consensus on amending the constitution to include a debt brake, however the upper limit for government debt has yet to be agreed. The left-liberal daily Delo sees the debt cap as a step in the right direction: "After a long delay this is the first weak signal to the jittery financial markets that efforts are being made in Slovenia to bring public finances under control. The politicians appeared to be surprisingly united on this yesterday. ... Critics see the so-called 'golden rule' as a measure that won't create economic growth or new jobs in the short term. ... Such critics even predict the contrary, which is probably why the debt brake is just a necessary evil in the national and European financial crisis. But without the rule we would soon end up like the PIIGS states: in a quagmire of debt and expensive loans."

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All available articles from » Miha Jenko

Hospodářské noviny - Czech Republic | Tuesday, 17. January 2012

Olli Rehn suffers from rating paranoia

EU Commissioner for Economic and Financial Affairs Olli Rehn criticised the rating agency Standard & Poor's on Monday for downgrading nine Eurozone countries, calling the agencies "tools of American financial capitalism". The business paper Hospodářské noviny diagnoses Rehn with paranoia: » more

EU Commissioner for Economic and Financial Affairs Olli Rehn criticised the rating agency Standard & Poor's on Monday for downgrading nine Eurozone countries, calling the agencies "tools of American financial capitalism". The business paper Hospodářské noviny diagnoses Rehn with paranoia: "Let's recapitulate what happened the first day after the downgrading: 1. France sold its bonds without a problem. 2. The European stock markets rose slightly. 3. Moody's maintained France's top AAA rating. 4. EU Commissioner Rehn went nuts. The first three points are perfectly in line with the assessment of the International Monetary Fund, according to which it is 'possible to fend off a new phase of crisis by means of resolute precautions and global support'. But only, it must be added, under one condition: that Europe does not catch ORPS - the Olli Rehn Paranoic Syndrom."

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Hospodárske noviny - Slovakia | Monday, 16. January 2012

France loses influence

The downgrading of France by rating agency Standard & Poor's gives Germany another massive boost and makes the euro bailout operation even trickier, in the opinion of the liberal business paper Hospodárske noviny: » more

The downgrading of France by rating agency Standard & Poor's gives Germany another massive boost and makes the euro bailout operation even trickier, in the opinion of the liberal business paper Hospodárske noviny: "Germany is the only European country whose rating wasn't downgraded and whose prospects are at the same time estimated to be stable. But not only that: this gives Germany even more political clout. The balance of power in Europe has shifted further against France's interests. This will have repercussions on the political situation there. The loss of France's top grading could mean the end of Sarkozy's dreams of another presidency. His socialist adversary Hollande makes no bones about his criticism of Europe's crisis management. Unity and efficiency in resolving the problems of the Eurozone are now likely to diminish even further."

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Il Sole 24 Ore - Italy | Monday, 16. January 2012

Greater involvement of ECB

After the downgrading of the credit standing of nine Eurozone countries the European Financial Stability Facility (EFSF) also faces the loss of its top rating. Only the European Central Bank can save the situation now, the business paper Il Sole 24 Ore writes: » more

After the downgrading of the credit standing of nine Eurozone countries the European Financial Stability Facility (EFSF) also faces the loss of its top rating. Only the European Central Bank can save the situation now, the business paper Il Sole 24 Ore writes: "Clear signals from Europe are required to overcome the crisis. One can neither rely on the instruments of the rescue funds - whether the EFSF or the ESM - nor the hope that the banks will buy government bonds again because the governments of individual states force them to. The sum in question is simply too high. To restore the investors' confidence and prevent the collapse of the European financial market there is only one option: a stronger and more transparent involvement of the European Central Bank, that means direct help for indebted countries."

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Neue Zürcher Zeitung - Switzerland | Monday, 16. January 2012

Agencies are salutary corrective

The rating agencies are the last means for limiting public debt in Europe, writes the liberal-conservative daily Neue Zürcher Zeitung: » more

The rating agencies are the last means for limiting public debt in Europe, writes the liberal-conservative daily Neue Zürcher Zeitung: "The best thing would be to swiftly reduce debt and raise competitiveness by lowering unit labour costs. ... But that could be difficult, above all in the European sphere. First of all the massive pressure to economise results in a vicious circle due to the economic downturn, and consequently to redoubled pressure to economise. Secondly politicians are torn between two groups of voters: the taxpayers on the one hand and state welfare recipients on the other. Further borrowing is often seen as a way to avoid inflicting too much pain on either group. But that path is increasingly barred, thanks above all to the rating agencies and the financial markets. These are currently one of the last remaining powerful correctives to help us finally adopt a sound economic course."

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Sega - Bulgaria | Sunday, 15. January 2012

Dijan Bojidarov recommends more morals, not less capitalism

In view of the global economic and social upheaval the Western world needs not less capitalism, but more morals, writes columnist Dijan Bojidarov in the daily Sega: » more

In view of the global economic and social upheaval the Western world needs not less capitalism, but more morals, writes columnist Dijan Bojidarov in the daily Sega: "Today it is becoming increasingly clear that capitalism needs more justness. ... Some popular theories call for greater state intervention, redistribution, social programmes, improvements to the electoral system, referendums and guaranteed pluralism: in other words changes to the social environment. All this may be necessary but don't we need new values and new morals much more? We people on the West's periphery know from experience that a change of system can't derail the greed and elbow mentality on its way to power. During the times of totalitarianism and socialism there was no less corruption, immorality, injustice and stupidity than there is in today's democratic and capitalist society. The one system produced [the Bulgarian communist leader] Zhivkov and the other - Berlusconi. Both are rulers without morals. Until we recognise the crisis as a moral crisis, nothing will change."

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All available articles from » Diyan Bozhidarov

Welt am Sonntag - Germany | Sunday, 15. January 2012

Europe always looks for scapegoat

The downgrading of the credit rating of nine Eurozone countries is above all the result of the dishonest politics of the Europeans since the outbreak of the financial crisis, writes the conservative Sunday paper Welt am Sonntag: » more

The downgrading of the credit rating of nine Eurozone countries is above all the result of the dishonest politics of the Europeans since the outbreak of the financial crisis, writes the conservative Sunday paper Welt am Sonntag: "Practically all European politicians have allowed themselves to be guided by two leitmotifs in the past three and a half years. Firstly, as few impositions as possible are to be placed on the voters, and any inevitable impositions are kept secret as long as possible. Secondly the blame for all the problems is laid on third parties - either the banks, the speculators, the rating agencies, the Americans or a combination of theses. Or simply the markets, those amorphous 'monsters' (quote: Horst Köhler) [former German president]. ... It would almost be a good thing if the oft called-for European rating agency were now established. It would either give the same kind of ratings as the three US market leaders or enslave itself to the dictates of the politicians. ... In both cases those in charge in Berlin and Paris, Madrid and Roma would have one excuse less."

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All available articles from » Olaf Gersemann

Main focus of Friday, 13. January 2012

Financial markets trust Italy and Spain

Italy and Spain were able to issue government bonds on Thursday at considerably lower interest rates than at the end of 2011. Yields on Spanish ... » more

Italy and Spain were able to issue government bonds on Thursday at considerably lower interest rates than at the end of 2011. Yields on Spanish three-year bonds sank from 5.2 to 3.4 percent, while those for Italian one-year bonds plunged by more than half to 2.7 percent. The credit for this success should go to the two countries' new governments and the monetary policy of the ECB, some commentators write, while others warn against jumping to false conclusions.

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Protagon - Greece | Friday, 13. January 2012

Greece needs euro bonds

Slow progress is being made regarding the involvement of the private sector in the restructuring of Greek debt decided last October, according to media reports. Economist Giannis Varoufakis says on web portal Protagon that it was a mistake from the start to count on the participation of private banks and investors: » more

Slow progress is being made regarding the involvement of the private sector in the restructuring of Greek debt decided last October, according to media reports. Economist Giannis Varoufakis says on web portal Protagon that it was a mistake from the start to count on the participation of private banks and investors: "Here in Greece, the country that has been harder hit than any other by the crisis, the participation of the private sector is still being hailed as a chief strategy for emerging from the crisis! ... But this strategy was a mistake right from the start. ... Since last July it has only led to the crisis intensifying. ... The question is: What is the alternative? If the European Central Bank issued euro bonds it would be a unique chance for Greece and the Eurozone to overcome the crisis together."

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Mladá fronta Dnes - Czech Republic | Friday, 13. January 2012

Czechs must accept EU austerity regulations

In the Czech Republic an open dispute has broken out between President Václav Klaus and Foreign Minister Karel Schwarzenberg about whether the country should submit to tougher EU regulations. The liberal daily Mladá Fronta Dnes urges moderation, saying that the Czech Republic has no alternative: » more

In the Czech Republic an open dispute has broken out between President Václav Klaus and Foreign Minister Karel Schwarzenberg about whether the country should submit to tougher EU regulations. The liberal daily Mladá Fronta Dnes urges moderation, saying that the Czech Republic has no alternative: "Schwarzenberg has threatened to pull his party out of the government unless the Czech Republic goes along with the EU austerity rules. Klaus, on the other hand, is threatening not to sign the agreement. ... This exposes the fundamental differences in their stance towards Europe. ... Deputy Prime Minister Schwarzenberg is above all a European. For him the country separating from Europe would be a disaster. Klaus reads too much into the situation, fears a fiscal union followed by a federation, which he wants to prevent at all costs. ... If the regulations become binding for us only when we introduce the euro we don't risk anything by signing. ... And anyway, we don't really have an alternative."

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All available articles from » Martin Komárek

Il Sole 24 Ore - Italy | Thursday, 12. January 2012

Merkel sweet-talking Monti

German Chancellor Angela Merkel praised Italy's Prime Minister Mario Monti for his "extremely important and notable measures" during the latter's first official visit to Germany. Berlin is trying to fob off Rome with pretty words, the business paper Il Sole 24 Ore comments indignantly: » more

German Chancellor Angela Merkel praised Italy's Prime Minister Mario Monti for his "extremely important and notable measures" during the latter's first official visit to Germany. Berlin is trying to fob off Rome with pretty words, the business paper Il Sole 24 Ore comments indignantly: "If pretty words were enough to protect the single currency the crisis would have long since been over. And the euro wouldn't have dipped to a record low yesterday. Monti knows that Angela's Merkel's honeyed words won't get him anywhere. He needs immediate facts that lead to lower interest rates on government bonds and promote growth. But Merkel is once again beating about the bush. ... When a German chancellor talks a lot about Europe without actually doing anything and when she tries to bring the budgetary policy of other countries under her control, then things look really bad for Europe."

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All available articles from » Adriana Cerretelli

Pravda - Slovakia | Thursday, 12. January 2012

Brigita Schmögnerová on the advantages of the Tobin tax

The financial transaction tax discussed by Nicolas Sarkozy and Angela Merkel is an optimum means for bringing speculators to heel, writes former vice-president of the European Bank for Reconstruction and Development Brigita Schmögnerová in the left-leaning daily Pravda: » more

The financial transaction tax discussed by Nicolas Sarkozy and Angela Merkel is an optimum means for bringing speculators to heel, writes former vice-president of the European Bank for Reconstruction and Development Brigita Schmögnerová in the left-leaning daily Pravda: "A study by the Austrian Institute of Economic Research shows that a tax of 0.05 percent would reduce derivative trading by 60 to 70 percent. ... At the same time such a tax would channel 200 billion euros into the budgets of EU countries each year, and on a global scale as much as 500 billion. The proposal put forward by the European Commission last September is much more modest, foreseeing a tax of 0.01 percent. But even that would cut transactions by 30 percent and add more than 50 billion euros to the EU budget. The introduction of the tax would not be complicated. And there is also a solution to the potential problem of tax evasion - a merger between the two stock exchanges NYSE Euronext and Deutsche Börse currently being examined by the supervisory authorities. The question is whether tax will get the go-ahead already at the EU summit in January."

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All available articles from » Brigita Schmögnerová

Kaleva - Finland | Wednesday, 11. January 2012

Banks give Germany money

Germany has auctioned off 3.9 billion euros in government bonds at an average interest rate of minus 0.01 percent. This means banks were actually paying to lend their money to the German state instead of charging interest for it as they usually do. This is a clear sign of the diminishing confidence of the banks in each other, the liberal daily Kaleva concludes: » more

Germany has auctioned off 3.9 billion euros in government bonds at an average interest rate of minus 0.01 percent. This means banks were actually paying to lend their money to the German state instead of charging interest for it as they usually do. This is a clear sign of the diminishing confidence of the banks in each other, the liberal daily Kaleva concludes: "This time the banks' reaction says more about their growing distrust of each other than about the crisis of the Eurozone. They prefer to park their money where it generates little profit but is at least safe instead of lending it to each other. The fact that deposits with the ECB reached the record sum of more than 460 billion on Monday is another indication of this. At the turn of the year the financial crisis took a breather. In future much will depend on whether the EU countries can agree on tougher budgetary regulations. German Chancellor Angela Merkel said on Monday that they could be in place by the end of January. Let's hope they will be."

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Main focus of Tuesday, 10. January 2012

Merkozy too fainthearted in euro crisis

At their Monday meeting in Berlin German Chancellor Angela Merkel and French President Nicolas Sarkozy prepared for the next summit meeting on the euro crisis. ... » more

At their Monday meeting in Berlin German Chancellor Angela Merkel and French President Nicolas Sarkozy prepared for the next summit meeting on the euro crisis. The Greek bailout and the Tobin tax are firmly on the agenda. But with their half-baked ideas they are wasting valuable time, commentators write, warning that a catastrophe is just around the corner.

