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Ways out of the debt crisis

The Eurozone countries have agreed on a second, 130-billion-euro bailout package for Greece and signed a fiscal pact with other EU countries. The press discusses how much budgetary discipline is called for and who will foot the bill in the end.

Diário de Notícias - Portugal | Friday, 25. May 2012

German austerity terrorising debtor states

Germany secured fresh capital for the next two years on Wednesday without having to pay any interest for it. That the heavyweights in the EU can continue to borrow on such conditions shows how sick Europe is, writes the daily Diário de Notícias: » more

Germany secured fresh capital for the next two years on Wednesday without having to pay any interest for it. That the heavyweights in the EU can continue to borrow on such conditions shows how sick Europe is, writes the daily Diário de Notícias: "The situation is also scandalous because Germany's terrorist economic policy is the main reason for the panic on the markets. The effective interest rate achieved is not thanks to Germany's economy but the result of an unbending policy that Berlin is foisting on the Eurozone with its austerity dictates. A situation in which crime pays off for Germany, at least as long as the Eurozone doesn't implode. Our prime minister spoke out against euro bonds, thereby taking sides with Germany - and against the opinions of other crisis-stricken countries. This submissiveness is immoral and goes against our national interests. He was elected to serve our interests, not to behave as if Portugal was the westernmost province of Prussia."

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All available articles from » Viriato Soromenho-Marques

Rzeczpospolita - Poland | Friday, 25. May 2012

Even Germany vulnerable to crisis

The Ifo business climate index for Germany, Europe's largest economy, plunged by a surprising three percentage points for the first time in months on Thursday. Europe and the world are facing hard times, the conservative daily Rzeczpospolita fears: » more

The Ifo business climate index for Germany, Europe's largest economy, plunged by a surprising three percentage points for the first time in months on Thursday. Europe and the world are facing hard times, the conservative daily Rzeczpospolita fears: "The crisis is taking down even the strongest. And for two months now the economic data from the US shows that its labour market and industry are weakening, despite all the unconventional measures that its central bank has adopted to boost growth. The Fed pumped billions of dollars into the market, but it wasn't enough. Now the European politicians are having similar ideas and talking more and more about a 'pact for growth'. But no one knows what this magic formula really means. Everyone assumes that the ECB will just switch on the money printer. … However this hasn't helped the economies in the past. And keeping Greece in the Eurozone against the people's will was costly and naïve. But the biggest problem is that no one knows a good solution for dealing with the crisis."

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All available articles from » Jacek Ramotowski

Le Monde - France | Friday, 25. May 2012

Athens must exit even if euro dies

The EU heads of state and government clearly want to keep Greece in the Eurozone. But the country's exit is the most reasonable long-term solution ... » more

The EU heads of state and government clearly want to keep Greece in the Eurozone. But the country's exit is the most reasonable long-term solution even if it means the end of the euro, writes economist Jacques Sapir in a commentary in the left-liberal daily Le Monde. "Either the EU countries affirm their willingness to invest in the Greek economy, enabling it to at least partially recover its competitiveness, which has sunk by 35 per cent since 2002. Or it will be necessary to opt for a Greek exit from the Eurozone and a major devaluation (50 per cent) of the drachma. This solution, as hard as it is, is preferable to continuing the austerity policy agreed on by the troika and Greece. ... Such a solution would probably be a death knell for the euro. But this death knell has already sounded with the Spanish crisis and the return of the Irish crisis."

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The Economist - United Kingdom | Friday, 25. May 2012

Merkel's austerity threat to Monetary Union

Above all Germany's crisis policy is endangering the Monetary Union, writes the liberal business magazine The Economist: » more

Above all Germany's crisis policy is endangering the Monetary Union, writes the liberal business magazine The Economist: "Only if Europeans share a sense of common purpose will a grand deal to save the single currency be seen as legitimate. Only if it is legitimate can it last. Most of all, it is a test of Germany. Chancellor Angela Merkel maintains that the threat of the euro's failure is needed to keep wayward governments on the path of reform. But German brinkmanship is corroding the belief that the euro has a future, which raises the cost of a rescue and hastens the very collapse she says she wants to avoid. Ultimately, Europe's choice will be made in Berlin."

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WOZ - Die Wochenzeitung - Switzerland | Thursday, 24. May 2012

Greece's euro exit catastrophic for Europe

A Greek exit from the Eurozone would be a fatal blow to the European project, writes the leftist weekly WOZ: » more

A Greek exit from the Eurozone would be a fatal blow to the European project, writes the leftist weekly WOZ: "If Europe decides to make an example of Greece the consequences for the entire continent will be destructive and do lasting damage to the dream of a united Europe. Six decades of European integration would suddenly be on the line. The continent would be thrown back a century to the times of competing nation states with their respective hegemonies. There is a lot at stake. One can only hope that the decision-makers in Athens, Berlin and Brussels are aware of their historical responsibility."

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All available articles from » Jens Berger

Il Sole 24 Ore - Italy | Thursday, 24. May 2012

EU wasting time in its crisis management

Chancellor Merkel and President Hollande didn't come any closer to agreement on the subject of euro bonds, the business paper Il Sole 24 Ore laments: » more

Chancellor Merkel and President Hollande didn't come any closer to agreement on the subject of euro bonds, the business paper Il Sole 24 Ore laments: "Europe against Europe. This is the worst possible starting point for anything at all to be decided at the next EU summit scheduled for the end of June. It's also the worst possible starting point for closing ranks and keeping crisis-stricken Greece afloat. Instead the country is being given to understand that its partners are preparing for its exit, with each of them working out the costs for itself. … Without euro bonds all other measures are nothing but a stopgap solution. … Particularly since they take time and will probably come to nothing anyway."

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Protagon - Greece | Thursday, 24. May 2012

Greek bank run like in the war

Greece has seen capital flight soar since the May 6 election. Within a few days around 700 million euros were reportedly withdrawn from banks. News portal Protagon fears that the money will never return: » more

Greece has seen capital flight soar since the May 6 election. Within a few days around 700 million euros were reportedly withdrawn from banks. News portal Protagon fears that the money will never return: "The largest sums are sent to Switzerland or exotic places where offshore companies are based. Naturally, investing in real estate in the UK is still a secure refuge, as are deposits in the pound sterling, which rose considerably last week. ... If the money withdrawn from Greek accounts hasn't been sent abroad it's stuck under mattresses or behind walls. Every day we wake up to an unprecedented economic situation that is more reminiscent of war than peace."

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All available articles from » Kostas Giannakidis

Trouw - Netherlands | Thursday, 24. May 2012

Euro bonds complement austerity

Austerity and euro bonds are not mutually exclusive, writes the Christian-social daily Trouw commenting on the EU special summit: » more

Austerity and euro bonds are not mutually exclusive, writes the Christian-social daily Trouw commenting on the EU special summit: "A policy aimed at economic stimulus at a European level could quickly lead to EU-financed projects that may be visible, but not very economically productive. The EU heads of government have no alternative but to stick to their agreements for balancing their budgets. Meanwhile they must take advantage of their leeway for investing in future prosperity. This leeway varies from one country to the next. … The weaker countries must benefit from the stronger ones, preferably not through direct money transfers or centrally financed job-creation schemes but perhaps through the issue of European bonds that help reduce the differences in what it costs a country to raise capital."

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Expressen - Sweden | Thursday, 24. May 2012

Crisis countries must boost competitiveness

The crisis countries in the EU urgently need to boost their competitiveness, the liberal tabloid Expressen advises: » more

The crisis countries in the EU urgently need to boost their competitiveness, the liberal tabloid Expressen advises: "The fundamental problem in the crisis countries is that they have lost their competitiveness, particularly vis-à-vis economic giant Germany. Wages and prices have risen too much, harming foreign trade. There are just two ways out of this dilemma: either a country devalues its own currency or it reduces its costs by for example lowering salaries. Iceland opted for the first approach, Latvia took the second. Both now have the worst patch behind them. There is no third way out of the crisis. Sure, Germany can increase salaries, prices and its demand, but in the end it's up to the crisis countries to improve their competitiveness so that their economies can grow once more."

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Les Echos - France | Thursday, 24. May 2012

Hollande on the wrong track with euro bonds

At the EU summit France's President François Holland has reinforced his demand for euro bonds which would enable debtor states to borrow money at advantageous rates on capital markets. But his proposal does nothing to make Europe's crisis countries more competitive, the liberal business paper Les Echos writes: » more

At the EU summit France's President François Holland has reinforced his demand for euro bonds which would enable debtor states to borrow money at advantageous rates on capital markets. But his proposal does nothing to make Europe's crisis countries more competitive, the liberal business paper Les Echos writes: "In seeking to cast himself in a good light, President Hollande risks making the very same mistake he accused his predecessor of making. By obstinately maintaining in the deadlock over euro bonds - as he did yesterday evening in Brussels - that the only way forward is through more public spending, he is opening the door to disappointment. As Michel Barnier, the EU Commissioner for the Internal Market, explained on May 16 in Aachen, such initiatives will fail to stimulate enduring growth in Europe. The only question worth considering, and quickly, is not that of debt mutualisation, but of the global competitiveness of the Eurozone. As well as the preliminary - albeit painful - question of how differences with Germany can be overcome."

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All available articles from » Jean-Françis Pécresse

Main focus of Wednesday, 23. May 2012

Conflict over euro bonds divides EU

At the EU special summit to be held this evening in Brussels France's President François Hollande will call for the introduction of euro bonds, which ... » more

At the EU special summit to be held this evening in Brussels France's President François Hollande will call for the introduction of euro bonds, which German Chancellor Angela Merkel rejects outright. But without a Franco-German axis the EU will only slip deeper into political crisis, commentators fear.

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El País - Spain | Wednesday, 23. May 2012

Cuts in education increase inequality

Large numbers of teachers and pupils went on strike in Spain on Tuesday to protest cuts in the education sector. These cutbacks will only deepen the social divide, the left-liberal daily El País fears: » more

Large numbers of teachers and pupils went on strike in Spain on Tuesday to protest cuts in the education sector. These cutbacks will only deepen the social divide, the left-liberal daily El País fears: "There's little hope that a strike will overturn the government's decisions, but it would be good if it at least showed the same sense of responsibility it demands from others and combined the cuts with measures aimed at using the resources freed in this way effectively. However there is a conspicuous lack of such measures. It won't be easy to minimise the effects of cuts in this sector. In an impoverished population with 2.2 million minors living in households that are threatened by poverty, according to a recent Unicef report, higher tuition fees, fewer daycares, fewer teachers, larger classes and fewer extra lessons for weaker pupils will automatically increase social inequality. These measures will also compromise the quality of public education and threaten to hijack the future of this country."

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More from the press review on the subject » Fiscal Policy, » Social affairs, » Upbringing / Education, » Spain

Kathimerini - Greece | Tuesday, 22. May 2012

Thilo Sarrazin's book revives euro debate

A huge media circus accompanied the presentation of Thilo Sarrazin's new book on Tuesday. The former board member of the German Bundesbank has managed to launch an interesting debate on the euro, the conservative daily Kathimerini notes: » more

A huge media circus accompanied the presentation of Thilo Sarrazin's new book on Tuesday. The former board member of the German Bundesbank has managed to launch an interesting debate on the euro, the conservative daily Kathimerini notes: "Many analysts write that he is an intellectual fire-raiser and accuse him of simply aiming to provoke. But with his views he manages to shape the agenda in his country and trigger many interesting debates. Until recently TV presenters avoided the subject of the euro because it was regarded as too dated and boring for the average viewer. But since the publishing of the book the subject has gained a new dynamic and the discussion has been revived."

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All available articles from » Xenia Kounalaki

Público - Portugal | Wednesday, 23. May 2012

End of austerity policy in sight

The discussion about euro bonds and a new growth offensive at today's EU summit is a sign of a gradual change in European economic policy according to the daily Público: » more

The discussion about euro bonds and a new growth offensive at today's EU summit is a sign of a gradual change in European economic policy according to the daily Público: "A new spectre is hovering over Europe and seems to indicate that Merkel's pointing finger and austerity policy will soon be a thing of the past. … The election in France was enough to make Europe think seriously about the path to chaos it has taken and suddenly start discussing potential alternatives. Let's not fool ourselves, the EU summit won't mark the end of the stringent austerity policy that is smothering the economy and driving up unemployment in Portugal. Nor will the idea of euro bonds be pushed through yet. So it's too soon to pronounce the victory of expansionist economic policy, but at least we can begin to believe that the sanctions imposed by Merkel on weaker countries are doomed to failure."

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Financial Times Deutschland - Germany | Wednesday, 23. May 2012

Hollande not backing down on euro bonds

François Hollande is straining German-French relations with his call for the introduction of euro bonds, but until the president's campaign for the upcoming elections in his country is over he won't back down on his stance, the liberal business paper Fincancial Times Deutschland writes: » more

François Hollande is straining German-French relations with his call for the introduction of euro bonds, but until the president's campaign for the upcoming elections in his country is over he won't back down on his stance, the liberal business paper Fincancial Times Deutschland writes: "He does not simply drop his ideas when Merkel opposes them, which secures him the secret approval of many European leaders. They are happy that the chancellor no longer calls all the shots in Europe. … Parliamentary elections are scheduled for mid-June in France, meaning it is still too early for the president to go back on his campaign positions. And the chancellor will make no concessions before it is clear which positions he will hold to at all costs. So the euro summit on Wednesday will be marked by discrepancies, which is not a bad thing in itself. Things will only get really dicey if the two fail to find common ground after the French elections. Because without an intact Franco-German axis Europe will be up against a brick wall."

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Corriere della Sera - Italy | Wednesday, 23. May 2012

Project bonds just a diversion

As an alternative to the euro bonds propagated by France, Germany has proposed so-called project bonds that would be used to finance cross-border infrastructure projects. But with this proposal the politicians are fleeing reality, economists Alberto Alesina and Francesco Giavazzi argue in the liberal-conservative daily Corriere della Sera: » more

As an alternative to the euro bonds propagated by France, Germany has proposed so-called project bonds that would be used to finance cross-border infrastructure projects. But with this proposal the politicians are fleeing reality, economists Alberto Alesina and Francesco Giavazzi argue in the liberal-conservative daily Corriere della Sera: "Never have we been so close to the real threat of a collapse of the Monetary Union as we are now. … Given this historical situation, the idea that Europe needs more infrastructures to grow seems quite honestly preposterous. Europe really doesn't suffer from a lack of roads, trains or airports. Our politicians talk about infrastructure in an attempt to evade the real problems: state influence on the economy and difficult labour market reforms. It's high time Europe's leaders asked themselves whether they really want to save the euro or not. If they do, then they need to take action now, but please don't build more roads or railways."

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All available articles from » Alberto Alesina

Sme - Slovakia | Wednesday, 23. May 2012

Slovakia cannot rebel against Germany

The Slovakian Prime Minister Robert Fico will back France and speak out in favour of euro bonds at today's EU special summit. But he is in no position to rebel against Germany, writes the liberal daily Sme: » more

The Slovakian Prime Minister Robert Fico will back France and speak out in favour of euro bonds at today's EU special summit. But he is in no position to rebel against Germany, writes the liberal daily Sme: "Of course you can't rule out the possibility that common euro bonds would solve the crisis in Europe. Obama is pushing for just such a debt union, as are Cameron, the International Monetary fund and the Mediterranean countries with France in the lead. ... But it's another question altogether whether such mutual liability is sensible. Because with it Hollande is leading Europe into a political crisis, at the height of the economic one it already faces. It is not possible for Merkel to agree to his demand: she simply can't. ... Quite apart from the fact that the truth lies with Merkel, it is clear: Slovakia, which is so to speak part of the German economic sphere, cannot possibly forge an alliance with Paris against Berlin."

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All available articles from » Peter Schutz

Diário de Notícias - Portugal | Tuesday, 22. May 2012

Athens threat to Portugal's progress

Portugal is expecting the fourth visit by inspectors sent by its creditors, the EU, the ECB and the IMF, this Tuesday. So far the troika has always given the country the thumbs-up for its implementation of the austerity and reform programme but spoil sport Greece may hurt Portugal's record, the daily Diário de Notícias writes: » more

Portugal is expecting the fourth visit by inspectors sent by its creditors, the EU, the ECB and the IMF, this Tuesday. So far the troika has always given the country the thumbs-up for its implementation of the austerity and reform programme but spoil sport Greece may hurt Portugal's record, the daily Diário de Notícias writes: "The treasurers of our republic will scrutinise the economic data between January and March. They will see that the implementation of the prescribed programme is well under way and the deficits - above all the export deficit - have shrunk considerably. But unfortunately at the expense of rapidly increasing unemployment, a phenomenon the troika must respond to. … The one factor that unfortunately is not in the hands of the protagonists of this story is the outcome of the Greek elections, which will inevitably have a detrimental impact on the Portuguese adjustment programme in the next quarter."

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Público - Portugal | Tuesday, 22. May 2012

Hollande brings a fresh wind to the Eurozone

French President François Hollande plans to call for the introduction of euro bonds at an informal EU summit on Wednesday, despite resistance to such a move from Germany. His chances of success aren't very high even if Berlin's power has dwindled, writes the daily Público: » more

French President François Hollande plans to call for the introduction of euro bonds at an informal EU summit on Wednesday, despite resistance to such a move from Germany. His chances of success aren't very high even if Berlin's power has dwindled, writes the daily Público: "With the backing he received at the G8 summit, Hollande will try to force Merkel to relent. But an informal meal won't be enough. … Merkel won't consider euro bonds before the elections in France and Greece. … After that Hollande will no longer be campaigning for election and the fate of the Greeks regarding the euro will be sealed. At this point it's too early to say whether the results of the G8 summit and the upcoming EU summit will add up to a growth offensive. But it's becoming clear that a change at the helm of the Eurozone has taken place: the convergence of several member states putting pressure on Berlin is replacing the Merkozy duo. That's not bad news."

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Naftemporiki - Greece | Tuesday, 22. May 2012

Geuro won't prevent Grexit

The chief economist of the Deutsche Bank, Thomas Mayer, sees the idea of introducing a parallel currency to the euro in Greece, named the "geuro", as a viable alternative for preventing Greece's exit from the Eurozone. But a country with one foot out the door won't be long in leaving, the conservative business paper Naftemporiki fears: » more

The chief economist of the Deutsche Bank, Thomas Mayer, sees the idea of introducing a parallel currency to the euro in Greece, named the "geuro", as a viable alternative for preventing Greece's exit from the Eurozone. But a country with one foot out the door won't be long in leaving, the conservative business paper Naftemporiki fears: "The first impression is that this is an imaginary scenario. But when the scenario comes from a German bank and describes pretty precisely one half of Greece's route out of the euro, there is good cause for concern. … In addition to this scenario there are daily reports of foreign banks preparing for a full Greek exit from the euro and also of the consequences this would have for Italy, Spain, Portugal and the entire Eurozone. … The threat of an exit from the Eurozone is obviously quite real."

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All available articles from » Panos Kakouris

Frankfurter Rundschau - Germany | Tuesday, 22. May 2012

Sarrazin's arguments have a grain of truth

The provocative former board member of the Deutsche Bundesbank Thilo Sarrazin brought out a new book this Tuesday entitled Europa braucht den Euro nicht (Europe doesn't need the euro). This time rather than attacking immigrants he directs his ire at the common currency, arguing that in contributing to the bailout fund Germany is merely seeking to assuage its Holocaust guilt. Sarrazin is a master of resentment because there is always a grain of truth to his arguments, the left-liberal daily Frankfurter Rundschau writes: » more

The provocative former board member of the Deutsche Bundesbank Thilo Sarrazin brought out a new book this Tuesday entitled Europa braucht den Euro nicht (Europe doesn't need the euro). This time rather than attacking immigrants he directs his ire at the common currency, arguing that in contributing to the bailout fund Germany is merely seeking to assuage its Holocaust guilt. Sarrazin is a master of resentment because there is always a grain of truth to his arguments, the left-liberal daily Frankfurter Rundschau writes: "It is true that Germany did not introduce the euro just because of the advantages to its economy. ... Chancellor Kohl agreed to join the Monetary Union also to appease the fears of neighbouring states. That too, mind you, in the interests of Germany. Unfortunately he failed to make that clear back then. It is the underhanded aspect to this decision that lays the groundwork for Sarrazin's polemics. It would have been far better for Kohl to have let the Germans vote on the introduction of the euro! A referendum would have knocked the bottom out of any conspiracy theories in the long term. That is a lesson which Europeans should take to heart for the future."

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All available articles from » Bettina Vestring

Die Presse - Austria | Tuesday, 22. May 2012

Thilo Sarrazin on desirable exits from the Eurozone

In his new book Europa braucht den Euro nicht (Europe doesn't need the euro), former Bundesbank banker Thilo Sarrazin takes aim at the wobbly single currency. The liberal-conservative daily Die Presse publishes an excerpt from the book, which went on sale on Monday: » more

In his new book Europa braucht den Euro nicht (Europe doesn't need the euro), former Bundesbank banker Thilo Sarrazin takes aim at the wobbly single currency. The liberal-conservative daily Die Presse publishes an excerpt from the book, which went on sale on Monday: "Greece, Portugal, Italy, Spain and all those countries in Southern Europe should be glad that they have the euro and can spend euros. But those euros should be earned, not received as a gift or loan from the countries of the North - through whatever indirect channel that may be. Government transfer channels which are not limited to EU structural funds undermine this principle: they create a divide between givers and takers and fuel aversion and reservations among nations. If a country can't or doesn't want to live with the discipline required by the single currency it should be free to return to its national currency whenever it wants to."

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ABC - Spain | Monday, 21. May 2012

Hollande fails, Merkel remains stubborn

The new French President François Hollande failed to convince other leaders of his economic policy concepts at the G8 summit, meaning Merkel still has the upper hand, the conservative daily ABC concludes: » more

The new French President François Hollande failed to convince other leaders of his economic policy concepts at the G8 summit, meaning Merkel still has the upper hand, the conservative daily ABC concludes: "It's impossible to talk of winners and losers when it comes to meetings like this last G8 summit because such occasions are designed not to produce winners or losers. But one can certainly talk of those who maintained their position and those who failed to achieve their objectives. And François Hollande fell far short of his. The first to arrive, he managed to secure Obama's support, but even that didn't persuade Angela Merkel to change her opinion. And as everyone knows, her country is the decisive one in Europe. The new French president wants to reverse Europe's economic policy with concerted measures that put stimulus before cuts and growth before austerity. But a glance at the lengthy, confused, redundant and ultimately insubstantial final declaration of the summit is enough to see that he wasn't successful."

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All available articles from » José María Carrascal

Diário Económico - Portugal | Monday, 21. May 2012

Nothing but national egoism

The G8 summit at Camp David was nothing but a display of national egoism that ended without any concrete resolutions, writes the liberal business paper Diário Económico: » more

The G8 summit at Camp David was nothing but a display of national egoism that ended without any concrete resolutions, writes the liberal business paper Diário Económico: "The highlight of the G8 summit was that no one did anything. In summary it may be said that Obama, Merkel and Co. just watched the finale of the Champions League together. Otherwise the meeting ended in a void and Europe's fate continues to hang in the balance. Basically each country simply stated its own convictions: The US wants to promote growth with government programmes, Germany wants to stick to austerity while France prefers the idea of euro bonds and England as usual wants none of all this. With weak politicians that appear to live only for their national agendas, it will be difficult to somehow improve the situation."

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All available articles from » Bruno Proença

Imerisia - Greece | Saturday, 19. May 2012

Merkel strengthens markets' distrust

German Chancellor Angela Merkel is said to have recommended to the Greek president that a referendum be held in Greece on whether the country should remain in the Eurozone. Merkel's faux pas has only worsened the situation, writes business paper Imerisia: » more

German Chancellor Angela Merkel is said to have recommended to the Greek president that a referendum be held in Greece on whether the country should remain in the Eurozone. Merkel's faux pas has only worsened the situation, writes business paper Imerisia: "Now the markets are not just wary of the Greek politicians and their crisis policy but also of the Europeans. They're convinced that the Europeans, and in particular the Germans, won't be able to solve the crisis. ... The Germans' dumb approach to tackling the Greek problem serves as proof. These politicians have turned a relatively small debt problem into a crisis of the entire Monetary Union."

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All available articles from » Thanasis Lirtsogiannis

taz - Germany | Monday, 21. May 2012

Summit of the Baffled Eight

The heads of state and government of the G8 countries have failed to come up with solutions to the pressing problems of the EU, admonishes the left-leaning daily taz: » more

The heads of state and government of the G8 countries have failed to come up with solutions to the pressing problems of the EU, admonishes the left-leaning daily taz: "It's time to rename G8 the B8 – for 'Baffled Eight'. What US President Obama, French head of state Hollande and Chancellor Merkel have produced at the G8 summit in Camp David isn't worth the paper it's printed on. Platitudes and pro forma compromises are meant to hide the fact that the 'big eight' don't agree on any of the most important points - and that they don't have the slightest idea how to go about solving the euro crisis. … What will happen to Greece? What will become of the Spanish banks? What happens if the people in the crisis countries finally lose their trust altogether and plunder their accounts, as has happened in Athens? How can the rating agencies be induced to keep calm, instead of inflaming the crisis - as they did last week - with new downgrades? … The meeting of the Baffled Eight produced above all the following impression: that of a sense of bafflement.”

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All available articles from » Eric Bonse

Contributors.ro - Romania | Monday, 21. May 2012

Greek bankruptcy unlikely

Speculation over a Greek euro exit is unsettling Romanians because Greek banks hold roughly a quarter of the shares in local banks. The economist Cristian Socol nevertheless remains optimistic in the blog portal Contributors: » more

Speculation over a Greek euro exit is unsettling Romanians because Greek banks hold roughly a quarter of the shares in local banks. The economist Cristian Socol nevertheless remains optimistic in the blog portal Contributors: "The Euro Group will not let Greece go completely bankrupt because the costs of an uncontrolled bankruptcy would be higher than keeping Greece in the Eurozone. ... In addition, Romania has now learned to deal institutionally with unwanted macro-economic events. There is a crisis management group at the National Bank BNR which is preparing for every scenario. ... Added to that, Romania has one of the most solid banking systems in the EU. And in fact the Greek banks are really quite solvent. ... For that reason we should remain rational, keep calm in our judgements and not get all in a flap at the first negative signs. It is hard to distinguish between passing and permanent threats, but it is important. Otherwise exactly what is written in the macro-economic textbooks will happen: the prophesies will become self-fulfilling."

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Welt am Sonntag - Germany | Sunday, 20. May 2012

Berthold Seewald on Greece's special treatment for historical reasons

The Greeks are receiving preferential treatment in Europe simply because 2,500 years ago they invented democracy and the Olympic Games, columnist Berthold Seewald complains in the conservative weekly Welt am Sonntag: » more

The Greeks are receiving preferential treatment in Europe simply because 2,500 years ago they invented democracy and the Olympic Games, columnist Berthold Seewald complains in the conservative weekly Welt am Sonntag: "But the ensuing 2,500 years are ignored: the fact that after the Greek, Celtic, Germanic, Slavic, Avarian, Bulgarian and Turkish invasions, there was hardly anything left; that Greek Orthodoxy has developed neither a monastic work ethos nor commitment to public welfare; that the clan and clientele structures left over from 400 years of Turkish rule are still very much alive. …Two key words determine the rhetorical impact of the problem: democracy and sustainability. Democracy was invented 2,500 years ago in Greece, while sustainability is linked to the realisation that at some point we need to find a balance between the available resources and our needs, because as we all know, our planet's resources are limited. … Greece stands as a reminder of the most important political experiment in history and of the surrender of a society in the distribution of privation. The one is a glorious past, the other a tormented future."

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Corriere della Sera - Italy | Friday, 18. May 2012

G8 meeting full of drama

The heads of state and government of the G8 will convene at Camp David in the US on Friday evening. The main topic at the summit will be economic and financial policy. The rustic setting of the meeting will provide a fitting backdrop for its drama, speculates the liberal-conservative daily Corriere della Sera: » more

The heads of state and government of the G8 will convene at Camp David in the US on Friday evening. The main topic at the summit will be economic and financial policy. The rustic setting of the meeting will provide a fitting backdrop for its drama, speculates the liberal-conservative daily Corriere della Sera: "When Obama receives the heads of state and government of the G8 at rustic-chic Camp David this evening, the sherpas and diplomats will experience the delights of the boy scout lifestyle as they will be accommodated in wooden bungalows with three-bed rooms under the treetops of the president's Maryland retreat. Some already see this as a metaphor for the fact that the summit brings together an ex-leadership that must adjust to a more Spartan lifestyle now that a deep and enduring crisis is already evoking memories of a war economy. … The summit may take a dramatic turn, not because of the decisions that are made there but because of the things that may be said: for the first time the potential collapse of the Monetary Union will be openly discussed."

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All available articles from » Massimo Gaggi

Jornal de Negócios - Portugal | Friday, 18. May 2012

Greece must leave Eurozone soon

Greece must leave the Eurozone as soon as possible, writes US economist Nouriel Roubini in the business paper Jornal de Negócios: » more

Greece must leave the Eurozone as soon as possible, writes US economist Nouriel Roubini in the business paper Jornal de Negócios: "The Greek euro tragedy is reaching its final act: it is clear that either this year or next, Greece is highly likely to default on its debt and exit the Eurozone. Postponing the exit after the June election with a new government committed to a variant of the same failed policies (recessionary austerity and structural reforms) will not restore growth and competitiveness. Greece is stuck in a vicious cycle. … The only way to stop it is to begin an orderly default and exit, co-ordinated and financed by the European Central Bank, the European Union and the International Monetary Fund (the 'troika'), that minimizes collateral damage to Greece and the rest of the Eurozone. … Like a doomed marriage, it is better to have rules for the inevitable divorce that make separation less costly to both sides. Make no mistake: an orderly euro exit by Greece implies significant economic pain. But watching the slow, disorderly implosion of the Greek economy and society would be much worse."

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El País - Spain | Friday, 18. May 2012

France's reformed anti-Europeans

The new cabinet of French President François Hollande began its official business on Thursday. Now foreign policy will be dictated by politicians who spoke out against a European treaty in 2005, writes the left-liberal daily El País: » more

The new cabinet of French President François Hollande began its official business on Thursday. Now foreign policy will be dictated by politicians who spoke out against a European treaty in 2005, writes the left-liberal daily El País: "It is paradoxical that the current foreign minister, Laurent Fabius, and his colleague responsible for EU policy, Bernard Cazeneuve, were the most outspoken supporters of the No that sunk the European constitution in the 2005 referendum. Today they're all for Europe; for a different Europe, as new Finance Minister Pierre Moscovici explained yesterday. In a double sense: on the one hand they want a growth agenda to complement the fiscal compact. On the other they promise that under the Franco-German leadership the Union will once again become a community in which all the member states and institutions have their say. In other words, they are distancing themselves from the idea of a board of directors." 

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Main focus of Wednesday, 16. May 2012

Greece poised for new elections

The formation of an expert government in Greece failed on Tuesday, prompting President Karolos Paoulias to call new elections for June. According to commentators, the ... » more

The formation of an expert government in Greece failed on Tuesday, prompting President Karolos Paoulias to call new elections for June. According to commentators, the elections will effectively be a referendum on whether Greece stays in the Eurozone unless Syriza boss and anti-austerity politician Alexis Tsipras finally decides to make some compromises.