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Les Echos - France | Tuesday, 10. January 2012

Berlin and Paris powerless in face of crisis

The German-French duo has once more failed to summon the energy necessary to avert the looming disaster, writes the liberal business paper Les Echos: » more

The German-French duo has once more failed to summon the energy necessary to avert the looming disaster, writes the liberal business paper Les Echos: "First of all Greece is facing state bankruptcy. Secondly, distrust is growing regarding all of the Eurozone countries except Germany. Yesterday, for example, investors borrowed money at negative interest rates in Berlin. Or to put it another way: they preferred to pay the German state to keep its money instead of taking the risk of placing it elsewhere. Thirdly, transactions between banks are frozen because they no longer trust each other. And fourthly, bond terms are growing ever shorter, both for states and for businesses. Now all forces must be summoned to prevent the European financial system from collapsing and pulling the entire continent into the abyss. It will soon be too late."

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All available articles from » Nicolas Barré

Sme - Slovakia | Tuesday, 10. January 2012

Germany's leading role in Europe logical

The current debt crisis demonstrates that European politics have barely changed since the 19th century and are still the preserve of the major powers, the liberal daily Sme concludes: » more

The current debt crisis demonstrates that European politics have barely changed since the 19th century and are still the preserve of the major powers, the liberal daily Sme concludes: "These heavyweights push through their opinions and their interests with no regard for the smaller countries and often to their detriment. One good thing is that the interests of the great and small are less frequently in fundamental conflict with each other these days. Yet for example the loss of sovereignty continues to be an awkward issue. ... Germany's role comes as no surprise. The Germans simply are the rich uncle who pays for everyone. So it's only logical that he should want to have more say about what others spend his money on."

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La Vanguardia - Spain | Tuesday, 10. January 2012

ECB must ensure growth

After the meeting between Merkel and Sarkozy it's clear that Germany will continue to pursue its austerity programme this year, too. The ECB must therefore play a key role in ensuring that Europe remains attractive for investors, the daily La Vanguardia writes: » more

After the meeting between Merkel and Sarkozy it's clear that Germany will continue to pursue its austerity programme this year, too. The ECB must therefore play a key role in ensuring that Europe remains attractive for investors, the daily La Vanguardia writes: "If Germany doesn't want to be the engine of Europe - and it has its reasons not to - Europe's internal market urgently needs to be mobilised. We hear again and again from the ECB that the Eurozone is an economic and monetary union, but only the second part has been accomplished - and even that with difficulties. ... The German Minister of Finances, Wolfgang Schäuble, has warned that foreign investors don't trust the European Stability Mechanism. You can't give them a mortgage on a property in Alicante for instance as a guarantee for their investment in Europe - they need more. First of all they need a good price, that means a euro that is cheaper than it is now, and then they need the prospect of recouping their investment thanks to a flexible monetary policy that does its job over time in terms of boosting growth. The ECB plays a major role here."

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Lidové noviny - Czech Republic | Tuesday, 10. January 2012

Merkel and Sarkozy acting selfishly

The French-German summit in Berlin on Monday has upped the pressure on the other EU countries to undertake reforms and is forcing them to make some quick decisions, writes the conservative daily Lidové noviny: » more

The French-German summit in Berlin on Monday has upped the pressure on the other EU countries to undertake reforms and is forcing them to make some quick decisions, writes the conservative daily Lidové noviny: "We don't have much time for serious discussion on the existential question of whether we're willing to accept limitations on our sovereignty in exchange for being part of the inner core of European integration. The chancellor and the president want to have the treaty on a Union with budget supervision by the end of January. ... Let's disregard the fact that none of the proposals can solve the debt crisis. Budget supervision is above all intended to calm the German public. The financial transaction tax is meant to help Sarkozy get re-elected as president. The pressure is on, and we Czechs must decide what we want. This is a clear step in the direction of a common economic government."

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All available articles from » Lenka Zlámalová

Rzeczpospolita - Poland | Tuesday, 10. January 2012

German-French strategy futile

The meeting between German Chancellor and French President Nicolas Sarkozy won't help save the Eurozone, writes the conservative daily Rzeczpospolita: » more

The meeting between German Chancellor and French President Nicolas Sarkozy won't help save the Eurozone, writes the conservative daily Rzeczpospolita: "They don't know where they're supposed to get the money to bail out Spain and Italy if it comes to that. They have no emergency plan for Greece in the event that talks with the creditors over debt write-offs remain unproductive. They are afraid to recapitalise the banks and at the same time shy away from the questions about whether it makes sense to rescue bankrupt EU states. From time to time they entertain the idea of a setting up some kind of of economic government which basically leads to more control over the economies of the other euro countries. But they avoid creating a further budgetary pillar in the EU - namely transferring funds to less competitive states. Their strategy until now is one of defeat."

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Diário Económico - Portugal | Tuesday, 10. January 2012

Helena Cristina Coelho on the strategic axis in the euro crisis

The German Chancellor Angela Merkel and the director of the International Monetary Fund, Christine Lagarde, are meeting today, Tuesday, in Berlin to discuss the future of Greece. Helena Cristina Coelho, deputy editor of the Diário Económico, writes in the business paper that she hopes Merkel will point a way out of the crisis despite the clear difficulties: » more

The German Chancellor Angela Merkel and the director of the International Monetary Fund, Christine Lagarde, are meeting today, Tuesday, in Berlin to discuss the future of Greece. Helena Cristina Coelho, deputy editor of the Diário Económico, writes in the business paper that she hopes Merkel will point a way out of the crisis despite the clear difficulties: "This is about Greece's future yet clearly none of the decision-makers can speak Greek or is in Athens. Everyone is based in Berlin, Brussels or Washington and is apparently having difficulties unravelling the knotted mess which the Greek economy has become. As if Athens didn't have enough on its plate with its own financial difficulties Angela Merkel [during her meeting with Sarkozy on Monday] once again got up on her high horse and started pointing her finger at the Greeks: either rapid progress is made with the restructuring of Greek debt or the next instalment of the rescue package won't be paid out. ... We can only hope that Merkel gives up the role of punitive leader and instead of making threats finds a way out of the crisis. Because these decision-makers have developed into a strategic axis that doesn't have to be an axis of evil."

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Lidové noviny - Czech Republic | Monday, 9. January 2012

Germany prone to megalomania

Czech Foreign Minister Karel Schwarzenberg has warned Germany not to succumb to megalomania in its defence of the euro. Small states react sensitively when Merkel and Sarkozy decide policy between themselves and then merely inform the others of the result, Schwarzenberg stated in an interview with the German news magazine Der Spiegel. The conservative daily Lidové noviny welcomes the minister's clear words: » more

Czech Foreign Minister Karel Schwarzenberg has warned Germany not to succumb to megalomania in its defence of the euro. Small states react sensitively when Merkel and Sarkozy decide policy between themselves and then merely inform the others of the result, Schwarzenberg stated in an interview with the German news magazine Der Spiegel. The conservative daily Lidové noviny welcomes the minister's clear words: "Everything centres around Berlin. Only in theory are the other states equal partners. The only time they attract attention is when they fail to give the Germans their approval. Never has Berlin's attitude been so clear: 'Those who are not with us are against us'. ... Schwarzenberg is right to say that the euro is only one of several instruments, and that Europe would survive without it. Berlin has not yet decided what is to happen with the euro. Anyone who declares in such a situation that the only way forward is together with Germany and that other allies are unimportant is just being naive."

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Le Soir - Belgium | Friday, 6. January 2012

Weak euro a crisis signal

The euro exchange rate fell intermittently by one US cent to 1.28 dollars on Thursday, marking the lowest level since September 2010. The weak euro shows how critical the situation is for the common currency, writes the daily Le Soir: » more

The euro exchange rate fell intermittently by one US cent to 1.28 dollars on Thursday, marking the lowest level since September 2010. The weak euro shows how critical the situation is for the common currency, writes the daily Le Soir: "Perhaps companies that export to countries outside the Eurozone are happy at this news. But for everyone else it's a disaster. It is a further sign that Europe is plunging ever deeper into crisis and is incapable of coming up with even a hint of a response. No doubt turbulent times require long-term solutions, like the establishment of a European fiscal policy. But - and frankly we're tired of repeating it - there is a fire that needs to be put out right now. ... Instead, the summits have poured oil on the fire by demanding ever more budgetary discipline, which only aggravates the recession and deficits. And by refusing any efficient solidarity mechanism such as a purchase of bonds by the ECB or the creation of eurobonds."

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taz - Germany | Thursday, 5. January 2012

Absurd wrangling over ECB chief economist

The Belgian Peter Praet will be the new chief economist at the European Central Bank, the bank announced on Tuesday. This is the first time that a German won't occupy the post. Prior to Praet's appointment there had been talk in German government circles that only a German could prevent the money press from being switched on to save the euro. The left-leaning daily taz mocks this nationalism regarding the ECB: » more

The Belgian Peter Praet will be the new chief economist at the European Central Bank, the bank announced on Tuesday. This is the first time that a German won't occupy the post. Prior to Praet's appointment there had been talk in German government circles that only a German could prevent the money press from being switched on to save the euro. The left-leaning daily taz mocks this nationalism regarding the ECB: "Because it doesn't matter and never did whether the ECB's chief economist is German or not. Consequently it makes no difference that no one wanted to entrust Jörg Asmussen with the task and that he will now have to make do with the post of ECB 'foreign minister'. Because whatever the title may be it's the majority at the ECB that has the final say. And Germany falls far short of a majority. ... All the Eurozone central banks have a vote on the ECB Executive Board - little Malta as well as big Germany. Germany's Bundesbank would therefore have had to form alliances with other central banks to push through its candidate. But in the meantime it seems to have lost all its potential allies."

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All available articles from » Ulrike Herrmann

Corriere della Sera - Italy | Tuesday, 3. January 2012

Euro bonds as a birthday gift

Ten years ago, on 1 January 2002, the euro was introduced. The debt crisis is casting a cloud over an anniversary that should be celebrated despite everything - with more European integration and the introduction of euro bonds, the liberal-conservative daily Corriere della Sera writes: » more

Ten years ago, on 1 January 2002, the euro was introduced. The debt crisis is casting a cloud over an anniversary that should be celebrated despite everything - with more European integration and the introduction of euro bonds, the liberal-conservative daily Corriere della Sera writes: "The advantages the euro has brought for the countries of the European Monetary Union (EMU) far outweigh the disadvantages. The euro has become one of the most important central bank reserve currencies outside of the EMU and on the financial markets. ... But within the Union it is now crucial to strengthen the European Stability Mechanism to reduce the spiralling interest rates on the bonds of indebted countries. In addition to other measures this requires the introduction of euro bonds. Europe must understand that the process of integration should not be allowed to stall. ... Financial stability and growth-promoting measures must go hand in hand. This is the European answer to the crisis and hopefully also that of the upcoming EU summit."

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Main focus of Monday, 2. January 2012

Denmark wants to save euro

Denmark took over the six-month presidency of the Council of the European Union from Poland on January 1. Danish Prime Minister Helle Thorning-Schmidt has declared ... » more

Denmark took over the six-month presidency of the Council of the European Union from Poland on January 1. Danish Prime Minister Helle Thorning-Schmidt has declared that rescuing the euro will be her main task. While some commentators see the goal as overambitious for the non-euro country, others see Denmark as a constructive member of the EU that can prevent it from falling apart.

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Politiken - Denmark | Monday, 2. January 2012

A great chance for a small country

Denmark must prevent the EU from falling apart during its six-month EU presidency, the left-liberal daily Politiken comments: » more

Denmark must prevent the EU from falling apart during its six-month EU presidency, the left-liberal daily Politiken comments: "We are living in a new Europe and Denmark has a great opportunity to preserve this Europe in the coming six months. ... There is an increased risk of it splitting up - a risk that has hardly been minimised by the fact that the UK has rejected the pact for greater budgetary discipline. The EU is currently divided into three camps: 17 euro countries, nine countries (including Denmark) that want to join the pact and the UK, which has adopted a collision course. Preventing the EU from falling apart is a decisive criterion for the success of the EU presidency. It could be helpful for Denmark's role as mediator that we don't belong to the monetary union. ... The European Union stands for more than an economy and currency: it represents peace, freedom and European values."

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La Stampa - Italy | Monday, 2. January 2012

Copenhagen has too little clout

In the midst of the euro crisis it doesn't make sense to give the EU Council presidency to a country that doesn't belong to the monetary union, the liberal daily La Stampa points out: » more

In the midst of the euro crisis it doesn't make sense to give the EU Council presidency to a country that doesn't belong to the monetary union, the liberal daily La Stampa points out: "First Poland, now Denmark. In the midst of the euro storm a country that is not a member of the Eurozone and therefore lacks the necessary clout to effectively intervene in the European debt crisis is assuming the EU presidency. At the top of the agenda for the next six months is the intergovernmental agreement for introducing a fiscal union. This issue affects above all the countries of the Eurozone. Copenhagen wants to mediate between the club of euro states and the countries with their own currency. ... But the Merkel-Sarkozy duo will continue to make the key decisions - much to the dismay of the other countries, especially since the decisions of the duo appear to mainly follow the dictates of domestic politics."

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All available articles from » Marina Verna

Blog Coulisses de Bruxelles - France | Monday, 2. January 2012

Jean Quatremer on the worst prophets of 2011

The worst prophet of 2011 was the French demographer Emmanuel Todd, writes Jean Quatremer in his blog Coulisses de Bruxelles, given that Todd predicted the collapse of the euro before the end of the year: » more

The worst prophet of 2011 was the French demographer Emmanuel Todd, writes Jean Quatremer in his blog Coulisses de Bruxelles, given that Todd predicted the collapse of the euro before the end of the year: "Who said: 'I would be very surprised if the euro in its current form survived the year 2011'? The ineffable Emmanuel Todd, on January 4, 2011. The demographer became France's 'doctor doom'. ... The problem with predictions, especially very presumptuous ones, is that you run the risk of being refuted by the facts. And that's the case today: the euro is still alive and kicking. ... Daring to put a date on the death of the common currency is pure and simple stupidity, especially when you consider that no currency has ever collapsed due to blows from the markets. A currency is an act of political determination."

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Main focus of Wednesday, 28. December 2011

Crisis, disaster and protest

The people of the Arab world rose up in protest, Japan was hit by a nuclear disaster and Europe became mired in a debt crisis: » more

The people of the Arab world rose up in protest, Japan was hit by a nuclear disaster and Europe became mired in a debt crisis: 2011 was historic in every way, writes the press.

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Berlingske - Denmark | Wednesday, 28. December 2011

2012 will be better

Despite the sombre events of 2011 the conservative daily Berlingske writes that the prospects for the next twelve months are not all that bad: » more

Despite the sombre events of 2011 the conservative daily Berlingske writes that the prospects for the next twelve months are not all that bad: "Just when we thought that the worst was over parts of the global economy lost their stable footing once more, unemployment rose and the entire construct of the euro was called into question. ... In the US things looked no better. ... Then there was the completely senseless massacre in Norway, the natural disaster in Japan and dozens of tiresome political affairs and scandals that oppressed the mood. ... But if you take a closer look the situation doesn't seem so hopeless. The US economy is beginning to recover. ... In Europe, despite the profound crisis, there are signs of a political will to solve the debt problems and mutually commit to a responsible economic policy."

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Diário de Notícias - Portugal | Tuesday, 27. December 2011

Not a good year for Portugal or EU

For Portugal and the EU the past year was an extremely difficult one but the Union won't collapse, writes Portugal's ex-head of state Mário Soares in the daiy Diário de Notícias: » more

For Portugal and the EU the past year was an extremely difficult one but the Union won't collapse, writes Portugal's ex-head of state Mário Soares in the daiy Diário de Notícias: "It was a bad year for Portugal because the financial markets wanted to turn us into junk (just imagine!). But it was also bad for the EU. ... Fortunately, however, the EU won't disappear and won't be integrated into an 'impossible European state' either, even if the immediate future seems unlikely to bring calm any time soon. Europe won't plunge into the abyss as the prophets of doom had predicted. ... As we all know the crisis is in truth a global one and affects everyone in some way. Perhaps this is why there is so much pressure to save the EU from collapse. Because in the past 50 years it has become a benchmark for the world."

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Valeurs actuelles - France | Wednesday, 28. December 2011

Politicians responsible for annus horribilis

2011 was the year of economic collapse and missed opportunities for which above all the politicians are to blame, writes the political scientist Olivier Duhamel in the conservative weekly Valeurs actuelles: » more

2011 was the year of economic collapse and missed opportunities for which above all the politicians are to blame, writes the political scientist Olivier Duhamel in the conservative weekly Valeurs actuelles: "You could call 2011 an 'annus horribilis'. We have suffered two major crises: mistrust of the Eurozone and the onset of the recession. And to a large extent our politicians are to blame. One good example is the tragicomedy of France's triple-A rating. ... There was no happy ending. Things took a turn for the worse and despite themselves our sorcerer 's apprentices only deepened the mistrust. The second example: the series of European summits and their persistent failure to reach their immediate goal, namely to break the vicious circle of distrust. ... France demands solidarity and promises discipline in the future, while Germany wants things the other way round. To bypass this blockade one compromise after another is being hastily cobbled together, with the result that distrust is growing and the recession is the order of the day."

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Capital - Romania | Wednesday, 28. December 2011

Politicians learn from year of crisis

The European debt crisis has taught the political elites certain painful truths, the business paper Capital writes: » more

The European debt crisis has taught the political elites certain painful truths, the business paper Capital writes: "Of course we don't believe 2011 was satisfactory in economic terms. We are always quick to call something bad or disappointing. Nevertheless we should also try to view the year in a positive light. It brought us a basic understanding without which any solution to our problems would be unthinkable. We learned that we cannot simply react to pressure from the capital markets with quick money and promises. ... With the onset of the global collapse the industrial countries' political elites have clearly grasped that it is no longer possible to rack up debts in the hope of a good life. It is time to admit a painful truth that can no longer be ignored: we have to make sacrifices, and we must change the industrial countries' mode of operation."

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All available articles from » Alin Brendea

To Vima Online - Greece | Friday, 23. December 2011

Lazy Greeks to blame for all evils

The notion of the lazy Greeks who lived above their means and are to blame for the euro crisis must be swiftly and firmly set aside, the left-liberal daily To Vima urges: » more

The notion of the lazy Greeks who lived above their means and are to blame for the euro crisis must be swiftly and firmly set aside, the left-liberal daily To Vima urges: "We must understand that the perpetuation of this propaganda is a great crime against the future of our country. ... We can't accept that European citizens come to see the Greeks as largely responsible for the continuing crisis. ... It's unbelievable that this propaganda is being spread even in our country. ... The damage to Greece and the Greeks is enormous - perhaps much greater than that caused by the debt crisis itself. This is because not just the governments of some countries have been influenced by this propaganda but everyone in Europe. ... The Germans have once again conjured up the spectre of the 'super-baddie' who is to blame for all evils. Greece must banish this spectre."

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All available articles from » Giorgos Malouchos

Corriere della Sera - Italy | Thursday, 22. December 2011

Flood of cash no solution

The ECB's cheap money won't necessarily prevent a looming credit crunch or restore confidence in Europe's crisis management, the liberal-conservative daily Corriere della Sera writes: » more

The ECB's cheap money won't necessarily prevent a looming credit crunch or restore confidence in Europe's crisis management, the liberal-conservative daily Corriere della Sera writes: "When there's only one show in a city everyone goes there. The same happened at the ECB's counters yesterday. ... The show was sold out. But this doesn't mean that the banks will use the 500 billion euros to ease the credit crunch or buy government bonds. The banks will manage the fresh funds like citizens who have lost their trust in the system. They fear new regulations from the authorities that will lower the value of their assets or further mistakes in the political crisis management. Public and private entities in Europe no longer trust each other. Not even when the computers of the ECB (electronically) spit out 500 billion euros. The negative reaction of the markets yesterday was unmistakable proof of this."

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All available articles from » Federico Fubini

Die Welt - Germany | Thursday, 22. December 2011

Debtor states given a reprieve

With its cash injection the ECB is indirectly propping up Europe's debt-ridden states, giving them more time to find a solution to the crisis, notes the conservative daily Die Welt : » more

With its cash injection the ECB is indirectly propping up Europe's debt-ridden states, giving them more time to find a solution to the crisis, notes the conservative daily Die Welt : "Already in the last few days we could see where part of the money was going - for example into Spanish government bonds. This led interest rates on these securities to drop temporarily. So with this move the ECB is helping not just the banks but indirectly and very deliberately also the ailing states of the Eurozone, giving them easier access to fresh funds. But those who believe that central banks flooding the markets with cash is the real solution to Europe's crisis fail to appreciate the huge dimensions of the problem. ... For Europe as a whole is not in stable balance. In countries like Greece and Portugal salaries are far too high for the lacking competitiveness of their economies. ... The ECB has bought them some time to finally address these issues."

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Neue Zürcher Zeitung - Switzerland | Thursday, 22. December 2011

Fresh cash won't be used for government bonds

The cheap euro loans offered by the European Central Bank met with high demand on Wednesday. But the liberal-conservative daily Neue Zürcher Zeitung doubts that banks will invest the cheap money in euro states' government bonds: » more

The cheap euro loans offered by the European Central Bank met with high demand on Wednesday. But the liberal-conservative daily Neue Zürcher Zeitung doubts that banks will invest the cheap money in euro states' government bonds: "Certainly, at first glance it looks like a good deal to borrow money at the current one percent interest and invest it in securities that yield higher percentages. But the banks parted with the illusion that bonds are non-risk securities long ago. Quite a few European banks would be happy to reduce their large stockpiles of Italian or Spanish government securities; hardly any will be thinking of stocking up on them. In addition the banks know full well that the next stress tests by the banking authority EBA are on the way. ... So it's more likely that the banks will use the long-term ECB funds for normal day-to-day activities, including granting loans, and to pretty themselves up for the next visit by the regulators."

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Rzeczpospolita - Poland | Thursday, 22. December 2011

The ECB's spectacular move

The gigantic amount of credit freed up by the European Central Bank can calm the markets and help rescue the euro, the conservative daily Rzeczpospolita writes: » more

The gigantic amount of credit freed up by the European Central Bank can calm the markets and help rescue the euro, the conservative daily Rzeczpospolita writes: "The only question that remains is whether the banks will take the risk of for example purchasing Italian or Spanish bonds or try to keep risks to a minimum. If they invest in the indebted countries the situation on the markets could calm down, meaning investor confidence will also be sure to grow. But if they don't, all the old problems will return. The ECB's current support for the banks is so spectacular that the volume of the loan is almost twice as high as expected. In addition the three-year term gives banks and investors the time they need."

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All available articles from » Cezary Adamczyk

euinside - Bulgaria | Tuesday, 20. December 2011

Bulgaria doesn't want to save euro

Bulgaria's Finance Minister Simeon Dyankov announced that the country would not participate in the IMF euro bailout fund on Monday, saying he didn't see why a poor country that had exercised budgetary discipline should help debt-stricken states. The web portal euinside accuses the government of lacking solidarity: » more

Bulgaria's Finance Minister Simeon Dyankov announced that the country would not participate in the IMF euro bailout fund on Monday, saying he didn't see why a poor country that had exercised budgetary discipline should help debt-stricken states. The web portal euinside accuses the government of lacking solidarity: "The Bulgarian position is a reflection not just of its empty coffers but also the government's lacking sense of connection to anything to do with Europe and the EU apart from EU funding. If the ruling party Gerb adopts a position at a European level then only under orders from the headquarters of the [conservative] European People's Party. The Bulgarian public is presented with cheap populist and anti-European theories that are supposed to appeal to the pensioners and jobless. ... Saving tax money is exemplary but what about the Bulgarian companies that work in the Eurozone? And are tax revenues really being saved? What's better: to transfer money to the IMF for rescuing the euro or funnel it into the bulging coffers of the police?"

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Le Temps - Switzerland | Tuesday, 20. December 2011

London for now unwilling to back euro rescue

The EU wants to boost IMF funding for indebted Eurozone countries by 200 billion euros, but the UK announced on Monday that it won't pay its share. The conflict with the British is not however a serious problem in the eyes of the liberal daily Le Temps: » more

The EU wants to boost IMF funding for indebted Eurozone countries by 200 billion euros, but the UK announced on Monday that it won't pay its share. The conflict with the British is not however a serious problem in the eyes of the liberal daily Le Temps: "The year has taken an unexpected turn with the crisis between France and the UK, but in a way this crisis is trivial. Every ten years the two sea powers fight a psychological duel. ... In a couple of months a solution will be found, bridges will be rebuilt or a rescue ring thrown and they will reconcile. A compromise will be worked out ensuring that neither side loses face and cooperation can be resumed. No one wants to give the UK, a country that guarantees liberalism and balance, the boot. ... And the British prime minister will pluck up the courage to defy the most truculent eurosceptics."

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Il Sole 24 Ore - Italy | Tuesday, 20. December 2011

Forcing banks to recapitalise dangerous

Financial stability in the Eurozone is under greater threat than it has been since the Lehman bankruptcy in autumn 2008. This was the conclusion reached in a report published on Monday by the European Central Bank on the financial stability of the Eurozone. The ECB obviously fears the negative impact of the planned forced recapitalisation of banks, the business paper Il Sole 24 Ore concludes: » more

Financial stability in the Eurozone is under greater threat than it has been since the Lehman bankruptcy in autumn 2008. This was the conclusion reached in a report published on Monday by the European Central Bank on the financial stability of the Eurozone. The ECB obviously fears the negative impact of the planned forced recapitalisation of banks, the business paper Il Sole 24 Ore concludes: "This isn't the first time that the ECB has expressed doubts about the European Banking Authority's plans for a recapitalisation of the banks. The European Banking Authority wants European banks to increase their core capital reserves to nine percent by mid-2012. This could prompt banks to sell assets or curb lending to families and companies. In yesterday's report the ECB calls on the national bank supervisory authorities to prevent the recapitalisation from causing a reduction in borrowed capital that in turn would lead to a credit crunch for the real economy."

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All available articles from » Alessandro Merli

Corriere della Sera - Italy | Monday, 19. December 2011

Euro rescuers on the wrong path

Discussion of the decisions made at the Brussels crisis summit for saving the euro continues unabated. But the resolutions are headed in the wrong direction, writes the liberal-conservative daily Corriere della Sera: » more

Discussion of the decisions made at the Brussels crisis summit for saving the euro continues unabated. But the resolutions are headed in the wrong direction, writes the liberal-conservative daily Corriere della Sera: "Because they had not yet been sealed by an official EU treaty they can't be pushed through by the EU Commission or any other EU institution. This means there is no mechanism to ensure that the new budget rules are adhered to. ... Even if German Chancellor Merkel, French President Nicolas Sarkozy and the EU Council President Herman Van Rompuy have tried to use the debt crisis to pursue the goal of European integration their inability to do so doesn't necessarily have to prevent the reduction of interest rates on the government bonds of indebted countries. Political measures in each individual country can lower risk premiums to reduce budget deficits. ... The Merkel-Sarkozy duo should admit that it has taken the wrong approach. Europe needs reforms tailored to each individual country. A new attempt at achieving a fiscal union and political integration is not the solution."