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The Times - United Kingdom | Wednesday, 16. May 2012

Paris and Berlin must reach compromise

Newly inaugurated French President François Hollande's first trip abroad led him to Berlin on Tuesday. It is vital that the two countries reach a compromise on overcoming the debt crisis, writes the conservative daily The Times: » more

Newly inaugurated French President François Hollande's first trip abroad led him to Berlin on Tuesday. It is vital that the two countries reach a compromise on overcoming the debt crisis, writes the conservative daily The Times: "Germany is right to demand that other countries make structural reforms to economies, pensions and labour markets. But it also needs to accept that austerity alone will not get the rest of Europe moving. Not every country's plight stems from profligacy: many are suffering from the credit crunch and the adverse effects of having to function in the straitjacket of a single currency that has boosted German exports but made their own economies less competitive. ... Both sides have room to manoeuvre. Both need to compromise in the weeks between now and the Greek election, not pander to electorates. The stakes are too high to do otherwise."

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Financial Times - United Kingdom | Tuesday, 15. May 2012

Exit good for Greece in the long term

Leaving the Eurozone could be very hard for Greece's crisis-ridden economy in the short term, but advantageous in the long term, writes the liberal business paper Financial Times: » more

Leaving the Eurozone could be very hard for Greece's crisis-ridden economy in the short term, but advantageous in the long term, writes the liberal business paper Financial Times: "The immediate consequences of Greece leaving or being forced out of the Eurozone would certainly be devastating. ... All existing contracts would need to be redenominated and renegotiated, creating financial chaos. Perhaps most politically devastating, fiscal austerity might actually need to intensify, since Greece still runs a primary deficit, which it would have to correct if EU and International Monetary Fund financing vanished. ... And that would set in motion a process of adjustment that would soon reorientate the economy and put it on a path of sustainable growth. In fact, Greek growth would probably surge, possibly for a prolonged period, if it adopted sensible policies to restore rapidly and sustain macroeconomic stability."

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Süddeutsche Zeitung - Germany | Tuesday, 15. May 2012

Claus Leggewie calls for green Marshall Plan for Southern Europe

Europe's economy needs growth, but not at the expense of future generations, writes political scientist Claus Leggewie in the left-liberal daily Süddeutsche Zeitung, proposing a green growth pact for southern European countries: » more

Europe's economy needs growth, but not at the expense of future generations, writes political scientist Claus Leggewie in the left-liberal daily Süddeutsche Zeitung, proposing a green growth pact for southern European countries: "Instead of strangling Greece, Portugal, Spain and Italy with austerity dictates the EU could for example draw up a Marshall Plan for expanding renewable energy sources in Southern Europe and North Africa. What these countries need is public and private investments in new and sustainable infrastructures rather than repairs on existing energy and transport infrastructures or burrowing holes with job creation schemes only to fill them in again afterwards. … Political ecology must become the benchmark for the governments of both Germany and France. Chancellor Merkel has reiterated her commitment to climate protection and resource efficiency. Now, together with François Hollande and other partners of a 'coalition of the willing', she should develop this into a maxim for European development."

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Sme - Slovakia | Tuesday, 15. May 2012

Test for Hollande in Berlin

François Hollande takes over the French presidency from his predecessor Nicolas Sarkozy today and will pay his first official visit to Chancellor Angela Merkel this evening. The two should show a spirit of compromise, writes the former French Minister for Europe Noëlle Lenoir in a commentary published by the liberal daily Sme: » more

François Hollande takes over the French presidency from his predecessor Nicolas Sarkozy today and will pay his first official visit to Chancellor Angela Merkel this evening. The two should show a spirit of compromise, writes the former French Minister for Europe Noëlle Lenoir in a commentary published by the liberal daily Sme: "Hollande's proposal was initially regarded as lèse-majesté against Germany. Now all European leaders ... agree on the need to revive the European economy. Merkel and Hollande will discuss the main question - how to spur economic growth without increasing public debt - on May 15 in Berlin. While Merkel opposes Hollande's proposal to create euro bonds with a view to financing industrial projects, they cannot afford to waste time in reassuring jittery markets with a message of cohesion. Merkel has already welcomed Hollande's ideas for a growth plan for Europe. Hollande, too, will have to make concessions."

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Diário Económico - Portugal | Tuesday, 15. May 2012

Domino effect threatens other crisis countries

Greece's exit from the Eurozone could drag Portugal, Ireland and Spain into the abyss, the liberal business paper Diário Económico fears: » more

Greece's exit from the Eurozone could drag Portugal, Ireland and Spain into the abyss, the liberal business paper Diário Económico fears: "By next month, Greece may already have left the Eurozone. The Germans seem to have had enough of the Greeks' stubbornness and are now willing to risk the split. They gladly pay to see this. And the central bankers, too, have already drawn up their emergency plans. … But no one can predict the far-reaching consequences if this Pandora's box is indeed opened. Will there be enough money to protect Portugal, Ireland and Spain? Or will we experience the domino effect that will put paid to the euro for good? Yesterday's plunging stock markets are proof of how jittery the markets are."

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La Stampa - Italy | Tuesday, 15. May 2012

EU must show what it is capable of

Euro Group chairman Jean-Claude Juncker wants to do "everything possible" to keep Greece in the Eurozone. A noble goal that entails many risks, writes the liberal daily La Stampa: » more

Euro Group chairman Jean-Claude Juncker wants to do "everything possible" to keep Greece in the Eurozone. A noble goal that entails many risks, writes the liberal daily La Stampa: "Europe would do well to think about the alternatives. … The EU has put Greece under too much pressure. … Now Germany and other advocates of austerity must show that Greece's threat to drag the other partners into the abyss if they don't open their purses is empty talk. They must put their cards on the table and say which specific measures they are willing to adopt for struggling countries. … Because otherwise the mounting pressure on the crisis countries will be exposed as merely a bluff. A conclusion that above all the financial markets are already leaning towards."

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Corriere del Ticino - Switzerland | Tuesday, 15. May 2012

Greece's radical Left gambling with high stakes

Greek President Karolos Papoulias has proposed the formation of a government of experts as a solution to the government crisis in his country. He plans to meet all the party leaders today - with the exception of the leader of the fascists - to discuss this possibility. If the talks fail new elections on June 10 or 17 would likely be inevitable. This is precisely what the boss of the leftist alliance Syriza, Alexis Tsipras, is hoping for, writes the liberal daily Corriere del Ticino: » more

Greek President Karolos Papoulias has proposed the formation of a government of experts as a solution to the government crisis in his country. He plans to meet all the party leaders today - with the exception of the leader of the fascists - to discuss this possibility. If the talks fail new elections on June 10 or 17 would likely be inevitable. This is precisely what the boss of the leftist alliance Syriza, Alexis Tsipras, is hoping for, writes the liberal daily Corriere del Ticino: "If it comes to new elections Greece could well end up in the hands of the radical Left, which according to the polls would gain ground and emerge as the strongest force in parliament. The prospect of an election victory strengthens the position of this party in a country where the political camps are at loggerheads over the austerity measures. This is why Tsipras is taking a gamble and insisting that any new government - be it a cabinet of technocrats or one that emerges from new elections - must annul the austerity programme and instead rely on a consistent bailout package from the European Community and the International Monetary Fund."  

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All available articles from » Gerardo Morina

Simerini - Cyprus | Monday, 14. May 2012

Cyprus must forestall troica

According to a recent report by the European Commmission, Cyprus' public debt is constantly growing and could increase by seven points next year, amounting to 78 percent of the country's gross domestic product. The conservative daily Simerini writes that the Cypriot government needs to act quickly before the country is forced to resort to the EU bailout mechanism: » more

According to a recent report by the European Commmission, Cyprus' public debt is constantly growing and could increase by seven points next year, amounting to 78 percent of the country's gross domestic product. The conservative daily Simerini writes that the Cypriot government needs to act quickly before the country is forced to resort to the EU bailout mechanism: "Greece is a classic example of what not to do. Because if no measures are taken those that eventually become necessary are even worse. And if Cyprus becomes a member of the EU bailout mechanism the troika will doggedly introduce the measures - in its own way and with its own weapons. The public sector employees should therefore themselves insist on preventing waste of public funds. … The old times are gone for good. Progress is no longer possible without reforms and budget discipline."

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All available articles from » Giannos Charalampidis

Hospodářské noviny - Czech Republic | Tuesday, 15. May 2012

Europe's politicians write off Greece

The financial markets and Europe's politicians are starting to prepare for Greece's exit from the Eurozone, the business paper Hospodářské noviny writes: » more

The financial markets and Europe's politicians are starting to prepare for Greece's exit from the Eurozone, the business paper Hospodářské noviny writes:"While Eurozone representatives were still discussing Greece's future in the zone, the German Chancellor Angela Merkel only spoke of Athens staying in the EU. She made no mention of the Eurozone at all. Certainly, a Greek exit would create huge turbulence on the markets, but the Union is far better prepared for that now than it was two years ago. The politicians are thinking much more about how to deal with the consequences for Spain, Italy and Portugal than about keeping Athens in the Monetary Union at all costs. ... Of course, they are seeking the most politically and economically acceptable variant. But the current behaviour of the Greeks leads one to believe we'll have to buy drachmas for our next Greek holiday."

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All available articles from » Martin Jašminský

De Volkskrant - Netherlands | Monday, 14. May 2012

Europe's pressure on Greece dangerous

Greece's President Karolos Papoulias was unable to get the parties to agree on forming a government on Sunday. This makes fresh elections from which the leftist coalition Syriza under Alexis Tsipras could emerge the strongest force all the more likely. Even if it means running the risk of political uncertainty, Europe's leaders should not put Greece under pressure, the left-liberal daily De Volkskrant writes: » more

Greece's President Karolos Papoulias was unable to get the parties to agree on forming a government on Sunday. This makes fresh elections from which the leftist coalition Syriza under Alexis Tsipras could emerge the strongest force all the more likely. Even if it means running the risk of political uncertainty, Europe's leaders should not put Greece under pressure, the left-liberal daily De Volkskrant writes: "Most likely Greece will go in the direction of exiting the Eurozone. Greece will then be barred from foreign loans for years, even more businesses will go bankrupt and there will probably also be a run on the banks because people will want to withdraw their euros before the switch to a new currency. ... New elections in Greece also mean more uncertainty for the rest of the EU. But if European leaders put the Greeks under too much pressure they run the risk of playing into the hands of opponents to austerity. In the end the Greeks must decide the future of their country for themselves."

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All available articles from » Arjen van der Ziel

To Vima Online - Greece | Sunday, 13. May 2012

Euro exit would be fatal for Greece

As Greece still struggles to form a new government the calls for the country's exit from the Eurozone are growing louder. German Finance Minister Wolfgang Schäuble has said that the Eurozone is more resilient now than two years ago and could survive Greece's exit if necessary. The left-liberal online paper To Vima voices deep concern at this latest development: » more

As Greece still struggles to form a new government the calls for the country's exit from the Eurozone are growing louder. German Finance Minister Wolfgang Schäuble has said that the Eurozone is more resilient now than two years ago and could survive Greece's exit if necessary. The left-liberal online paper To Vima voices deep concern at this latest development: "For Greece it would be a great misfortune to lose all that it has struggled so hard to gain with EU membership. It would be a huge national defeat that would plunge us into the abyss, quite apart from the threats to national security [tense relations with Turkey] that arise in such situations. … Each of us is aware of the dangers. The current situation demands that we all join forces in the battle to avoid an unprecedented national defeat. History will free no one of the responsibility for a defeat that could have been avoided."

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i - Portugal | Monday, 14. May 2012

Portugal's prime minister insults unemployed

Portugal's liberal-conservative prime minister Pedro Passos Coelho last week exhorted the Portuguese to see the record level of unemployment as an opportunity, provoking fierce criticism which the daily i endorses: » more

Portugal's liberal-conservative prime minister Pedro Passos Coelho last week exhorted the Portuguese to see the record level of unemployment as an opportunity, provoking fierce criticism which the daily i endorses: "In the very week in which the Greeks and French made a stand against Merkel's austerity, Passos Coelho has called on us to embrace a risk culture. He pointed out that unemployment was an opportunity to change our lives. He concluded his brilliant train of thought with the comment that we prefer to be employees rather than entrepreneurs. … You have to be completely removed from our problems to make such statements. … How, in these times of recession, when banks have no funds, thousands of companies are having to close and many Portuguese have no money to buy food, can one expect people to have the daring to change their lives? It's really too bad a proposal to have come from the brain of a prime minister, but it shows what fate awaits us with this government."

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All available articles from » Tomás Vasques

El País - Spain | Monday, 14. May 2012

Election defeat for chancellor, too

The crushing defeat suffered by the CDU in the election in the key German state of North Rhine-Westphalia could have an impact on Merkel's Europe policy, writes the left-liberal daily El País, pointing to the fate of her predecessor Gerhard Schröder: » more

The crushing defeat suffered by the CDU in the election in the key German state of North Rhine-Westphalia could have an impact on Merkel's Europe policy, writes the left-liberal daily El País, pointing to the fate of her predecessor Gerhard Schröder: "North Rhine-Westphalia is so important in German politics that the defeat suffered by the SPD there in 2005 anticipated the result of the general elections, paving the way for Angela Merkel. What is happening now needn't automatically have the same consequences, but it is a warning to Angela Merkel, scheduled to meet the new French President François Hollande next Tuesday, who is determined to renegotiate the rules in the Eurozone. This is all unfolding in the context of the complicated political situation in Greece following the parliamentary elections there and Italy's open desire to seek a more balanced option somewhere between austerity and growth."

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Kaleva - Finland | Monday, 14. May 2012

The spectre of populism haunts Europe

The elections in France and Greece have shown that far from being a passing phenomenon, populism has become a force to be reckoned within Europe, the liberal daily Kaleva writes: » more

The elections in France and Greece have shown that far from being a passing phenomenon, populism has become a force to be reckoned within Europe, the liberal daily Kaleva writes: "One after another the countries of Europe are running into difficulties, making day to day life harder for the man on the street while uncertainty mounts. This is where the populist movements draw their force from. Even if they can't offer a credible political alternative, they allow the people to give the well-off decision-makers a lesson in humility. ... Typical for populists is that they simplify complex things. If you look at what's happening in Europe's economy and try to predict what will come next, it's difficult to find a common strand. The populists react to this state of affairs with slogans the simple people can grasp hold of. ... The classic party landscape is at the end of its tether in Europe. Populism shakes up rigid power structures. The traditional parties are now racking their brains for ways to deal with the new situation. Sweden has chosen the path of isolation. Many other countries are asking how populists can be included in the government and tamed as a result."

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Mladina - Slovenia | Monday, 14. May 2012

Slovenia follows dictates of the markets

The Slovenian parliament passed the government's austerity package for 2012 and 2013 on Friday. Public spending is to be cut by 500 million euros this year and 750 in 2013. Starting June, the salaries of public sector employees will go down by eight percent. But economising measures alone will accomplish nothing, as other countries in Europe have already shown, writes the left-leaning weekly Mladina: » more

The Slovenian parliament passed the government's austerity package for 2012 and 2013 on Friday. Public spending is to be cut by 500 million euros this year and 750 in 2013. Starting June, the salaries of public sector employees will go down by eight percent. But economising measures alone will accomplish nothing, as other countries in Europe have already shown, writes the left-leaning weekly Mladina: "The current government has not dared to undertake systemic changes or structural reforms. All it does is cut spending, which is exactly what Europe has said goodbye to this week. Austerity for austerity's sake has proved the wrong way to go. Yet this is precisely the step Slovenia has chosen to take even though it pulled Greece, Spain and Ireland ever deeper into the crisis maelstrom. By cinching their belts tighter and tighter, these countries have eliminated the little breathing space they had. ... But some countries still obey the financial markets, and not without reason. Because the markets are not nameless figures. Behind them are people, proprietors."

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Main focus of Friday, 11. May 2012

Hope for new government in Greece

The Democratic Left party in Greece has signalled its willingness to enter a coalition with Pasok and Nea Dimokratia during preliminary discussions. The parties all ... » more

The Democratic Left party in Greece has signalled its willingness to enter a coalition with Pasok and Nea Dimokratia during preliminary discussions. The parties all agree that the country should remain in the Eurozone. While some commentators welcome the consensus, others see a Greek exit as the better solution.

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The Economist - United Kingdom | Friday, 11. May 2012

Exit soon inevitable

A Greek exit from the Eurozone entails opportunities and risks, both for Greece and for the rest of the euro countries, the liberal weekly magazine The Economist writes: » more

A Greek exit from the Eurozone entails opportunities and risks, both for Greece and for the rest of the euro countries, the liberal weekly magazine The Economist writes: "An exit, and the ensuing default, would lighten its debt, re-establish competitiveness and challenge its politicians to grasp their own destiny. Yet leaving the euro would also create chaos and destroy savings and, as often in the past, its advantages might rapidly inflate away. The rest of the euro zone is also better off with Greece 'in', if only because of the risk of contagion (and the inadequate preparations for that). But again, not at any price. If Greece rejects the second bail-out or falls drastically behind in its programme, its exit could become inevitable."

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Corriere del Ticino - Switzerland | Friday, 11. May 2012

Transfer union or get rid of euro

In the aftermath of the elections in France and Greece the debate over the future of the Eurozone has intensified. There are now only two options left: » more

In the aftermath of the elections in France and Greece the debate over the future of the Eurozone has intensified. There are now only two options left: either the Monetary Union collapses or the Eurozone becomes a transfer union, writes the liberal daily Corriere del Ticino: "Europe is at a dead end. The euro crisis can't be resolved with half-hearted measures that merely buy time. Such temporary cures grow more and more expensive and have less and less impact. Europe is facing a choice: either it decides to become a transfer union, an option Germany is fighting against tooth and nail, or it prepares for the dissolution of the Monetary Union, which as long as it is done in an orderly manner needn't be catastrophic. The growing opposition of the citizens to which the recent elections testify doesn't admit another delay. On the contrary, it demands a decision from the European governments."

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Protagon - Greece | Thursday, 10. May 2012

Renegotiate austerity

Greece must remain in the Eurozone and reach a new agreement with its creditors, writes economist Giannis Varoufakis on web portal Protagon: » more

Greece must remain in the Eurozone and reach a new agreement with its creditors, writes economist Giannis Varoufakis on web portal Protagon: "Whether we like it or not, Greece's fate is inextricably entwined with that of the rest of the Eurozone. If we act like we can get along on our own, without Europe's help, we will create a situation that destroys all hope that our voice against the austerity measures will lead to something good. This is the situation: on the one hand it is impossible to comply with the terms of the austerity package. … On the other it's just as impossible for us to finance the development and reform policy needed to get out of the crisis. So what can we do? There's just one solution and it is laden with difficulties: we must renegotiate the terms of the austerity agreement between Greece and its creditors - as a member of the Eurozone."

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Público - Portugal | Friday, 11. May 2012

The euro is a destructive utopia

The problems of the Monetary Union prove that the euro is a utopia that could end up destroying Europe, the daily newspaper Público argues: » more

The problems of the Monetary Union prove that the euro is a utopia that could end up destroying Europe, the daily newspaper Público argues: "For too long we in Europe have believed that problems could be solved by simply sweeping them under the carpet like a lazy housewife. … This week has shown that a collapse of the Monetary Union can't be excluded. … It's not possible to have a common currency without a common government. The current tensions are a direct consequence of this institutional failure. This realisation should prompt the decision-makers to question the viability of the euro. So far all they have done is tried to patch up the problems with a house that is falling apart and proposed unrealistic federalist solutions. The fiscal compact guarantees nothing; the growth programme is pure rhetoric. Europe has been destroyed several times by utopias. The euro appears to be the most recent of these."

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Economic Policy, » Portugal
All available articles from » José Manuel Fernandes

Die Presse - Austria | Friday, 11. May 2012

Savers to pay for European sovereign debt

Germany's Bundesbank indicated for the first time on Thursday that it would accept higher inflation rates because of the European debt crisis. But what this really means is that people with savings would foot the bill for the public debt, writes the liberal-conservative daily Die Presse: » more

Germany's Bundesbank indicated for the first time on Thursday that it would accept higher inflation rates because of the European debt crisis. But what this really means is that people with savings would foot the bill for the public debt, writes the liberal-conservative daily Die Presse: "If Europe's central banks loosen the inflation leash it's clear who will pay for the crisis: savers and bondholders. And who will profit: creditors of all kinds, but mostly the state. Whereby one shouldn't be soothed by appeasing phrases such as 'a little inflation': the expropriating effect of inflation is enormous even at unspectacular rates. Over five years, a real inflation of six percent, for example, decreases the value of a thousand euros to 747 euros, and over ten years to just 558 euros, and of course the real value of a thousand euros of public debt too. So it's not hard to guess what form the revitalisation of the economy will really take."

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More from the press review on the subject » Fiscal Policy, » Banks, » Inflation, » Germany, » Europe
All available articles from » Josef Urschitz

Hospodárske noviny - Slovakia | Thursday, 10. May 2012

Euro Group must get rid of Greek parasite

The Eurozone should not transfer more money to Greece while calling for reforms but simply exclude the country from the monetary union, writes the business paper Hospodárske noviny: » more

The Eurozone should not transfer more money to Greece while calling for reforms but simply exclude the country from the monetary union, writes the business paper Hospodárske noviny: "For two years Greece has been traumatising the Eurozone. If the prognoses are correct, the anti-European parties would gain further support in the event of new elections in June. Yet despite the political uncertainty the Greeks are receiving a further tranche of several billions today. The German Finance Minister Wolfgang Schäuble believes Athens has no choice and must press ahead with the reforms. Schäuble is wrong. Athens doesn't have to do anything. It's the Eurozone that needs to make a move. It must stop pumping money into Greece and oust Greece from the Eurozone, thereby ridding itself of a country that is as big as a parasite and behaves like one too."

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More from the press review on the subject » EU Policy, » Domestic Policy, » Fiscal Policy, » Elections, » Greece, » Europe
All available articles from » Ivan Szabó

La Repubblica - Italy | Thursday, 10. May 2012

Help in little portions is a warning

The announcement that Greece will receive the withheld portion of the bailout tranche when the financial situation makes it necessary is just an excuse in the eyes of the left-liberal daily La Repubblica: » more

The announcement that Greece will receive the withheld portion of the bailout tranche when the financial situation makes it necessary is just an excuse in the eyes of the left-liberal daily La Repubblica: "Europe is paying out the money bit by bit now and thus sending a clear and ominous message to Athens that at the same time must sound like a warning to the new French president: There is no Plan B. The only alternative to the austerity terms is state bankruptcy and exit from the Monetary Union. … The most passionate defenders of austerity, first and foremost Berlin and Helsinki, even wanted to suspend the bailouts in the event that Athens can't form a majority government. … Only thanks to the mediation of the EU Commission and France has common sense prevailed. … But the Germans couldn't be prevented from using not just words but also measures to admonish the Greeks. … The billion that has been withheld hangs like a sword of Damocles over Athens."

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

Kouti tis Pandoras - Greece | Wednesday, 9. May 2012

Who's afraid of left-wing spectres

According to the most recent surveys the leftist alliance Syriza would emerge the strongest party from fresh elections. On the web portal To Kouti tis Pandoras, blogger Kostas Vaxevanis says he can't understand why people are so afraid of a left-wing government in Greece: » more

According to the most recent surveys the leftist alliance Syriza would emerge the strongest party from fresh elections. On the web portal To Kouti tis Pandoras, blogger Kostas Vaxevanis says he can't understand why people are so afraid of a left-wing government in Greece: "A spectre is haunting Europe. … The ghost of Alexis Tsipras. For all those who haven't understood yet: all Europe is in peril if Tsipras comes into power. And everything our government has so carefully constructed will collapse. … But seriously now, the situation is pretty chaotic. It has been for three years because of the harsh austerity policy. … I'm not trying to defend Tsipras, or Kouvelis, or Kammenos [left- and right-wing leaders who reject the austerity policy]. I simply find it embarrassing for our democracy when - as back in the 1950s - everyone fears that the communists will take away our property and women. … I don't know whether or how Tsipras would govern. But both I and everyone else know exactly how the other politicians governed."

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More from the press review on the subject » EU Policy, » Domestic Policy, » Elections, » Greece
All available articles from » Kostas Vaxevanis

Blog 100 Reféns - Portugal | Thursday, 10. May 2012

To hell with austerity for Portugal

The implementation of the austerity programme in Portugal is probably the worst political measure this country has witnessed since time immemorial, writes Tiago Mesquita in his blog 100 Reféns: » more

The implementation of the austerity programme in Portugal is probably the worst political measure this country has witnessed since time immemorial, writes Tiago Mesquita in his blog 100 Reféns: "If ex-head of government Soares really is the father of this social and economic cemetery he must be ashamed that he didn't abort before it was too late. He is equally to blame. Nonetheless, for the first time I agree with one of his statements: the agreement, which is nothing less than a slow death for a country and its people, should simply be torn up. … To implement it would be political suicide and socio-economic murder. … The crisis is being used as an alibi to conceal the incompetence with which this country has and continues to be managed. The country is a ticking time bomb, and Soares knows it. When it explodes he wants to be on the right side."

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More from the press review on the subject » Domestic Policy, » Economy, » Society, » Portugal
All available articles from » Tiago Mesquita

Le Figaro - France | Thursday, 10. May 2012

Hold the course at all costs

Europe's policy with regard to Greece must not change even in the wake of the parliamentary elections, writes the conservative daily Le Figaro, because allowing Greece to exit the Eurozone would be fraught with risk: » more

Europe's policy with regard to Greece must not change even in the wake of the parliamentary elections, writes the conservative daily Le Figaro, because allowing Greece to exit the Eurozone would be fraught with risk: "Increasingly you hear that the sacrifices demanded of the Greeks are excessive and undermine the economy. That is no doubt true, and the model may well have to be reworked. But with or without François Hollande's growth pact, Greece will not escape a drastic austerity cure if it wishes to retain the euro. Although it has been consistently opposed by the Left, this political line of give and take Europe has followed until now remains the wisest course. Apart from ensuring Greece's downfall, a euro exit would create a dangerous precedent and give way to an extremely perilous situation for Europe itself. Who can believe that other countries that are most fragile, starting with Spain, will escape the contagion? And that an uncontrolled domino effect would not then sweep away everything in its path? Europe is duty-bound to avoid such a risk."

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More from the press review on the subject » EU Policy, » Elections, » Politics, » Greece, » Europe
All available articles from » Gaëtan de Capèle

Main focus of Wednesday, 9. May 2012

Greek Left attempts to form a government

The leftist alliance Syriza under Alexis Tsipras was charged with forming a government in Greece on Tuesday. Before that the head of the conservative Nea ... » more

The leftist alliance Syriza under Alexis Tsipras was charged with forming a government in Greece on Tuesday. Before that the head of the conservative Nea Dimokratia, Antonis Samaras, had failed with his coalition negotiations. Commentators predict Tsipras will likewise be unable to forge a coalition and see Greece's exit from the Eurozone as increasingly likely.

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

ABC - Spain | Wednesday, 9. May 2012

Prepare orderly exit from Eurozone

The election outcome in Greece may make the country's exit from the » more

The election outcome in Greece may make the country's exit from the

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

De Standaard - Belgium | Wednesday, 9. May 2012

Hendrik Vos on Europe's halting progress

Today is Europe Day, and although Europe may have little to celebrate it is far from throwing in the towel, writes the political scientist Hendrik Vos in the liberal daily De Standaard: » more

Today is Europe Day, and although Europe may have little to celebrate it is far from throwing in the towel, writes the political scientist Hendrik Vos in the liberal daily De Standaard: "European policy is tough, and sticky. As soon as a decision has been reached it seems to get stuck in its tracks. Further decisions build on what has already been agreed on. Europe never starts entirely from scratch. For some time now Europe has been slogging through the swamp of the euro crisis. A pitiful slog from summit to summit. It falters, it creaks, it groans, but it does not stop altogether. It doesn't turn around. That's how European politics works. It doesn't have complete freedom to act, but it can make corrections. These are also necessary, as recent months have clearly shown. Political leaders are being voted out of office at an incredible pace. But then again, you don't win an election with austerity. At the same time it is also becoming clear that the economy won't be saved with austerity alone, either. The Union will have to offer the people, first and foremost the Greeks, prospects and hope."

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All available articles from » Hendrik Vos

Kathimerini - Greece | Wednesday, 9. May 2012

Left-wing government should be put to test

Greece should test what it's like to have a left-wing government because only then will it understand what this actually means, writes the conservative daily Kathimerini: » more

Greece should test what it's like to have a left-wing government because only then will it understand what this actually means, writes the conservative daily Kathimerini: "Greek society won't be able to find its balance if it doesn't test the alternative in practice. … So now Tsipras' turn has come. He has the task of forming a government and negotiating with the country's creditors. Those who know Europe well know: if Tsipras pushes for a 'selective waiving of most of the debt', as he has said he will do, the country will be expelled from the Eurozone and perhaps from the EU too. … A major problem is that we won't be able to settle down until we have tried out Mr Tsipras' approach. The biggest problem however is that this test could entail huge risks for the country."

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More from the press review on the subject » EU Policy, » Domestic Policy, » Fiscal Policy, » Elections, » Greece
All available articles from » Alexis Papachelas

euinside - Bulgaria | Tuesday, 8. May 2012

Time is running out

Greece has no time to lose now because its creditors are at the end of their tether, warns the web portal euinside: » more

Greece has no time to lose now because its creditors are at the end of their tether, warns the web portal euinside: "Tsipras has two days to build a majority, but even with the support of the socialists, the communists and the democratic Left he won't be able to achieve this. Then the mandate goes to the Pasok party, which in all likelihood will also fail. … The most likely consequence is fresh elections with an entirely unforeseeable outcome. But wasting time is the last thing Greece can afford to do in its present situation. The reaction of the financial markets makes this clear. For two years now the country has been hanging on from one tranche to the next. But the times when credit was given out of pity without the conditions being fulfilled are over. The deal now is: first cut spending and push through reforms and then you get the money. If the next tranche isn't paid out, the citizens of Greece must be prepared to pay the consequences of their vote."

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More from the press review on the subject » EU Policy, » Elections, » Politics, » Greece
All available articles from » Ralitsa Kovacheva

Blog Spiegelfechter - Germany | Wednesday, 9. May 2012

Media little more than mouthpiece of financial markets

Mirroring the reaction of the financial lobby, numerous German media have registered concern at the election results in Greece and France, writes Jens Berger in his blog Der Spiegelfechter: » more

Mirroring the reaction of the financial lobby, numerous German media have registered concern at the election results in Greece and France, writes Jens Berger in his blog Der Spiegelfechter: "Instead of accepting and respecting the popular vote, the German press prefers to point with feigned distance at the presumed reaction of the financial markets and prophesies a 'crisis of confidence' in the Eurozone. Admittedly, they're not talking about the trust of the citizens but that of financial speculators. Because the citizens lost their trust in politicians representing their interests long ago. Hence it must be asked whether the media, which openly put the interests of the elites and the financial lobby over those of the people, still reflect the free democratic basic order at all. ... The once proud magazine Der Spiegel complains on its online portal about the 'uncertainties after the French and Greek elections'. ... In the same pessimistic tone the newspaper Die Welt fears that 'the election results in France in Greece [will fan] investors' fears of an end to austerity'."

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More from the press review on the subject » Elections, » Politics, » Media, » Germany, » Europe
All available articles from » Jens Berger

Main focus of Tuesday, 8. May 2012

Greece struggles to form a government

The Greek conservative party Nea Dimokratia returned its mandate to form a coalition government on Monday. With 18.9 percent of the vote it had emerged ... » more

The Greek conservative party Nea Dimokratia returned its mandate to form a coalition government on Monday. With 18.9 percent of the vote it had emerged as the strongest party from Sunday's parliamentary elections. Now the left coalition Syriza will be charged with forming a government. Commentators fear Greece will soon be ungovernable and pin their hopes on austerity opponent François Hollande.