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Upsala Nya Tidning - Sweden | Sunday, 18. December 2011

New EU creates power imbalance

Sweden is not a member of the Eurozone, and the new stability pact resolved at the EU summit on December 9 is the subject of considerable controversy in the country. Of the four conservative governing parties only the Liberals welcome the pact without reservations while the others have adopted a wait-and-see attitude. The liberal daily Upsala Nya Tidning sides with the sceptics and fears that Sweden will lose influence: » more

Sweden is not a member of the Eurozone, and the new stability pact resolved at the EU summit on December 9 is the subject of considerable controversy in the country. Of the four conservative governing parties only the Liberals welcome the pact without reservations while the others have adopted a wait-and-see attitude. The liberal daily Upsala Nya Tidning sides with the sceptics and fears that Sweden will lose influence: "In what sort of a Union does an inner core take over responsibility for the common currency and at the same time for taxation, the labour market and economic policy in general, while the other countries have no option but to accept its dictates? ... How sustainable can an order be in the long term in which the votes of all countries and citizens don't carry the same weight even in formal terms? And how long can such a concentration of power in the core areas be accepted without far-reaching democratic reforms ensuing?"

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All available articles from » Håkan Holmberg

La Repubblica - Italy | Friday, 16. December 2011

Peter Schneider on the futile image of the evil German

The cover picture of this week's US news magazine Newsweek features the German Chancellor along with the headline "Achtung! It's Angela" and accuses Angela Merkel of having intensified Europe's crisis with her hesitant stance. German author Peter Schneider agrees with this view in the left-liberal daily La Repubblica: » more

The cover picture of this week's US news magazine Newsweek features the German Chancellor along with the headline "Achtung! It's Angela" and accuses Angela Merkel of having intensified Europe's crisis with her hesitant stance. German author Peter Schneider agrees with this view in the left-liberal daily La Repubblica: "Cool Germany, the attractive and likeable Germany of the 2006 World Cup. ... That's what we were until yesterday. But now the image of the ugly German, the evil German has re-emerged. ... Conjuring up the image of the German baddie is doubtless a convenient excuse for those countries that need to consolidate their budgets and budget planning. Laying the blame on the nasty Germans is on the one hand the easiest way to divert attention from their own mistakes. ... But on the other Angela Merkel's European partners are right to accuse her of never saying what was expected of her at the right moment. This began with the Greek crisis. First she said that Greece shouldn't be helped and then that it should. The chancellor left the question pending for so long that the cost of bailing the country out tripled."

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The Economist - United Kingdom | Friday, 16. December 2011

Cameron's EU veto plunges UK into its own euro crisis

With his veto at the EU summit a week ago British Prime Minister David Cameron has left himself isolated and in a very tight spot, the liberal weekly The Economist fears: » more

With his veto at the EU summit a week ago British Prime Minister David Cameron has left himself isolated and in a very tight spot, the liberal weekly The Economist fears: "Mr Sarkozy, who is facing a tough re-election fight next spring, claimed that Mr Cameron wanted to make the City of London into something like the Cayman Islands. A frequent British ally, the Dutch Prime Minister Mark Rutte grumbled about Britain seeking an 'unacceptable' competitive advantage. Combine such forces and it is possible to imagine Mr Cameron's government trapped, unwillingly, between an impossible piece of hostile Euro-legislation, domestic British anger and unstoppable pressure for a referendum that cannot be won. Whatever Westminster sophisticates murmur, the politics of this crisis are moving into new territory. Britain's relations with Europe are now inseparable from how, and whether, the euro survives. That is the real lesson of the fractious Brussels summit. What happens next may test not just the government's powers of diplomacy, but of imagination itself."

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Wprost Online - Poland | Friday, 16. December 2011

Investors right to be wary of Italy

Debt-stricken Italy is currently having to pay an average yield of 6.47 percent on its five-year government bonds. This is the highest yield on Italian bonds since the introduction of the euro. But the wariness of the investors is justified, the conservative news portal Wprost Online comments: » more

Debt-stricken Italy is currently having to pay an average yield of 6.47 percent on its five-year government bonds. This is the highest yield on Italian bonds since the introduction of the euro. But the wariness of the investors is justified, the conservative news portal Wprost Online comments: "One must bear in mind that Greece, Portugal and Italy are on the brink of bankruptcy precisely because they could always rely on a euro handout from Brussels. Otherwise they would have had to tighten their belts long ago. What guarantees do we have that they will consolidate their budget if they can always hold out their hands and ask the EU for help? It's preferable to provoke the ire of the eurocrats than face the anger of the people on the streets in Rome and Athens. In such a situation why should we be surprised that the investors are acting as they are? The only surprise is that anyone at all is buying Italian bonds." 

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Právo - Czech Republic | Thursday, 15. December 2011

Czech Republic lacking solidarity on euro bailout

The Czech government remains hesitant about whether to go along with the decisions taken recently at the EU summit on the euro bailout. In doing so it is repeating the mistakes of the past and behaving opportunistically and without principles, writes the left-leaning daily Právo: » more

The Czech government remains hesitant about whether to go along with the decisions taken recently at the EU summit on the euro bailout. In doing so it is repeating the mistakes of the past and behaving opportunistically and without principles, writes the left-leaning daily Právo: "The attitude of Prime Minister Petr Nečas in Brussels was a continuation of the opportunistic stance of Czech political circles not only in regard to the EU but also concerning the world in general. Whereas intense discussions were carried out before the summit in other countries, things were silent here at home. And if it has happened in the past that a Czech politician has hit the bull's eye with his criticism of the EU, it wasn't in proposing a solution but by gloating 'that's what we've been saying all along'. ... How can we take hundreds of billions from the EU but then refuse to show solidarity when we're asked for help?"

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Frankfurter Allgemeine Zeitung - Germany | Thursday, 15. December 2011

German elections would endanger the euro

The General Secretary of Germany's Free Democratic Party (FDP) Christian Lindner resigned on Wednesday. This is yet another setback for the conservative-liberal ruling coalition, but it must not be allowed to destabilise Angela Merkel's government in the midst of the euro crisis, warns the conservative daily Frankfurter Allgemeine Zeitung: » more

The General Secretary of Germany's Free Democratic Party (FDP) Christian Lindner resigned on Wednesday. This is yet another setback for the conservative-liberal ruling coalition, but it must not be allowed to destabilise Angela Merkel's government in the midst of the euro crisis, warns the conservative daily Frankfurter Allgemeine Zeitung: "Because if there's one thing the German political elite must avoid at all cost in the next weeks or perhaps months, it's the dissolution of parliament and early elections. Because then everything Mrs Merkel has said in parliament regarding building trust and stability in Europe and what must be done before 2013 will suddenly be called into question again. ... The chancellor has set herself the historic challenge of correcting the 'mistakes made on founding the euro'. ... But to do that she must decide whether her European policy should be based on the political considerations of her party and coalition or on the bold ideas of a self-confident chancellor."

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Público - Portugal | Wednesday, 14. December 2011

Ian Burama calls for more commitment to European dream

The idea of a united Europe can't simply be given up in these times of crisis, writes Ian Burama, professor of democracy and human rights in an article published in the daily Público: » more

The idea of a united Europe can't simply be given up in these times of crisis, writes Ian Burama, professor of democracy and human rights in an article published in the daily Público: "Since the EU is neither a nation-state nor a democracy, there is no 'European people' to see the EU through hard times. Rich Germans and Dutch do not want to pay for the economic mess in which the Greeks, Portuguese, or Spanish now find themselves. Instead of showing solidarity, they moralize, as though all of the problems in Mediterranean Europe were the result of native laziness or its citizens' corrupt nature. ... For starters, affluent northern Europeans have to be convinced that it is in their interest to strengthen the EU, as it certainly is. After all, they have benefited most from the euro, which has enabled them to export cheaply to southern Europeans. ... Democracy may seem like a mad dream in a community of 27 nation-states, and perhaps it is. But unless one is prepared to give up on building a more united Europe, it is surely worth considering."

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Dnevnik - Slovenia | Thursday, 15. December 2011

New EU states more disciplined than old

The Eastern European EU member states are the model pupils regarding budgetary discipline nowadays although the Western members had feared the contrary during the EU expansion. But Europe now threatens to go bankrupt because of its old members, the left-liberal daily Dnevnik observes: » more

The Eastern European EU member states are the model pupils regarding budgetary discipline nowadays although the Western members had feared the contrary during the EU expansion. But Europe now threatens to go bankrupt because of its old members, the left-liberal daily Dnevnik observes: "The fear that we would destroy Europe, demolish the euro and raid the structural aid fund was great. The only question was whether the culprit would be Bulgaria, Romania, Poland, Hungary or Slovenia. This is why Brussels stipulated such tough conditions for our EU membership. Disciplined and obediently we fulfilled all the conditions. We, the citizens of the new EU states, are the most disciplined Europeans, frantically battling to balance our budgets even against our own interests. Meanwhile Greece and the Italians are driving the EU crazy with the aid of German and French banks. ... So it's the old member states who have brought Europe to the brink of bankruptcy."

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All available articles from » Ervin Hladnik-Milharcic

Der Standard - Austria | Wednesday, 14. December 2011

Rich countries don't need austerity measures

Austria's National Council, the lower house of the Austrian parliament, will debate the decisions taken at the EU summit and the enshrining of a debt brake in the country's constitution in a special session today, Wednesday. But rather than government cutbacks what is needed is a wage policy that is tailored to the real productivity of individual countries, the left-liberal daily Der Standard writes: » more

Austria's National Council, the lower house of the Austrian parliament, will debate the decisions taken at the EU summit and the enshrining of a debt brake in the country's constitution in a special session today, Wednesday. But rather than government cutbacks what is needed is a wage policy that is tailored to the real productivity of individual countries, the left-liberal daily Der Standard writes: "We, the Austrians, and above all the Germans, have a trade surplus vís-a-vís other EU countries. So in total we and the Germans have produced more than we have consumed and invested. We have lived below rather than beyond our means. However the monetary union can only be stable if everyone lives precisely according to their means. Not primarily for reasons of fairness but rather to ensure the EU's stability, higher wage agreements are essential in Austria and Germany. Otherwise a European disaster will be inevitable."

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All available articles from » Erhard Götzl

Kathimerini - Greece | Tuesday, 13. December 2011

Germany's economising craze destroying Europe

If each EU summit leads to more austerity measures Southern Europe in particular will plunge into recession and Euroscepticism will increase, the conservative daily Kathimerini warns: » more

If each EU summit leads to more austerity measures Southern Europe in particular will plunge into recession and Euroscepticism will increase, the conservative daily Kathimerini warns: "Germany-style disciplining doesn't appear to be the right weapon to protect European nations from poverty and insecurity. At the most recent summit the key words growth, solidarity and convergence weren't even mentioned - not even as goals. ... We see that democracy and the historical vision of a community are gradually disappearing from Europe. Euroscepticism will be the next step: what suffering nation will be willing to support a vague historical project rather than the urgent need to put food on the table and keep one's home warm? The anti-European mood will fall on fertile ground. ... But in the 21st century the Europeans can only rescue the great achievements of democracy and the social welfare state through unity and solidarity."

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Hospodářské noviny - Czech Republic | Wednesday, 14. December 2011

Czech Republic can't survive on its own

The Czech government wants to decide today whether it will abide by the wishes of the EU summit and participate in the extended euro bailout mechanism, the ESM. There are many indications that Prague will refuse, leading the business paper Hospodářské noviny to urge Czechs to look beyond their own noses: » more

The Czech government wants to decide today whether it will abide by the wishes of the EU summit and participate in the extended euro bailout mechanism, the ESM. There are many indications that Prague will refuse, leading the business paper Hospodářské noviny to urge Czechs to look beyond their own noses: "The Czech politicians - above all the prime minister and the president - act as if the Czech Republic could function in political and economic isolation. President Klaus even gives the impression that he would welcome the collapse of the euro because it would confirm that he was right from the start. ... Refusing to participate in the extended bailout fund would be suicide. Czech politics would go back to its old ruse of trying to contribute as little as possible while getting as much as it could from the Community."

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Libération - France | Wednesday, 14. December 2011

Euro pact still inadequate

The fiscal pact with automatic sanctions on which all EU countries with the exception of the UK have agreed is insufficient and comes too late, writes François Heisbourg, expert for strategy and security policy, in the left-liberal daily Libération: » more

The fiscal pact with automatic sanctions on which all EU countries with the exception of the UK have agreed is insufficient and comes too late, writes François Heisbourg, expert for strategy and security policy, in the left-liberal daily Libération: "As usual our countries continue to act as if half-measures will gain us time, even though time is against the euro. The measures resolved on December 9 do not provide an adequate springboard to prepare for what must come next. The ECB's current policy would have provided oxygen if it had been applied two years ago, at the start of what wasn't yet the Greek crisis. The announcement of a new treaty during the 'decisive' meetings in autumn 2010 and spring 2011 might possibly have calmed things for enough time to introduce thoroughgoing reforms. ... General MacArthur said that the cause of lost wars could be summed up in four words: too little too late."