More from the press review on the subject » Domestic Policy, » Elections, » France, » Greece, » Europe

Le Soir - Belgium | Tuesday, 8. May 2012

Athens needs Hollande

After the failed attempt to form a government in Greece, France's future president François Hollande must make his move, writes the left-liberal daily Le Soir: » more

After the failed attempt to form a government in Greece, France's future president François Hollande must make his move, writes the left-liberal daily Le Soir: "We must accept the election results and respect them like the other components of a democracy. We must not condemn the Greeks and their country - the Germans in particular must take this to heart as well as other nations of the Eurozone with top grades from the rating agencies. But above all we must get to work and seek a solution! … François Hollande criticised the austerity policy very harshly and very frequently during the election campaign. He repeatedly used Greece as a negative example of its effects. As the freshly elected French president he should turn his attention to the Greek problem and prove that he has what it takes and can do more than churn out empty phrases! Greece and Europe would certainly be thankful for any initiative he takes. And if he's successful this could secure him the authority he still lacks on the international stage."

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More from the press review on the subject » International Relations, » EU Policy, » Elections, » France, » Greece
All available articles from » Maroun Labaki

Financial Times - United Kingdom | Tuesday, 8. May 2012

Austerity or chaos

Greece runs the risk of chaos and a forced exit from the Eurozone should it decide against the austerity plan in the aftermath of Sunday's elections, fears the liberal daily Financial Times: » more

Greece runs the risk of chaos and a forced exit from the Eurozone should it decide against the austerity plan in the aftermath of Sunday's elections, fears the liberal daily Financial Times: "The Greek problem is now so acute that it cannot be 'fixed' through a few cleverly-drafted clauses, added to an EU treaty. It demands real, crunchy and dangerous decisions. Specifically, will Greece press ahead and make further billions of euros worth of budget cuts, within months, as demanded by its most recent bailout deal? If Greece refuses to do this, then the IMF has made clear that it will not authorise the release of the next tranche in aid to Greece. That, in turn, would mean that the Greek government simply ran out of money. Managed, if painful, cuts to pensions and wages would then be replaced by something much more chaotic and dangerous. The forced exit of Greece from the euro would also become much more likely."

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More from the press review on the subject » Elections, » Greece
All available articles from » Gideon Rachman

Neue Zürcher Zeitung - Switzerland | Tuesday, 8. May 2012

No growth without austerity

The election results in France and Greece are being interpreted as a political mood swing against the tough austerity policy, but the liberal-conservative daily Neue Zürcher Zeitung considers the hopes for growth without belt-tightening illusory: » more

The election results in France and Greece are being interpreted as a political mood swing against the tough austerity policy, but the liberal-conservative daily Neue Zürcher Zeitung considers the hopes for growth without belt-tightening illusory: "Elected politicians from left to right would be well advised to recognise the laws of simple financial arithmetic. Just like private debtors, governments too can only spend more than they take in as long as someone is willing to finance this. … A return to a sound financial policy that deserves the confidence of investors is an indispensable requirement for growth. If Europe paralyses itself with ideological trench warfare and nationalist shadow-boxing its rivals in the East and West will be only too happy. A prosperous future can't be built on this basis. Europe urgently needs to confront the realities of its situation."

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

Público - Portugal | Tuesday, 8. May 2012

Greece becomes test balloon

The elections in Greece are more important for Europe than those in France because they show whether democracy functions in times of crisis, writes the liberal daily Público: » more

The elections in Greece are more important for Europe than those in France because they show whether democracy functions in times of crisis, writes the liberal daily Público: "There is a major difference between a seismic tremor and an earthquake. Therefore the results of the elections in France will be of far less significance for posterity than the elections in Greece. Hollande's victory will weaken Brussels' austerity dictates, but not change them radically. … As far as Greece is concerned the fears are growing that the country is becoming ungovernable. … France has demonstrated a clear political unity without calling itself into question. However Greece in its desperate situation has destroyed its unity. In this way Greece has become a test balloon for the future of democracy in countries like Portugal."

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More from the press review on the subject » Elections, » Politics, » Society, » Portugal

Die Presse - Austria | Tuesday, 8. May 2012

Election results cause standstill

The consequences of the Greek elections will be dire, fears the liberal-conservative daily Die Presse: » more

The consequences of the Greek elections will be dire, fears the liberal-conservative daily Die Presse: "To all intents and purposes there can be no talk of a happy end. Because Greece's problem isn't just debts, it is also the dogged stance that has led to the political standstill we are now witnessing. ... You don't need the Oracle of Delphi to see where this will end. If the agreed steps for restructuring the economy really are blocked by the now strengthened populist parties in parliament, the next tranche of emergency loans scheduled for June will hang in the balance. If it comes to fresh elections, the necessary reforms for restructuring the country's policy on expenditures and revenues will ground to a halt for several more months. The standstill will be prolonged and the European donor countries will no longer be able to justify domestically transferring further bailout funds to Athens."

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More from the press review on the subject » Domestic Policy, » Elections, » Greece
All available articles from » Wolfgang Böhm

Main focus of Monday, 7. May 2012

Hollande wins the second round

François Hollande is the new president of France. The Socialist won out against his conservative rival, the incumbent Nicolas Sarkozy, in the run-off vote on ... » more

François Hollande is the new president of France. The Socialist won out against his conservative rival, the incumbent Nicolas Sarkozy, in the run-off vote on Sunday. Hollande's victory will change Europe, commentators write, placing high expectations on the new head of state.

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

The Times - United Kingdom | Monday, 7. May 2012

Europe needs to cut back and grow

After the presidential elections in France and the parliamentary elections in Greece on Sunday the conservative daily The Times calls for a European growth strategy: » more

After the presidential elections in France and the parliamentary elections in Greece on Sunday the conservative daily The Times calls for a European growth strategy: "There is no way of resolving this crisis except by cutting spending in the short term and creating the conditions for growth. These aims can work against each other, but they are both essential. In particular, because the option of currency devaluation is not open to Eurozone members, the only immediate option is to squeeze domestic costs. At the Europe-wide level this is holding back growth and only adding to the suffering of families unaccustomed to living on handouts. But it does not mean that austerity is the wrong path for individual countries, including Britain. ... EU governments must acknowledge that restoring public finances, while essential, is not enough: they must also create the conditions for growth."

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Basler Zeitung - Switzerland | Monday, 7. May 2012

New president, new crisis policy

With the new French president there is the possibility of major changes in Europe's crisis policy, the conservative Basler Zeitung writes: » more

With the new French president there is the possibility of major changes in Europe's crisis policy, the conservative Basler Zeitung writes: "With his election campaign and his calls for a growth pact he has already got things moving within the EU. ... He will stress this to be able to continue moving forward. Yet France's new president is no less patriotic than his predecessor. Hollande will try to set a new example for European crisis policy. His form of 'socialism' is an alternative to dominant economic liberalism that threatens tough confrontations. Behind Hollande's jovial façade and friendly manner is a man who knows exactly what he wants - and when the time has come to get it. Otherwise he would never have become president."

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All available articles from » Rudolf Balmer

Naftemporiki - Greece | Monday, 7. May 2012

Greek parties must prove themselves

The winner of the elections in Greece is the left-wing alliance Syriza, which according to estimates will be the second-strongest faction in the parliament. Syriza doesn't want the country to repay its debts but wants it to remain in the monetary union. For their part the supporters of the austerity programme have narrowly missed a parliamentary majority. The conservative business paper Naftemporiki urges the parties to focus on forming a viable government: » more

The winner of the elections in Greece is the left-wing alliance Syriza, which according to estimates will be the second-strongest faction in the parliament. Syriza doesn't want the country to repay its debts but wants it to remain in the monetary union. For their part the supporters of the austerity programme have narrowly missed a parliamentary majority. The conservative business paper Naftemporiki urges the parties to focus on forming a viable government: "The people have sent an ambivalent message: yes to Europe and no to austerity. … The problems that existed before the elections still exist now and urgently need answers. … The time for the parties to act has come, and they must now prove that Greece's political landscape is capable of renewal and presenting solutions through parliamentary procedures that require joint positions and a consensus. Time is running out. In the next few days there will be rapid developments both within the country and outside it."

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All available articles from » Nikos Frantzis

Expresso - Portugal | Monday, 7. May 2012

Portugal's crisis hits only consumers

The discount campaign staged by Portugal's largest supermarket chain on May 1 has triggered a fierce debate about price politics in the food sector. Retailers certainly didn't do their customers any favours with this strategy, the left-liberal weekly Expresso concludes: » more

The discount campaign staged by Portugal's largest supermarket chain on May 1 has triggered a fierce debate about price politics in the food sector. Retailers certainly didn't do their customers any favours with this strategy, the left-liberal weekly Expresso concludes: "Did they lose or make money with this campaign? If they lost money this means that they were guilty of price dumping and that their profit margins are so large that they can afford to lose money voluntarily. … And if they feel so socially obliged to their penny-pinching customers why don't they give a 10 percent discount for the next six months to a year rather than launching a one-off 50 percent promotion that turned us into a fourth-world country for a day?"

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More from the press review on the subject » Trade, » Consumers, » Society, » Portugal
All available articles from » Miguel Sousa Tavares

Kurier - Austria | Monday, 7. May 2012

Radical no won't help Greece

In the Greek elections the proponents of the austerity programme appear to have fallen short of a majority in parliament. But punishing the two parties Nea Dimokratia and Pasok for their belt-tightening measures and switching allegiance to the radical parties is no solution, writes the left-liberal daily Kurier: » more

In the Greek elections the proponents of the austerity programme appear to have fallen short of a majority in parliament. But punishing the two parties Nea Dimokratia and Pasok for their belt-tightening measures and switching allegiance to the radical parties is no solution, writes the left-liberal daily Kurier: "Behind the beacon of the angry voters was more than the mere wish to send all those politicians to the devil who have caused the biggest loss of wealth in decades. Many of the Greeks who this time voted for the far left or the distinctly unappetising far right simply wanted an end to the austerity that is tightening the belt to the point of suffocation. Less cuts and job losses and more growth - that's what they want. But with growth it's the same as with world peace - everybody wants it but the formula still hasn't been invented. And the radical parties whose only demand is 'Stop the debt repayments' certainly won't provide it."

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All available articles from » Ingrid Steiner-Gashi

Delo - Slovenia | Monday, 7. May 2012

Rigorous austerity angers Europeans

The strict austerity measures for combating the financial crisis have prompted the hardest-hit to vote their governments out of office, writes the daily Delo. "The ... » more

The strict austerity measures for combating the financial crisis have prompted the hardest-hit to vote their governments out of office, writes the daily Delo. "The cuts have led to a drop in GDP in countries on the so-called European periphery, from Latvia to Spain, and the unemployment figures of certain southern EU countries have risen dangerously close to those of the 1930s. Unemployment has already reached 24 percent in Spain, and even 50 percent among those under 25. And things look bad in Greece and Ireland, too. But sooner or later the crisis on Europe's edge will also hit the centre of the European Union, including Germany. ... The announced social and political shocks have set in. The measures for fighting the crisis implemented so far have provoked increasing anger, and the people's lack of trust in their politicians has caused several governments to fail."

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More from the press review on the subject » Fiscal Policy, » Economic Policy, » Social affairs, » Europe
All available articles from » Mija Repovž

Main focus of Friday, 4. May 2012

ECB unwilling to lower base rate

ECB head Mario Draghi has called on European governments to do more for growth and the fight against unemployment in Europe. A lowering of the ... » more

ECB head Mario Draghi has called on European governments to do more for growth and the fight against unemployment in Europe. A lowering of the base interest rate was not up for discussion at the meeting of the ECB's General Council in Barcelona on Thursday. While some commentators express disappointment, others support the present course and oppose solutions aimed at providing cheap loans.

More from the press review on the subject » EU Policy, » Fiscal Policy, » Financial Markets, » Spain, » Europe

Le Monde - France | Friday, 4. May 2012

Fruitless austerity provoking anger

The ECB met in Spain without proposing any solutions for the crisis-ridden country, the left-liberal daily Le Monde writes, calling for a change of course in the direction of growth policy: » more

The ECB met in Spain without proposing any solutions for the crisis-ridden country, the left-liberal daily Le Monde writes, calling for a change of course in the direction of growth policy: "You can understand the anger of the Spanish, because many Europeans feel much the same way. Theoretically they've done everything right, fulfilled all the requirements. For 18 months they have been doing exactly what Berlin, Brussels and Frankfurt have stipulated: making drastic cuts in state expenditures, raising taxes, reforming the labour market and so on. ... And what are the results? So far nothing short of disastrous. ... Everywhere the feeling is spreading that the situation is extremely convoluted. So far no government has survived an election. ... As far as France is concerned we'll know more on that score on Sunday. So it's no wonder the mood is changing and people are saying that the most important thing isn't debt reduction but promoting growth. More growth will bring higher tax revenues that are necessary to service the public debt."

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More from the press review on the subject » EU Policy, » Economic Policy, » Politics, » France, » Spain, » Europe
All available articles from » Alain Frachon

Cinco Días - Spain | Friday, 4. May 2012

Eurozone caught up in vicious circle

In view of the reserved monetary policy of the ECB, José Luis Martínez Campuzano, a strategist for the Citigroup in Spain, warns in the business paper Cinco Días of the threat posed by rising risk premiums on government bonds: » more

In view of the reserved monetary policy of the ECB, José Luis Martínez Campuzano, a strategist for the Citigroup in Spain, warns in the business paper Cinco Días of the threat posed by rising risk premiums on government bonds: "Were you surprised by the announcements made after the meeting of the European Central Bank yesterday? I don't think so. You may be disappointed. We all are to a greater or lesser extent. ... And what if the financial markets react with rising risk premiums? Spain is one example, where the yields on government bonds are rising at the same time as Mariano Rajoy's government is passing the very measures demanded by the markets. Mario Draghi also praised the reforms in Spain, even if it wasn't clear whether he considered them adequate. And this raises a second question: When can they be considered adequate? No doubt you can't answer that. Neither can I. But right now we're caught up in a vicious circle in which all of us - the entire Eurozone - are the losers."

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La Stampa - Italy | Friday, 4. May 2012

Frankfurt and Brussels must make a move

ECB boss Mario Draghi has formulated his demand for a growth pact for the Eurozone in concrete terms while warning at the same time of the dangers of departing from the austerity policies. However this long awaited change in direction was prompted by necessity rather than a sudden change of heart, writes the liberal daily La Stampa: » more

ECB boss Mario Draghi has formulated his demand for a growth pact for the Eurozone in concrete terms while warning at the same time of the dangers of departing from the austerity policies. However this long awaited change in direction was prompted by necessity rather than a sudden change of heart, writes the liberal daily La Stampa: "Instead of demanding sacrifices from the citizens with a stern expression Europe is beginning to show the monetary union a more friendly face. ... If the prerequisites and promises are fulfilled, the division of labour between the EU and the member states could soon change. The former would take care of expenditures while the member states assume control of the budgets. A reversal of roles that wouldn't be the result of a sudden change of opinion and sense of responsibility on the part of the governments but rather the fact that reality leaves us no other choice. Because the states don't have a cent left and only Brussels and Frankfurt are in a position to invest billions to get things back on track."

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All available articles from » Luigi La Spina

Sol - Portugal | Friday, 4. May 2012

Cheap money won't solve crisis

It is dangerous to try to encourage growth merely by supplying easy money, writes the liberal weekly Sol: » more

It is dangerous to try to encourage growth merely by supplying easy money, writes the liberal weekly Sol: "To economise or to boost growth? This is a heated debate. Supposedly intelligent people claim we are digging our own grave with the austerity measures. They clamour for loans for companies. Unfortunately the assumption that pumping fresh cash into the economy will solve all our problems is wrong. It's true that the economy needs more loans, but it was precisely the easy loans and cheap money that triggered the crisis. We can't return to the times of cheap money. Those who see loans as a magic recipe for growth forget that a company can't borrow money it won't be able to pay back later. … This has always been our problem. … We need profitable investments that are sound and create wealth. Portugal needs to attract investors: through political and social stability, less red tape, a more efficient justice system, competitive salaries and flexible labour laws."

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All available articles from » José António Saraiva

Le Monde - France | Monday, 30. April 2012

Maxime Lefebvre and Vivien Schmidt see Europe strengthened by the crisis

The euro crisis and the French presidential elections have brought Europeans closer together, write the French political scientists Maxime Lefebvre and Vivien Schmidt in the left-liberal daily Le Monde: » more

The euro crisis and the French presidential elections have brought Europeans closer together, write the French political scientists Maxime Lefebvre and Vivien Schmidt in the left-liberal daily Le Monde: "The crisis of the Eurozone is an important step towards Europeanisation: it obliges nations both individually and collectively to strive for the necessary economic convergence that must accompany the monetary union, which had been very largely obscured after the treaty of Maastricht. Attitudes to the European fiscal pact have become a major topic in the French presidential campaign. Merkel's support for Sarkozy and the SPD's for François Hollande has highlighted an unprecedented interdependency between domestic political debates in France and Germany. ... It is unnecessary to pitch Europe against the individual nations. Instead the construction of Europe must be reinforced by a renewed democratic approach aimed at politicising the debate so as to better legitimise European politics and the Union as a whole. Whatever its outcome, the election will have contributed to this process."

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Irish Independent - Ireland | Wednesday, 2. May 2012

Painful path out of crisis for Irish

In the run-up to the Irish referendum on the ratification of the EU fiscal compact on May 31, the conservative daily Irish Independent points its ... » more

In the run-up to the Irish referendum on the ratification of the EU fiscal compact on May 31, the conservative daily Irish Independent points its finger at the culprits of the crisis, namely the Irish themselves. The referendum, it writes, "takes place against the background of the economic crisis which struck the world in 2008 and has since defied all attempts at solution. It has wreaked most of its greatest devastation on the European mainland, but our own offshore island has experienced some of its worst effects. Ireland also stands out as one of the countries which have suffered - in the events which preceded the crisis and in the feeble efforts to overcome it - from the misgovernment which we the people permitted and even encouraged. This is no time to beat about the bush. We elected governments which made no attempt to regulate the financial system. We trusted banks which continued to lend recklessly while they careered down the path to insolvency. All of us share the responsibility for our ills to some degree, and it behoves us to take special care and pains as we struggle to cure them."

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Jornal de Negócios - Portugal | Wednesday, 2. May 2012

Portuguese must take advantage of the crisis

In Portugal, thousands of people took part in May 1st demonstrations to protest the mounting encroachments on labour and social rights and the rising unemployment which the liberal-conservative government's stringent austerity programme entails. Trade unions and employers' associations alike should use the transformation process to reconstruct the foundations of the economy, the business paper Jornal de Negócios points out: » more

In Portugal, thousands of people took part in May 1st demonstrations to protest the mounting encroachments on labour and social rights and the rising unemployment which the liberal-conservative government's stringent austerity programme entails. Trade unions and employers' associations alike should use the transformation process to reconstruct the foundations of the economy, the business paper Jornal de Negócios points out: "The trade unions must recognise that there can be no social welfare state without the creation of prosperity and jobs and without salaries finally being adjusted to productivity. For their part the employers' associations must understand that without motivated and qualified employees their companies cannot be successful. Do either of these parties realise what opportunities we have here?"

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All available articles from » Camilo Lourenço

ABC - Spain | Wednesday, 2. May 2012

Trade unions lack support in Spain

Despite tough austerity measures and record levels of unemployment, a relatively small number of people took to the streets for the May Day demonstrations in Spain, the conservative daily ABC notes: » more

Despite tough austerity measures and record levels of unemployment, a relatively small number of people took to the streets for the May Day demonstrations in Spain, the conservative daily ABC notes: "Not even with a tailwind of 250 new jobless per hour have the trade unions managed to achieve lift-off. The social discontent exists for sure, but it's flying below the radar, unexpressed through the conventional channels - more like a kind of collective depression. The government is making itself unpopular with its harsh austerity measures, without a detectable rise in support for the Socialists. And the muscle-flexing of the trade unions has revealed rather puny muscles. A climate of pessimism prevails, and the failure of the Left is still too fresh in people's minds for it to capitalise on the growing disenchantment. The low-key May Day demonstrations highlight the trade unions' image problem and the fact that those responsible for the wreckage can't cast themselves in the role of heroes again yet."

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Financial Times - United Kingdom | Monday, 30. April 2012

Germany must help Spain's economy

While the Spanish government is restructuring its budget with cuts, voices are growing louder in Europe calling for more to be done to stimulate growth. The liberal business paper Financial Times agrees completely: » more

While the Spanish government is restructuring its budget with cuts, voices are growing louder in Europe calling for more to be done to stimulate growth. The liberal business paper Financial Times agrees completely: "It is encouraging that this week some politicians and the president of the European Central Bank, Mario Draghi, put more emphasis on how to revive the economy. But while calls for growth are gathering momentum, there is still little agreement on the exact prescriptions that will get the continent back in shape. The illusion is still strong that Europe can be revived without addressing problems such as the longstanding current-account imbalances. Without broader European support - read Germany - the reformist drive of Mr Rajoy and his colleagues in the periphery are bound to fail. Citizens may have been favourable to their initial message of austerity for a higher cause, but they will not tolerate being led into a dead-end."

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El País - Spain | Monday, 30. April 2012

Merkel wants growth at last

German Chancellor Angela Merkel talked in an interview on Saturday of a "European growth agenda", which is being widely interpreted as cautious approval of the growth pact under discussion in the EU. Finally things are moving in the right direction in the fight to overcome the crisis, the left-liberal daily El País comments enthusiastically: » more

German Chancellor Angela Merkel talked in an interview on Saturday of a "European growth agenda", which is being widely interpreted as cautious approval of the growth pact under discussion in the EU. Finally things are moving in the right direction in the fight to overcome the crisis, the left-liberal daily El País comments enthusiastically: "The need to pave the way for recovery was already stressed by the president of the ECB, Mario Draghi, last week. But more significant is the fact that German Chancellor Angela Merkel, a passionate advocate of the austerity policy as the only way of achieving stability, has now also voiced support for the idea of a European growth agenda. Merkel's momentous about-turn on this doesn't come from nowhere. It is a response to several powerful factors, beginning with the increasing likelihood that François Hollande will win the French elections and withdraw French support for never-ending European austerity. ... The attempt to stabilise the Eurozone by extending Prussian discipline to all Europe seems like a prolonged nightmare."

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Gazeta Wyborcza - Poland | Monday, 30. April 2012

Spain's credit rating continues to plunge

Rating agency Standard & Poor's lowered the credit status of Spain by two notches on Thursday and placed it on a negative outlook. In a commentary for the daily Gazeta Wyborcza, economist Rafał Benecki of the Polish bank ING BSK sees difficult times ahead for Spain: » more

Rating agency Standard & Poor's lowered the credit status of Spain by two notches on Thursday and placed it on a negative outlook. In a commentary for the daily Gazeta Wyborcza, economist Rafał Benecki of the Polish bank ING BSK sees difficult times ahead for Spain: "The Spanish government now has a problem because it is trying to implement an austerity programme that has negative consequences for growth. The austerity measures it has carried out are having a double impact on the country: on the one hand they improve the budget situation but on the other they slow down growth [because there are fewer investments]. This in turn has a negative impact on the deficit because tax revenues dwindle. … By the end of the year the country's deficit may reach 80 percent of the GDP. Spain's situation may not be as bad as that in Italy or Greece, but it is getting worse - and further downgrades can't be ruled out."

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All available articles from » Rafał Benecki

Sol - Portugal | Friday, 27. April 2012

Markets have it tough with democracy

Share prices fell sharply on Monday mainly in response to the political and democratically legitimate decisions in France and The Netherlands as well as the recession in Spain. The volatile financial markets obviously have a hard time with democratic decisions, the liberal weekly Sol writes: » more

Share prices fell sharply on Monday mainly in response to the political and democratically legitimate decisions in France and The Netherlands as well as the recession in Spain. The volatile financial markets obviously have a hard time with democratic decisions, the liberal weekly Sol writes: "The fall of the Dutch government and the victory of the Socialist candidate Hollande in the first round of the French presidential elections were the decisive political factors in this new round of market jitters. ... The crisis was diagnosed and treatment prescribed by the German-French mandate and meekly accepted by other countries. ... Now it is affecting not just the economically fragile countries with high levels of state debt like Portugal or Greece but the heart of the eurozone: mighty France and the inconsiderate Netherlands. Chickens ultimately always come home to roost."

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All available articles from » Vicente Jorge Pinto

Le Point - France | Thursday, 26. April 2012

French close their eyes to reality

Many French people have let themselves be seduced by escapist positions that have little to do with reality, writes the liberal weekly Le Point with an eye to the Presidential elections in France in which extreme right and far left parties received one third of the vote: » more

Many French people have let themselves be seduced by escapist positions that have little to do with reality, writes the liberal weekly Le Point with an eye to the Presidential elections in France in which extreme right and far left parties received one third of the vote: "Together they dream of a France far removed from reality that knows nothing of the crisis or public debt and derides the world of finance from whom it borrows billions each day just to make ends meet. The French voters did not abstain from casting their ballots, and that's all for the better. But many of them preferred to use their vote to distance themselves from the realities of the world. ... The crisis in France is progressively becoming that of a country locked within its borders, its certitudes and the contemplation of its failures. France is shutting itself away in a dilapidated ivory tower, away from Europe, the world of finance, the markets, globalisation and other phantoms. It's time the country overcame its fears and confronted reality."

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All available articles from » Claude Imbert

The Daily Telegraph - United Kingdom | Friday, 27. April 2012

Boost growth in the UK

After the British government officially slipped back into a recession on Wednesday the conservative Daily Telegraph calls for a more aggressive growth strategy: » more

After the British government officially slipped back into a recession on Wednesday the conservative Daily Telegraph calls for a more aggressive growth strategy: "The austerity programme does command the confidence of the markets, and that remains crucial. It is this that allows the Government to borrow at attractive rates, which in turn gives the Bank of England the freedom to keep the cost of borrowing low. It would be madness to jeopardise that during such a hesitant recovery. That does not mean the Chancellor should simply be sitting tight and waiting for lift-off. We have argued consistently for a more aggressive growth strategy involving targeted tax breaks and a serious assault on red tape to help instil business confidence. If companies - especially large corporations - started investing the cash they are hoarding, and banks began to lend again, it would do much to stimulate recovery. Mr Osborne must continue to focus all his energies on creating an economic climate in which they feel able to do so."

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Cinco Días - Spain | Friday, 27. April 2012

Hollande misinterprets growth pact

ECB President Mario Draghi called for a "growth pact" for the Eurozone on Wednesday. In the French election campaign this call has been hailed as a turning point, which according to the business paper Cinco Días is an overstatement: » more

ECB President Mario Draghi called for a "growth pact" for the Eurozone on Wednesday. In the French election campaign this call has been hailed as a turning point, which according to the business paper Cinco Días is an overstatement: "The presidential candidate François Hollande sees this as a sign that his ideas are gaining ground. But Draghi's statement does not hail a radical change in direction. What he means when he talks of a growth pact has nothing to do with Hollande's plans. ... The term 'growth pact' may sound new, but in fact it's nothing that the central banks haven't already repeatedly called for: the governments must introduce reform, and the longer they wait, the greater the damage will be. Euro bonds, major investment programmes and incentives from Germany can help, but they won't change the fact that France needs reforms. If Hollande the candidate ignores this fact, Hollande the president will be the first to get a nasty surprise."

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All available articles from » Pierre Briançon

Main focus of Thursday, 26. April 2012

ECB head Draghi for more growth

Speaking in the European Parliament on Wednesday, ECB President Mario Draghi called for a "growth pact" for the Eurozone. Commentators approve of the proposal, ... » more

Speaking in the European Parliament on Wednesday, ECB President Mario Draghi called for a "growth pact" for the Eurozone. Commentators approve of the proposal, saying that austerity measures alone won't end the debt crisis.

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Cinco Días - Spain | Thursday, 26. April 2012

Spanish football must also economise

The Spanish government and the Spanish Football Federation signed an agreement on Wednesday obliging clubs to repay their high debts to the state - 673 million euros - in the coming year. The business paper Cinco Días approves: » more

The Spanish government and the Spanish Football Federation signed an agreement on Wednesday obliging clubs to repay their high debts to the state - 673 million euros - in the coming year. The business paper Cinco Días approves: "The fact that the government even had to stress that football's debts 'must be paid by football' shows how important is is in the current budget situation to make clear that the tax office is not willing to make unjustified exceptions for anyone. ... Of course we mustn't forget that Spanish football represents an important source of income for the treasury. In times of austerity, the tax authorities and the state can't spare a single euro. ... So the iron fist the government is applying to get the budget under control must be complemented by the consistent message that all Spaniards share the responsibility of balancing the budget and there can be no exceptions."

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Financial Times Deutschland - Germany | Thursday, 26. April 2012

Growth pact needs to be precisely defined

ECB chief Mario Draghi's call for a new European growth pact is a good idea but the details need to be quickly worked out, writes the liberal business paper Financial Times Deutschland: » more

ECB chief Mario Draghi's call for a new European growth pact is a good idea but the details need to be quickly worked out, writes the liberal business paper Financial Times Deutschland: "What does he mean by 'growth pact'? And how can it be made compatible with the current formula of austerity, austerity, austerity we are supposed to adhere to? For now, the ECB chief has left it to others to find the answers to these questions. ... After all, growth policy can mean many things, from the more long-term project of opening service markets that have so far been closed to faster, debt-financed government spending programmes. ... The discussion launched by Mario Draghi must provide quick answers to these questions. ... Recapitalisation measures for the European Investment Bank (EIB) and the issue of loans for transnational infrastructural projects are for example one efficient way of addressing the task in hand. Speedy reallocation of EU structural and regional funding is another."

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Les Echos - France | Thursday, 26. April 2012

Recession forcing balancing act on Cameron

The UK registered a double-dip recession in the first quarter of this year for the first time since 2009, according to recent figures put out by the Office for National Statistics in London. Prime Minister David Cameron is now really in a tight spot, the business paper Les Echos writes: » more

The UK registered a double-dip recession in the first quarter of this year for the first time since 2009, according to recent figures put out by the Office for National Statistics in London. Prime Minister David Cameron is now really in a tight spot, the business paper Les Echos writes: "The UK is under considerable pressure from the rating agencies to preserve its precious triple A. All the more so after its finances worsened last March. Even though the government achieved its objective of a deficit of 8.3 percent for the 2011-2012 fiscal year that ended in March, it seems unlikely that it will reach its goal of 7.6 percent for 2012-2013 without additional austerity measures. But they, in turn, would impede growth and hence reduce tax revenues. It's a balancing act for the British government, which unlike the countries in the south of the Eurozone has so far managed to avoid the wrath of the markets."

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All available articles from » Jacques Hubert-Rodier

Jornal de Negócios - Portugal | Thursday, 26. April 2012

Austerity threatens cohesion in Portugal

Portugal's President Aníbal António Cavaco Silva appealed for social cohesion in his crisis-stricken country in a speech marking the 38th anniversary of the Portuguese "Carnation Revolution" on Wednesday. But he forgot to denounce the injustices resulting from the government's austerity policy, which threaten to undermine solidarity in the country, the business paper Jornal de Negócios points out: » more

Portugal's President Aníbal António Cavaco Silva appealed for social cohesion in his crisis-stricken country in a speech marking the 38th anniversary of the Portuguese "Carnation Revolution" on Wednesday. But he forgot to denounce the injustices resulting from the government's austerity policy, which threaten to undermine solidarity in the country, the business paper Jornal de Negócios points out: "If anyone poses a threat to our most important value, social and political cohesion, it's [Prime Minister] Passos Coelho. This cohesion is not a given. It requires the constant attention of those in power and measures that maintain a sense of fairness in these times of austerity. ... It's important to be realistic. ... The reality shows that the austerity programme is affecting some more than others, and precisely this circumstance paves the way for failure and discord."

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All available articles from » Helena Garrido

Ta Nea - Greece | Thursday, 26. April 2012

Euro crisis swallowing up governments

The euro crisis has caused the downfall of several governments in the past couple of years, also as a result of the austerity policy, the left-liberal daily Ta Nea observes: » more

The euro crisis has caused the downfall of several governments in the past couple of years, also as a result of the austerity policy, the left-liberal daily Ta Nea observes: "Papandreou (Greece), Berlusconi (Italy), Cowen (Ireland) , Radičová (Slovakia), Pahor (Slovenia), Rutte (the Netherlands) - within a year the euro crisis has swallowed up so many prime ministers that the European landscape resembles a political cemetery. The political elites have been trying to save the European currency for two years now - with a devastating austerity policy. ... And the crisis isn't just affecting the South. For the first time a government in the North - whose countries form the very core of the euro - has collapsed under the pressure of the crisis. … The euro countries long believed that the European currency made them immune to crises. But now the crisis has hit the hard core of the monetary union. And once again a maxim from economic history has been confirmed: the currency cannot define the fate of a country; it is the country that defines the fate of the currency."

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All available articles from » Roussos Vranas

La Repubblica - Italy | Thursday, 26. April 2012

More growth is the goal

Draghi's call for a growth pact goes in the right direction, writes the left-liberal daily La Repubblica: » more

Draghi's call for a growth pact goes in the right direction, writes the left-liberal daily La Repubblica: "The crisis in the Netherlands, the preliminary results of the French presidential election, the unexpectedly deep recession in Spain and Italy are bringing about the first steps towards a policy that seeks to avoid the downwards spiral of excessive austerity measures and recession. Because ultimately this spiral will hinder the rebalancing of the budgets of the southern EU countries. Draghi's call highlights the fear of such a turn of events, as does Berlin's praise for [Italian President] Giorgio Napolitano, who called for more growth. At present it's all just words, but we haven't heard such words for some time. The point is not to pitch growth against austerity. ... The austerity policy needs to be complemented with measures that seem immediately plausible to the financial markets, but don't spur further tax hikes."

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Financial Times - United Kingdom | Thursday, 26. April 2012

Revolt against austerity

In view of the political developments in France and the Netherlands, the liberal daily Financial Times calls for an end to austerity policies: » more

In view of the political developments in France and the Netherlands, the liberal daily Financial Times calls for an end to austerity policies: "Both citizens and elites in Europe seem to feel the need to stop this nonsense. The collapse of the Dutch government and the victory of François Hollande in the first round of the French presidential elections point in the same direction: a rebellion against austerity. But this could be just the beginning: upcoming elections in Greece, next month's Irish referendum and the French legislative elections in June might well turn this into a major crisis. Looking at the damage that angry citizens have inflicted on the EU in the past decade, European leaders would do well to take their anxieties seriously."

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All available articles from » José Ignacio Torreblanca

Knack - Belgium | Wednesday, 25. April 2012

Europe clings to budget rules

The election results in France and the Dutch government crisis are signs of growing protest at Europe's strict budget rules, writes the left-liberal weekly newspaper Knack: » more

The election results in France and the Dutch government crisis are signs of growing protest at Europe's strict budget rules, writes the left-liberal weekly newspaper Knack: "Surveys show there is a chance that after the elections the reins will pass to the Dutch Socialist Party, which like Wilders' PVV rejects the tough European budget rules. On May 6 the Greeks will also go to the polls. According to Greek pollsters the parties that are now implementing Europe's budget orders will lose their majority. ... But Europe has no answer, and clings to its 'six packs' and other budget agreements. European integration has reached its limits and has now been struck at its core. ... The European Union has run aground."

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All available articles from » Rik Van Cauwelaert

Lidové noviny - Czech Republic | Wednesday, 25. April 2012

Government stumbles over fiscal compact

The collapse of the Dutch government was unnecessary, according to the conservative daily Lidové noviny: » more

The collapse of the Dutch government was unnecessary, according to the conservative daily Lidové noviny: "The German pressure for budgetary discipline has claimed yet another victim - Dutch Prime Minister Mark Rutte of all people, German Chancellor Angela Merkel's closest ally when it comes to pushing through austerity. The Netherlands showcases how the fiscal compact won't solve the problems of the Eurozone but on the contrary, only exacerbate the situation and trigger unnecessary political crises. ... True, the budget deficit has deepened in the past two years of economic stagnation, rising to roughly five percent of the gross national product. But even the rating agencies are sticking to the country's top credit rating. ... It was the Germans and the Dutch who demanded lower deficit limits. And the EU Commission appears determined to apply them - regardless of who is brought down in the process."

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All available articles from » Lenka Zlámalová

Le Monde - France | Wednesday, 25. April 2012

Clear signals against German austerity policy

The government in the Netherlands fell on Monday because right-wing populists refused to accept EU austerity measures, while in the French presidential elections the right-wing extremist Marine Le Pen won almost 20 percent of the vote in the first round. These are clear signs that people reject Germany's austerity policy, the left-liberal daily Le Monde contends: » more

The government in the Netherlands fell on Monday because right-wing populists refused to accept EU austerity measures, while in the French presidential elections the right-wing extremist Marine Le Pen won almost 20 percent of the vote in the first round. These are clear signs that people reject Germany's austerity policy, the left-liberal daily Le Monde contends: "If not even the model pupils are able to apply the Eurozone's budgetary measures without causing a government crisis, then who can? ... The next few days will be decisive for Europe. The citizens are expressing their frustration and fear of the cuts that budgetary discipline entails in a reasonable way: through political channels. In a way Ms. Merkel is right: Europe is all about domestic politics nowadays. But the message sent by her fellow European citizens, first and foremost the French, doesn't tally with her ideas. They are signalling their rejection of the German crisis management model which puts austerity before stimulating economic growth."

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Der Standard - Austria | Wednesday, 25. April 2012

You can't govern with the far right

The destructive policies of the right-wing populists make joint government impossible, writes the left-liberal daily Der Standard with reference to Geert Wilders, who rejected the austerity programme prescribed by the EU: » more

The destructive policies of the right-wing populists make joint government impossible, writes the left-liberal daily Der Standard with reference to Geert Wilders, who rejected the austerity programme prescribed by the EU: "This is what happens when right-wing extremists or populists are allowed to share power - if only indirectly. Sooner or later their destructive, aggressive potential develops. You can't govern a state with them because generally they're not for something but against it to varying degrees: against Islam, against the Jews, against foreigners, against immigrants and so on. But they're all 'against the EU in its current form' - from Haider's FPÖ in Austria to Strache's Northern League in Italy, the Front National in France and Vlaams Belang in Belgium. It's just surprising that again and again there are conservatives willing to ally themselves with them."

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De Standaard - Belgium | Tuesday, 24. April 2012

The Netherlands no longer a model in Europe

After the Dutch governing coalition formed by the conservative-liberal People's Party for Freedom and Democracy (VVD) and the Christian Democrats (CDA) tendered its resignation to the Dutch Queen on Monday, rating agency Moody's warned that the country's credit status could be downgraded. The liberal daily De Standaard bemoans the decline of the political culture in this once exemplary neighbouring country: » more

After the Dutch governing coalition formed by the conservative-liberal People's Party for Freedom and Democracy (VVD) and the Christian Democrats (CDA) tendered its resignation to the Dutch Queen on Monday, rating agency Moody's warned that the country's credit status could be downgraded. The liberal daily De Standaard bemoans the decline of the political culture in this once exemplary neighbouring country: "Within the traditional parties of the middle, there is a frightening lack of leading figures who are able and willing to make clear to the population where the right balance lies between austerity and boosting growth, giving it prospects for the future and hope. The [right-wing populist] PVV and the [socialist] SP will profit from this. ... The Netherlands, once a model country, has lost the sense of its status in Europe and the world. This is bad news for the EU. As one of the four Eurozone countries with the top AAA credit rating, the Netherlands is too important to become the umpteenth problem country."

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More from the press review on the subject » Domestic Policy, » Elections, » Netherlands
All available articles from » Bart Beirlant

La Stampa - Italy | Tuesday, 24. April 2012

The end of Germany's financial dominance is nigh

The potential change of government in France, the government crisis in the Netherlands and the disappointing economic data for the Eurozone caused share prices to dip by an average of three percent on Monday, with French and Dutch bonds increasingly coming under pressure. Germany's financial policy dictatorship is coming to an end, writes the liberal daily La Stampa: » more

The potential change of government in France, the government crisis in the Netherlands and the disappointing economic data for the Eurozone caused share prices to dip by an average of three percent on Monday, with French and Dutch bonds increasingly coming under pressure. Germany's financial policy dictatorship is coming to an end, writes the liberal daily La Stampa: "The true loser [of the first round of the French presidential elections] is Angela Merkel, who gave outgoing president Nicolas Sarkozy her full-hearted support. With her - perhaps hypothetical - goal of budget stability only attainable through great sacrifice, Merkel symbolises orthodox financial management. But financial as well as socio-political developments are moving in the opposite direction, towards less stability. The Merkel formula that presents austerity measures as the only cure no longer seems sustainable. The predominance of her criteria is clearly being called into question, without however anyone knowing what could replace them in order to save the positive effects that globalisation has had in addition to the many negative ones."

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All available articles from » Mario Deaglio

El País - Spain | Tuesday, 24. April 2012

The Hague endangers European financial policy

The Dutch Prime Minister Mark Rutte tendered his government's resignation on Monday after the right-wing populist Geert Wilders withdrew his party's support for the minority government. The left-liberal daily El País fears that European consensus in the area of financial policy will be further undermined: » more

The Dutch Prime Minister Mark Rutte tendered his government's resignation on Monday after the right-wing populist Geert Wilders withdrew his party's support for the minority government. The left-liberal daily El País fears that European consensus in the area of financial policy will be further undermined: "After seven weeks of negotiations Wilders withdrew his vital support for the government in an attack against the 'bureaucrats in Brussels'. In doing so he is trying to cast his party as an opponent of immigration, but not as right-wing in economic terms. ... The solution to this situation is either a broad consensus in parliament that could be proposed by Rutte today - or early elections in June or September that would lead to lengthy coalition talks. This would mean that the strict Netherlands would delay its ratification of the European rescue fund and the fiscal compact and inject even more uncertainty into an already highly uncertain situation in Europe."

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

Il Sole 24 Ore - Italy | Sunday, 22. April 2012

Guido Rossi against Paul Krugman's theory on the end of the euro

The theory of Nobel laureate in economics Paul Krugman that Europe is committing economic suicide is wrong according to Guido Rossi. In the business paper Il Sole 24 Ore, the legal expert rejects Krugman's theory that Europe's only alternative now is to dissolve the monetary union: » more

The theory of Nobel laureate in economics Paul Krugman that Europe is committing economic suicide is wrong according to Guido Rossi. In the business paper Il Sole 24 Ore, the legal expert rejects Krugman's theory that Europe's only alternative now is to dissolve the monetary union: "Dear Mr Krugman, the euro is not a barbaric relic, like the gold standard in the 1930s. Your comparison doesn't work. On the contrary, it is the common currency of a Europe that will only save itself if it relentlessly continues its process of integration by underpinning the euro with a common financial and fiscal policy and at the same time working towards a federalised Europe, a United States of Europe. Because only then can the European Central Bank be granted the true powers of a central bank and begin to issue common European bonds, euro bonds. ... Whether US politicians and intellectuals like it or not, this is Europe's only path out of the crisis."

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Corriere della Sera - Italy | Friday, 20. April 2012

Antonio Puri Purini criticises Germany's detachment in the crisis

Faced with the persisting economic crisis in Europe Germany must give up its egoistic stance, writes Italian diplomat Antonio Puri Purini in the liberal-conservative daily Corriere della Sera, calling on German Chancellor Angela Merkel to be more cooperative: » more

Faced with the persisting economic crisis in Europe Germany must give up its egoistic stance, writes Italian diplomat Antonio Puri Purini in the liberal-conservative daily Corriere della Sera, calling on German Chancellor Angela Merkel to be more cooperative: "The chancellor is hiding behind the complexities of the legislation negotiated with her partners [on the fiscal pact]. But given the markets' euro scepticism this is the time to head the European debate in a different direction, to seek a unified strategy. ... The government of the most important country in Europe can't confine itself to playing the accountant and continually reminding indebted countries of their obligations. This short-sightedness is surprising in a state that has always been a protagonist on the European stage. The country that benefits most from globalisation is the one that is sealing itself off the most, and is avoiding the task that befits it in view of its political clout."

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Berliner Zeitung - Germany | Thursday, 19. April 2012

Rich Europeans after emerging economies' cash

Member countries of the IMF have already agreed to supply around 320 of the targeted 400 billion dollars to be kept in reserve for crisis loans, IMF head Christine Lagarde announced on Wednesday. But Europe should solve its crisis on its own and not go begging to the IMF, writes the left-liberal Berliner Zeitung: » more

Member countries of the IMF have already agreed to supply around 320 of the targeted 400 billion dollars to be kept in reserve for crisis loans, IMF head Christine Lagarde announced on Wednesday. But Europe should solve its crisis on its own and not go begging to the IMF, writes the left-liberal Berliner Zeitung: "In fact the prosperous Europeans can and must help themselves. Instead they borrow money from emerging nations whose populations can only dream of living standards like those in Germany, France, or even Spain. With money from China, India and Brazil, the IMF is planning to massively expand its resources and erect a global firewall to complement the European one. But the fact that of all people the Germans are pushing for this plan is surprising. In Europe, where its own money is in demand, the German government explains that you can't solve a debt crisis simply by pumping in additional billions. And now it is loudly exhorting the other IMF members to do their bit towards amassing a fund of one trillion dollars. … The Europeans have the potential to stem their crisis on their own. In so doing they would fulfil their responsibility vis-à-vis the global economy.”

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All available articles from » Markus Sievers

La Stampa - Italy | Thursday, 19. April 2012

Monti's programme disappointing

Italy's Prime Minister Mario Monti presented the long awaited economic and financial programme for the next three years on Wednesday. Unfortunately the plans are lacking in substance, the liberal daily La Stampa complains: » more

Italy's Prime Minister Mario Monti presented the long awaited economic and financial programme for the next three years on Wednesday. Unfortunately the plans are lacking in substance, the liberal daily La Stampa complains: "The most worrying thing about the government document and Mario Monti's speech is the complete lack of clarity even regarding concrete issues such as infrastructure and the public administration, and not just regarding abstract concepts such as future obligations, trust and warnings to citizens and parties. It's a kind of triumph for the use of modal verbs of possibility, which can cover anyone and anything. A linguistic form that deserves to be studied - merely for the audacity with which it blends two monsters of our times: the convoluted language of European bureaucracy and the election manifesto style of the parties, full of good intentions and wonderful goals, but sadly lacking any reference to the means and instruments for achieving them."

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More from the press review on the subject » Fiscal Policy, » Economic Policy, » Italy
All available articles from » Luca Ricolfi

Il Sole 24 Ore - Italy | Thursday, 19. April 2012

Berlin must be reasonable

In the report presented on Wednesday on the Greek bailout the EU Commission has reiterated the need for the  mutualisation of the Eurozone countries' public debts. But so far Berlin has refused to take this possible path out of the crisis, the business paper Il Sole 24 Ore complains: » more

In the report presented on Wednesday on the Greek bailout the EU Commission has reiterated the need for the  mutualisation of the Eurozone countries' public debts. But so far Berlin has refused to take this possible path out of the crisis, the business paper Il Sole 24 Ore complains: "The crisis is real and threatens to get worse. The measures adopted so far are not enough to end it. Neither the fanatical austerity nor the permanent but insufficiently endowed bailout mechanism are enough. … A European growth strategy with at least partial consolidation of the debt is the mantra heard from many quarters, but not in Germany. However the rejection game threatens to turn dangerous. Because this economic inactivity could soon be compounded by political changes [like a new government in France], resulting in an explosive combination that makes things even easier for speculators. … That could finally bring Merkel to her senses."    

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All available articles from » Romano Beda

Blog A Europa desalinhada - Portugal | Wednesday, 18. April 2012

IMF criticises Europe

The International Monetary Fund on Wednesday warned about a new debt crisis in Europe that could have global repercucussions. Under the leadership of its new director, French lawyer Christine Lagarde, the IMF is taking a more critical stance towards Europe than a year ago, writes Caroline de Gruyter in the blog A Europa desalinhada in the weekly Expresso: » more

The International Monetary Fund on Wednesday warned about a new debt crisis in Europe that could have global repercucussions. Under the leadership of its new director, French lawyer Christine Lagarde, the IMF is taking a more critical stance towards Europe than a year ago, writes Caroline de Gruyter in the blog A Europa desalinhada in the weekly Expresso: "At Christmas the IMF boss gave the German chancellor a small piece of jewellery from Hermès as a gift. Merkel also had a gift for Lagarde: a Beethoven CD by the Berlin Philarmonic. However the personal relationship between the two women will be put to the test now that after two years of intense involvement in European crisis management, the IMF is beginning to express its displeasure. It remains unclear whether China, Canada or Brazil will join the others at the helm, because the IMF is very different today to what it was a year ago. For [former IMF boss] Dominique Strauss-Kahn the shining role of 'euro saviour' was an opportunity because he wanted to be the next French president. But with Lagarde the IMF has become an unreliable partner."

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All available articles from » Caroline de Gruyter

Neue Zürcher Zeitung - Switzerland | Wednesday, 18. April 2012

Peter A. Fischer says Europe needs more austerity

The International Monetary Fund (IMF) has forecast 3.5 percent growth for the global economy in 2012. But while the emerging economies are growing rapidly the industrialised states are stagnating. Journalist Peter A. Fischer argues in the liberal-conservative Neue Zürcher Zeitung that increasing spending won't revive the economy in Europe: » more

The International Monetary Fund (IMF) has forecast 3.5 percent growth for the global economy in 2012. But while the emerging economies are growing rapidly the industrialised states are stagnating. Journalist Peter A. Fischer argues in the liberal-conservative Neue Zürcher Zeitung that increasing spending won't revive the economy in Europe: "When states are battling a recession and are already spending less than they actually could, and when the possibilities for using monetary policy to counter the trend have all been exhausted then fiscal policy shouldn't also slow down growth, runs the argumentation. … But unfortunately this economic policy advice isn't helping Europe either right now. Most states here are suffering not from an economic deficit but from a credibility deficit. Their creditors doubt - quite rightly - that they will ever be able to recoup in full the money they have invested in government bonds. … Growth without austerity is therefore no longer an option in most EU countries. The priority now is to restore lost credibility."

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

Der Standard - Austria | Wednesday, 18. April 2012

Paul Krugman advises Spain to exit Eurozone

Spain's catastrophic economic situation is not a result of overspending, writes US Keynesian economist Paul Krugman in the daily Der Standard, but rather a consequence of the global financial crisis. His advice: » more

Spain's catastrophic economic situation is not a result of overspending, writes US Keynesian economist Paul Krugman in the daily Der Standard, but rather a consequence of the global financial crisis. His advice: Spain should leave the Eurozone: "Spain's fiscal problems are a consequence of its depression, not its cause. Nonetheless, the prescription coming from Berlin and Frankfurt is, you guessed it, even more fiscal austerity. This is, not to mince words, just insane. Europe has had several years of experience with harsh austerity programs, and the results are exactly what students of history told you would happen: such programs push depressed economies even deeper into depression. ... What is the alternative? ... Well, in the 1930s the essential condition for recovery was exit from the gold standard. The equivalent move now would be exit from the euro, and restoration of national currencies. You may say that this is inconceivable, and it would indeed be a hugely disruptive event both economically and politically. But continuing on the present course, imposing ever-harsher austerity on countries that are already suffering Depression-era unemployment, is what's truly inconceivable."

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De Tijd - Belgium | Monday, 16. April 2012

Danger for Europe's engine

With his call for the European Central Bank (ECB) to play a stronger role in the euro crisis Sarkozy is distancing himself dangerously from Germany's position, the business paper De Tijd warns: » more

With his call for the European Central Bank (ECB) to play a stronger role in the euro crisis Sarkozy is distancing himself dangerously from Germany's position, the business paper De Tijd warns: "In the event of Sarkozy winning a second term in office the close-knit Berlin-Paris axis will break up. ... Sarkozy is of course having to contend with weak growth and high unemployment. The famed German model doesn't work in France. But the French president's claim that the ECB has done nothing to resolve the euro crisis is too simplistic. ... [The socialist presidential candidate] Hollande also wants to tackle 'the way the ECB intervenes'. When he presented his proposals two weeks ago Sarkozy swept them from the table. Now the two gentlemen seem to be taking the same line. For the Eurozone this means that the Franco-German engine will not just splutter, but threatens to come to a complete standstill."

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More from the press review on the subject » Domestic Policy, » Fiscal Policy, » Elections, » Germany, » France, » Europe
All available articles from » Jean Vanempten

Les Echos - France | Friday, 13. April 2012

High inflation rate hinders Europe's growth

According to the ECB Monthly Bulletin published on Thursday, Europe's inflation rate for 2012 will exceed two percent. That will impede growth, writes the liberal business paper Les Echos: » more

According to the ECB Monthly Bulletin published on Thursday, Europe's inflation rate for 2012 will exceed two percent. That will impede growth, writes the liberal business paper Les Echos: "Growth will hardly exceed zero at the start of 2012, and demand doesn't look set to be any better. Rising prices will be seasonal in part, but above all they will be concentrated on raw materials, energy and food. Hence the bulk of inflation will be imported, here as in the rest of Europe. That means first and foremost that inflation is not about to disappear, as it depends on complex climactic and geopolitical trends. And secondly it means that the burden will have a negative impact both on business margins and household buying power. As a result it will contribute to slowing down recovery."

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More from the press review on the subject » Fiscal Policy, » Inflation, » Economy, » France, » Europe
All available articles from » Jean-Françis Pécresse

Main focus of Thursday, 12. April 2012

Higher interest rates for crisis countries

The yields on Spanish and Italian bonds rose significantly on Tuesday, causing shares to plummet on Europe's stock markets. Some commentators argue that the prospect ... » more

The yields on Spanish and Italian bonds rose significantly on Tuesday, causing shares to plummet on Europe's stock markets. Some commentators argue that the prospect of financial aid from Europe is preventing indebted countries from reforming their public finances. Others believe that the pressure to economise is hardly helpful for debt-stricken states.

More from the press review on the subject » EU Policy, » Fiscal Policy, » Financial Markets, » Italy, » Spain, » Europe

Público - Portugal | Wednesday, 11. April 2012

António Vitorino and Vaira Vike-Freiberga on the EU's little big states

In recent months amidst the euro crisis Germany has been accused of dictating Europe's policies. This may be partially true as regards the efforts to fight the euro crisis but when it comes to European foreign policy the small EU states are coming into their own, write the Portuguese ex-EU commissioner António Vitorino and the Latvian ex-president Vaira Vike-Freiberga in the daily Público: » more

In recent months amidst the euro crisis Germany has been accused of dictating Europe's policies. This may be partially true as regards the efforts to fight the euro crisis but when it comes to European foreign policy the small EU states are coming into their own, write the Portuguese ex-EU commissioner António Vitorino and the Latvian ex-president Vaira Vike-Freiberga in the daily Público: "In this Europe, the important moves are now sometimes made in Stockholm or Warsaw, not only in Berlin, Paris, or London. And, with major foreign-policy issues on Europe's doorstep - whether in Egypt, Belarus, or now Syria - useful European initiatives are to be welcomed, regardless of where they originate. ... Germany might be getting all of the attention in this time of crisis, but the last year has been a reminder that Europe is most effective and influential when the small countries get involved and join forces with - and even lead - the big ones. ... So, Poland and Sweden: Europe needs your leadership. ... Other EU states need to follow their example in order to make European foreign policy truly effective and influential."

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All available articles from » António Vitorino, » Vaira Vike-Freiberga

NRC Handelsblad - Netherlands | Wednesday, 11. April 2012

Spain's crisis threatens Eurozone

The yields on Spanish government bonds rose significantly on Tuesday, rocking European stock markets. The crisis continues to pose a major threat for Europe, the liberal daily NRC Handelsblad warns: » more

The yields on Spanish government bonds rose significantly on Tuesday, rocking European stock markets. The crisis continues to pose a major threat for Europe, the liberal daily NRC Handelsblad warns: "Greece was just about manageable, but can Europe deal with Spain's crisis? If the fourth-largest economy in the Eurozone is forced to resort to the European bailout fund this will likely be a setback of all the countries of the Eurozone. ... Spain is facing far greater cutbacks than the Netherlands and finds itself in the same predicament: too many cutbacks could have a negative impact on the economy. Hopefully Spain will be able to drag itself out of the swamp without direct help from Europe. If not, things will just have to take their course. The European bailout fund will have to fulfil its task, if only to prevent more countries from turning into another 'Spain'."

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

Jornal de Negócios - Portugal | Monday, 9. April 2012

Robert Shiller on the strength of euro symbolism

The common symbols on the euro banknotes could prevent the disintegration of Europe as a political entity even in the event that the Eurozone does collapse, writes US economist Robert J. Shiller in the business paper Jornal de Negócios: » more

The common symbols on the euro banknotes could prevent the disintegration of Europe as a political entity even in the event that the Eurozone does collapse, writes US economist Robert J. Shiller in the business paper Jornal de Negócios: "Every currency union chooses symbols of common cultural values for its coins and notes, and these symbols become part of the sense of shared identity. ... The euro notes feature bridges as they appeared throughout Europe in various epochs, rather than images of actual structures that might seem to imply preferential regard for some countries. ... But the bridges remain symbols of European culture, in which presumably all Europeans share. ... Even if the Eurozone breaks up, each European country could adopt a different currency but retain common symbols. ... If Europe can keep these symbols alive, even a Eurozone breakup would not have the dire political consequences for Europe that so many predict."

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More from the press review on the subject » Integration, » Weltanschauung, » Politics, » Europe
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ABC - Spain | Tuesday, 10. April 2012

More efficiency in Spain's healthcare system

Spanish Prime Minister Mariano Rajoy announced further cutbacks amounting to ten billion euros in the country's healthcare and education systems on Monday. These areas need to be reformed in the medium term, writes the daily ABC in support of the measure: » more

Spanish Prime Minister Mariano Rajoy announced further cutbacks amounting to ten billion euros in the country's healthcare and education systems on Monday. These areas need to be reformed in the medium term, writes the daily ABC in support of the measure: "Sooner or later we will have to think about how major public services like education and healthcare are to be financed. Faced with the decision between what is desirable and what is possible, a responsible politician should opt for the latter. This is the right approach to tackling the financial crisis of the welfare state. For any democratic government maintaining the current model for health and education would inevitably lead to the immediate collapse of these two pillars of society. The mistake has been to believe that because these are social benefits efficiency criteria could be ignored. And that because they are universal benefits it wasn't necessary to set priorities. The current crisis forces us to conclude otherwise."

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More from the press review on the subject » Fiscal Policy, » Health Policy, » Economic Policy, » Spain

Cinco Días - Spain | Thursday, 5. April 2012

Okay for Germans to earn more

German public sector employers and trade unions agreed on Friday on a step-by-step 6.3 percent pay hike. At the same time Germany is demanding tough austerity measures from the rest of Europe. But although this may seem unfair at first glance it really isn't, writes business paper Cinco Días: » more

German public sector employers and trade unions agreed on Friday on a step-by-step 6.3 percent pay hike. At the same time Germany is demanding tough austerity measures from the rest of Europe. But although this may seem unfair at first glance it really isn't, writes business paper Cinco Días: "The Germans' domestic generosity may seem hypocritical. But unlike the European periphery Germany froze salaries in the last decade. This partly explains why its economy is so competitive today. ... Germany's workers now believe it's payback time - and with good reason. In 2010 the economy grew by 3.7 percent and three percent in 2011 yet consumer spending rose by just 0.65 and 1.5 percent respectively. … Domestic consumption needs to rise to strengthen imports and growth in the rest of the Eurozone. Higher salaries will boost the periphery's competitiveness. These countries will benefit if they can offer exports (or beaches) that are attractive for Germans."

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More from the press review on the subject » Economic Policy, » Trade unions, » Labour, » Germany
All available articles from » Ian Campbell

To Vima Online - Greece | Thursday, 5. April 2012

Austerity driving people to suicide

A 77-year-old man took his own life by shooting himself in the head on Syntagma Square in Athens on Wednesday. The retired pharmacist left a farewell note in which he pointed to the debt crisis as the reason for his suicide. The left-liberal online paper To Vima blames Greek politicians for such cases: » more

A 77-year-old man took his own life by shooting himself in the head on Syntagma Square in Athens on Wednesday. The retired pharmacist left a farewell note in which he pointed to the debt crisis as the reason for his suicide. The left-liberal online paper To Vima blames Greek politicians for such cases: "Our politicians bear most of the blame for the crisis. But they don't understand that their policies are only increasing the citizens' desperation and that people are sinking deeper and deeper into the abyss. They are driving an entire country and an entire nation to suicide. ... Those who are unemployed or have lost their jobs are at a dead-end; young people are desperately looking for a future, several groups are glorifying violence, the middle class is watching its prosperity dwindle to nothing and the pensioners are mired in everyday poverty. Society as a whole has lost its footing. … And people can't see any chance of things improving. They only see a political system that can't manage the self-destructive course it has taken."

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Social affairs, » Greece
All available articles from » Sifis Polimilis

Financial Times - United Kingdom | Monday, 2. April 2012

Spain's austerity package raises tensions

The Spanish government led by Prime Minister Mariano Rajoy presented a 27 billion euro austerity package on Friday. But the package may only exacerbate the problems, writes the liberal-conservative daily the Financial Times: » more

The Spanish government led by Prime Minister Mariano Rajoy presented a 27 billion euro austerity package on Friday. But the package may only exacerbate the problems, writes the liberal-conservative daily the Financial Times: "Madrid's decision to increase the fiscal burden on firms by reducing corporation tax breaks is also odd. This could make it harder to attract the investment that the country needs to resume growth. A better idea would have been to increase taxes on consumption. This budget risks exacerbating social tensions without creating the conditions that would allow Spain's bond yields to fall. While the EU is to blame for imposing unnecessary austerity, Mr Rajoy's budget could have been better designed. It will be a while before his bullfight is over."

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More from the press review on the subject » Domestic Policy, » Fiscal Policy, » Economic Policy, » Spain

Expansión - Spain | Monday, 2. April 2012

First overcome institutional crisis

The Eurogroup finance ministers' decisions are not ample enough in scope, the business paper Expansión fears: » more

The Eurogroup finance ministers' decisions are not ample enough in scope, the business paper Expansión fears: "European politicians don't want to admit that their solutions failed because they haven't recognised the root of the problem. The global economic crisis is exacerbated by Europe's own institutional crisis. ... Outside of Europe this has raised doubts, first about the weakest EU member states, then about the European integration process as such. For that reason the reformulation of the EU's goals is a conditio sine qua non for overcoming the current turbulence. Only the decisive standardisation of key aspects like financial policy, labour law, competitiveness and budget policy - together with a strengthening of the political union - could set the Eurozone on the right course. In that way investors would regain their trust and Europe would have the necessary leeway for implementing its solutions."