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Turun Sanomat - Finland | Wednesday, 14. December 2011

Finland must back ESM

The EU summit's proposal for the qualified majority principle to be adopted for decision-making within the European Stability Mechanism (ESM) has met with tough opposition in Finland, especially from the Social Democrats (SDP). The SDP, which forms part of the governing coalition, has raised concerns that qualified majority voting would conflict with the country's constitution. Finland must not try to evade its responsibilities in the search for a solution to the euro crisis, the liberal daily Turun Sanomat writes: » more

The EU summit's proposal for the qualified majority principle to be adopted for decision-making within the European Stability Mechanism (ESM) has met with tough opposition in Finland, especially from the Social Democrats (SDP). The SDP, which forms part of the governing coalition, has raised concerns that qualified majority voting would conflict with the country's constitution. Finland must not try to evade its responsibilities in the search for a solution to the euro crisis, the liberal daily Turun Sanomat writes: "The desire for a perfect consensus is a policy that is alien to Finland. It only leads to the slowest alternatives being chosen in the solving of the economic crisis. The markets don't work according to this principle. ... The SDP should therefore stick to the course it has pursued all along and not give in to nationalist EU populism. This only creates new problems instead of producing common solutions. Finland can neither prevent nor deal with a recession if it buries its head in the sand and always says No. You can't be inside the Eurozone and outside it at the same time."

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Politiken - Denmark | Wednesday, 14. December 2011

Growth incentives completely lacking

Since the end of last week's EU summit the government and parliament in Denmark have been engaged in intense discussions about the planned euro pact. The ruling Socialist People's Party has adopted a far more critical stance than its coalition partners the Social Liberal Party and the Social Democrats. The left-liberal daily Politiken sees a lack of growth incentives in the deal: » more

Since the end of last week's EU summit the government and parliament in Denmark have been engaged in intense discussions about the planned euro pact. The ruling Socialist People's Party has adopted a far more critical stance than its coalition partners the Social Liberal Party and the Social Democrats. The left-liberal daily Politiken sees a lack of growth incentives in the deal: "Growth has been ignored in the new pact. It concentrates solely on cuts. Yet it's important for the northern European countries who have the necessary leeway in their budgets to boost consumption so that the southern Europeans can extricate themselves from the crisis with high productivity. If the pact doesn't take this into account all Europe will be forced to pursue an austerity policy that will have the impact of a collective growth killer: a controlled financial-policy suicide."

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Göteborgs-Posten - Sweden | Wednesday, 14. December 2011

Sweden already fulfils euro pact criteria

Swedish Prime Minister Fredrik Reinfeldt on Tuesday asked parliament for more time to consider whether the country should participate in the new euro pact. For the daily Göteborgs-Posten Sweden would do well to join in: » more

Swedish Prime Minister Fredrik Reinfeldt on Tuesday asked parliament for more time to consider whether the country should participate in the new euro pact. For the daily Göteborgs-Posten Sweden would do well to join in: "The goal of the pact is to prevent excessive budget deficits. Such a system of regulations was introduced in Sweden during the crisis in the 1990s and helped it to develop the healthiest public finances in Europe. Joining the euro pact wouldn't entail a single change to our economic policy. That alone is a reason to say yes. It is in Sweden's interest to prevent a two-speed Europe in which a minority hobbles along behind the rest. But the decisive reason for a Swedish yes is economic policy. The core of the EU is the Single Market, free of barriers for people, goods, services or capital."

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Financial Times Deutschland - Germany | Tuesday, 13. December 2011

Jonathan Powell on Cameron's big betrayal

With his veto on amending the EU treaties David Cameron has sacrificed Britain's leading role within Europe, writes Jonathan Powell, chief of staff under ex-British prime minister Tony Blair: » more

With his veto on amending the EU treaties David Cameron has sacrificed Britain's leading role within Europe, writes Jonathan Powell, chief of staff under ex-British prime minister Tony Blair: "In essence we will be Norway without the oil, bound to go along with European decisions but unable to influence them. Of course, on some issues we will be able to wield the veto. But most single-market issues are now subject to qualified majority voting. How long are the other 26 likely to put up with obstructionism by one member wielding the veto again and again? There is a reason why successive British governments of both parties have opposed a two-speed Europe: we did not want to be excluded from power in the continent to which we belong. For 200 years since the battle of Waterloo we have expended enormous efforts to maintain a leadership role in Europe. It is a betrayal of that history to turn our backs on the continent."

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The Guardian - United Kingdom | Tuesday, 13. December 2011

Parliament rejects isolation

David Cameron's EU veto may have delighted his Conservative Party, but in the British parliamentary debate on Monday a majority of MPs were outspokenly in favour of the EU, writes the left-liberal daily The Guardian: » more

David Cameron's EU veto may have delighted his Conservative Party, but in the British parliamentary debate on Monday a majority of MPs were outspokenly in favour of the EU, writes the left-liberal daily The Guardian: "Mr Cameron's walkout went down a storm with his party, but the recognition that he is marching Britain towards Never Never Land seems to be gaining ground now. Yesterday's Commons exchanges were the voice of a parliament which, for all its bluster, does not embrace isolationism. There is more momentum now behind re-engaging than disengaging. Quite right too. Mr Cameron should never have left the table. Now he must be made to return to it."

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Mladá fronta Dnes - Czech Republic | Tuesday, 13. December 2011

Euro bailout not worth a koruna

The Czech President Václav Klaus spoke out on Monday against his country's participation in the extension of the euro bailout fund. The plan stands to ... » more

The Czech President Václav Klaus spoke out on Monday against his country's participation in the extension of the euro bailout fund. The plan stands to cost the country ten percent of its currency reserves. The liberal daily Mladá fronta Dnes sees his point. "It's about a principle. The Czech people want the euro no more than Czech business wants it. Even part of the Eurozone no longer wants the euro. Opinion polls show that the majority of Germans want the deutschemark back. All it would take is an election defeat for Mrs Merkel and we'll be surprised to see how fast the Eurozone collapses. And now we're being asked to support the euro, which is preventing Europe from recovering, with 90 billion koruna? With a loan that will never be repaid? ... We would only be shooting ourselves in the foot."

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All available articles from » Markéta Šichtařová

Naftemporiki - Greece | Tuesday, 13. December 2011

EU fighting crisis with wrong weapons

As of today, Thursday, six stricter rules that are part of the EU Stability Pact take effect for indebted Eurozone countries. The EU Commission now has the power to intervene when a country has not yet got deep into debt but shows signs of significant economic imbalances. However this new complex of rules known as the six pack won't make much of a difference, writes the conservative business paper Naftemporiki: » more

As of today, Thursday, six stricter rules that are part of the EU Stability Pact take effect for indebted Eurozone countries. The EU Commission now has the power to intervene when a country has not yet got deep into debt but shows signs of significant economic imbalances. However this new complex of rules known as the six pack won't make much of a difference, writes the conservative business paper Naftemporiki: "This seems to be the wrong answer to a major challenge. And the fact that the rules take effect today doesn't change the situation. ... Anyone who doubts this just need look at how the markets behaved yesterday or listen to Moody's comments. Moody's is threatening to downgrade the credit status of several countries and the Eurozone as a whole, and has expressed doubts about the survival of the euro. This battle is being fought with the wrong weapons. And the tormenting question remains: how many more mistakes can today's Europe afford to make in the midst of this serious crisis?"

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All available articles from » Nikos Frantzis

Les Echos - France | Tuesday, 13. December 2011

France doesn't need top rating

France can handle a downgrading of its high credit rating, French President Nicolas Sarkozy said in an interview published on Monday in the daily Le Monde. His words fed speculation that the downgrading might just be a matter of time. The liberal business paper Les Echos urges calm: » more

France can handle a downgrading of its high credit rating, French President Nicolas Sarkozy said in an interview published on Monday in the daily Le Monde. His words fed speculation that the downgrading might just be a matter of time. The liberal business paper Les Echos urges calm: "We stare at our triple A with our eyes glued to the rating thermometer. Already the markets see it as a lost cause. But if the topic didn't carry so much weight in the run-up to the presidential elections there'd be no reason to make such a fuss, and for a number of reasons: several other European triple As have also seen a steep rise in their risk premiums (Finland, Austria, the Netherlands ...). Even Germany recently encountered difficulties selling its government bonds. The US, downgraded to AA+ not so long ago, continues with business as usual thanks to the Federal Reserve and its status as a financial superpower, despite its current political weakness. But if Europe can't overcome its own weaknesses, the rating thermometer won't forgive it."

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Kaleva - Finland | Tuesday, 13. December 2011

Finland must participate in bailout fund

In an interview that took place after last week's EU summit Finland's finance minister Jutta Urpilainen rejected the idea of applying the majority rule principle for the ESM crisis mechanism on constitutional grounds. The prime minister, by contrast, holds participation in the ESM for necessary, as does the liberal daily Kaleva: » more

In an interview that took place after last week's EU summit Finland's finance minister Jutta Urpilainen rejected the idea of applying the majority rule principle for the ESM crisis mechanism on constitutional grounds. The prime minister, by contrast, holds participation in the ESM for necessary, as does the liberal daily Kaleva: "The need for unanimity in decision making has paralysed EU processes. It has enabled single states to cause havoc in the decision-making process in order to push through their own interests. The main thing is to be clear about what is good for Finland. Dependent as it is on exports, it would hardly be to Finland's advantage to isolate itself. Nor would the collapse of the euro be in our interest, as tempting as Sweden with its koruna may be. The government must focus on closing its ranks and explain clearly which line of approach the government as a whole backs."

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Delo - Slovenia | Tuesday, 13. December 2011

Euroscepticism a democratic impulse

The British veto of the latest EU plans testify to a democratic desire to respect the will of the people, writes the left-liberal daily Delo: » more

The British veto of the latest EU plans testify to a democratic desire to respect the will of the people, writes the left-liberal daily Delo: "Even if the Brits have never stopped stirring up trouble and making things more complicated with their Euroscepticism, you can't reproach them for not campaigning for a free, large and open Union. And these goals are well worth fighting for. All the more so as in these times of crisis they are shared by the large majority of 'normal democratic citizens'. They often look at Brussels with a scepticism akin to that of the British. The self-proclaimed rescuers of the euro and the EU, by contrast, now want in the name of 'efficiency' to extirpate this last remnant of respect for the people of Europe - and the right to national sovereignty along with it."

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All available articles from » Damijan Slabe

Népszabadság - Hungary | Saturday, 10. December 2011

Europe needs fiscal union

The deal on more budgetary discipline agreed by Europe's heads of state and government on Friday in Brussels paves the way for a true fiscal union, writes the left-liberal daily Népszabadság: » more

The deal on more budgetary discipline agreed by Europe's heads of state and government on Friday in Brussels paves the way for a true fiscal union, writes the left-liberal daily Népszabadság: "The French are happy with the pact because it deprives the EU institutions, the Commission and the European Parliament of certain powers. But the pact is also to the Germans' liking because it focuses on budgetary discipline, foresees the anchoring of a balanced budget in the treaties and sanctions for anyone who breaks the new rules. Moreover the national budgets must receive the EU's approval before they are passed into law. This encroaches not only on national sovereignty but also raises economic issues. However the monetary union can only survive the crisis by becoming a fiscal union. This means that the EU states that are willing to cooperate have the potential to create a new single market, a new common financial supervisory authority and a new finance centre as well as harmonised social and tax policies."

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Trud - Bulgaria | Sunday, 11. December 2011

EU summit leaves financial markets cold

The agreement on stricter budget regulations reached on Friday in Brussels by all of the EU states except the UK has failed to calm the global financial markets, writes the daily Trud in dissatisfaction: » more

The agreement on stricter budget regulations reached on Friday in Brussels by all of the EU states except the UK has failed to calm the global financial markets, writes the daily Trud in dissatisfaction: "'Verboten': banned, the most German of all words, will now be the catchword for Europe's state budgets. Deficits are banned, debts are banned. ... So what? Yields on Italian government bonds still lie at 6.55 percent - barely below those of Greece, Ireland and Portugal when they asked Europe for financial help. The only thing the financial markets are interested in is how the threatened countries will be financed in the next three months while the fiscal union is being ratified. ... At some point in this poker game over the debt crisis comes the moment termed 'rien ne va plus' in French. That's at least as well known as the German 'verboten' and means: 'betting is closed'. Then all the cards are laid on the table and someone has to pay."

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All available articles from » Vesselin Jelev

Der Standard - Austria | Monday, 12. December 2011

UK is the US's Trojan Horse in Europe

British Prime Minister David Cameron rejected changes to the EU treaties aimed at introducing stricter budget policy at the EU summit on Friday. The UK has once again shown how it aligns itself with on financial policy, writes the left-liberal daily Der Standard: » more

British Prime Minister David Cameron rejected changes to the EU treaties aimed at introducing stricter budget policy at the EU summit on Friday. The UK has once again shown how it aligns itself with on financial policy, writes the left-liberal daily Der Standard: "The government in London even has a few trumps in its hand. Keeping the euro is not one of its priorities. Media like The Economist and the Financial Times - both also widely read in continental Europe - have been criticising the currency for years. If the British continue to massively undermine the political force of the EU (the precondition for a strong euro), Brussels will slowly but surely become a lame duck. And that will play an important role in the economic and financial war between the US and Europe. To use an ancient image, the way things stand the UK is the Trojan Horse of Anglo Saxon financial interests in the heart of Europe. Paris conceals its weaknesses through its alliance with Berlin. And one has to doubt whether Germany is strong enough to stand up to the British."