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

To Ethnos - Greece | Sunday, 1. April 2012

Fascists threaten Greek democracy

According to opinion polls the fascist Chrysi Avgi party could obtain almost five percent of the vote in the Greek parliamentary elections anticipated for May, enabling it to make the leap into parliament. The left-liberal daily To Ethnos sounds the alarm in its Sunday edition: » more

According to opinion polls the fascist Chrysi Avgi party could obtain almost five percent of the vote in the Greek parliamentary elections anticipated for May, enabling it to make the leap into parliament. The left-liberal daily To Ethnos sounds the alarm in its Sunday edition: "The Hitler nostalgics threaten to contaminate the parliament with their presence and lay a mine in the exhausted political system. ... This is the first time that this could happen in Greece's political history, and unfortunately the popularity of Chrysi Avgi's hatred and violence tirades is explicable. ... The current political, economic and social situation plays into the hands of those who stir up xenophobia. They profit from the economic crisis. ... Now the question is whether there are enough gullible and desperate people who believe that a gang of ruthless and fanatical admirers of the biggest human rights abuser in the history of mankind can provide answers to Greece's problems in 2012."  

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More from the press review on the subject » Domestic Policy, » Elections, » Crime, » Greece

Het Financieele Dagblad - Netherlands | Monday, 2. April 2012

Firewall a hopeless gesture

The euro countries still fail to see how critical the situation is, writes the business paper Het Financieele Dagblad: » more

The euro countries still fail to see how critical the situation is, writes the business paper Het Financieele Dagblad: "At home, the German and Finnish ministers are faced with exceptionally critical members of parliament who would have problems with any more agreements. But that is no excuse. After all, these ministers give no sign that they themselves would go any further. ... Once again the euro countries are only willing to take a small step, and that's a missed opportunity. The ECB has bought itself time with an unparalleled injection of funds. Spain and Italy are making the most of the relative calm on the markets to bring some order into their affairs. The remaining euro countries must now meet these initiatives with a convincing rescue mechanism. And now, at next month's annual meeting of the International Monetary Fund, the euro countries will use this minimal gesture to ask the non-European countries to put money into fighting the euro crisis. What an embarrassment."

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

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

Eurozone integration deepening

Raising the euro bailout fund to 800 billion euros will advance the integration of the Eurozone, writes Jean Quatremer on his blog Coulisses de Bruxelles: » more

Raising the euro bailout fund to 800 billion euros will advance the integration of the Eurozone, writes Jean Quatremer on his blog Coulisses de Bruxelles: "The Eurozone had raised an impressive firewall. Two years ago such a solidarity mechanism to help struggling countries would have been unthinkable. This is an enormous step towards further federalisation of the Eurozone. If you look at the unprecedented intensification of political cooperation in the area of economics and finance this development must eventually lead to the creation of a European financial ministry and the issue of Euro bonds. ... Instead of condemning the agreement and making false accusations the French Socialists should be asking how democracy in Europe should work."

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Delo - Slovenia | Monday, 2. April 2012

Tobin tax instead of firewall

Expanding the euro bailout fund to 800 billion euros is no solution, the left-liberal daily Delo asserts, arguing in favour of the financial transaction tax instead: » more

Expanding the euro bailout fund to 800 billion euros is no solution, the left-liberal daily Delo asserts, arguing in favour of the financial transaction tax instead: "Owing to the major problems in the southern EU countries the entire euro bailout operation is on very shaky ground. Moreover the extension of the firewall has already reached the limits of what is acceptable for many countries. There is no sign of any measures that could balance out debts and be politically acceptable. In Copenhagen we see that a financial transaction tax is still a long way off. Only one thing is for sure: if all the member states agree the tax will only be passed in a watered-down version. Yet a financial transaction tax would confer a higher degree of legitimacy on the bank bailout policy and the painful cutbacks."

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More from the press review on the subject » EU Policy, » Economic Policy, » Financial Markets, » Europe
All available articles from » Peter Žerjavič

El País - Spain | Friday, 30. March 2012

Rajoy should not listen to EU

Spanish Prime Minister Mariano Rajoy finds himself at a crossroads after Thursday's general strike. But rather than following the EU's requirements he would do better to tackle unemployment, Jonathan Portes and Ana Rincón-Aznar of the British National Institute of Economic and Social Research write in the left-liberal daily El País: » more

Spanish Prime Minister Mariano Rajoy finds himself at a crossroads after Thursday's general strike. But rather than following the EU's requirements he would do better to tackle unemployment, Jonathan Portes and Ana Rincón-Aznar of the British National Institute of Economic and Social Research write in the left-liberal daily El País: "Shortly after the elections in the UK Mariano Rajoy said: 'Cameron's plan creates trust, I would do something similar in Spain.' But luckily for him the Spanish elections took place a year after ours, allowing him to have a look at the reality in Spain and the UK. ... Now he must decide. He can take the path of Prime Minister Cameron and aggressively cut spending to 'renew market confidence' and follow the short-sighted advice of the EU Commission. However he would be better advised to concentrate on Spain's true problem, namely creating jobs and stimulating growth."

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More from the press review on the subject » Fiscal Policy, » Labour, » United Kingdom, » Spain
All available articles from » Jonathan Portes, » Ana Rincón-Aznar

Les Echos - France | Friday, 30. March 2012

Firewall with symbolic character

The French Minister of Finance François Baroin spoke out on Thursday in favour of massively increasing the euro firewall to one trillion euros, echoing similar calls by the OECD. Europe must above all focus on increasing growth, writes the business paper Les Echos: » more

The French Minister of Finance François Baroin spoke out on Thursday in favour of massively increasing the euro firewall to one trillion euros, echoing similar calls by the OECD. Europe must above all focus on increasing growth, writes the business paper Les Echos: "The officials who worked on the project explain that the firewall will never exceed 700 billion euros. … But in fact the exact figure is of secondary importance, because first and foremost it's a symbol. The goal is to send a message to speculators that their flames will not consume the whole building. … Meanwhile, however, the embers continue to smoulder under the ashes. At this moment they're becoming visible in Spain. … But the most effective way of fighting fires is preventing them from igniting in the first place. In Europe that means boosting growth."

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All available articles from » Jean-Marc Vittori

La Repubblica - Italy | Friday, 30. March 2012

Crisis driving people to commit suicide

The self-immolations of two desperate men has triggered shock waves in Italy. On Wednesday a 58-year-old set himself on fire in his car in Bologna, and on Thursday a Moroccan construction worker did the same in the middle of the street in Verona. Driven to desperation by the economic crisis, suicide is seen by many as a last resort in the bid not to lose their dignity along with their jobs and social position, the left-liberal daily La Repubblica complains bitterly: » more

The self-immolations of two desperate men has triggered shock waves in Italy. On Wednesday a 58-year-old set himself on fire in his car in Bologna, and on Thursday a Moroccan construction worker did the same in the middle of the street in Verona. Driven to desperation by the economic crisis, suicide is seen by many as a last resort in the bid not to lose their dignity along with their jobs and social position, the left-liberal daily La Repubblica complains bitterly: "The wave of suicides is without doubt a sign of resignation and loneliness, but not just that. It is also a final revolt aimed at preventing the loss of dignity. The civil concept of respectability, of dignity, that seemed to have been forgotten has been revived among the workers who lose their jobs, the entrepreneurs who feel responsible for their employees and the immigrants who are cast back into the abyss."

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All available articles from » Adriano Sofri

Diário de Notícias - Portugal | Friday, 30. March 2012

Strikes don't solve the problem

Public outrage over the austerity policy and high unemployment is growing, but strikes won't solve these problems, writes the daily Diário de Notícias: » more

Public outrage over the austerity policy and high unemployment is growing, but strikes won't solve these problems, writes the daily Diário de Notícias: "The number of people who take part in the strikes corresponds to the severity of the crisis: More than 600,000 jobs will be slashed in 2012 and unemployment will exceed 24 percent - according to the forecasts of Mariano Rajoy's conservative government. Rajoy is forced to adopt measures that are unacceptable to the unions, which have already announced new strikes. But strikes won't solve the crisis. ... Certain pressures and conflicts are normal in a democracy, but they must not cloud people's perception of reality. And this reality shows that we must return to conditions that are both economically viable and socially acceptable - not just on the job market. Both the politicians and the unions must see facing up to this challenge as their common endeavour."

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Capital - Romania | Friday, 30. March 2012

Western Europe on the wrong path

In 2011 the number of Romanians living in Spain stood at 840,682, making them the country's largest immigrant community. Those who stayed at home can consider themselves lucky in view of the protests against the Spanish government's anti-crisis policy, writes the business weekly Capital: » more

In 2011 the number of Romanians living in Spain stood at 840,682, making them the country's largest immigrant community. Those who stayed at home can consider themselves lucky in view of the protests against the Spanish government's anti-crisis policy, writes the business weekly Capital: "The crisis has destroyed every notion Eastern Europeans had of the West. It debunked the idea that the West is paradise on earth. A country where in the year 2000 a poor immigrant could buy a mortgaged house without having to make any down-payment at all was obviously not on the right path. ... The crisis hasn't necessarily demonstrated that the East is on the wrong path, but that above all Western Europe is. ... The people from poor countries dreamed the capitalist system would make them rich. But those days are over. For their part the Western Europeans have now slipped into poverty, after simulating prosperity on borrowed money for many years. Here at least the Eastern Europeans have one decisive advantage: they're used to poverty."

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All available articles from » Valentin Vioreanu

Der Standard - Austria | Friday, 30. March 2012

Labour reform necessary

Spain's trade unions stand for an outdated labour market, writes the left-liberal daily Der Standard and recommends that both Spain and Italy follow Austria's example: » more

Spain's trade unions stand for an outdated labour market, writes the left-liberal daily Der Standard and recommends that both Spain and Italy follow Austria's example: "An individual who loses his or her job here would benefit from better protection, but for the workforce as a whole regulations like those in force in Austria are a boon - and the major obstacles blocking dismissal a disaster. That the trade unions see this differently is down to the fact that they only represent a small section of the workforce nowadays - the privileged, mostly older group that has a job and need not fear losing it. Its massive and in some cases violent resistance has caused previous labour market reforms to fail. But this time the stakes are just too high. If Monti and Rajoy can't push through their reasonable demands the entire crisis management of the Eurozone will be on shaky footing - and the single currency along with it."

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All available articles from » Eric Frey

Público - Spain | Thursday, 29. March 2012

Spaniards should protest against Brussels

Spain's trade unions have called a general strike for today, Thursday, against the labour market reform and the government austerity policy prescribed by the EU. The left-leaning daily Público calls in its online edition for mass participation in the protests: » more

Spain's trade unions have called a general strike for today, Thursday, against the labour market reform and the government austerity policy prescribed by the EU. The left-leaning daily Público calls in its online edition for mass participation in the protests: "A successful strike would actually help [Spanish head of government Mariano] Rajoy. Because Europe has demanded that he implement cuts without precedent - even harsher than those demanded of Greece, Ireland and Portugal. If the Spanish accept this abuse with resignation, passivity and docility, the government won't have the courage or the arguments to stand up to Brussels and Berlin. If the citizens don't apply pressure, who else can save us from this suicidal cutback in public spending that will plunge us headfirst into a recession?"

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More from the press review on the subject » EU Policy, » Social movements, » Economic Policy, » Germany, » Spain, » Europe
All available articles from » Ignacio Escolar

To Pontiki - Greece | Thursday, 29. March 2012

The main Greek parties are doomed

The Greek interim government has announced early May as the target date for new elections. According to recent polls, around 50 percent of the electorate plans to vote for radical parties. The two major parties will collapse because they limit themselves to pushing through decisions made in Brussels, the satirical weekly To Pontiki concludes: » more

The Greek interim government has announced early May as the target date for new elections. According to recent polls, around 50 percent of the electorate plans to vote for radical parties. The two major parties will collapse because they limit themselves to pushing through decisions made in Brussels, the satirical weekly To Pontiki concludes: "After the elections the socialist Pasok and the conservative Nea Demokratia can only exist as mediators and … supporters of the Troika programme. … The political system can only be reconstructed if the political objectives are coupled and harmonised with the needs of society. The parties that betray the people and destroy large sections of society have no hope of survival. Especially if they continue ruling together under the instruction of the troika, which they have already committed to doing. Moreover their election pledges are so lame that they have the opposite of the intended effect."

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Der Nordschleswiger - Denmark | Thursday, 29. March 2012

Danish municipalities bleeding for EU fiscal pact

Denmark will keep a tighter control on the budgets of the municipalities in order to comply with the European fiscal compact. This will severely limit the municipal authorities' room for manoeuvre, Der Nordschleswiger, the daily of the German-speaking minority, comments: » more

Denmark will keep a tighter control on the budgets of the municipalities in order to comply with the European fiscal compact. This will severely limit the municipal authorities' room for manoeuvre, Der Nordschleswiger, the daily of the German-speaking minority, comments: "The municipalities are complaining, and even though the financial minister has explained that the state won't start interfering with the municipalities' priorities the Municipality Association (KL) continues to see this as a violation of the freedom of Danish self-government. Because Copenhagen is responsible to Brussels and above all must ensure the trust of the capital markets in the Danish state the town halls now share a large portion of the responsibility for achieving this. The municipalities' room for manoeuvre is shrinking even further: the debt trap is turning into a debt gallows!"

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All available articles from » Siegfried Matlok

The Irish Times - Ireland | Wednesday, 28. March 2012

Tough referendum in Ireland

The Irish referendum on the fiscal package will take place on May 31, the government announced on Tuesday. The upcoming vote raises a series of difficult questions, writes the liberal daily The Irish Times: » more

The Irish referendum on the fiscal package will take place on May 31, the government announced on Tuesday. The upcoming vote raises a series of difficult questions, writes the liberal daily The Irish Times: "Those who favour the treaty need to clarify why it is needed if the euro is to survive and Ireland is to remain a full participant in its governance. They need to focus attention directly on these questions rather than allow the campaign to be captured by other domestic issues. ... Opponents of the treaty must provide an alternative vision for this State if the treaty is rejected. That would leave Ireland in an anomalous position between a deepening euro zone and a United Kingdom increasingly dissociated from the EU. Where should Ireland go then and what is the political and economic logic of such a scenario? These hard questions match those facing the treaty's supporters about the logic of deeper EU integration. Ireland faces a difficult and fateful political choice on these matters. Voters are entitled to expect a well-informed and responsible campaign on them."

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

Frankfurter Allgemeine Zeitung - Germany | Tuesday, 27. March 2012

Destination: euro bonds

The expansion of the euro bailout mechanism is a further step towards mutualising the debt of the Eurozone countries, the conservative Frankfurter Allgemeine Zeitung complains: » more

The expansion of the euro bailout mechanism is a further step towards mutualising the debt of the Eurozone countries, the conservative Frankfurter Allgemeine Zeitung complains: "First the cabinet member swore allegiance to the Maastricht treaty according to which no Euro country may be held liable for the debts of another. Then they ruled out the option of IMF help saying that Europe could help itself. Then they promised automatic sanctions for countries that exceeded the debt limits. … Bankers and EU commissioners viewed the restructuring of Greece's debt as a red line the overstepping of which would lead to the collapse of the monetary union and even a global financial crisis. But neither of these things happened. … When red lines are overstepped they perhaps serve a different purpose. The constant expansion of liability for the debts of other countries has a logical conclusion: the mutualisation of all the debt in the Eurozone. From this perspective a red line leads to the goal of the 'debt sinners': euro bonds."

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All available articles from » Holger Steltzner

Ta Nea - Greece | Monday, 26. March 2012

Ireland's debt widows

In the past year 70,000 Irish workers have left their country to seek employment abroad. For the most part the emigrants are men who move to England to support their families and repay their loans while their wives stay behind and look after the children. A new sociological trend in the crisis, writes the left-liberal daily Ta Nea: » more

In the past year 70,000 Irish workers have left their country to seek employment abroad. For the most part the emigrants are men who move to England to support their families and repay their loans while their wives stay behind and look after the children. A new sociological trend in the crisis, writes the left-liberal daily Ta Nea: "These are the new Irish wives, the 'debt widows'. They see their husbands very rarely and live the lives of single mothers. Then when the couples do meet, the accumulated fatigue from housework and childcare is so intense that all desire soon fades and dies in front of the flickering television screen. In the past the trend was that a woman would give up her career when she turned 30 to have children and then return to the job market at a later date. Since the crisis and the recession there's no longer any chance of that."

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All available articles from » Roussos Vranas

Il Sole 24 Ore - Italy | Tuesday, 27. March 2012

Merkel must exert caution

While German Chancellor Angela Merkel did speak out on Monday in favour of expanding the Eurozone's financial firewall to 700 billion euros, she remained vague because she needs the support of the Bundestag and her coalition: » more

While German Chancellor Angela Merkel did speak out on Monday in favour of expanding the Eurozone's financial firewall to 700 billion euros, she remained vague because she needs the support of the Bundestag and her coalition: "The chancellor deliberately avoided going into detail in order to leave herself some leeway and not annoy the German people. ... Her approval for this plan is basically the very minimum that can be done to calm the financial markets. … Merkel is only too aware that this modest elevation of the European firewall may disappoint the expectations of the markets. But she must take the mood in parliament into account, and above all the tensions within her own ranks that currently threaten her majority. A good few people are ill-disposed towards new bailout initiatives for indebted countries."

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All available articles from » Romano Beda

Turun Sanomat - Finland | Tuesday, 27. March 2012

Indebted countries must stick to austerity

Even if the euro countries expand the euro financial firewall the debtor states must still get their budgets under control, writes the liberal daily Turun Sanomat: » more

Even if the euro countries expand the euro financial firewall the debtor states must still get their budgets under control, writes the liberal daily Turun Sanomat: "For the International Monetary Fund to participate sufficiently in measures geared at appeasing the markets and supporting the weaker euro countries, we need a trustworthy stability fund. The ECB has given the Eurozone a badly needed reprieve by providing the banks with 1,1 trillion euros. But the examples of Spain and Italy over the past weeks show that even the protective umbrella of the Central Bank doesn't provide absolute security. Procrastination in implementing austerity measures and structural reform is immediately castigated by higher yields on government bonds. The euro countries are at a decisive juncture. There can be no letting up in the adjustment programmes there, and measures for reviving the economy must be put in place as quickly as possible."

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

Main focus of Monday, 26. March 2012

Monti pushes for job market reform

The Italian government passed a controversial labour market reform on Friday. Dissatisfied with the easing of job protection legislation, the country's largest union CGIL is ... » more

The Italian government passed a controversial labour market reform on Friday. Dissatisfied with the easing of job protection legislation, the country's largest union CGIL is planning a general strike against the reform. But Italy's technocrats are only doing their homework and successfully fighting the crisis, commentators write.

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

Il Sole 24 Ore - Italy | Sunday, 25. March 2012

Close controls of public spending

In order to promote economic growth the labour reform must be followed up by tight management of public spending, writes the business paper Il Sole 24 Ore: » more

In order to promote economic growth the labour reform must be followed up by tight management of public spending, writes the business paper Il Sole 24 Ore: "The labour reform constitutes the foundation; the task now is to build the walls. The reform must be supported by a revision of public spending. Without targeted cuts to public expenditure the attempt to revive the economy will be fruitless. ... Only strict control of government expenditure can free up the resources to finance lower taxes for companies and employees, as well as new public infrastructure projects. Only in this way can economic growth be given a boost. ... This won't happen from one minute to the next, but the economic data demands that the government take action here as soon as possible."

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More from the press review on the subject » Domestic Policy, » Economic Policy, » Italy
All available articles from » Fabrizio Forquet

Financial Times - United Kingdom | Monday, 26. March 2012

Monti must remain firm

The Italian labour market reform is an important step towards solving the crisis, writes the liberal-conservative Financial Times: » more

The Italian labour market reform is an important step towards solving the crisis, writes the liberal-conservative Financial Times: "The biggest beneficiaries of this reform should be workers on temporary contracts, who are more rarely unionised. Had Mr Monti bowed to the power of the unions, his reform would have risked overlooking the interests of these labour market 'outsiders' to preserve those of 'insiders'. Of course, the reform is far from perfect. While Mr Monti has started to clamp down on the abuse of temporary contracts and to encourage companies to take on more apprentices instead, it is unclear whether they will respond. And anyway, workers of Italy's inefficient public sector have so far been spared by the reform. But with bond yields rising again above 5 per cent, there is a real risk that even small setbacks will undermine the markets' fragile confidence. Parliament should not be complacent when it discusses Mr Monti's reform."

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

TVXS - Greece | Sunday, 25. March 2012

Greek politicians fear the people

The Greeks celebrated their Independence Day amidst a barrage of security measures on Sunday. Large areas of Athens were cordoned off by the police in an effort to forestall potential protests against the austerity programme during the parade, and violent protest broke out in several other cities. The online portal tvxs questions the politicians' fear of the people: » more

The Greeks celebrated their Independence Day amidst a barrage of security measures on Sunday. Large areas of Athens were cordoned off by the police in an effort to forestall potential protests against the austerity programme during the parade, and violent protest broke out in several other cities. The online portal tvxs questions the politicians' fear of the people: "Seldom in the past have we witnessed scenes like those in Athens, where the special police unit Mat and hundreds of police officers in civilian clothing were under orders to mix with the crowds and applaud. Perhaps there were such scenes in some of those Latin American countries shortly before the hated junta was replaced by another regime. Because these drastic measures and the entire mood are reminiscent of dictatorships. ... So the election campaign is beginning under optimal conditions. The supporters of the ruling coalition and the austerity packages dare not show their faces in cafés or at the parades."

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All available articles from » Kouloglou Stelios

Bild - Germany | Thursday, 22. March 2012

Germany no example for austerity

The German government approved the national budget for 2013 on Wednesday. It amounts to just over 300 billion euros and the government can take out new loans of 19.6 billion euros. But new debts will make Germany look untrustworthy in Europe, the tabloid Bild complains: » more

The German government approved the national budget for 2013 on Wednesday. It amounts to just over 300 billion euros and the government can take out new loans of 19.6 billion euros. But new debts will make Germany look untrustworthy in Europe, the tabloid Bild complains: "Up to now Germany has been regarded as the model pupil across Europe when it comes to frugality. But since yesterday we know that this no longer applies! Instead of borrowing less the government wants to borrow around 9 billion euros more than planned. A fatal signal! While other euro states are forced to tighten their belts till it really hurts Germany is simply letting itself go. Yet there could hardly be a better time to get rid of all the debts. The economy is humming, the salaries are rising and the social security coffers are overflowing. The government needs more courage to economise. Why not cut back on the billions in subsidies for pension and health insurance funds, for example? Why not cut parental benefits? And why introduce the new and expensive care allowance? A country that condemns others to turbo-austerity should be prepared to set a good example."

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

La Tribune - France | Wednesday, 21. March 2012

Taxpayers reject transfer union

The fierce disputes in Germany over the ratification of the European bailout fund EFSF and the European Stability Mechanism ESM should finally wake up the French, writes German economist Wolfgang Glomb in the liberal business paper La Tribune, particularly since the solidarity tax for Eastern Germany has been of no avail: » more

The fierce disputes in Germany over the ratification of the European bailout fund EFSF and the European Stability Mechanism ESM should finally wake up the French, writes German economist Wolfgang Glomb in the liberal business paper La Tribune, particularly since the solidarity tax for Eastern Germany has been of no avail: "Taxpayers on both sides of the Rhine have the same interest in adopting Bavaria's role on a European scale and refusing to pay for the mistakes of their neighbours. True, they can't take their suit to the European Court of Justice, but in the next elections they can vote against further European integration, which demands more solidarity than they can muster. French politicians and the general public should take heed and oppose a European transfer union."

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All available articles from » Wolfgang Glomb

Les Echos - France | Tuesday, 20. March 2012

Hollande isolates himself over euro bonds

At a meeting of European social democratic leaders in Paris on Saturday, France's socialist presidential candidate François Hollande spoke out in favour of euro bonds as a means of funding certain European investment projects. But his statement only isolates him in Europe, writes the business daily Les Echos: » more

At a meeting of European social democratic leaders in Paris on Saturday, France's socialist presidential candidate François Hollande spoke out in favour of euro bonds as a means of funding certain European investment projects. But his statement only isolates him in Europe, writes the business daily Les Echos: "Hollande and his spokesmen add that their call for a 'growth strategy' meets with support in many areas, as twelve heads of state and government have approved it in a joint letter [to European Council President Herman Van Rompuy on February 20]. ... François Hollande is right about one thing: growth is an important concern in many parts of Europe. But with all the fuss over the elections, the representatives of the two major political camps seem to have had no time for a close reading of the 'letter from the twelve'. It makes no mention of issuing euro bonds, nor of using them to finance additional expenditure. ... In short, the letter is of purely liberal inspiration and entirely contradicts the vision of the French Socialists."

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All available articles from » Favilla

Il Sole 24 Ore - Italy | Monday, 19. March 2012

Paul Krugman sees EU's austerity as wrong approach

The EU finance ministers are showing leniency regarding Spain's deficit, allowing Madrid a budget deficit of 5.3 percent for this year instead of the agreed 4.4 percent. Nobel Prize winner Paul Krugman congratulates the EU on its decision and explains in the business paper Il Sole 24 Ore why austerity is not the solution to the crisis: » more

The EU finance ministers are showing leniency regarding Spain's deficit, allowing Madrid a budget deficit of 5.3 percent for this year instead of the agreed 4.4 percent. Nobel Prize winner Paul Krugman congratulates the EU on its decision and explains in the business paper Il Sole 24 Ore why austerity is not the solution to the crisis: "I've always viewed Spain, not Greece, as the quintessential euro crisis country. And with Spain now front and centre, the essential wrongness of the whole European policy focus becomes totally apparent. Spain did not get into this crisis by being fiscally irresponsible. … What's clear is that even more austerity does nothing to help. ... When a family tightens its belt it doesn't put itself out of a job. When a government tightens its belt in a depressed economy, it puts lots of people out of jobs; and this is a negative even from the government's own, narrowly fiscal point of view, since a shrinking economy means less revenue. … For the results of austerity policies in Europe have been as good a test as you ever get in macroeconomics, and without exception big cuts in government spending have been followed by big declines in GDP. So lose the belt; it's a really bad metaphor."

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All available articles from » Paul Krugman

To Vima Online - Greece | Friday, 16. March 2012

Greek party landscape fragmented

In Greece, a growing number of small parties are being founded with an eye to the parliamentary elections which according to Greek media will take place at the end of April. The left-liberal online paper To Vima warns of the dangers of a fragmented political landscape: » more

In Greece, a growing number of small parties are being founded with an eye to the parliamentary elections which according to Greek media will take place at the end of April. The left-liberal online paper To Vima warns of the dangers of a fragmented political landscape: "Every desperate citizen is founding a party now. … This just goes to show how fragmented and weak our political system has become. But this phase is very important for our nation, our country and its citizens. If the extremists pull off their strategy there will be nothing but conflict in Greece. … Such a fate doesn't fit in with our country. … The conservative forces should prevent it. They need to treat the country's European orientation as a priority and defend the European political culture which has served the country as a basis for decades. This is the only decent solution for the Greek people. And we must defend it at any cost."

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More from the press review on the subject » Domestic Policy, » Elections, » Greece

El País - Spain | Thursday, 15. March 2012

Spain must pass 2012 budget quickly

The EU reached agreement with the Spanish government on a higher budget deficit for 2012 than previously planned on Tuesday, setting the limit at 5.3 percent. Finance Minister Cristóbal Montoro must now present the current budget as quickly as possible so that the country's citizens can adjust to the cutbacks it entails, writes the left-liberal daily El País: » more

The EU reached agreement with the Spanish government on a higher budget deficit for 2012 than previously planned on Tuesday, setting the limit at 5.3 percent. Finance Minister Cristóbal Montoro must now present the current budget as quickly as possible so that the country's citizens can adjust to the cutbacks it entails, writes the left-liberal daily El País: "Minister Cristóbal Montoro is already preparing the mood by saying the cuts will be 'carefully considered, balanced and socially just and won't affect the weakest'. But this accumulation of adjectives doesn't exactly provide clarity. The government's game of hiding behind Europe's macroeconomic data and then renegotiating the deficit has come to an end. The citizens should be told where the cuts will be and whether the government has worked out an economic policy, naturally in cooperation with its Euro Group partners, for accelerating the recovery and create jobs."

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

To Ethnos - Greece | Wednesday, 14. March 2012

French want less Germany

In a survey carried out by the daily Le Monde only ten percent of the respondents said they wanted the next French president to focus mainly on bolstering the Franco-German axis. This is above all a result of the crisis, the left-liberal daily To Ethnos concludes: » more

In a survey carried out by the daily Le Monde only ten percent of the respondents said they wanted the next French president to focus mainly on bolstering the Franco-German axis. This is above all a result of the crisis, the left-liberal daily To Ethnos concludes: "The results of this survey come as a big shock to Nicolas Sarkozy, but also a nasty surprise for the Germans. It's obvious that the German approach to dealing with the European debt crisis has spurred hostility towards the Germans all over Europe, not just in countries like Greece, which has been enslaved financially and deprived of part of its sovereignty. ... But the truly astounding result was that just three percent of the Socialist party supporters want the new president to focus on the Franco-German axis."

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All available articles from » Giorgos Delastik

La Stampa - Italy | Wednesday, 14. March 2012

Merkel only talks about more Europe

German Chancellor Angela Merkel visited the Italian Prime Minister Mario Monti in Rome on Tuesday. Both see growth, increased competitiveness and innovation as the main challenges for the European Union. This insight is a first step on the road to recovery, the liberal daily La Stampa believes, but fears the words of unity will not be followed by deeds before the German elections: » more

German Chancellor Angela Merkel visited the Italian Prime Minister Mario Monti in Rome on Tuesday. Both see growth, increased competitiveness and innovation as the main challenges for the European Union. This insight is a first step on the road to recovery, the liberal daily La Stampa believes, but fears the words of unity will not be followed by deeds before the German elections: "Europe's only hope is more Europe, that means greater political cohesion. The austerity policy, which is hurting the already crisis-stricken economies, has become overly stringent precisely because of the lack of trust among individual EU states. Only more unity can attenuate the austerity policy. But the doubt remains that the chancellor will take her time, too much time. Berlin is generous with words but miserly with facts. We will probably have to wait another 18 months, namely until the elections in Germany in autumn 2013, to receive an effective answer to the open questions."

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Bild - Germany | Wednesday, 14. March 2012

Bundesbank pays for euro crisis

The German Bundesbank made a profit of 643 million euros in 2011 - its lowest result in eight years. Bundesbank chief Jens Weidmann on Tuesday blamed this poor performance on measures taken to cover the extra risks arising from the European debt crisis. For the conservative tabloid Bild this explanation is a euphemism that proves that the euro crisis is not yet over: » more

The German Bundesbank made a profit of 643 million euros in 2011 - its lowest result in eight years. Bundesbank chief Jens Weidmann on Tuesday blamed this poor performance on measures taken to cover the extra risks arising from the European debt crisis. For the conservative tabloid Bild this explanation is a euphemism that proves that the euro crisis is not yet over: "Risk management is the elegant term the central bankers use. 'Fear management' would be more accurate here. Because billions have already gone up in flames! The European Central Bank is flooding the markets with cheap credit like there's no tomorrow. The central banks of the debt-ridden countries owe the Bundesbank 550 billion euros - these are dizzying amounts. It's a good thing Bundesbank president Weidmann is being frank about the situation. His warning should be ringing in all the politicians' ears: 'We have only bought more time.' With huge sums obtained on credit. The bill has yet to be paid. And it's already clear who will have to cough up: we, the taxpayers!"

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Kathimerini - Greece | Tuesday, 13. March 2012

Better rating won't help Greeks

A few days after the Greek debt-swap deal Fitch has become the first rating agency to upgrade Greece's credit standing, lifting it to a B-rating with a steady outlook on Tuesday. The conservative daily Kathimerini nonetheless remains pessimistic: » more

A few days after the Greek debt-swap deal Fitch has become the first rating agency to upgrade Greece's credit standing, lifting it to a B-rating with a steady outlook on Tuesday. The conservative daily Kathimerini nonetheless remains pessimistic: "The [Greek] Titanic is sticking to its course with all the desperation and misery that is burdening a society faced with harsh austerity measures regarding salaries, taxes, insurance and pensions. … Even though people realise that the Greek situation is unbearable despite huge efforts and sacrifices, the lenders continue to foist more harsh cutbacks upon us."

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Il Sole 24 Ore - Italy | Tuesday, 13. March 2012

Germany delaying help for Greece

The Eurozone finance ministers gave the green light for the second Greek bailout package on Monday but the final approval is yet to come. The Euro Group is once again wasting time, writes the business paper Il Sole 24 Ore, citing Germany as the culprit: » more

The Eurozone finance ministers gave the green light for the second Greek bailout package on Monday but the final approval is yet to come. The Euro Group is once again wasting time, writes the business paper Il Sole 24 Ore, citing Germany as the culprit: "In reality the meeting of the ministers of the Euro Group ended with the decision to cling to the unshakeable logic of postponement. Because they want to wait for the decision of the International Monetary Fund on Thursday before actually making the money available. Then they'll wait for the verdict on expanding the bailout fund. … But if for reasons of domestic policy Germany, after demanding draconian reforms from Greece without batting an eyelid, not only allows itself the luxury of delaying the signing of the Athens agreement but also a key decision for the future of the single currency with its lack of clarity regarding the contributions for the bailout fund, one may well ask oneself if such behaviour is appropriate and responsible vis-à-vis its partners and the euro." 

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To Vima Online - Greece | Tuesday, 13. March 2012

Rich Greeks should bring back their money

The Greeks have deposited over 70 billion euros in foreign banks for fear of their own country's institutions going bankrupt. After the successful debt restructuring deal reached on Friday the time has come to bring these billions back to Greece, writes the left-liberal online paper To Vima: » more

The Greeks have deposited over 70 billion euros in foreign banks for fear of their own country's institutions going bankrupt. After the successful debt restructuring deal reached on Friday the time has come to bring these billions back to Greece, writes the left-liberal online paper To Vima: "The Greek banking system could really have done with these sums. The Greek economy is under-financed owing to the shortage of cash. Now that the economy is on the way to recovery and the danger of a national bankruptcy has been averted the rich have no reason to withhold their wealth from the country in which they amassed it. They should bring their money back to the Greek banks. It is their duty not just regarding their country, but also their suffering fellow citizens to do so."

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De Standaard - Belgium | Monday, 12. March 2012

Austerity alone doesn't create trust

The Belgian government presented a programme for extending its austerity programme by almost two billion euros in a bid to calm Europe and the financial markets. But unfortunately the measures won't make a lasting impact, writes the liberal daily De Standaard: » more

The Belgian government presented a programme for extending its austerity programme by almost two billion euros in a bid to calm Europe and the financial markets. But unfortunately the measures won't make a lasting impact, writes the liberal daily De Standaard: "People won't invest as long as they don't believe in a good future. They don't want a government that can do its math but one that they can rely on in the long term. … So the government needs to invest in its credibility right now. But it won't achieve this by generating one-off revenues, bringing taxes forward and other minor interventions that don't really make an impression and therefore provoke little resistance. … Belgium needs to appease Europe and the financial markets, but the true challenge will be to restore the population's trust. This government has very little time to prove that it can give the country a thorough overhaul. It needs to start doing so now, particularly after this austerity proposal."

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El País - Spain | Monday, 12. March 2012

Spain's social peace in danger

Thousands of Spaniards gathered in several Spanish cities on Sunday to protest the government's labour market reform and austerity measures. The left-liberal daily El País urges the government to engage in a social dialogue: » more

Thousands of Spaniards gathered in several Spanish cities on Sunday to protest the government's labour market reform and austerity measures. The left-liberal daily El País urges the government to engage in a social dialogue: "To show its resolution in dealing with the crisis the government is refusing to review its decisions on reform. But in doing so it runs the risk that this attitude will be perceived as a sign of abuse of power in difficult times. The temptation to exploit fears about the future in order to push through an economic programme that the [ruling conservative People's Party] PP had already advocated before the crisis is a risky exercise that could end up causing problems for the entire country. Like any democratic government, that led by Mariano Rajoy has the duty not only to adopt the necessary measures, but also to do so as far as possible in a climate of social accord."

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Financial Times Deutschland - Germany | Friday, 9. March 2012

Haircut has only intensified euro crisis

The weeks of wrangling over debt restructuring for Greece have come to an end, but they have only intensified the crisis and achieved nothing for the state, the liberal business paper Financial Times Deutschland concludes: » more

The weeks of wrangling over debt restructuring for Greece have come to an end, but they have only intensified the crisis and achieved nothing for the state, the liberal business paper Financial Times Deutschland concludes: "The demand for private-sector participation backed mainly by the Germans has had devastating consequences for other precariously debt-ridden states in Europe - investors suddenly began to fear that similar demands would be made for Spain or Italy - and boycotted the purchase of government bonds from the oh-so-precarious peripheral countries. And the second idea is no less sobering: anyone who believes that private-sector participation means the burdens of the Greek bailout will be more fairly distributed is mistaken. It is not the private investors who will bear the brunt of the Greek bailout but the public sector, Europe's taxpayers. Considering what would happen if Greece went bankrupt, the private investors have done pretty well out of this deal."

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To Vima Online - Greece | Friday, 9. March 2012

First success on a long journey

The debt restructuring is an important step for rescuing Greece, writes the Greek left-liberal online paper To Vima, but the government and parties still have plenty of work to do: » more

The debt restructuring is an important step for rescuing Greece, writes the Greek left-liberal online paper To Vima, but the government and parties still have plenty of work to do: "This is the biggest debt restructuring in recent history. ... If waiving Greece's debt is to end in success debt we must show competence and continuity in dealing with the crisis. Our politicians have no time to rest on their laurels but must soldier on, ignoring party interests and the political cost. … A step has been taken, but there is still a long way to go. … Whether we like it or not, the future of the country lies within the Eurozone and within the European Union. The success in involving the lenders in the debt restructuring was a step towards this future. It is now up to us to continue with the rescue effort and bring it to completion."

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La Stampa - Italy | Friday, 9. March 2012

The financial genocide continues

Despite the debt restructuring deal there is no cause for jubilation in Greece because the EU will continue with its financial genocide, the liberal daily La Stampa writes: » more

Despite the debt restructuring deal there is no cause for jubilation in Greece because the EU will continue with its financial genocide, the liberal daily La Stampa writes: "What we are doing with Greece goes beyond the limits of the economic. Even if Athens did dish up a pack of lies - lies the European financial world was only too glad to believe - the rest of Europe is treating the Greeks worse than the allies treated the defeated Germans after World War II. The deal that saves the euro is a death sentence for Greece. By preventing Greece from officially going bankrupt Europe is allowing the country to be bled dry. This is financial genocide, as a Viennese paper [Die Presse] so aptly described this torture method. We are condemning the country to at least 15 years of poverty."

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De Tijd - Belgium | Friday, 9. March 2012

Time for Germany to be nice

The successful debt restructuring for Greece is a positive signal for the Eurozone and will also appease Germany, the business paper De Tijd writes hopefully: » more

The successful debt restructuring for Greece is a positive signal for the Eurozone and will also appease Germany, the business paper De Tijd writes hopefully: "The turning point can come now because a solution is in view. … Now even in otherwise so strict Germany voices are saying that it is time to embrace Greece, and with it the euro. … Germany is gradually realising that it can't manage without the euro, or only at a very high price. If this dynamic continues the Eurozone will be on the right path, but of course it could easily be derailed. Let us not deceive ourselves, the present plans are anything but perfect. The international bank association, the IIF, has calculated that if Greece exited the Eurozone it would cost the other countries more than a trillion euros. And Berlin knows that it would foot most of the bill. That alone should be enough to prevent German hesitancy when it comes to saving the single currency."

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Cinco Días - Spain | Thursday, 8. March 2012

Creditors afraid of smooth debt write-down

Greece is threatening not to pay back any of its debts to creditors who refuse to approve the debt restructuring plans. The commotion this is causing on the markets could actually have a positive result, writes the business paper Cinco Días: » more

Greece is threatening not to pay back any of its debts to creditors who refuse to approve the debt restructuring plans. The commotion this is causing on the markets could actually have a positive result, writes the business paper Cinco Días: "The challenge from Athens is frightening the markets, but a minor outbreak of panic could prompt the doubters to jump on board. By warning that it doesn't have any money for those who reject the debt restructuring, Greece clearly wants to force them to sign. … However the major concern of the creditors is perhaps not so much that debt conversion will lead to chaos but rather that it will go all too smoothly. Because this could lead the administrators of the Eurozone to try out the same approach with other problem states, in particular Portugal. Taboos are no longer taboos once they have been broken."

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Blog Démystifier la finance - France | Wednesday, 7. March 2012

Voluntary restructuring better than forced

If an insufficient number of investors voluntarily go along with the Greek debt restructuring, the Greek Finance Minister Evangelos Venizelos has said he would force them to adopt the plan by resorting to certain debt restructuring clauses,  the so-called Collective Action Clauses. The banker Georges Ugeux warns against such a move in his blog Démystifier la finance: » more

If an insufficient number of investors voluntarily go along with the Greek debt restructuring, the Greek Finance Minister Evangelos Venizelos has said he would force them to adopt the plan by resorting to certain debt restructuring clauses,  the so-called Collective Action Clauses. The banker Georges Ugeux warns against such a move in his blog Démystifier la finance: "That would be tantamount to dropping a nuclear bomb whose explosion would have dramatic consequences far beyond Greece's borders. The entire financing of the European states would lose its credibility and the trust of investors. Such a move could jeopardise the noteworthy alleviation of the Italian and Spanish debt crises achieved in recent weeks. ... The IMF puts the losses in the case of a Greek insolvency at one trillion euros and reminds us that the contagion effect would be enormous: it's not certain whether it could be contained at all."

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Gazeta Wyborcza - Poland | Thursday, 8. March 2012

Debt cut cheaper than state bankruptcy

Athens has proposed that private lenders exchange their current Greek bonds for new ones with a nominal loss of 53.5 percent. Investors should accept the offer despite the high losses or their costs will run even higher, writes the president of the Society of Polish Economists, Ryszard Petru, in a commentary for the liberal daily Gazeta Wyborcza: » more

Athens has proposed that private lenders exchange their current Greek bonds for new ones with a nominal loss of 53.5 percent. Investors should accept the offer despite the high losses or their costs will run even higher, writes the president of the Society of Polish Economists, Ryszard Petru, in a commentary for the liberal daily Gazeta Wyborcza: "The investors will suffer losses no matter what the scenario. Consequently it seems there is no other option but to accept these losses. The banks are still in the negotiating phase with the Greek government, which wants to impose concrete terms. But we should bear in mind that it would be even worse if the situation got out of control and Greece suffered a disorderly bankruptcy. The markets would panic and the risk for banks would be extremely hard to assess."

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Il Sole 24 Ore - Italy | Thursday, 8. March 2012

Home stretch without home in sight

The fact that the negotiations on the debt restructuring are entering their final stages certainly doesn't mean that the goal has been achieved, writes the business paper Il Sole 24 Ore: » more

The fact that the negotiations on the debt restructuring are entering their final stages certainly doesn't mean that the goal has been achieved, writes the business paper Il Sole 24 Ore: "However the race ends, there won't be a great sense of relief when it's over. Because the dividing line of national financial markets still runs between the 17 states. This is evident from the fact that the crisis hasn't been overcome and confidence hasn't been restored. The integration of the financial markets was the driving force behind Europe's economic system, but after years of weak trust among the individual states, the return of capital investments to their respective country of origin has taken the place of their becoming merged with one another. The money is locked away in the individual states. The economic and financial systems are as impenetrable and encapsulated as they were in the 1970s, with the subtle difference that the governments back then had the task of making decisions about their national currencies and national monetary policies whereas today's governments must decide on a common currency and policy."

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Naftemporiki - Greece | Wednesday, 7. March 2012

Europe saves Athens out of self-interest

A generalised Greek default could cost more than a trillion euros, according to a confidential report by the Institute of International Finance (IIF). By Thursday evening the private sector creditors must state whether they will participate in a major debt restructuring for the country. The IIF report highlights the lack of solidarity in Europe, the conservative business paper Naftemporiki concludes: » more

A generalised Greek default could cost more than a trillion euros, according to a confidential report by the Institute of International Finance (IIF). By Thursday evening the private sector creditors must state whether they will participate in a major debt restructuring for the country. The IIF report highlights the lack of solidarity in Europe, the conservative business paper Naftemporiki concludes: "They're willing to take part in the debt restructuring and some would even turn a profit, but only so that the entire Eurozone doesn't collapse. They have concealed from us the fact that a disorderly default would cost a trillion euros. To put it simply what this means is that they are only interested in rescuing this country because it would cost them more if it dies than to keep it alive. … So let's be honest. … No one was ever interested in saving Greece out of solidarity with the Greeks."

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Der Standard - Austria | Wednesday, 7. March 2012

Austria's chancellor afraid of the people

Austria's parties are currently debating whether the signing of the EU fiscal compact by Chancellor Werner Faymann on Friday will encroach on the country's sovereignty. But above all Faymann is shying away from a confrontation with the people, the left-liberal daily Der Standard writes: » more

Austria's parties are currently debating whether the signing of the EU fiscal compact by Chancellor Werner Faymann on Friday will encroach on the country's sovereignty. But above all Faymann is shying away from a confrontation with the people, the left-liberal daily Der Standard writes: "All budgets, and even economic programmes, must be presented in Brussels for approval. If they're rejected, Austria is forced to revise them. Part and parcel of this scheme is that expenses for the ESM that have already been passed are ignored in the current budget. This fund, by the way, makes necessary the kind of change to the Treaty of Lisbon necessary for which … Faymann once promised a referendum. But instead of seeking confrontation and clarifying the basis on which Europe stands, the government is sticking its head in the sand. The time is ripe for a fruitful dispute over whether the national disempowerment in budget matters represents a fundamental change to the constitution and therefore calls for a referendum . But muddling through with a simple majority just testifies to a poor relationship with democracy."

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Público - Portugal | Monday, 5. March 2012

Alfred Gusenbauer praises Europe's economy despite crisis

The financial and bank crisis in Europea developed in 2011 into a sovereign debt crisis which is putting the future of the euro at risk. But the EU is better than its reputation, writes Austria's ex-chancellor Alfred Gusenbauer in the daily Público: » more

The financial and bank crisis in Europea developed in 2011 into a sovereign debt crisis which is putting the future of the euro at risk. But the EU is better than its reputation, writes Austria's ex-chancellor Alfred Gusenbauer in the daily Público: "If one compares the EU with the United States or Japan (where public debt equals 200 per cent of GDP), the Union's current poor image is unjustified. Indeed, employment in the EU as a whole remains high, as do private savings rates. Moreover, the Union's trade is in balance with the rest of the world. One reason for doubt about the euro and the EU is that, since the spring of 2010, Europe's leaders have rushed from one crisis summit to the next, each time devising supposed solutions that provided too little and arrived too late. Europe's leaders have never fully deployed their economic and political firepower. On the contrary, rather than taming the financial markets, as they once intended, Europe's leaders continue to be besieged by them. ... We need a new contract among European nations, generations, and social classes, which implies difficult choices."

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Der Standard - Austria | Monday, 5. March 2012

Merkel's support for Sarkozy helps Hollande

German Chancellor Angela Merkel and her conservative EU partners have agreed not to meet with the French presidential candidate François Hollande during the election campaign, according to a report published by German news weekly Der Spiegel. This show of solidarity with President Nicolas Sarkozy will backfire, writes the left-liberal daily Der Standard: » more

German Chancellor Angela Merkel and her conservative EU partners have agreed not to meet with the French presidential candidate François Hollande during the election campaign, according to a report published by German news weekly Der Spiegel. This show of solidarity with President Nicolas Sarkozy will backfire, writes the left-liberal daily Der Standard: "The Chancellor couldn't have done more to help Hollande, whose programme calls for the EU fiscal package dictated by Merkel to be renegotiated. The French are weary of Sarkozy's empty promises and submissive gestures. Most of them have no intention of letting Berlin of all places stipulate who will be their president. That Merkel is relying on Cameron (who always leaves her stranded on the euro) and Rajoy (who has just announced that Spain will exceed the deficit) shows how Merkel's grip on power is weakening. … To disregard the potential next president of one's most important partner country testifies to a lack of political instinct the like of which hasn't been seen in decades."

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Hospodárske noviny - Slovakia | Friday, 2. March 2012

Summit of false satisfaction

The heads of state and government of the 27 EU countries seemed all too self-satisfied as the EU summit kicked off on Thursday, according to the business paper Hospodárske noviny: » more

The heads of state and government of the 27 EU countries seemed all too self-satisfied as the EU summit kicked off on Thursday, according to the business paper Hospodárske noviny: "Everything is fine: Europe is calmer, the Greek problem has been solved, the Euro firewall is being raised higher, the fiscal compact doesn't have to be signed by all the states. The rejection of the pact by the UK and Czech Republic is being tolerated, and the same goes for the Irish referendum. In Italy it sufficed to replace Berlusconi with Monti for everyone to practically forget what a huge mountain of debt the country is saddled with. The collective downgrading of a number of European countries by the rating agencies, as well as the continuing problems of Greece, Portugal and Spain, are being ignored. The voices of protest on the street are not penetrating to the conference hall. Everything the EU has produced in recent times is just wonderful. But most of it exists only on paper."

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Naftemporiki - Greece | Friday, 2. March 2012

Hostage-taking because of unemployment

In the northern Greek city of Komotini an unemployed man stormed into his former workplace and took two hostages on Thursday, demanding his old job back and 31,000 euros owed to him by his former employer. Even if he gave up after twelve hours, the case once again showcases how social tensions are rising as a result of the austerity measures, the conservative business paper Naftemporiki notes: » more

In the northern Greek city of Komotini an unemployed man stormed into his former workplace and took two hostages on Thursday, demanding his old job back and 31,000 euros owed to him by his former employer. Even if he gave up after twelve hours, the case once again showcases how social tensions are rising as a result of the austerity measures, the conservative business paper Naftemporiki notes: "It's uncertain whether Greece's programme for fighting unemployment will be successful, because despite all that's been done the unemployment figures are still rising. As in other countries that have introduced austerity programmes, unemployment was meant to be fought here through the creation of more flexible labour relations. But as long as these measures fail to produce results the advocates of such programmes for debtor states will be confronted with millions of unemployed and increasing social tensions, which will hinder economic development."

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Il Sole 24 Ore - Italy | Friday, 2. March 2012

More austerity not an option

More austerity is almost impossible, the business paper Il Sole 24 Ore writes, and doubts that the fiscal pact will help increase the Eurozone's credibility with financial markets: » more

More austerity is almost impossible, the business paper Il Sole 24 Ore writes, and doubts that the fiscal pact will help increase the Eurozone's credibility with financial markets: "At the bottom of their hearts many heads of government know that it will be difficult to impose more austerity measures on their countries. The social consequences are almost unbearable in the crisis. But how can they be less demanding without losing their credibility on the financial markets once more? Is it cleverer to formulate higher goals in the knowledge that they won't be attained? Or would it be wiser to set them lower and try to complement them with convincing reforms? A real decision can't be expected today. Only a preliminary decision - for the higher goals."

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Le Monde - France | Friday, 2. March 2012

Fiscal compact threatens growth

The new fiscal pact commits the EU states to more budget discipline. However the economists Jérôme Creel, Paul Hubert and Francesco Saraceno argue that this will be counterproductive in the left-liberal daily Le Monde: » more

The new fiscal pact commits the EU states to more budget discipline. However the economists Jérôme Creel, Paul Hubert and Francesco Saraceno argue that this will be counterproductive in the left-liberal daily Le Monde: "If these rules are applied on the short term, a recession will be inevitable. That means that the heads of government will be forced to dissociate existing laws from their practical application when it comes to budgetary policy. If the ultimate goal of economic policy is to preserve stability and economic growth, the best thing would be to leave budget sinners unpunished.  ... Europe's governments, the ECB and the Commission seem to consider reducing public debt and deficits as political objectives in themselves, rather than as an instrument for attaining goals such as growth and inflation. This reversal of objectives and instruments boils down to denying any role for macroeconomic policy."

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El Mundo - Spain | Friday, 2. March 2012

Spain's trade unions offend terrorist victims

The Spanish trade unions have called on the people to stage a day of protest against the government's austerity measures on March 11. The conservative daily El Mundo is appalled at the choice of date as it coincides with the 8th anniversary of the terrorist attack on the Madrid railway network: » more

The Spanish trade unions have called on the people to stage a day of protest against the government's austerity measures on March 11. The conservative daily El Mundo is appalled at the choice of date as it coincides with the 8th anniversary of the terrorist attack on the Madrid railway network: "The trade unions UGT and CCOO will offend not only the victims but also the millions of citizens for whom March 11 is a day that should be characterised by unity among all the political and social forces in the country in memory of the massacre. No one would even think of calling a day of protest in the US on September 11. Therefore this conflict has only one solution: the trade unions must change the date. If they don't it will be obvious where their priorities lie."

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Público - Portugal | Wednesday, 29. February 2012

Dani Rodrik believes nation state is not obsolete

The financial crisis has put to rest any notion that the concept of the nation state is obsolete in the age of globalisation, Professor of International Political Economy Dani Rodrik contends in an article published in the daily Público: » more

The financial crisis has put to rest any notion that the concept of the nation state is obsolete in the age of globalisation, Professor of International Political Economy Dani Rodrik contends in an article published in the daily Público: "Who bailed out the banks, pumped in the liquidity, engaged in fiscal stimulus, and provided the safety nets for the unemployed to thwart an escalating catastrophe? Who is re-writing the rules on financial-market supervision and regulation to prevent another occurrence? Who gets the lion's share of the blame for everything that goes wrong? The answer is always the same: national governments. … Yet even as the nation-state survives, its reputation lies in tatters. … But who will provide the market's rules and regulations, if not nation-states? Laissez-faire is a recipe for more financial crises and greater political backlash. …In short, laissez-faire and international technocracy does not provide a plausible alternative to the nation-state. Indeed, the erosion of the nation-state ultimately does little good for global markets as long as we lack viable mechanisms of global governance. … The nation-state may be a relic bequeathed to us by the French Revolution, but it is all that we have."

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To Ethnos - Greece | Wednesday, 29. February 2012

Juncker doesn't have say on Athens government

The chief of the Euro Group, Jean-Claude Juncker, has stated in an interview with a German newspaper that the EU would withdraw its financial aid for Greece if the "extremist" parties gain ground in the Greek elections at the end of April and prevent the socialist Pasok party and the conservative Nea Dimokratia from forming a majority government. The left-liberal daily To Ethnos sees the remark as impudent: » more

The chief of the Euro Group, Jean-Claude Juncker, has stated in an interview with a German newspaper that the EU would withdraw its financial aid for Greece if the "extremist" parties gain ground in the Greek elections at the end of April and prevent the socialist Pasok party and the conservative Nea Dimokratia from forming a majority government. The left-liberal daily To Ethnos sees the remark as impudent: "Who has given him the right to say that any Greek party other than Pasok or Nea Demokratia is 'extremist'? Juncker is entitled to his opinions of course, but he should keep them to himself as long as he is chief of the Euro Group. … And who told him to say that the EU will pull out of the so-called rescue programme if the new government is not to its liking? Must we remind him that the Greek government is elected by the Greek people, and that only then will this government negotiate with its Eurozone partners over what happens next?"

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All available articles from » Giorgos Delastik

Cinco Días - Spain | Thursday, 1. March 2012

Economy can benefit from flood of money

The real economy can also benefit from the ECB's new loans because a large number of banks have taken advantage of them, the left-liberal daily Cinco Días writes: » more

The real economy can also benefit from the ECB's new loans because a large number of banks have taken advantage of them, the left-liberal daily Cinco Días writes: "The big surprise about the ECB's second cash injection is how many institutions have taken advantage of it. After the good results of the shower of money in December, which had a considerable calming effect on the sovereign debt market and gave the European stock exchanges a boost, Mario Draghi has once again issued three-year loans. The 530 billion euros were spread among a total of 800 banks, while last December it was just 492. This seems to indicate that a good number of smaller institutions have finally plucked up the courage to use the fund, in line with the ECB's idea of channelling the money into the real economy. … Regardless of how long this impact lasts the financial system should take full advantage of this period of relative calm to do its duty and make headway with its task of restructuring the economy. Only in this way can the credit market reopen, giving small businesses and families access to money once more."

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Mladá fronta Dnes - Czech Republic | Thursday, 1. March 2012

Czech Republic defends British interests

The British and Czech prime ministers David Cameron and Petr Nečas are travelling to Brussels together today for the start of the EU spring summit in a bid to to underscore their no to the fiscal compact for more budget discipline. But Nečas is on the wrong track, the liberal Mladá fronta Dnes writes: » more

The British and Czech prime ministers David Cameron and Petr Nečas are travelling to Brussels together today for the start of the EU spring summit in a bid to to underscore their no to the fiscal compact for more budget discipline. But Nečas is on the wrong track, the liberal Mladá fronta Dnes writes: "Economically the Czech Republic doesn't gain a thing with its current stance. And as regards foreign policy it only stands to lose, both in terms of credibility and its chances of taking part in decision-making. Even if Petr Nečas were right and Europe was moving toward a federation - what advantages would we gain from staying away? How would Iowa profit from seceding from the US? Nečas should shake David Cameron's hand and travel to Brussels to protect Czech, not British, national interests."

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All available articles from » Martin Komárek

Les Echos - France | Thursday, 1. March 2012

Bank restructuring postponed

The European banks have received a second injection of cash from the ECB, this time to the tune of 530 billion euros. But the move only postpones the real problem, writes the business paper Les Echos: » more

The European banks have received a second injection of cash from the ECB, this time to the tune of 530 billion euros. But the move only postpones the real problem, writes the business paper Les Echos: "The banks will have to pay back the money by the start of 2015, which will be no easy task even if Europe is once more growing strongly by then. Those responsible at the European Central Bank remain true to their philosophy of restraint and are not following the example of their American, British and Japanese colleagues. The latter printed thousands of billions, which went into bond purchases and not loans to banks. Even if the ECB's money injection is effective, it will not solve the problems but only put them off until tomorrow. The ECB is buying itself time, as the European Council, the Commission and the IMF have done with the Greek bailout. But sooner or later Europe's banks and national budgets will have to be comprehensively restructured."

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Gazeta Wyborcza - Poland | Thursday, 1. March 2012

Financial injection helps the bond market

The success of the ECB's cash injection will depend on how the overall economic situation in Europe develops, writes the chief economist at investment company X-Trade Brokers Przemysław Kwiecień in a commentary for the liberal daily Gazeta Wyborcza: » more

The success of the ECB's cash injection will depend on how the overall economic situation in Europe develops, writes the chief economist at investment company X-Trade Brokers Przemysław Kwiecień in a commentary for the liberal daily Gazeta Wyborcza: "If things go well the money will be invested in businesses entailing a certain amount of risk. That would be good for both the gold market and the bond market. Because then the banks would be happy to take the risk of buying government bonds. This is what happened after the ECB loaned private banks around 500 billion euros in December. Whether this will be the case now will depend among other things on whether the first signs of economic recovery in Europe we saw in January are confirmed. But if that recovery is put at risk - for example by high fuel prices - the ECB initiative will be less successful."

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Ta Nea - Greece | Wednesday, 29. February 2012

Greek companies take action

Greek companies on Saturday used full-page ads in European dailies to make an urgent appeal for support for their country. The left-liberal daily Ta Nea is surprised at the initiative and sees it as a sign of a general purge: » more

Greek companies on Saturday used full-page ads in European dailies to make an urgent appeal for support for their country. The left-liberal daily Ta Nea is surprised at the initiative and sees it as a sign of a general purge: "It was a nice surprise to see leading companies spend two million euros for a campaign aimed at improving Greece's image in European newspapers. … This initiative is an answer to those both inside the country and outside it who say that Greece's corporate elite has sent all its capital abroad and is now waiting to capitalise on the country's ruin. However this campaign is not enough, because billions have indeed been parked in foreign accounts and there is hardly any investment in Greece. But if we Greeks don't show any confidence in our own country, why should foreigners do so?"

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Corriere del Ticino - Switzerland | Wednesday, 29. February 2012

Irish referendums evoke bad memories

The planned referendum in Ireland on the fiscal pact brings back bad memories of the two plebiscites on EU treaties, writes the liberal daily Corriere del Ticino: » more

The planned referendum in Ireland on the fiscal pact brings back bad memories of the two plebiscites on EU treaties, writes the liberal daily Corriere del Ticino: "The way out of the crisis seems to be growing longer and longer. Although unlike with the earlier referendums on the EU treaties of Nice and Lisbon a no from the Irish can't prevent the fiscal compact from coming into effect because ratification by 12 states is sufficient. But the Irish prime minister's announcement is enough to awake memories of the nightmare the EU went through for years because of the two failed referendums. So Ireland may deprive itself of the help it needs from the future ESM bailout fund. And that won't exactly improve the tense mood."

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Süddeutsche Zeitung - Germany | Wednesday, 29. February 2012

Ireland must opt in

Ireland is set to hold a referendum on joining the EU fiscal compact for tighter budgetary discipline. A rejection of the pact would have fatal consequences for the country, writes the left-liberal daily Süddeutsche Zeitung: » more

Ireland is set to hold a referendum on joining the EU fiscal compact for tighter budgetary discipline. A rejection of the pact would have fatal consequences for the country, writes the left-liberal daily Süddeutsche Zeitung: "If they don't accept the fiscal pact they will be excluded from the bailout packages of the European fund. That would mean that Ireland would pretty soon be at the mercy of the market forces. Speculators could gleefully devote themselves to making their bets and ruining the country. The fragile economic recovery is therefore once again at risk. A drama to which there is now only one solution: a quick vote and a clear result. It is in the interest of the Irish to accept the pact. Otherwise the country will be beyond help."