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Mladá fronta Dnes - Czech Republic | Monday, 12. December 2011

Cyril Svoboda on the Czechs as the EU's grumblers

During a visit from his Russian colleague Dmitry Medvedev in Prague on Thursday, Czech President Václav Klaus proposed a massive intensification of relations between the two countries. Against the backdrop of the Czech Republic's hesitant attitude to the EU summit's pact for greater budget discipline, the former Czech foreign minister Cyril Svoboda worries about Klaus' intentions in the liberal daily Mladá fronta Dnes: » more

During a visit from his Russian colleague Dmitry Medvedev in Prague on Thursday, Czech President Václav Klaus proposed a massive intensification of relations between the two countries. Against the backdrop of the Czech Republic's hesitant attitude to the EU summit's pact for greater budget discipline, the former Czech foreign minister Cyril Svoboda worries about Klaus' intentions in the liberal daily Mladá fronta Dnes: "In 1943 the Czechoslovakian President Edvard Beneš wanted the republic that emerged after World War II to act as a bridge between East and West. That didn't turn out well for us, and we became part of the Eastern Bloc. Even today we don't need such a bridge. Currently we're outside the European mainstream. But that's not how things were in the past. Back then we acted differently and had a hand in shaping European policy. Today we're grumblers. Things can still change. The states that want to strengthen the European Union are acting responsibly, but even though they face a complicated and demanding task: solving it will prove well worthwhile."

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Libération - France | Saturday, 10. December 2011

Mathieu Lindon on Europe as an appendage of the markets

One summit follows the next, but Europe long ago ceded the competences required to find a solution to the euro crisis, writes the author Mathieu Lindon in the left-liberal daily Libération: » more

One summit follows the next, but Europe long ago ceded the competences required to find a solution to the euro crisis, writes the author Mathieu Lindon in the left-liberal daily Libération: "What an injustice, what a cAAAtastrophe: as it turns out we will have to service the debt we were preparing to bequeath to our children. None of the twenty-seven European heads of state or government has any idea how to get out of this crunch. Beset by Babylonian confusion, the European ship will not fail to run aground. Even the experts haven't a clue what's to be done; all they can agree on is that what the states are doing is pure idiocy. We have conceded sovereignty to Europe, but Europe has in turn conceded it to the markets and doesn't have a scrap left. Until now we've been on the good side of the markets. Now however the tables are turning, and we suddenly see that their power is not without its burdens."

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Handelsblatt - Germany | Friday, 9. December 2011

Summit divides EU

The resolutions adopted in Brussels will unavoidably lead to a two-speed Europe, writes the liberal business paper Handelsblatt: » more

The resolutions adopted in Brussels will unavoidably lead to a two-speed Europe, writes the liberal business paper Handelsblatt: "Europe has still not understood just how serious the situation now is. This is all the more disastrous because even German Chancellor Angela Merkel and the French President Nicolas Sarkozy set the bar for success at the two-day Brussels summit particularly high. ... But even more serious is that the path adopted by Merkel and Sarkozy will de facto lead to a two-speed Europe and division among the member states. Until now a way had always been found to hold the show together and find a common solution for all the EU states. But that's a thing of the past. The sober - and bitter - reality is that the 17 euro countries want to introduce stricter rules on budget control with a treaty of their own, accompanied by those EU countries that share this goal. There could be no surer way to drive a wedge through Europe."

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Il Sole 24 Ore - Italy | Friday, 9. December 2011

Europe spares private creditors too late

Private creditors are no longer to be involved in debt restructuring measures for struggling euro countries. But this initiative comes too late, writes the liberal ... » more

Private creditors are no longer to be involved in debt restructuring measures for struggling euro countries. But this initiative comes too late, writes the liberal business paper Il Sole 24 Ore. "The most surprising proposal is that of excluding private creditors from any future bailouts undertaken by the euro rescue mechanism still in gestation. This is a striking change of course on Merkel's part, for up to now involving the private sector in the rescue of debtor countries had been a mainstay of her crisis management. ... There are indeed many indications that insisting on involving the private sector in debt restructuring would not result in lower risk premiums on the government bonds of the peripheral states despite their tough austerity measures. This also means that we wouldn't be faced with the collapse of the European financial system now if this change in direction had been considered earlier. ... We must now fear that the proposal comes at a point when the damage has already been done."

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NRC Handelsblad - Netherlands | Friday, 9. December 2011

British premier forces division of Europe

The 17 euro states and six further countries have resolved to sign a treaty of their own while the UK and other countries have refused to follow suit. This will leave Europe divided, writes the liberal daily NRC Handelsblad: » more

The 17 euro states and six further countries have resolved to sign a treaty of their own while the UK and other countries have refused to follow suit. This will leave Europe divided, writes the liberal daily NRC Handelsblad: "This division seems logical. Because why should non-members of the Eurozone have something to say about the rules that the core group has imposed on itself? But politically the point is, who's against the move? The answer: British Prime Minister David Cameron. Although the country is not part of the Eurozone, the British government has a clear stance on the euro. Cameron agrees with Merkel on budget discipline. But like his predecessors he is dead against any further European centralisation at the expense of the nation states. ... The UK can go along with the treaty if it chooses, but admittedly the chances are slim. We must get used to the idea that there will soon be two Europes."

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Libération - France | Friday, 9. December 2011

The United States of Europe

In view of the resolutions passed at the EU summit in Brussels, the left-liberal daily Libération calls for stronger political integration in Europe: » more

In view of the resolutions passed at the EU summit in Brussels, the left-liberal daily Libération calls for stronger political integration in Europe: "The debt crisis shows that the markets have no confidence in the survival of a currency without a state, that is without a federal political and economic power able to impose a common fiscal discipline on the federated states and to help them if need be. Some of Europe's politicians, notably in Germany, have understood this perfectly well and are calling for the creation of a 'United States of Europe'. This would be the sole means of conferring democratic legitimacy on the Eurozone. Now that the countries are losing sovereignty over their budgets it is time to team up the national parliaments with the European Parliament."

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Correio da Manhã - Portugal | Thursday, 8. December 2011

Portugal's ex-prime minister lacks respect

Portugal's ex-prime minister José Sócrates said at a conference in Paris last weekend that it would be childish for small countries like Portugal and Spain to pay off their debts completely. His comments were dishonourable, the tabloid Correio da Manhã writes angrily: » more

Portugal's ex-prime minister José Sócrates said at a conference in Paris last weekend that it would be childish for small countries like Portugal and Spain to pay off their debts completely. His comments were dishonourable, the tabloid Correio da Manhã writes angrily: "He later clarified that he hadn't meant it like that: it was simply a childish idea to repay the debts to foreign creditors 'in full and immediately'. But whatever the real intention behind his comments: he played down the importance of countries having debts, repaying them and fulfilling their obligations. With one fell blow he destroyed the basic tenets of international law that are honesty and adhering to promises that have been made. This is doubtless no big deal for someone for whom being prime minister was nothing more than child's play."

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All available articles from » Eduardo Dâmaso

Naftemporiki - Greece | Wednesday, 7. December 2011

Athens trims costs to get fit

The Greek parliament passed on Tuesday night its budget for 2012, which includes tax hikes, privatisations and drastic cuts in the public sector. The conservative business paper Naftemporiki welcomes the measures as an important step out of the crisis: » more

The Greek parliament passed on Tuesday night its budget for 2012, which includes tax hikes, privatisations and drastic cuts in the public sector. The conservative business paper Naftemporiki welcomes the measures as an important step out of the crisis: "The budget includes important measures both for the state's revenues and its expenditure. ... The targets are not based on optimistic prognoses for gross domestic product growth. They are based on structural reforms the implementation of which the troika sees as absolutely crucial. ... For these reforms are aimed at creating the conditions for the country to consolidate its budget."

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Expansión - Spain | Thursday, 8. December 2011

Eternal disunity endangers monetary union

A number of EU states don't want to go along with the compromise solution agreed by Germany and France on Monday. Europe's decisions are constantly thwarted by its lack of unity, the liberal-conservative business paper Expansión laments: » more

A number of EU states don't want to go along with the compromise solution agreed by Germany and France on Monday. Europe's decisions are constantly thwarted by its lack of unity, the liberal-conservative business paper Expansión laments: "The EU's inability to agree on a clear approach once again became painfully obvious yesterday. While the government in Paris insisted that the Franco-German axis would not leave the meeting that starts in Brussels today before a real solution to the crisis has been found, Berlin is already disappointing expectations by saying that some of its partners are not aware of the gravity of the situation. Germany also quite rightly criticised the Brussels bureaucracy for wanting to water down the German-French proposals even before the summit starts. But Germany's pessimism sent the worst possible signal for the markets, which must watch with consternation as Europe once again stumbles over the same stone: its lack of unity and conflicting interests."

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De Tijd - Belgium | Thursday, 8. December 2011

Europe doomed to success

At the EU summit that begins today the heads of state and government are doomed to success, writes the business paper De Tijd: » more

At the EU summit that begins today the heads of state and government are doomed to success, writes the business paper De Tijd: "What everyone had feared is slowly becoming reality. The recession is creeping into the Eurozone. ... The austerity measures will therefore place a heavy burden on Eurozone economies. ... Moreover the euro crisis and the recession are compounding each other. Trust is ebbing both in the monetary union and in the economy. There is now the danger that we could be plunged into a negative spiral. This must be avoided at all cost as it's the quickest way to an economic depression. 2012 is already going to be a difficult year economically. How difficult depends on what Europe's leaders put on the table today and tomorrow. If the summit fails once more the worst must be feared for the Eurozone. Basically they have only one option in Brussels: the duty to make it a success."

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Frankfurter Allgemeine Zeitung - Germany | Thursday, 8. December 2011

Van Rompuy holds EU together

European Council President Herman Van Rompuy has judged the changes to the EU treaties called for by Berlin and Paris as unnecessary, leading Germany to warn of 'Brussels' tricks'. That is going too far, writes the conservative daily Frankfurter Allgemeine Zeitung: » more

European Council President Herman Van Rompuy has judged the changes to the EU treaties called for by Berlin and Paris as unnecessary, leading Germany to warn of 'Brussels' tricks'. That is going too far, writes the conservative daily Frankfurter Allgemeine Zeitung: "Van Rompuy had the task of putting together a treaty in which all states had a place. It is also his job to act as an institutional bridge between the Eurozone and the rest of the EU, that is to keep the business afloat - to the extent that there is one at all. And that's just what he's tried to do as an honest broker, which also explains the grumbling from Berlin. ... She [Merkel] will also know that the longer-term goal - a Stability Union based on changes to the treaty - is only attainable by first taking intermediate steps of the kind Van Rompuy is proposing. Without taking the pressure from the pot, of course, that means without absolving the 'sinners' of their responsibility."

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Rzeczpospolita - Poland | Thursday, 8. December 2011

Explosive letter from Merkozy

In a letter to EU Council President Herman Van Rompuy, German Chancellor Merkel and French President Sarkozy called on Wednesday for changes to the EU treaties in a bid to bring the debt crisis under control. But potential conflicts lurk behind the unclearly formulated demands, the conservative daily Rzeczpospolita fears: » more

In a letter to EU Council President Herman Van Rompuy, German Chancellor Merkel and French President Sarkozy called on Wednesday for changes to the EU treaties in a bid to bring the debt crisis under control. But potential conflicts lurk behind the unclearly formulated demands, the conservative daily Rzeczpospolita fears: "The letter contains passages that could cause turmoil. It is suggested that the 17 countries of the Eurozone as well as other 'states that want to' could sign the new treaty, but not necessarily all 27 EU member states. Secondly: the letter contains a proposal for automatic sanctions against countries whose government deficit exceeds three percent [of GDP]. But careful! The euro group can reject the sanctions in a vote. The upshot is that no automatic sanctions will be introduced."

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WOZ - Die Wochenzeitung - Switzerland | Thursday, 8. December 2011

Social Democrats share blame for euro crisis

At the congress of Germany's Social Democratic Party (SPD) at the start of this week, numerous speakers criticised the ruling liberal-conservative coalition's handling of the euro crisis. But the SPD bears partial responsibility for the financial debacle, writes the left-leaning weekly magazine WOZ: » more

At the congress of Germany's Social Democratic Party (SPD) at the start of this week, numerous speakers criticised the ruling liberal-conservative coalition's handling of the euro crisis. But the SPD bears partial responsibility for the financial debacle, writes the left-leaning weekly magazine WOZ: "Now everyone's calling for stricter rules for financial markets, but saying nothing - apart from The Left party - about the fact that German policy permitted the risky bank transactions in the first place. For their part the social democrats and the Green party rolled out the red carpet for finance capital with their policy of deregulation. ... There was a financial market support plan with thirty legislative proposals, all of which were implemented - for example support for securitisation, the authorisation of derivatives, hedge funds and short selling, and preferential fiscal treatment for special purpose entities outside of bank statements. Everyone saw the opportunities, not the risks. Even the agreement of the grand coalition of 2005, the SPD and the CDU/CSU (led by Finance Minister [and SPD member] Peer Steinbrück), agreed to slacken regulation of the financial markets and dismantle bank supervision."

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Jornal de Negócios - Portugal | Wednesday, 7. December 2011

Michael Jay Boskin wants to reform Europe's social policy

The social welfare system in Europe and other places was conceived under economic and demographic circumstances that were very different to today's situation. Governments have promised people too much for too long, the US economist Michael Jay Boskin writes in the business paper Jornal de Negócios: » more

The social welfare system in Europe and other places was conceived under economic and demographic circumstances that were very different to today's situation. Governments have promised people too much for too long, the US economist Michael Jay Boskin writes in the business paper Jornal de Negócios: "This fundamental problem has now manifested itself in these countries' unsustainable debt dynamics. Euro membership, which temporarily enabled massive borrowing at low interest rates, merely aggravated it. Reforming social-welfare benefits is the only permanent solution to Europe's crisis. One hopes that, with the help of national governments, the European Central Bank, the International Monetary Fund, and the European Financial Stability Facility, the holes in the sovereign-debt-funding dike will be temporarily plugged, and that European banks will be recapitalized. But this will work only if structural reforms make these economies far more competitive. They must both lower the tax burden and reduce bloated transfer payments. Too many people are collecting benefits relative to those working and paying taxes."