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All available articles from » Cerstin Gammelin

Gazeta Wyborcza - Poland | Wednesday, 29. February 2012

Constitutional court weakens Merkel's power

Germany's Federal Constitutional Court ruled on Tuesday that the Bundestag may not delegate most decisions regarding the EFSF bailout fund to small parliamentary committees, but that all the members of parliament should be involved in such decisions. This leaves the German Chancellor dangerously little room for manoeuvre, the liberal daily Gazeta Wyborcza concludes: » more

Germany's Federal Constitutional Court ruled on Tuesday that the Bundestag may not delegate most decisions regarding the EFSF bailout fund to small parliamentary committees, but that all the members of parliament should be involved in such decisions. This leaves the German Chancellor dangerously little room for manoeuvre, the liberal daily Gazeta Wyborcza concludes: "The Germans are simply no longer willing to be so generous. Firstly because they have been the ones to contribute most to the Greek, Irish and Portuguese bailouts. The criticism that Germany profited considerably from trade with these countries doesn't bother them. Secondly, they take their constitution very seriously. And thirdly, the Germans have lived pretty frugally in recent years and carried out a number of reforms. … Further bailouts are extremely unpopular with the already over-burdened German taxpayers. Pushing them through against their will could lead to the collapse of the ruling coalition and early elections that Merkel could well lose."

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Diário Económico - Portugal | Wednesday, 29. February 2012

Midsized firms can solve crisis in Portugal

Portugal is going through its biggest economic crisis in over 30 years. Only small and medium-sized companies can turn the situation around by taking the initiative, writes the business paper Diário Económico: » more

Portugal is going through its biggest economic crisis in over 30 years. Only small and medium-sized companies can turn the situation around by taking the initiative, writes the business paper Diário Económico: "More jobs must be created, which will boost production, increase sales and revive the economy. Sounds easy, but it can't be done right away. Because the most important link in the chain is missing: the businesses. There's no point waiting for the government or believing that the state will create more jobs. It's enough to look at the figures recently put out by the European Commission: small and mid-sized companies created 85 percent of all new jobs in the EU between 2002 and 2010. Consequently it lies with these companies to revive the market and create employment. The private sector must act. And the government must create the appropriate conditions. It must de-bureaucratise the authorisation procedure for companies and facilitate funding for key projects, thus creating a sound basis for companies to gain a foothold and grow."

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Naftemporiki - Greece | Tuesday, 28. February 2012

No one believes Greece can be saved

Rating agency Standard & Poor's on Monday declared Greece to be in "selective default" in view of the planned debt restructuring measures. Now hardly anyone believes Greece can be saved, the conservative business paper Naftemporiki complains: » more

Rating agency Standard & Poor's on Monday declared Greece to be in "selective default" in view of the planned debt restructuring measures. Now hardly anyone believes Greece can be saved, the conservative business paper Naftemporiki complains: "Apart from Finance Minister Evangelos Venizelos, who can now devote all his efforts to his political future [he is running for the office of leader of the Pasok party]. The markets don't believe we can be saved, the analysts don't and nor do our EU partners. Instead they express doubts again and again about Greece's ability to overcome the crisis. … And above all it is the citizens of this country who don't believe that they are being saved. They are trying to comprehend how great the suffering brought on by the new bailout package will be. And yet they are still struggling to come to terms with the wounds left by the first bailout package."

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All available articles from » Nikos Frantzis

Hospodárske noviny - Slovakia | Tuesday, 28. February 2012

Pressure on Merkel mounting over Greece policy

German Chancellor Angela Merkel displayed more reserve than previously in justifying the German contribution to the new bailout package for Greece, the business paper Hospodárske noviny writes, seeing the chancellor under pressure: » more

German Chancellor Angela Merkel displayed more reserve than previously in justifying the German contribution to the new bailout package for Greece, the business paper Hospodárske noviny writes, seeing the chancellor under pressure: "There is no guarantee that the new rescue package will be a success, Merkel said. In contrast to previous statements that sounds like an unexpected display of sincerity. ... This shift to a realistic assessment of the situation has to do with growing pressure within Germany. According to recent surveys 62 percent of Germans reject the package, compared to just 53 percent in September. And the pressure is also piling up on Merkel within her own ranks. Economics Minister Rösler of the [liberal coalition partner] FDP has long been criticising the Greeks. Now even Interior Minister Friedrich of the [CDU's conservative sister party] CSU has also recommended that the Greeks leave the Eurozone. Until now Merkel has stood up to her critics. But if she continues to ignore public opinion and the political pressure it could catch up with her in next year's general elections."

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All available articles from » Ivan Szabó

Corriere della Sera - Italy | Tuesday, 28. February 2012

Fate of euro in hands of voters

The German chancellor's failure to obtain an absolute majority in the parliamentary vote on the Greek bailout package demonstrates how rapid shifts in the political mood can endanger the euro, writes the liberal-conservative daily Corriere della Sera: » more

The German chancellor's failure to obtain an absolute majority in the parliamentary vote on the Greek bailout package demonstrates how rapid shifts in the political mood can endanger the euro, writes the liberal-conservative daily Corriere della Sera: "This is a reality check for Angela Merkel from which we can all learn a lesson. The gap between necessary measures and what the voters are willing to accept is growing. These tensions have long since posed the greatest threat to the European Union, which is essentially a technocratic elite project. Merkel will have to fight for her third mandate in the coming year. And in a few weeks a victory for the Socialist Hollande in France could put the recently passed fiscal pact on the line once more. In Greece, polls predict a victory for extremists, regardless of their precise hue, and in Italy no one knows who will be in government a year from now or whether in order to win they will have to promise to change the reform course already adopted. Not yet having escaped the financial markets, the euro is now in the hands of the voters."

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All available articles from » Antonio Polito

Geopolitika - Lithuania | Tuesday, 28. February 2012

Giedrius Česnakas says bureaucracy is EU's downfall

The economic crisis in Europe, with problem countries like Greece at the forefront, has kept us in a state of suspense for some time now but is actually only a symptom of difficulties of an entirely different nature, writes political scientist Giedrius Česnakas for the web portal Geopolitika: » more

The economic crisis in Europe, with problem countries like Greece at the forefront, has kept us in a state of suspense for some time now but is actually only a symptom of difficulties of an entirely different nature, writes political scientist Giedrius Česnakas for the web portal Geopolitika: "The crisis of the EU goes far deeper than its visible manifestation, the economic crisis. The structure of the EU basically predetermines its own failure, above all because there is no common European identity. The individual states have united to further their own pragmatic interests. … The history of the Union shows that when it comes to major conflicts of interest between member states the EU always reaches a dead end. The only way out has for the most part been to strengthen Brussels institutions, which at least boosted the EU's ability to function temporarily, but also ultimately had the effect of strengthening the bureaucratic apparatus and its influence. So the EU has gradually become a great block of bureaucracy which fosters even more bureaucracy, but not political responsibility. … It seems that Oscar Wilde's idea that bureaucracy expands to meet the needs of expanding bureaucracy applies to the EU more than it does anywhere else."

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Frankfurter Allgemeine Zeitung - Germany | Tuesday, 28. February 2012

Germany fighting on two fronts

Only 304 of the 330 MPs of the ruling coalition in Germany voted in favour of the second bailout package for Greece. This highlights the doubts about the policy adopted towards the debt-stricken country, writes the conservative Frankfurter Allgemeine Zeitung: » more

Only 304 of the 330 MPs of the ruling coalition in Germany voted in favour of the second bailout package for Greece. This highlights the doubts about the policy adopted towards the debt-stricken country, writes the conservative Frankfurter Allgemeine Zeitung: "For now a great majority can still be rustled up in the Bundestag who believe the Chancellor's story of the lesser evil - against the advice of a number of economics experts and the widespread and growing scepticism of the general population. Representatives of the people in particular are not immune to this scepticism. … So the fight to save the euro looks increasingly like a war on two fronts that will last indefinitely and holds the double risk of collapse: for how long can states like Greece stick to the required and in many aspects illusionary reform policy, which in some cases hasn't even begun to be put into practice? And for how long will the taxpayers in the creditor countries be willing and able to finance this kind of political-economic large-scale experiment. … But neither the Social Democrats nor the Greens came up with a better option than approving the government's motion."

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All available articles from » Berthold Kohler

WOZ - Die Wochenzeitung - Switzerland | Friday, 24. February 2012

Elmar Alvater calls for greater tax justice instead of bailouts

The second, 130 billion bailout package for Greece is the wrong approach, writes economics professor Elmar Altvater in the left-leaning weekly WOZ: » more

The second, 130 billion bailout package for Greece is the wrong approach, writes economics professor Elmar Altvater in the left-leaning weekly WOZ: "It would make more sense to improve the Eurozone area with an integration project. The goal should be balanced levels of productivity and incomes among all the member countries. A European industrial policy aimed at creating a green and united Europe is needed. The distribution of income and assets among the different classes and also among the different countries must be made more equitable, for example through heavier taxes on income and assets. This would stem the flow of exorbitant profits into the speculation kitties of the banks and funds. And the result would be fairer taxation in Europe instead of just more tax efficiency in Greece."

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La Vanguardia - Spain | Friday, 24. February 2012

Rehn seeks compromise with Spain

EU Economics Commissioner Olli Rehn forecast on Thursday that the Eurozone would enter a "mild recession" this year, and that Spain must reckon with negative growth of one percent. This prognosis is less negative than the anticipated two percent, nevertheless Spain must do all it can to emerge from the crisis, the daily newspaper La Vanguardia urges: » more

EU Economics Commissioner Olli Rehn forecast on Thursday that the Eurozone would enter a "mild recession" this year, and that Spain must reckon with negative growth of one percent. This prognosis is less negative than the anticipated two percent, nevertheless Spain must do all it can to emerge from the crisis, the daily newspaper La Vanguardia urges: "The EU Commission made a prognosis for 2012 that is less gloomy than expected for our country, fuelling the debate about the necessity of the government's austerity measures. The assumption was that the worse the prognosis was, the better this would be for Spain because it would induce Brussels to show more flexibility. But with wise diplomacy the Economics Commissioner, Olli Rehn, has demonstrated how to juggle our interests with northern Europe's desire for austerity. The EU Commission has pinned its hopes on compromise and negotiations. … Spain should accept Europe's outstretched hand and signal its willingness to reduce its deficit to below six percent to meet the stringent parts of Europe and also the markets half way."

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Ta Nea - Greece | Friday, 24. February 2012

Europe saving only the banks

In order to receive the next instalment of its loan in March Greece must contribute to its recovery by cutting around 3.3 billion euros in spending. The left-liberal daily Ta Nea explains why Europe's leaders are still insisting on tough austerity programmes for debt-stricken states: » more

In order to receive the next instalment of its loan in March Greece must contribute to its recovery by cutting around 3.3 billion euros in spending. The left-liberal daily Ta Nea explains why Europe's leaders are still insisting on tough austerity programmes for debt-stricken states: "The reason lies in a dirty secret: the fact of the matter is that the bailout packages are not really intended for the states, but for the banks. They won't save people but bankers. The economic and political elite can't admit this because the taxpayers, the workers and the pensioners who foot the bill would revolt. The elite prefers to maintain the illusion of success so that it doesn't have to suffer the pain - as Sigmund Freud once wrote. In this way it is simply postponing the inevitable collision with reality for later."

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Der Falter - Austria | Thursday, 23. February 2012

Raimund Löw sees EU collapsing in the crisis

The Greek crisis is changing the EU and endangering its former unity, warns Brussels correspondent Raimund Löw in the left-liberal weekly Der Falter: » more

The Greek crisis is changing the EU and endangering its former unity, warns Brussels correspondent Raimund Löw in the left-liberal weekly Der Falter: "The European integration which has provided the Continent with peaceful resolution of conflicts, economic expansion and open borders suddenly stands for brutal cuts in minimum wages and pension caps. So who is surprised to see the EU flag burning on Syntagma Square? … The structure of the EU, in which nation states call the shots on where the big money goes, is turning the tug of war over the allocation of financial crisis funds into a source of discord that drives a wedge between the nations. The US provides an example of how things could be done more effectively: the individual states repeatedly face bankruptcy, but the federal state is their best protection in such situations. … The EU's funding has saved the Greek state from bankruptcy, but not a single Greek can find a firm footing in the crisis. If this logic persists, the forces resisting Europe's collapse will soon be paralysed."

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Il Sole 24 Ore - Italy | Thursday, 23. February 2012

Luigi Guiso and Helios Herrera call for true fiscal union for Europe

The EU is trying to bring the euro crisis under control with a debt brake and sanctions for deficit sinners. But a true fiscal union must be built on much firmer ground, write economists Helios Herrera and Luigi Guiso in the business paper Il Sole 24 Ore: » more

The EU is trying to bring the euro crisis under control with a debt brake and sanctions for deficit sinners. But a true fiscal union must be built on much firmer ground, write economists Helios Herrera and Luigi Guiso in the business paper Il Sole 24 Ore: "The European monetary union lacks a mechanism to balance out trade deficits and trade surpluses. Without this balancing mechanism, or in other words without a true fiscal union, the monetary union will lose stability in the long term. And without intervention the monetary union will collapse in the foreseeable future. To prevent this the member states must unite to form a fiscal union in which the resources of the countries with trade surpluses are redistributed to those with trade deficits, from Germany to Greece. The global recession and the debt crisis have only aggravated and - earlier than expected - highlighted the problem of lacking fiscal union that had been latent ever since the creation of the euro."

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La Vanguardia - Spain | Thursday, 23. February 2012

Spanish as poor as Romanians and Latvians

The Spanish charity organisation Caritas on Wednesday published a report describing a dramatic rise in poverty in the country. Around a fifth of the Spanish population lives below the poverty line and a further quarter runs the danger of sinking below it. The austerity policy could cost Spain a lot of money, warns the daily newspaper La Vanguardia: » more

The Spanish charity organisation Caritas on Wednesday published a report describing a dramatic rise in poverty in the country. Around a fifth of the Spanish population lives below the poverty line and a further quarter runs the danger of sinking below it. The austerity policy could cost Spain a lot of money, warns the daily newspaper La Vanguardia: "The Caritas report on rising poverty in Spain and the growing gap between rich and poor is as devastating as it is predictable after four years of deep crisis in which unemployment has climbed to 23 percent. … Spain is already one of the countries with the highest levels of poverty in Europe, together with Romania and Latvia. … Social benefits and investments for those hardest hit by the crisis have been cut because Spain needs to balance its budget. But these cutbacks could have undesirable repercussions for Spanish society which prove to be much more costly in the long term."

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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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All available articles from » Timothy Garton Ash

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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All available articles from » Stefano Lepri

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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All available articles from » Robert Mayer

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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All available articles from » Giannis Politis

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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All available articles from » Giorgos Malouchos

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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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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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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More from the press review on the subject » EU Policy, » Domestic Policy, » Fiscal Policy, » Italy, » Europe
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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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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All available articles from » Alessandro Leipold

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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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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All available articles from » Isabella Bufacchi

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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More from the press review on the subject » Fiscal Policy, » Tax Policy, » Crime, » Greece

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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All available articles from » Petr Honzejk

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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All available articles from » Ronald Ižip

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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All available articles from » Guido Tabellini

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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More from the press review on the subject » EU Policy, » EU Constitution, » Fiscal Policy, » Czech Republic, » Europe
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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More from the press review on the subject » Financial Markets, » Banks, » Politics, » Europe

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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All available articles from » Peter Morvay

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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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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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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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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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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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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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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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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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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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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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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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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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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All available articles from » Miklós Blahó

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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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.

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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 interest rate in April and July of this year, writes the liberal weekly The Economist: "Maybe the single currency will survive. It will certainly be disastrous if it doesn't. But if the ECB manages to rescue the euro zone with a life-saving infusion of cash delivered via massive bond purchases, we shouldn't forget that it was the ECB that nearly killed it in the first place. This diagnosis obviously lets individual governments off the hook to some extent. ... The ECB alone regulates Eurozone demand. By engineering a contraction in demand to fight inflation, it likely coordinated a shift in market expectations concerning the solvency of several threshold economies. It's dangerous to walk alone at night in dodgy neighbourhoods, and it's dangerous to carry large debts within a system of fixed exchange rates. But just because a victim lived dangerously doesn't exonerate the fellow, or the central bank, that stuck in the knife."

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Blog Démystifier la finance - France | Wednesday, 30. November 2011

Merkel's hard line good for Europe

Germany continues to reject the idea of pooling the Eurozone's debts. Angela Merkel's hard line against euro bonds is good for Europe, writes the banker Georges Ugeux in his blog Démystifier la finance: » more

Germany continues to reject the idea of pooling the Eurozone's debts. Angela Merkel's hard line against euro bonds is good for Europe, writes the banker Georges Ugeux in his blog Démystifier la finance: "She went into politics to serve her country and her compatriots. For her, politics is a religion. She has principles and values, and even if she has had to compromise here or there, her actions have always been inspired by her convictions. She has a natural and healthy disregard for the lofty ideas of academics and advisors. She will not give in if she is convinced that Europe's interests and financial orthodoxy are in danger. ... I won't discuss Germany's method, which has annoyed its European partners more often than necessary. But Europe needs a compass, and a clear direction everyone can stick to. I don't know where we'd be if the German chancellor had heeded the reckless proposals of some of her European partners. Thank you madame ... and above all, hold your course!"

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La Stampa - Italy | Wednesday, 30. November 2011

Chancellor shows her iron fist

Leveraging the bailout fund is nothing more than a quick fix because saving the euro and Europe depends on Angela Merkel's willingness to allow the European Central Bank to become the lender of last resort, writes the liberal daily La Stampa: » more

Leveraging the bailout fund is nothing more than a quick fix because saving the euro and Europe depends on Angela Merkel's willingness to allow the European Central Bank to become the lender of last resort, writes the liberal daily La Stampa: "The real bailout plan has yet to be announced and it will be nine days [when the EU summit takes place] before we know more. There are widespread fears that Angela Merkel will continue with her strategy, which fits in with Germany's national interests and her own very personal election interests. Up to now those in the Eurozone's engine room, where the motors have ground to a halt, have only heard the Chancellor's droning No. But the kid gloves are slowly coming off to reveal the iron fist. ... Perhaps people are finally beginning to realise what kind of politician we are dealing with - unpredictable, inscrutable, stubborn - and above all who the leaders who want to save the euro and the European Community will be dealing with on December 9."

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Delfi - Estonia | Wednesday, 30. November 2011

Estonians worse off than Southern Europeans

The euro crisis has led Estonian media to talk too much about conditions in Southern Europe and turn a blind eye to the problems at home, writes the news portal Delfi: » more

The euro crisis has led Estonian media to talk too much about conditions in Southern Europe and turn a blind eye to the problems at home, writes the news portal Delfi: "Every day we read on the front pages how badly off Italy and Greece are. It's become all the rage, with the unfortunate result that Estonia's current problems such as the high level of poverty and the demographic transformation are swept under the rug. The fact is that the average Southern European is still better off than the average Estonian. The success of a state is measured by how well off its inhabitants are, and not by the level of debt. But now people are left with the impression that the situation is far worse elsewhere than in Estonia, and at every opportunity there's someone saying that Estonia is not to blame for the irresponsibility of other countries. But that just gives a false impression."

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Gazeta Wyborcza - Poland | Wednesday, 30. November 2011

Warsaw's farsighted support for Berlin

The Polish opposition leader Jarosław Kaczyński called for Foreign Minister Radosław Sikorski to be brought before a tribunal on Tuesday. The day before Sikorski had been the first member of the Polish government to say that Germany should take the helm in Europe's crisis. Adam Michnik, chief editor of the liberal daily Tageszeitung Gazeta Wyborcza, sides with Sikorski: » more

The Polish opposition leader Jarosław Kaczyński called for Foreign Minister Radosław Sikorski to be brought before a tribunal on Tuesday. The day before Sikorski had been the first member of the Polish government to say that Germany should take the helm in Europe's crisis. Adam Michnik, chief editor of the liberal daily Tageszeitung Gazeta Wyborcza, sides with Sikorski: "The swift and radical action Sidorski has called for could be risky but in his eyes to remain passive would be even more risky. These statements are an indication of the farsightedness of the Polish government and the start of an important European debate. The reaction of demagogic opposition of the type displayed by Kaczyński and [his former party colleague] Ziobro is pathetic and saddening. ... They brandish the threat of a Fourth Reich and a tribunal for Sikorski. The Polish minister responded that he was waiting for the proposals of the PiS [Kaczyński's party] as to how the EU can be saved. I doubt he was presented with any."

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Jornal de Negócios - Portugal | Monday, 28. November 2011

Fernando Sobral sees Europe's accountants dancing on a vulcano

Whenever Europe can't make its mind up the United States is called in, Fernando Sobral complains in the business paper Jornal de Negócios: » more

Whenever Europe can't make its mind up the United States is called in, Fernando Sobral complains in the business paper Jornal de Negócios: "Europeans are always criticising how culturally backwards the US is, but when the moment of truth arrives they adore Uncle Sam. ... Now the time has come to ask for help, however it's not General Custer's cavalry we need but some of those B52 bombers to drop dollar parcels on Europe. A Europe that is unable to persuade the ECB to fork out the money it needs. The Fed has no qualms like puritanical Europe. ... It puts money into circulation without getting nightmares about inflation. The fed has the 'hard power' the ECB lacks. The ECB is increasingly a bank with plastic money, that can be moulded to suit Germany's wishes. Those who say Germany's hands are tied because of its constitution should bear in mind that when Helmut Kohl pushed ahead with German reunification he didn't spend too much time looking at the accounts. His political impetus carried the economy along with it. Europe is different: it's afraid of its own shadow and still dancing on a volcano."

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Delo - Slovenia | Wednesday, 30. November 2011

German logic ignores reality

Germany has once more spoken out against euro bonds at the meeting of the Eurozone finance ministers in Brussels, and rejected plans for involving the European Central Bank fully in the euro bailout. Berlin is deliberately ignoring reality, writes the daily Delo: » more

Germany has once more spoken out against euro bonds at the meeting of the Eurozone finance ministers in Brussels, and rejected plans for involving the European Central Bank fully in the euro bailout. Berlin is deliberately ignoring reality, writes the daily Delo: "The problem with the German logic is that previous attempts at a solution haven't worked, and the fire could spread even further. If they rely on austerity measures alone, the indebted countries will neither become more competitive nor will they free themselves of debt. In addition, stricter budget controls and sanctions only function in the long term and have no impact on today's acute crisis. ... Only the European Central Bank can offer measures to help in the short term. ... Is Germany's fear of inflation and a loss of independence for the European Central Bank more justified than fears of the collapse of the entire system, with all the unforeseeable repercussions that implies?"

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Expansión - Spain | Tuesday, 29. November 2011

Franco-German axis unreliable

Rumours that Germany may approve the European Central Bank's taking on a more active role in the euro crisis had the effect of easing the pressure of the financial markets on Spain on Monday. However the liberal business paper Expansión points out that the credibility of Berlin and Paris has suffered in recent times: » more

Rumours that Germany may approve the European Central Bank's taking on a more active role in the euro crisis had the effect of easing the pressure of the financial markets on Spain on Monday. However the liberal business paper Expansión points out that the credibility of Berlin and Paris has suffered in recent times: "From one summit to the next the German-French axis makes extravagant promises that never materialise, provoking the ire of the markets and gambling away its credibility on the way. And not just with the investors but also with the European institutions. Yesterday the Spanish vice-president of the EU Commission, Joaquín Almunia, criticised Germany and France for failing to implement decisions that had been taken weeks ago, including making funds available for Greece, which urgently needs them within the next few days. In such a scenario the respite conceded by the markets yesterday may soon be over unless Europe finally turns its words into deeds."

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Die Welt - Germany | Tuesday, 29. November 2011

German leadership wanted and hated

Whether it's for leveraging the bailout fund, resisting the introduction of euro bonds or demanding budget discipline, the Germans will soon be the scapegoats for the entire euro crisis, the conservative daily Die Welt observes: » more

Whether it's for leveraging the bailout fund, resisting the introduction of euro bonds or demanding budget discipline, the Germans will soon be the scapegoats for the entire euro crisis, the conservative daily Die Welt observes: "For years the op-ed columns in Germany and abroad have been demanding that the Germans finally take on more leadership in the euro crisis. Now Angela Merkel has done just that everyone's still grumbling. In the UK some commentators are already talking of a 'Fourth Reich' in the making. The idea: what the Germans failed to accomplish in two world wars they're now achieving with the euro crisis: securing hegemony over Central Europe. The Junkers and Barrosos are annoyed because Merkel simply doesn't want to pay all of the Eurozone's bills. ... In France, too, Germanophobia is spreading. ... That doesn't mean Germany must give in to the pressure. But like every big power we must clearly state where we stand and avoid giving the impression that we always know better than the rest. Then it will be easier for us to accept one of the lessons of the American experience: big powers are never loved."

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La Repubblica - Italy | Tuesday, 29. November 2011

Obama sets EU's economic priorities

US President Barack Obama has promised to give the European Union Washington's support in the battle against the debt crisis. The United States was ready to "do its part", Obama said after a summit meeting with EU representatives on Monday in the White House. But the EU can only expect help if it adopts Obama's priorities, the left-liberal daily La Repubblica points out: » more

US President Barack Obama has promised to give the European Union Washington's support in the battle against the debt crisis. The United States was ready to "do its part", Obama said after a summit meeting with EU representatives on Monday in the White House. But the EU can only expect help if it adopts Obama's priorities, the left-liberal daily La Repubblica points out: "Firstly, growth must be promoted, secondly jobs must be created and thirdly financial stability must be guaranteed. In this order the priorities were laid down in the final declaration of the talks. They were clearly dictated by Barack Obama, and with this list the US president is deliberately turning the list of measures set by the financial markets upside down. Because budget cuts inevitably lead to a recession and Obama knows that in a recession the burden of sovereign debt inevitably grows because the gross domestic product drops, which determines the real economy's capacity to balance out the difference. This is why Obama has extracted a further key decision from the summit: the establishment of a special USA-EU working group to chart out joint strategies for growth and jobs."

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Blog Coulisses de Bruxelles - France | Tuesday, 29. November 2011

Merkel will remain firm

While the Eurozone finance ministers discuss today in Brussels among other things a leverage of the euro bailout fund, the EFSF, pressure is mounting on Germany to mutualise the debts of the Eurozone by means of euro bonds or new powers for the ECB. But the German government will stick firmly to its stance, Jean Quatremer predicts in his bog Coulisses de Bruxelles: » more

While the Eurozone finance ministers discuss today in Brussels among other things a leverage of the euro bailout fund, the EFSF, pressure is mounting on Germany to mutualise the debts of the Eurozone by means of euro bonds or new powers for the ECB. But the German government will stick firmly to its stance, Jean Quatremer predicts in his bog Coulisses de Bruxelles: "Like Molière's doctors, Angela Merkel believes that a bout of blood-letting in public finances along with the threat of a good lashing will get the ailing euro back on its feet. For the rest, the German chancellor wants neither financial solidarity among the Eurozone states - be it in the form of  euro bonds or unlimited powers of intervention for the European Central Bank - nor federalism that goes beyond a reinforcement of budget discipline. ... One must hope that the markets will share the chancellor's convictions. They would no doubt have desired a bit more than a return to the Treaty of Maastricht."

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Nasz Dziennik - Poland | Tuesday, 29. November 2011

Rating agencies a threat to nation states

The US rating agency Moody's warned for the first time on Monday that the crisis could also have a negative impact on the creditworthiness of ... » more

The US rating agency Moody's warned for the first time on Monday that the crisis could also have a negative impact on the creditworthiness of countries that are currently rated as stable. The omnipotence of the agencies is undermining the sovereignty of states, the national-Catholic daily Nasz Dziennik remarks. "It can't be ruled out that the other agencies will follow Moody's example. For only recently they demanded further drastic cuts. The heads of government know that their citizens won't accept a policy that saves the euro and the banks only at the taxpayers' expense. Therefore they will make their decisions without consulting the national parliaments or holding referendums. ... And this will be done under the pretext of combating the crisis. ... The ultimate goal will be the harmonisation of EU economic and financial policy, which is a top priority above all for the EU's main leaders. And in the end even a supranational economic government may emerge."

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De Volkskrant - Netherlands | Tuesday, 29. November 2011

Berlin must get a move on

The Netherlands has changed its negative stance on euro bonds, as Finance Minister Jan Kees de Jager announced earlier today. The Germans continue to oppose euro bonds, but austerity is the wrong approach in the current situation, the left-liberal daily De Volkskrant warns: » more

The Netherlands has changed its negative stance on euro bonds, as Finance Minister Jan Kees de Jager announced earlier today. The Germans continue to oppose euro bonds, but austerity is the wrong approach in the current situation, the left-liberal daily De Volkskrant warns: "First they said there was no need for more money, then the plan was for the Chinese and Indians to invest, and now that that might not happen after all Germany and its cronies want to call in the IMF. With all this going back and forth it remains unclear if additional money will be made accessible to countries like Italy and Spain to give them a temporary financial respite. As a result we're facing a situation in which Southern Europe adheres to its part of the agreements and starts introducing reforms and austerity programmes, while Northern Europe fails to make the money available that will allow them to continue on this path. It could be that strategic considerations are prompting Germany to wait before pulling out its wallet: first German discipline, then German money, the tactic seems to be. But the Germans now have little time left to prove that they're willing to make a substantial contribution to the euro bailout."

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The Guardian - United Kingdom | Tuesday, 29. November 2011

Ulrich Beck calls for less German nationalism in saving the euro

The euro crisis offers Europe the chance to become a democracy among neighbouring states rather than being a Europe of bureaucrats, writes sociologist Ulrich Beck in the left-liberal daily The Guardian: » more

The euro crisis offers Europe the chance to become a democracy among neighbouring states rather than being a Europe of bureaucrats, writes sociologist Ulrich Beck in the left-liberal daily The Guardian: "We should have no fear of direct democracy. Without transnational opportunities for interventions from below, without European referendums on European themes that send a shudder through the ocean liner Europe, the whole enterprise will fail. Why not have the president of the European commission directly elected by all European citizens on the same day, which would thus for the first time be European in the strict sense? ... How is a European democracy possible without disenfranchising the national parliaments? Assuming one recognises that implementing democratic rights involves and requires many paths, can the democratic empowerment of a cosmopolitan Europe be accompanied by a strengthening of its national democracies in the member states? The answer has to be that new Europe would not follow the model of German euro-nationalism but would be an emerging European Community of Democracies. And sharing sovereignty becomes a multiplier of power and democracy."

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Blog Sprengsatz - Germany | Monday, 28. November 2011

Germans like bulls in china shop

With their linguistic blunders the German politicians are behaving like bulls in a china shop in the debt crisis and stoking fears of an over-strong Germany across Europe, Michael Spreng writes in his blog Sprengsatz: » more

With their linguistic blunders the German politicians are behaving like bulls in a china shop in the debt crisis and stoking fears of an over-strong Germany across Europe, Michael Spreng writes in his blog Sprengsatz: "Fear of Germany ... can quickly turn virulent when prescriptions for cutting spending are accompanied by arrogant or insulting words. ... One of the worst remarks, which fortunately also met with an indignant response from his own faction, was that made by the chairman of the CDU/CSU parliamentary group Volker Kauder: 'Now all of a sudden German is being spoken in Europe', which was shortened to 'Europe now speaks German'. ... The nastiest remark, made by provincial demagogue Alexander Dobrindt, secretary general of the CSU, luckily went no further than the German border. Commenting on EU Commission President José Manuel Barroso's euro bond proposals he said: 'Barroso is turning himself into a soldier of the Dolce Vita states'. He could hardly have come up with a more all-embracing insult; Guido Westerwelle's talk of 'late Roman decadence' was almost harmless by comparison."