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Právo - Czech Republic | Wednesday, 7. December 2011

Jiří Pehe on Prague's silence in the euro crisis

While Europe is going through one of the most dramatic moments in its post-war history it seems no one in Prague could care less, political scientist Jiří Pehe writes in the daily Právo criticising the Czech Republics silence in the euro crisis: » more

While Europe is going through one of the most dramatic moments in its post-war history it seems no one in Prague could care less, political scientist Jiří Pehe writes in the daily Právo criticising the Czech Republics silence in the euro crisis: "President Klaus has an explanation ready: Europe is controlled by Sarkozy and Merkel and no one is asking us for our opinion. This begs the question: Why not? Because there is no clear policy in our relations with Europe. What is Europe supposed to think of the fact that there are two permanent secretaries for Europe, one pro-European and the other not so pro-European. Who is Europe supposed to ask for their opinion in Prague? ... Moreover the Europhobia of president Klaus is not a platform for constructive debate. Poland's foreign minister Radosław Sikorski demonstrated in Berlin recently that all EU states have something to say. ... Let's just hope that in future no one complains with typical Czech huffiness that once again decisions have been made 'for us and over our heads', because this time it's our own fault."

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Magyar Nemzet - Hungary | Wednesday, 7. December 2011

US agencies wage war on Europe

The US rating agencies are waging a war against Europe that must be ended as quickly as possible, demands the conservative daily Magyar Nemzet: » more

The US rating agencies are waging a war against Europe that must be ended as quickly as possible, demands the conservative daily Magyar Nemzet: "In the past 15 years at least two dozen countries have been wrongly rated. Their credit rating then had to be raised or lowered by up to five points so that it corresponded to reality at least in retrospect. ... The New York rating agencies Standard & Poor's and Moody's are clearly trying to strengthen the position of the US amid global competition. They are fully aware that their downgradings can only harm Europe. And in fact that's just what they want. This is an economic war between the US and Europe. ... The step taken by Standard & Poor's is already tantamount to a carpet bombing. ... The EU must throw down the gauntlet and ban country ratings, and create a European rating agency in their place."

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All available articles from » Anna Szabó

Cinco Días - Spain | Wednesday, 7. December 2011

Standard & Poor's downgrades itself

With its threat to downgrade 15 Eurozone countries rating agency Standard & Poor's has above all done itself a disservice, the left-liberal business paper Cinco Días writes: » more

With its threat to downgrade 15 Eurozone countries rating agency Standard & Poor's has above all done itself a disservice, the left-liberal business paper Cinco Días writes: "Quite apart from the quality of the analysis - which is also debatable - Standard & Poor's has made repeated gaffes and grave errors ever since the crisis began. ... No one backs the theory of an anti-Europe conspiracy, That's absurd. Nor even the suspicions that the move is a diversion to help Standard & Poor's speculate with its own funds. That's preposterous too. However in view of its rather poor performance regarding the crisis so far, we will take the journalistic liberty of rating the rating agency. Our assessment for Standard & Poor's: junk status with negative prospects."

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Libération - France | Wednesday, 7. December 2011

Economics doing politics

The rating agency Standard & Poor's put 15 euro countries under strict observation on Monday, without waiting for the results of the EU summit at the end of the week. We're no longer governed by politicians but by economic experts, writes the left-liberal daily Libération: » more

The rating agency Standard & Poor's put 15 euro countries under strict observation on Monday, without waiting for the results of the EU summit at the end of the week. We're no longer governed by politicians but by economic experts, writes the left-liberal daily Libération: "Executive, legislative and judiciary - the economic crisis has done away with this old structure. The last three years with all their ups and downs and breakneck tempo show how obsolete this basic order has become. Nicolas Sarkozy and Angela Merkel announce with satisfaction and with great pomp their projects for Europe? Several hours later a rating agency ridicules them and sweeps them from the table by placing the Eurozone under negative credit watch. The founding structure of democracy has now been replaced by a new and brutal economic power. With nothing to counterbalance or even regulate it, it now controls the others and dictates its own laws."

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Financial Times Deutschland - Germany | Wednesday, 7. December 2011

Rating agencies losing their clout

The financial markets reacted calmly to the news that rating agency Standard & Poor's had threatened to downgrade 15 Eurozone countries the day before. The agencies have lost some of their clout, the liberal Financial Times Deutschland surmises: » more

The financial markets reacted calmly to the news that rating agency Standard & Poor's had threatened to downgrade 15 Eurozone countries the day before. The agencies have lost some of their clout, the liberal Financial Times Deutschland surmises: "In particular downgrades, whether carried out or only threatened, fail to shock the markets when they are already reckoning with the worst anyway. And ever since the US credit rating went down no one believes that a downgrade automatically means higher interest rates for a debtor country any more. ... For the rating agencies, however, the current euro crisis could develop into a crisis for their own line of business. And this won't even require any political reactions like stronger regulation or the setting up of a European rating agency. The mere fact that information about a potential downgrade of Eurozone countries has leaked into the public domain undermines trust in the professionalism of the rating agencies."

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La Repubblica - Italy | Wednesday, 7. December 2011

Joseph E. Stiglitz calls for growth strategies to save euro

The fiscal discipline and stringent economising demanded by Germany and France won't be enough to solve Europe's debt crisis, warns US Nobel prize-winning economist Joseph E. Stiglitz in the left-liberal daily La Repubblica: » more

The fiscal discipline and stringent economising demanded by Germany and France won't be enough to solve Europe's debt crisis, warns US Nobel prize-winning economist Joseph E. Stiglitz in the left-liberal daily La Repubblica: "It is fine to blame their southern compatriots for fiscal profligacy, or, in the case of Spain and Ireland, for letting free markets have free reign, without seeing where that would lead. But that doesn't address today's problem: huge debts, whether a result of private or public miscalculations, must be managed within the euro framework. Public-sector cutbacks today do not solve the problem of yesterday's profligacy; they simply push economies into deeper recessions. Europe's leaders know this. They know that growth is needed. But, rather than deal with today's problems and find a formula for growth, they prefer to deliver homilies about what some previous government should have done. This may be satisfying for the sermonizer, but it won't solve Europe's problems - and it won't save the euro."

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Finanz und Wirtschaft - Switzerland | Wednesday, 7. December 2011

ECB must put out flames

The EU heads of state and government want to adopt further measures for more financial stability in Europe at their summit in Brussels on Thursday and Friday. But as long as there is no fiscal union the European Central Bank ECB must play a greater role, writes economic researcher Thomas Straubhaar in the business paper Finanz und Wirtschaft: » more

The EU heads of state and government want to adopt further measures for more financial stability in Europe at their summit in Brussels on Thursday and Friday. But as long as there is no fiscal union the European Central Bank ECB must play a greater role, writes economic researcher Thomas Straubhaar in the business paper Finanz und Wirtschaft: "For now the ECB should put out the flames. Then it must make sure that the water necessary to do the fire-fighting is stocked in due time and form. That requires wise monetary policy instruments. If the worst comes to the worst, they should enable the ECB to bolster the loans it guarantees in purchasing old government bonds and thereby nip inflation expectations in the bud. Finally, on the long term a fiscal union with strict debt ceilings and automatic sanctions as well as the ESM as a jointly financed bailout fund should ensure that Europe not only becomes a liability and transfer union, but also a stability union."

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Expansión - Spain | Tuesday, 6. December 2011

Europe needs true economic government

Germany and France are forging ahead with the development of an economic government in the Eurozone, the business paper Expansión writes approvingly: » more

Germany and France are forging ahead with the development of an economic government in the Eurozone, the business paper Expansión writes approvingly: "Getting the public budgets back in order won't be enough to get us out of the danger zone. We urgently need a common strategy to encourage recovery. We urgently need structural reforms that eradicate the differences between the different countries. ... So it is crucial to complement budgetary discipline with an economic policy that puts us back on the path of stable growth. The fiscal union should be followed by a genuine economic union."

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Financial Times - United Kingdom | Tuesday, 6. December 2011

UK must not block treaties

If the EU treaties are renegotiated the UK must participate in the process, the liberal-conservative daily the Financial Times urges, otherwise it would "risk shunting ... » more

If the EU treaties are renegotiated the UK must participate in the process, the liberal-conservative daily the Financial Times urges, otherwise it would "risk shunting Britain to the sidelines of a treaty discussion that will have big implications for the country's membership of the EU. It cannot be in the national interest for Mr Cameron to be outside the room. The UK may need to review its relationship with the EU, but that time is not now. Wrapping barbed wire round the City is not the right pretext. Whatever arrangements are devised to rescue the eurozone, Britain's interest is to preserve the integrity of the single market, even in a lop-sided EU of ins and outs. But to make the case requires moral authority. Seeking a brake would throw this away."

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Lidové noviny - Czech Republic | Tuesday, 6. December 2011

Sarkozy plays lackey to Berlin

France's President Nicolas Sarkozy gave in to German Chancellor Merkel in every respect during their negotiations in Paris, writes the conservative daily Lidové noviny: » more

France's President Nicolas Sarkozy gave in to German Chancellor Merkel in every respect during their negotiations in Paris, writes the conservative daily Lidové noviny: "Only last Thursday Sarkozy was still calling for a return to democracy in the Monetary Union. Then yesterday he agreed to automatic sanctions against countries whose deficit exceeded three percent of GDP, and that the Treaty of Lisbon should be amended to that end. Paris did not succeed in pushing through any of its own ideas, neither euro bonds nor a stronger role for the European Central Bank. ... Such an automatic supervisory measure may perhaps calm the German voters, but one shouldn't expect it to renew investor confidence in the Eurozone. Even this fundamental encroachment on the sovereignty of the euro countries will not solve the serious problems facing the Eurozone."

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All available articles from » Lenka Zlámalová

Les Echos - France | Tuesday, 6. December 2011

Protecting private investors stabilises euro

The European Court of Justice will in future be able to monitor compliance with the Stability and Growth Pact, and there will be no more debt restructuring like that in Greece. This is an important step toward a full euro bailout, writes the liberal business paper Les Echos: » more

The European Court of Justice will in future be able to monitor compliance with the Stability and Growth Pact, and there will be no more debt restructuring like that in Greece. This is an important step toward a full euro bailout, writes the liberal business paper Les Echos: "It's no secret that Europe is world champion at inventing rules and even better at breaking them. The economy cannot be regulated by an agreement or a decision by the European Court of Justice, let alone the political reality. The key factor lies elsewhere: the two largest countries of the Eurozone have decided that the devastating experience of the Greek debt restructuring should not be repeated. That sounds like a technical detail but it is an improvement that fundamentally changes the lay of the land. We want to be a little optimistic for a change: this is a plan with the potential to save the euro. This first step agreed on yesterday is decisive: never again will the private sector be forced to participate in restructuring public debt in the Eurozone."

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All available articles from » Nicolas Barré

Die Welt - Germany | Tuesday, 6. December 2011

Further step in the euro balancing act

France and Germany are entirely right to press for a reform of the EU treaties ahead of the EU summit on Thursday and Friday, writes the conservative daily Die Welt: » more

France and Germany are entirely right to press for a reform of the EU treaties ahead of the EU summit on Thursday and Friday, writes the conservative daily Die Welt: "We often hear that the markets have lost their trust in some euro governments. Far more serious however is the loss of trust between European governments. The donor countries simply no longer believe the promises they receive from Athens and Rome. That is why the chancellor can do nothing other than demand water-tight conditions or use the market as a lever. ... And so the new German-French proposals for changes to the EU Treaty are a further step in the euro balancing act. If it is inevitable that the euro countries will have to close fiscal ranks, at least the donors should receive guarantees that the problem countries won't revert to their irresponsible policies."

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All available articles from » Clemens Wergin

Diário de Notícias - Portugal | Tuesday, 6. December 2011

How the euro was meant to harness the German giant

The story of how the euro was founded in a hurry has already been forgotten for the sake of holding up Germany as the big enemy, the daily Diário de Notícias concludes: » more

The story of how the euro was founded in a hurry has already been forgotten for the sake of holding up Germany as the big enemy, the daily Diário de Notícias concludes: "It's taking things too far to claim that Germany is trying to gain hegemony over Europe through stringent monetary and financial regulations, so it can triumph where armed divisions failed. This argument is causing a major stir but it is simply wrong. As Germany's reunification progressed the emergence of a highly competitive economy in the heart of Europe terrified its neighbours. ... So they came up with the idea of tying this economic giant to a common currency, as the inhabitants of Lilliput tried to tie up Gulliver, with the goal of tying its fate to deeper European integration. As hard as it may be for us to admit, Germany proposed a different path back then: first everyone should move towards tax harmonisation, deal responsibly with their public spending and then move cautiously towards a monetary union - that was based on a synchronised financial policy. But no one wanted to build the edifice on these foundations. The result: the first big storm is shaking the entire construction of the euro to its very foundations."

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Kurier - Austria | Tuesday, 6. December 2011

Pressure over ratings helps euro countries

The rating agency Standard & Poors threatened on Monday to downgrade the standing of the six euro countries top credit ratings, including Germany and Austria. In Austria the announcement has revived the debate about the introduction of a debt brake, a proposal which the opposition parties the FPÖ and the BZÖ have so far rejected. The pressure from the rating agencies is justified, writes the daily Kurier: » more

The rating agency Standard & Poors threatened on Monday to downgrade the standing of the six euro countries top credit ratings, including Germany and Austria. In Austria the announcement has revived the debate about the introduction of a debt brake, a proposal which the opposition parties the FPÖ and the BZÖ have so far rejected. The pressure from the rating agencies is justified, writes the daily Kurier: "This makes measures to ensure budgetary discipline in the Eurozone all the more urgent. This may mean curbing the sovereignty of all the states, but it doesn't have to. Imposing budgetary discipline already makes sense and will benefit the citizens, particularly the younger generations, because the vast majority of state expenditure is already earmarked for wages and salaries, for pensions and paying back our debts. ... The leeway for future measures for example in the area of education is minimal. The so-called discretionary spending has gone down from 32 percent to 23 percent in the last four years. So we should actually thank the rating agencies. And the opposition should rethink its stance on the debt brake."

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All available articles from » Helmut Brandstätter

Les Echos - France | Monday, 5. December 2011

German-French duo must involve ECB

German Chancellor Angela Merkel and French President Nicolas Sarkozy want to present their strategy for countering the euro debt crisis today in Paris. But there can be no talk of a solution without the help of the European Central Bank, writes the business paper Les Echos: » more

German Chancellor Angela Merkel and French President Nicolas Sarkozy want to present their strategy for countering the euro debt crisis today in Paris. But there can be no talk of a solution without the help of the European Central Bank, writes the business paper Les Echos: "Once again the German-French duo must point the way out of the crisis. But an error of perspective concerning the means available for solving the crisis must be corrected in this regard. ... France and Germany are discussing automatic sanctions for irresponsible countries and a reform of the EU treaties (How? When? With how many members, 27 or 17?) and the role of the European Court of Justice. ... The idea is to reassure creditors that no more debts will be waived. But even though an agreement is necessary here, it will not prove sufficient. The solution to the persistent mistrust of the markets remains in the hands of the European Central Bank, which alone can calm the Eurozone."

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All available articles from » Dominique Seux

Corriere del Ticino - Switzerland | Monday, 5. December 2011

Monti makes cuts in wrong places

The Italian cabinet approved the stringent austerity programme proposed by Prime Minister Mario Monti on Sunday evening. Pension cuts and an income tax hike are the main points of the 2012 austerity package, which aims to shrink spending by 24 billion euros. If all goes as planned it will receive the blessing of the two chambers of parliament by Christmas. But the real problems aren't being tackled, the liberal daily Corriere del Ticino complains: » more

The Italian cabinet approved the stringent austerity programme proposed by Prime Minister Mario Monti on Sunday evening. Pension cuts and an income tax hike are the main points of the 2012 austerity package, which aims to shrink spending by 24 billion euros. If all goes as planned it will receive the blessing of the two chambers of parliament by Christmas. But the real problems aren't being tackled, the liberal daily Corriere del Ticino complains: "Italy's main problem is its gigantic public sector which gobbles up 45 percent of revenues. Every second euro is spent according to criteria fixed by the public administration. Until there's a drastic cut in public spending all other measures for cleaning up the Italian economy will be ineffectual. But the Monti government seems to take no interest in the subject. Most of the ministers in the cabinet come from the upper echelons of the public administration. Even if they are capable technocrats they'll hardly be well disposed towards major upheavals in the world were they have made their careers."

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All available articles from » Giovanni Barone-Adesi

Politis - Cyprus | Sunday, 4. December 2011

Cyprus achieves wobbly consensus

The government of the Republic of Cyprus on Friday approved a tough austerity programme in the hope of not being dragged into a serious financial crisis by its neighbour Greece. The liberal daily Politis welcomes the cross-party consensus but fears that tactical games could undermine the compromise: » more

The government of the Republic of Cyprus on Friday approved a tough austerity programme in the hope of not being dragged into a serious financial crisis by its neighbour Greece. The liberal daily Politis welcomes the cross-party consensus but fears that tactical games could undermine the compromise: "Our country is fortunate that all the parties have approved the measures for saving our economy. ... But the government won't be able to implement them on its own. Will there be conflict with the trade unions if they react negatively to the measures? Will all parties continue to send the message that if we go on like this we will be lost? The consensus requires the willingness to assume responsibility. Are all the parties ready to pay the political price? Or will they - as so often in the past - allow some of their members to adopt different roles so they can score on both sides?"

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All available articles from » Andros Michaelidis

Gândul - Romania | Monday, 5. December 2011

Merkozy's plans hard to implement

France's President Nicolas Sarkozy and German Chancellor Angela Merkel plan to present proposals today in Paris for changes to the EU treaties, which the EU heads of state and government will then discuss at their summit meeting in Brussels on Friday. Should the summit support the plans, it will nevertheless be difficult to convince people in the EU of their merits, writes the liberal daily Gândul: » more

France's President Nicolas Sarkozy and German Chancellor Angela Merkel plan to present proposals today in Paris for changes to the EU treaties, which the EU heads of state and government will then discuss at their summit meeting in Brussels on Friday. Should the summit support the plans, it will nevertheless be difficult to convince people in the EU of their merits, writes the liberal daily Gândul: "To change the treaties, politicians will once more have to curry favour with the taxpayers. The latter believe that they are wrongly being asked to pick up the tab for the politicians' inability to bring about stability and economic development. In addition, nationalist arguments are once more in vogue. For example, will the Dutch or the French agree to the possibility that their national budgets could be rejected by Berlin even before they are discussed in their national parliaments? That's hard to believe."

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All available articles from » Victor Rotariu

La Stampa - Italy | Friday, 2. December 2011

More Europe not in the cards

President Sarkozy's speech was weak in comparison to that of the new chief of the European Central Bank Mario Draghi, finds the liberal daily La Stampa: » more

President Sarkozy's speech was weak in comparison to that of the new chief of the European Central Bank Mario Draghi, finds the liberal daily La Stampa: "Yesterday morning Mario Draghi charted the way out of the crisis: only a political agreement among the countries on a common economic government can save the euro. But Nicolas Sarkozy is still afraid of any solution that would see France subjected to supervision by a supra-national body. He only dared take a tiny step forward towards the automatic sanctions against debt sinners proposed by Berlin. He made no mention of which institution should take control, or what it would look like. France remains the country that struggles most against tougher discipline, above all when it comes to endowing the European Commission with new powers."

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All available articles from » Stefano Lepri

Hospodářské noviny - Czech Republic | Friday, 2. December 2011

Courageous clarity before the elections

French President Nicolas Sarkozy took a courageous stand with his blood, sweat and tears speech, the business paper Hospodářské noviny writes: » more

French President Nicolas Sarkozy took a courageous stand with his blood, sweat and tears speech, the business paper Hospodářské noviny writes: "Three years ago in Toulon Sarkozy made clear for the first time the gravity of the crisis. Yesterday in the same location he evoked a fear that paralyses consumers and spooks investors. Many French people may not have been happy that Sarkozy expressed what people outside France have long been saying: namely that for decades one of Europe's biggest countries has lived above its means. It takes courage to say something like that just a few months before elections. But Sarkozy will need even more courage than that next week when he has to present an action plan for the crisis together with German Chancellor Merkel at the upcoming EU summit."

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All available articles from » Adam Černý

Le Figaro - France | Friday, 2. December 2011

Sarkozy's assessment hard but correct

President Sarkozy's statements in Toulon were excellent, the conservative daily Le Figaro writes, because finally someone is telling the truth about the crisis: » more

President Sarkozy's statements in Toulon were excellent, the conservative daily Le Figaro writes, because finally someone is telling the truth about the crisis: "One can accuse Nicolas Sarkozy of many things after this speech in Toulon, but at least he told the people the truth. Be it about finance capitalism's mechanisms for creating debt, the transfer of private into public debt, the credit-based financing of our social system or the two cardinal errors committed by the French, namely setting the retirement age at 60 and reducing the working week to 35 hours. Sarkozy analyses the frightening situation with incontestable precision. Yes, France and most other countries of the Eurozone are unbearably deep in debt. We must radically change our attitude and enter a 'debt reduction cycle' as the president urged."

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All available articles from » Etienne Mougeotte

Libération - France | Friday, 2. December 2011

A president lacking political will

With his speech in Toulon President Sarkozy has shown that his political views have not matured with the crisis, the left-liberal daily Libération observes: » more

With his speech in Toulon President Sarkozy has shown that his political views have not matured with the crisis, the left-liberal daily Libération observes: "Sarkozy's first election meeting was a flop. Firstly, because he failed to hit the right note. ... Secondly he manoeuvred himself into a logical impasse by evoking for the ten thousandth time the malaise of the 35-hour working week, the need to 'work more' and do overtime. Why didn't he fix these things when it lay in his power to do so? ... Finally, in this crisis situation he said that the world should remain as it is, defending a non-federal Europe and saying nothing new about the dysfunctional financial markets. ... Behind all the flowery chauvinistic lyricism the only real news in this speech is the renunciation of any form of political will."

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All available articles from » Nicolas Demorand

Iltalehti - Finland | Friday, 2. December 2011

ECB can still save euro

In a speech to the European Parliament on Thursday ECB President Mario Draghi promised that the Central Bank would play a stronger role in combating the debt crisis provided the euro states agree to stricter budget discipline. An important step towards rescuing the euro, writes the tabloid Iltalehti: » more

In a speech to the European Parliament on Thursday ECB President Mario Draghi promised that the Central Bank would play a stronger role in combating the debt crisis provided the euro states agree to stricter budget discipline. An important step towards rescuing the euro, writes the tabloid Iltalehti: "Apparently the Central Bank does not intend to look on as the Eurozone self-destructs. ... If the ECB were to limit itself to controlling inflation it would soon have nothing more to defend. ... The string-pullers in the Eurozone must now make far-reaching political decisions. Subsequently the Central Bank could bring out heavy artillery for bailing out the Eurozone. ... The fate of the euro now hangs in the balance and many are already preparing themselves for the collapse of the Eurozone. But there is always the chance that the euro will survive. Provided, that is, that political decisions are in harmony with the measures of the ECB. Clearly that's exactly what Draghi is trying to achieve."

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Diário Económico - Portugal | Friday, 2. December 2011

Portugal's fate depends on Europe

Portugal's parliament passed its austerity budget for 2012 on Wednesday. Notwithstanding, in an interview on Thursday Prime Minister Pedro Passos Coelho did not rule out further cost-cutting measures. A weak performance in view of the difficult situation, writes the business paper DE: » more

Portugal's parliament passed its austerity budget for 2012 on Wednesday. Notwithstanding, in an interview on Thursday Prime Minister Pedro Passos Coelho did not rule out further cost-cutting measures. A weak performance in view of the difficult situation, writes the business paper DE: "Apart from calling for support for his budget he had nothing new to say on the subject of domestic policy. So this wasn't one of his best moments. He was unable to mobilise the people and didn't present a vision that went beyond the crisis years. But at least he was open, honest and didn't make excuses. The implementation of the 2012 budget plan is one of the most difficult tasks of the modern age. Can anyone doubt this? If necessary, further austerity measures will be introduced. Is this news to anyone? ... And naturally our collective fat depends more than ever on Europe than on our own performance."

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All available articles from » António Costa

Main focus of Thursday, 1. December 2011

Cash flow from central banks raises hopes

In the battle against the European debt crisis several major central banks lowered their interest rates on dollar loans on Wednesday. The concerted action of ... » more

In the battle against the European debt crisis several major central banks lowered their interest rates on dollar loans on Wednesday. The concerted action of the central banks of the Eurozone, the US and other countries boosted share prices worldwide and lowered the interest rates on Italian government bonds, among others. This will give the politicians valuable time to finally get their act together, commentators write.

More from the press review on the subject » Fiscal Policy, » Financial Markets, » Banks, » Europe, » Global

Cinco Días - Spain | Thursday, 1. December 2011

Hesitant politicians get a reprieve

The concerted action of the world's major central banks won't solve the euro crisis but it will give the politicians more time to reach an agreement, the business paper Cinco Días concludes: » more

The concerted action of the world's major central banks won't solve the euro crisis but it will give the politicians more time to reach an agreement, the business paper Cinco Días concludes: "The decision fails to tackle the most pressing financial issue, the euro. The investors are still treating weaker Eurozone members struggling to sell their government bonds like pariahs. And people who know what they're talking about still fear that the single currency could collapse. ... Even backed by other central banks the ECB can't fend off the dangers accosting the euro. But they can gain the governments of the Eurozone some time to reach a similar level of consensus as the central banks. Months of disputes have shown how difficult this is. But if the politicians can accomplish this feat they at least have a chance of allaying the fears of the markets."

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Hospodářské noviny - Czech Republic | Thursday, 1. December 2011

Tomáš Sedláček on the advantages of the euro in times of crisis

Those who name the euro as a cause of the crisis are making a big mistake, writes the financial expert Tomáš Sedláček in the business paper Hospodářské noviny: » more

Those who name the euro as a cause of the crisis are making a big mistake, writes the financial expert Tomáš Sedláček in the business paper Hospodářské noviny: "Sometimes the opponents of the euro give the populist impression that the problems would be solved if we just said goodbye to the single currency, or even better to the EU. If Europe didn't have the euro we would once more be fighting trade wars, trying to outdo each other in devaluing our national currencies, introducing customs duties, limiting imports and promoting exports. That's how things always were in the past. And now that we're on the subject of the past: if Greece, Hungary or Ireland had gone bankrupt 50 years ago, other heads of state would have weighed up how to take over these countries. Today no one would dream such a thing. On the contrary, today we discuss how they can best be helped. Without the euro the crisis would most likely be far worse."

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The Economist - United Kingdom | Thursday, 1. December 2011

ECB is the euro's gravedigger

If the euro collapses it will have been the European Central Bank that dug its grave by twice raising the base interest rate in April and July of this year, writes the liberal weekly The Economist: » more

If the euro collapses it will have been the European Central Bank that dug its grave by twice raising the base