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Corriere della Sera - Italy | Monday, 28. November 2011

Antonio Puri Purini calls on Berlin to show its commitment to Europe

According to reports in the media the governments of Germany and France are working on a stability pact for the Eurozone that would protect thrifty countries that maintain budgetary discipline against the attacks of the financial markets. This division must be prevented in favour of a one-speed Europe, the former Italian ambassador to Germany Antonio Puri Purini urges in an open letter to Angela Merkel published by the liberal-conservative daily Corriere della Sera: » more

According to reports in the media the governments of Germany and France are working on a stability pact for the Eurozone that would protect thrifty countries that maintain budgetary discipline against the attacks of the financial markets. This division must be prevented in favour of a one-speed Europe, the former Italian ambassador to Germany Antonio Puri Purini urges in an open letter to Angela Merkel published by the liberal-conservative daily Corriere della Sera: "The moment of truth has come. A turn towards unity is necessary. ... Frau Merkel, please explain what Germany's goals are regarding common economic government and the strengthening of the Stability Pact. Add euro bonds and linking the bailout fund to the ECB to the list of stability measures. ... Explain the need for amending the EU treaties as a necessary step towards political unity. ... Limit the exclusive role of the German-French axis and enhance the European profile of your government. ... The chancellor of the country on which Europe's fate depends has the right to demand discipline from others, but she must in turn provide transparency and solidarity."

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Der Standard - Austria | Friday, 25. November 2011

Austria defends its top rating

The Austrian government plans to enshrine a debt limit in the constitution in a bid to defend the country's top credit status with the rating agencies. However for the debt brake to be passed into law at least one opposition faction must vote in its favour. The left-liberal daily Der Standard sees above all the Left under pressure to act: » more

The Austrian government plans to enshrine a debt limit in the constitution in a bid to defend the country's top credit status with the rating agencies. However for the debt brake to be passed into law at least one opposition faction must vote in its favour. The left-liberal daily Der Standard sees above all the Left under pressure to act: "The left-wingers who are now trying to stir up opposition against the debt brake bill with ostensible 'social arguments' are in reality afraid of the inevitable confrontation. They fear they will be the losers. But why should it be taken for granted that the social conflict over a sensible, efficient and just state without a debt dead-end is a lost cause from the outset? Or in other words: can only getting deeper and deeper into debt guarantee a social state, one that can also implement anti-cyclical growth strategies? If that's the case, then Good Night."

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De Volkskrant - Netherlands | Friday, 25. November 2011

Save the euro bonds for later

Issuing euro bonds is not the right approach to the euro crisis, writes the left-liberal daily De Volkskrant: » more

Issuing euro bonds is not the right approach to the euro crisis, writes the left-liberal daily De Volkskrant: "Issuing common bonds for the entire Eurozone could at most be the final step of a necessary integration of the euro countries. If countries like Spain and Italy don't get their budgets sorted out there will be little trust in the euro bonds. The proposals put forward by the European Commission on Wednesday offer a better approach to the problem. Commission President Barroso rightly points out that Europe must be in a position to take tough action when countries fail to put their budgets in order. For the doubting political leaders in Berlin and Paris this should be an incentive to overcome opposition to further integration. The euro bonds can come later."

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La Repubblica - Italy | Friday, 25. November 2011

Mario Monti strengthens Europe

Mario Monti's presence at the summit meeting in Strasbourg gives hope that it won't just be left to the Merkel-Sarkozy duo to decide the fate of the Eurozone, the left-liberal daily La Repubblica writes with relief: » more

Mario Monti's presence at the summit meeting in Strasbourg gives hope that it won't just be left to the Merkel-Sarkozy duo to decide the fate of the Eurozone, the left-liberal daily La Repubblica writes with relief: "Mario Monti has intervened in the Franco-German liaison, changing the dynamics of the European decision-making process. It sufficed for the Italian Prime Minister to side with Merkel on the question of the role of the European Central Bank to end the tug of war between Paris and Berlin that has crippled the duo on the Rhine for months. It sufficed for Monti - with harsh words directed at Berlin and Paris - to underline the importance of Europe's community principle to allay any suspicions that from now on a triumvirate would replace the Franco-German duo. ... There is hope that Italy's intervention won't lead to new blockades but will rather untie the knots and soften the positions."

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Frankfurter Rundschau - Germany | Friday, 25. November 2011

Merkozy present joint front for Europe

The meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy in Strasbourg has shown that they both need each other in the debt crisis, the left-liberal daily Frankfurter Rundschau writes: » more

The meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy in Strasbourg has shown that they both need each other in the debt crisis, the left-liberal daily Frankfurter Rundschau writes: "Whereas before the differences were often provocatively underlined, now they're covered up, played down - or talked away. In Strasbourg Sarkozy no longer put forward even tentative arguments for euro bonds, the joint shares for the Eurozone so heartily rejected by Merkel. Nor did he make any reference to the expansion of the European Central Bank's competences he had hoped for. Instead he professed his commitment to the independence of the ECB with such eloquence that Merkel herself couldn't have done a better job. For her part the Chancellor called for a European fiscal union, as envisaged by her host, as if simply harmonising the tax systems could permanently end the crisis. ... At least the two know that they need each other. And they're acting accordingly - more consistently than ever. That's all we can expect for now. But in times of crisis that's already plenty."

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Le Soir - Belgium | Friday, 25. November 2011

Belgium on the road to hell

As the yield on Belgian sovereign bonds now lies at 5.5 percent and will no doubt continue to rise, the Belgian transitional government has called on citizens to purchase government bonds. The left-liberal daily Le Soir draws a grim parallel: » more

As the yield on Belgian sovereign bonds now lies at 5.5 percent and will no doubt continue to rise, the Belgian transitional government has called on citizens to purchase government bonds. The left-liberal daily Le Soir draws a grim parallel: "The nationalist knee-jerk reactions and the resulting mutual accusations bring back some nasty memories. Comparisons are never perfect, nevertheless: in 1928 and 1929 the withdrawal of American capital played a determining role in plunging Weimar Germany into economic crisis and the hell that ensued. ... While Europe remains incapable of agreeing on a project for euro bonds - a potential solution for getting out of the crisis - must we really resort to the patriotic purchase of state bonds, a concept that has financed more than one war? This is a very sinister allegory of the situation into which our Europe has got itself."

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Cinco Días - Spain | Friday, 25. November 2011

Berlin and Paris speed up euro rescue

With the goal of creating a fiscal union and tougher sanctions for deficit sinners Berlin and Paris are setting a new pace, comments the left-liberal business paper Cinco Días: » more

With the goal of creating a fiscal union and tougher sanctions for deficit sinners Berlin and Paris are setting a new pace, comments the left-liberal business paper Cinco Días: "Europe is advancing rapidly towards the full imposition of budgetary discipline and anyone who can't or doesn't want to see this risks being left behind or travelling in second class. ... Berlin and Paris have confirmed that come what may they will present a joint proposal for amending the EU treaties [at the EU summit] on December 9 with the goal of reinforcing economic government, moving towards a fiscal union and enshrining budgetary discipline in the treaties. Both Merkel and Sarkozy claimed that their proposal is almost ready for presentation and that they have no intention of making their plans contingent on the approval of their EU partners."

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Les Echos - France | Friday, 25. November 2011

ECB sadly remains independent

Angela Merkel and Nicolas Sarkozy stressed the independence of the ECB At their summit meeting in Strasbourg. This stance will prevent a quick solution to the European debt crisis, the business paper Les Echos admonishes: » more

Angela Merkel and Nicolas Sarkozy stressed the independence of the ECB At their summit meeting in Strasbourg. This stance will prevent a quick solution to the European debt crisis, the business paper Les Echos admonishes: "The true challenge was to put an end to the tug of war over the role of the European Central Bank, so as to prevent the Eurozone crisis from proving right all those who are already busy writing the single currency's obituary. ... Angela Merkel didn't budge an inch. But she did grudgingly accept a ceasefire with Nicolas Sarkozy: a pact of silence was agreed, with no one telling the ECB what to do, either one way or the other. Meaning that the Central Bank is to be left to its own devices. Paris is persuaded that the ever worsening situation will force Mario Draghi to open his coffers. The problem is that, today as in the past, the keys are in Berlin and time is ticking."

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Gazeta Wyborcza - Poland | Friday, 25. November 2011

Junk status for Portugal no surprise

The US rating agency Fitch lowered Portugal's credit rating to junk status on Thursday. In a commentary for the left-liberal daily Gazeta Wyborcza financial market analyst Arkadiusz Wiśniewski of the Polish investment company DMK Alpha is unperturbed by the news: » more

The US rating agency Fitch lowered Portugal's credit rating to junk status on Thursday. In a commentary for the left-liberal daily Gazeta Wyborcza financial market analyst Arkadiusz Wiśniewski of the Polish investment company DMK Alpha is unperturbed by the news: "The reaction to the downgrading was muted for several reasons: firstly, Portugal is not a big state in the Eurozone. And as one of the PIGS countries it was expected to run into problems. Its gross domestic product is even lower than that of Greece. This means that what happened in this country on Thursday was only of minor importance. The second reason is that the attention of the investors was focused on the meeting of Italy's new prime minister Mario Monti with German Chancellor Angela Merkel and French President Nicolas Sarkozy. The main topic during these talks was how to contain the debt crisis in the Eurozone."

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Diário Económico - Portugal | Friday, 25. November 2011

Strike won't change Portugal's austerity plans

Portuguese employees staged a general strike on Thursday in protest at the government's austerity programme. The 24-hour strike was called by the country's two biggest confederations of trade unions. But it won't change the basic situation in the country, writes the business paper Diário Económico: » more

Portuguese employees staged a general strike on Thursday in protest at the government's austerity programme. The 24-hour strike was called by the country's two biggest confederations of trade unions. But it won't change the basic situation in the country, writes the business paper Diário Económico: "Are we better off today than than we were yesterday? No, no, and no. ... There's no point concentrating on the bickering between the government and the unions over the number of protesters. A general strike is a strike, and has an impact on the economy and people's lives. ... There's also no point discussing what a one-day general strike costs - because it's just one day. ... And striking is a basic right, not a cost factor. But the general strike creates a different set of problems. ... From abroad we look like Greece for a day. The world saw images of a country out of order, one that doesn't understand what's at stake. Luckily that's not the way things are. ... For that reason the government won't make any changes to the austerity programme for the coming years."

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The Economist - United Kingdom | Friday, 25. November 2011

Merkel must come to her senses

Germany must agree to a debt mutualisation in the Eurozone or else the whole euro project will be doomed to failure, writes the liberal weekly magazine The Economist: » more

Germany must agree to a debt mutualisation in the Eurozone or else the whole euro project will be doomed to failure, writes the liberal weekly magazine The Economist: "One promising idea ... is to mutualise all euro-zone debt above 60% of each country's GDP, and to set aside a tranche of tax revenue to pay it off over the next 25 years. Yet Germany, still fretful about turning a currency union into a transfer union in which it forever supports the weaker members, has dismissed the idea. This attitude has to change, or the euro will break up. Fears of moral hazard mean less now that all peripheral-country governments are committed to austerity and reform. Debt mutualisation can be devised to stop short of a permanent transfer union. Mrs Merkel and the ECB cannot continue to threaten feckless economies with exclusion from the euro in one breath and reassure markets by promising the euro's salvation with the next. Unless she chooses soon, Germany's chancellor will find that the choice has been made for her."

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La Repubblica - Italy | Thursday, 24. November 2011

Berlin's non-solidarity principle

German Chancellor Angela Merkel has harshly criticised the plans for introducing euro bonds. This position shows a lack of solidarity and is increasingly anti-European, the left-liberal daily La Repubblica complains: » more

German Chancellor Angela Merkel has harshly criticised the plans for introducing euro bonds. This position shows a lack of solidarity and is increasingly anti-European, the left-liberal daily La Repubblica complains: "The way in which Germany is controlling the EU is taking on ever more worrying dimensions. The disturbing thing about the Merkel government's strategy is the grim determination with which it clings to it in the euro and debt crisis. More than an idea, it's an ideology deeply entrenched in German economic culture that goes back to the phase between the two world wars. According to this doctrine each state must clean up its own backyard before it can expect international cooperation and solidarity. In the eyes of the proponents of this doctrine, international institutions, including the European Union, are not meant to support a common policy but above all serve the purpose of reciprocal supervision."

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El País - Spain | Thursday, 24. November 2011

Antón Costas and Xosé Carlos Arias hear the swansong of neo-liberalism

Neo-liberal economic policy is holding sway even after the 2008 financial crisis, the Spanish economists Antón Costas and Xosé Carlos Arias note with surprise in the left-liberal daily El País, hoping it will soon come to an end: » more

Neo-liberal economic policy is holding sway even after the 2008 financial crisis, the Spanish economists Antón Costas and Xosé Carlos Arias note with surprise in the left-liberal daily El País, hoping it will soon come to an end: "It's surprising to see what is happening with economic conservatism. Although many had expected the 2008 crisis to be its doom, like a phoenix it has risen from the ashes and is defining our countries' economic policies - now under the guise of 'austerity policy'. Given that the crisis seemed to be the chance progressive politics had been waiting for to regain control after two decades of conservative rule, this swift comeback is an intriguing fact. ... With any luck the doctrine of austerity will turn out to be the swansong of economic conservatism before it is pushed aside by a new 'New Deal' between politics and the markets. There are many reasons to hope this is the case." 

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Eleftherotypia - Greece | Thursday, 24. November 2011

Samaras signs death sentence

Antonis Samaras, leader of Greece's conservative Nea Demokratia party, gave his written support for long-term austerity measures in compliance with EU demands on Wednesday. With this move he has sentenced his party and Greek politics as a whole to death, writes the left-liberal daily Eleftherotypia: » more

Antonis Samaras, leader of Greece's conservative Nea Demokratia party, gave his written support for long-term austerity measures in compliance with EU demands on Wednesday. With this move he has sentenced his party and Greek politics as a whole to death, writes the left-liberal daily Eleftherotypia: "The two major parties, Pasok and Nea Demokratia, will now faithfully pursue the austerity policy even though it has proved catastrophic for our economy. ... The two major parties are therefore signing the end of their policies, and perhaps even their own death sentences. On the face of it this may come as a relief for all those Greeks who have long since realised that the two-party system in Greece was on its last legs. ... But the political forces, especially those on the Left, that oppose the austerity programme dictated by the EU and the International Monetary Fund are disunited. They have no joint alternative proposal and no policy to offer, and nor are they willing to cooperate with each other."

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Népszabadság - Hungary | Thursday, 24. November 2011

Germany dominates EU policy

Germany is increasingly calling the shots in the European debt crisis, which means the EU has not changed at all in structural terms, the left-liberal daily Népszabadság comments: » more

Germany is increasingly calling the shots in the European debt crisis, which means the EU has not changed at all in structural terms, the left-liberal daily Népszabadság comments: "'We must behave like the Germans', Nicolas Sarkozy said when he announced austerity measures in France at the end of October. This wasn't a joke. Against the backdrop of the crisis the European Union is increasingly being steered by Berlin. And it will probably have to be adapted to the German model to remain functional. This is making many countries nervous. In view of the rising number of technocratic governments, which are not least a consequence of German dictates, complaints about the lack of democratic controls is are gaining momentum. The critics forget, however, that the EU has always been led by the elites." 

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Süddeutsche Zeitung - Germany | Thursday, 24. November 2011

Brussels harms the euro

EU Commission President Barroso has made the euro crisis worse with his proposals for introducing common bonds, the left-liberal daily Süddeutsche Zeitung writes: » more

EU Commission President Barroso has made the euro crisis worse with his proposals for introducing common bonds, the left-liberal daily Süddeutsche Zeitung writes: "Instead of opening a debate on the right way out of the crisis, all he's done is to force the government in Berlin to toughen its already stiff stance. Rather than building bridges, Barroso has slammed a door shut. Never in the history of the EU has a German head of government given a Commission president such a public dressing down as Angela Merkel has done with Barroso. Since the German chancellor is not exactly known for hot-tempered spontaneity, she must have considered the provocation very great indeed. ... It can only hurt Europe for the Commission to pick a fight with the very country that is obliged to play the key role in overcoming the crisis. It's also absurd for Brussels to displease the one head of government who - unlike her French and British colleagues - is doing her best to hold the EU together as a single entity."

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Cinco Días - Spain | Thursday, 24. November 2011

Commission uses carrot and stick

The EU Commission on Wednesday presented two bills for expanding Brussels' control over national budgets and adherence to the Stability Pact. At the same time the possibility of introducing euro bonds was weighed up. The business paper Cinco Días praises this double strategy: » more

The EU Commission on Wednesday presented two bills for expanding Brussels' control over national budgets and adherence to the Stability Pact. At the same time the possibility of introducing euro bonds was weighed up. The business paper Cinco Días praises this double strategy: "Applying the age-old principle of the carrot and the stick, the European Commission yesterday approved two projects for controlling budgetary policy that will be crucial for the short term - these are the stick - and presented the basis for a future solution to the problem of financing the sovereign debt of the Eurozone - euro bonds - as an appetising carrot. The measures for tightening budgetary supervision initiated in Brussels, which could be ready to put into practice in 2012, represent the biggest quantitative and qualitative leap since the creation of the single currency."

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De Volkskrant - Netherlands | Thursday, 24. November 2011

Michiel van Hulten for a two-speed Europe

The debt crisis has shown that the European Union in its current form has failed, the former social democratic member of the European Parliament Michiel van Hulten writes in the left-liberal daily De Volkskrant, and argues in favour of a two-speed Europe: » more

The debt crisis has shown that the European Union in its current form has failed, the former social democratic member of the European Parliament Michiel van Hulten writes in the left-liberal daily De Volkskrant, and argues in favour of a two-speed Europe: "That would mean a new start for European co-operation. It would account for the major differences between the member states, and even the UK would finally feel like it belonged in a less compulsory Europe. On the other hand countries that want to can engage in closer co-operation. That would provide a credible answer to those who say the EU project is as megalomaniac as it is undemocratic. And the EU candidate countries will have the prospect of speedier entry. For the moment all eyes are on the euro bailout. But if we want Europe to play a meaningful role in the future and not be swallowed up by the rhetoric of left-wing and right-wing populists, a genuine new beginning is unavoidable."

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Les Echos - France | Thursday, 24. November 2011

German bond fiasco good for EU

Germany has long been considered a safe haven for investors. However the country was unable to sell about 35 percent of the ten-year bonds it offered to the market on Wednesday. This cloud has a silver lining, writes the business paper Les Echos: » more

Germany has long been considered a safe haven for investors. However the country was unable to sell about 35 percent of the ten-year bonds it offered to the market on Wednesday. This cloud has a silver lining, writes the business paper Les Echos: "The crisis has reached Germany. Certainly, it is not pleasant to see that hypotheses of a pan-European recession are being validated or that the last Eurozone haven is disappearing. Nevertheless this new factor will oblige Berlin to change its stance. Caught up in the crisis, Germany can no longer present itself as a paragon of virtue vis-á-vis poorer states. Soon it will have to give up its elitist isolation and lend a more attentive ear to its partners' proposals for finding a way out of the debt crisis. Starting with assigning the ECB the role of lender of last resort, that is to say authorising it to buy sovereign bonds as soon as they are issued. Which by the way was precisely what the Bundesbank rushed to do yesterday to compensate for the lacking appetite of investors."

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All available articles from » François Vidal

The Times - United Kingdom | Wednesday, 23. November 2011

Germany declares war on the EU

Backed by Germany's Bundesbank German Chancellor Angela Merkel has declared war on the other EU states, writes the conservative daily The Times: » more

Backed by Germany's Bundesbank German Chancellor Angela Merkel has declared war on the other EU states, writes the conservative daily The Times: "The Bundesbank policy on the euro crisis is to present the other countries of Europe with a stark ultimatum: either they accept German economic directives, German monetary theories, German financial practices and even governments imposed by Germany as part of a draconian regime to deal with national insolvency. Or they must face financial chaos and expulsion from the eurozone, under a new exclusion procedure now demanded for nations that refuse to submit to German rules."

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Süddeutsche Zeitung - Germany | Wednesday, 23. November 2011

Europe not ready for common bonds

Common bonds will tempt governments to get into more debt, the left-liberal daily Süddeutsche Zeitung warns, "because national governments won't have to suffer the consequences of mismanagement, such as higher central bank interest rates, as they did with the lira and the drachma. ... Common bonds would only be acceptable if there is someone to automatically stop governments from incurring debts. But who would that someone be? Commission President Barroso wants to do it himself. The Portuguese wants to limit deficits. The problem is: » more

Common bonds will tempt governments to get into more debt, the left-liberal daily Süddeutsche Zeitung warns, "because national governments won't have to suffer the consequences of mismanagement, such as higher central bank interest rates, as they did with the lira and the drachma. ... Common bonds would only be acceptable if there is someone to automatically stop governments from incurring debts. But who would that someone be? Commission President Barroso wants to do it himself. The Portuguese wants to limit deficits. The problem is: so far the governments haven't transferred enough of their sovereignty to the EU for it to be able to stop them getting into debt. Exactly fifteen years ago, the German finance minister Theo Waigel set up a deficit ceiling in the monetary union. But that didn't stop  many southern European states from hitting the gas pedal once they had the single currency anyway."

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All available articles from » Alexander Hagelüken

Blog Conversation avec Jacques Attali - France | Sunday, 20. November 2011

An end to Berlin's blockade

Germany benefits greatly from Europe and so should end its blockade of common euro bonds, writes Jacques Attali in his blog Conversation with Jacques Attali: » more

Germany benefits greatly from Europe and so should end its blockade of common euro bonds, writes Jacques Attali in his blog Conversation with Jacques Attali: "Berlin must understand three things if it doesn't want to plunge Europe into chaos once again. Firstly: Germany is not the best pupil in the EU, who is being forced to pay for the others' mistakes. German public debt is at 82 percent of GDP and consequently almost as high as France's. Secondly: Germany profits the most from Europe. The EU co-financed the reunification and allowed Germany to become a top dog in exporting agricultural products, because it employs workers from Eastern Europe at the wages they're used to getting back home, which France neither wants to do nor can do. Thirdly: Germany stands to lose a great deal in leaving the Eurozone."

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Lietuvos rytas - Lithuania | Wednesday, 23. November 2011

Vytautas Plečkaitis sees Lithuania in Europe's top league

Against the backdrop of the debate about a two-speed Europe the former Lithuanian ambassador Vytautas Plečkaitis calls for Lithuania to become more integrated in Europe: » more

Against the backdrop of the debate about a two-speed Europe the former Lithuanian ambassador Vytautas Plečkaitis calls for Lithuania to become more integrated in Europe: "In converting to the euro Estonia has already decided to adopt the German rules and together with Finland has opted for a more deeply interconnected Europe. ... More Europe means in my opinion also more solidarity, a Western work culture, responsibility and high standards for oneself as well as more respect for other people. More Europe would also bring about quicker modernisation and open up our society, and this would promote freedom and equality as well as tolerance towards people with different backgrounds. ... Already today there are plenty of Lithuanian citizens who appreciate Russian culture - but not the authoritarian tendencies in Russia -, who want to know more about Polish culture, who respect the Germans' orderliness, their discipline and their engineering skills, culture and literature and who love French poetry and Paris. All this should not be concealed, nor should we be afraid of such feelings. ... And for this to be the case Lithuania needs more Europe and to play in Europe's premier league."

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Il Sole 24 Ore - Italy | Wednesday, 23. November 2011

Merkel jeopardising euro rescure

Angela Merkel once again rejected the idea of introducing Euro bonds on Tuesday. The German Chancellor's stance is endangering the entire Eurozone, the business paper Il Sole 24 Ore criticises: » more

Angela Merkel once again rejected the idea of introducing Euro bonds on Tuesday. The German Chancellor's stance is endangering the entire Eurozone, the business paper Il Sole 24 Ore criticises: "The innovative character of the common bond has not yet been recognised. It consists in their covering bonds through tangible assets like gold reserves, public infrastructure and stakes in state-owned real estate. The fact that the debtor countries too would also give guarantees - Italy would cover up to 180 billion euros - should convince the Germans of the merits of the proposal. Moreover the Eurozone is clearly facing a growing number of threats - in particular France. The danger of a collapse of the monetary union is still present. This would have negative repercussions for the German economy, whose projected debt of 2.159 billion euros for 2013 is by no means a pittance."

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All available articles from » Marco Fortis

Le Monde - France | Wednesday, 23. November 2011

Sarkozy's Europe policy disregards the people

Italy's Prime Minister Mario Monti on Tuesday distanced himself from the German and French conceptions of European policy. And it's a good thing, too, writes the left-liberal daily Le Monde: » more

Italy's Prime Minister Mario Monti on Tuesday distanced himself from the German and French conceptions of European policy. And it's a good thing, too, writes the left-liberal daily Le Monde: "Sarkozy would like to realise the old French dream of a political union concentrated around the euro and led by the European heads of state and government. But such a French Europe does not tally with Merkel's democratic, federal Europe, nor with Monti's liberal one. ... Reducing the Eurozone to deliberations behind closed doors by its leaders runs the risk of provoking a popular revolt: the people fear that France and Germany will have all the say along with the markets, while the governments of the south collapse one after another. Berlin and Rome will not be the only ones to say no to Sarkozy. His neo-Gaullist regression may reconcile the French with Europe during election time, but it will not be accepted by Europe."

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All available articles from » Arnaud Leparmentier

Gazeta Wyborcza - Poland | Wednesday, 23. November 2011

Euro bonds won't help Poland

Euro bonds could work against Poland, the German economist Hans-Bernd Schäfer and his Polish colleague Arkadiusz Radwan argue in the left-liberal daily Gazeta Wyborcza: » more

Euro bonds could work against Poland, the German economist Hans-Bernd Schäfer and his Polish colleague Arkadiusz Radwan argue in the left-liberal daily Gazeta Wyborcza: "Euro bonds must also be considered from the perspective of Poland's competitiveness on the bond market. If the euro bonds are introduced and meet with a positive response from investors across the world Poland's competitiveness on the bond market will be relatively reduced. This could increase the cost of financing the budget deficit. The introduction of euro bonds is therefore not in Poland's interest. However if it does come to this it will raise the question of whether Poland should try to join this system. The answer to that depends on how optimistic one is about the strength of the Polish economy and how Polish debts will develop."

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To Ethnos - Greece | Monday, 21. November 2011

Athens must keep its promise

During his first visit to the EU in Brussels as Greece's new prime minister Lucas Papademos aimed to instil trust in his government. However he turned up without a written affirmation that Greece's two main parties would implement the austerity measures in the long-term. The left-liberal daily To Ethnos appeals to the leader of the conservative party Nea Demokratia, Antonis Samara, to sign the declaration: » more

During his first visit to the EU in Brussels as Greece's new prime minister Lucas Papademos aimed to instil trust in his government. However he turned up without a written affirmation that Greece's two main parties would implement the austerity measures in the long-term. The left-liberal daily To Ethnos appeals to the leader of the conservative party Nea Demokratia, Antonis Samara, to sign the declaration: "Those who believe that by participating in government they can annul decisions that have already been made and have them renegotiated are hindering the prime minister in his work. The decision [at the EU summit] of October 26th has been taken. ... The economic situation demands that the EU and IMF give the go-ahead for the loans they have promised soon. For this to happen we must be consistent and stick to the promises we made to our creditors back then."

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Frankfurter Allgemeine Zeitung - Germany | Tuesday, 22. November 2011

Merkel must seriously consider euro bonds

EU Commission President José Manuel Barroso plans to propose three variants of euro bonds on Thursday, which he calls stability bonds. This change of name is a euphemistic attempt to pool the Eurozone's debts, writes the conservative daily Frankfurter Allgemeine Zeitung, adding that the plan should nevertheless be given due consideration: » more

EU Commission President José Manuel Barroso plans to propose three variants of euro bonds on Thursday, which he calls stability bonds. This change of name is a euphemistic attempt to pool the Eurozone's debts, writes the conservative daily Frankfurter Allgemeine Zeitung, adding that the plan should nevertheless be given due consideration: "It bespeaks the hope that there is after all an instrument which can calm the financial markets - now that the EFSF leverage has barely had any effect and the only other option seems to be the money press. ... If things were business as usual in Europe, the initiative would die a quick death in the courts. Now, however, too many 'stability instruments' are under discussion. There is a danger that the German government will be left with the choice between cholera and the plague, or between euro bonds and a further expansion of the EFSF. The Brussels plan could create more momentum than the Chancellor cares to see."

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All available articles from » Werner Mussler

Blog Antes pelo Contrário - Portugal | Monday, 21. November 2011

Portugal sells its soul to Angola

Portuguese Prime Minister Pedro Passos Coelho attended talks in Luanda, Angola's capital, last Thursday to discuss the country's offer to help the former colonial power out of its debt crisis. Angola had previously announced its intention of buying Portuguese government bonds and shares in its energy companies. Daniel Oliveira warns the premier not to enter a pact with the devil in his blog Antes pelo Contrário: » more

Portuguese Prime Minister Pedro Passos Coelho attended talks in Luanda, Angola's capital, last Thursday to discuss the country's offer to help the former colonial power out of its debt crisis. Angola had previously announced its intention of buying Portuguese government bonds and shares in its energy companies. Daniel Oliveira warns the premier not to enter a pact with the devil in his blog Antes pelo Contrário: "Angola is one of the world's main oil exporters and one of the richest countries in Africa, however it ranked 148th in the Human Development Index and two-thirds of its population live on two dollars a day. Economic crimes and violent crimes are part of everyday life, and the Angolan economy is dominated by the mafia. ... The deal is bad for Portugal and bad for Angola. Here it would ensure the 'criminalisation' of the economy while there it would lead to the embezzlement of state funds - in a country that urgently needs to improve the living standards of its citizens. ... Angola looks like the hen that lays the golden eggs but by maintaining a promiscuous relationship with the dictator in Luanda we are selling our souls to the devil."

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Népszabadság - Hungary | Saturday, 19. November 2011

Premier Orbán fails due to crisis

Under the pressure of the European debt crisis Hungary on Friday initiated talks with the International Monetary Union and the European Union about receiving financial aid. It's high time Prime Minister Viktor Orbán stepped down, writes the left-liberal daily Népszabadság: » more

Under the pressure of the European debt crisis Hungary on Friday initiated talks with the International Monetary Union and the European Union about receiving financial aid. It's high time Prime Minister Viktor Orbán stepped down, writes the left-liberal daily Népszabadság: "The head of government and his loyal supporters have not only undermined the democratic system of institutions and arbitrarily nationalised the private pension funds but also created laws with retrospective effect. ... The government has trampled freedom underfoot. All those commentators who defended the government's measures always used the following argument: this is the price to be paid for bringing the economy up to scratch and achieving economic independence. ... Orbán's project has however been ineffective. The government has therefore weakened the foundations of civic democracy for nothing. Orbán must go."

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All available articles from » Péter Pető

El País - Spain | Monday, 21. November 2011

Crisis forces Rajoy to act quickly

After his landslide election victory Spain's prime minister designate Rajoy must finally explain how he plans to lead his country out of the crisis, the left-liberal daily El País demands: » more

After his landslide election victory Spain's prime minister designate Rajoy must finally explain how he plans to lead his country out of the crisis, the left-liberal daily El País demands: "Rajoy clinched the victory by using his campaign speeches to hold together his heterogeneous base without mobilising Socialist voters against him. That may have been enough to win over the electorate, but there's more to governing than that. If his enormous support all of a sudden dwindles it could be disastrous, not only for the PP but for the entire country, above all when people realise their country is on the verge of a crisis from which it cannot emerge without huge cuts. Rajoy avoided saying this in the campaigning, stressing instead the advantages of a change of leadership. The poor economic situation is now forcing him to state matters clearly. He must waste no time in clarifying his programme and appointing the team that is to carry it out."

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Süddeutsche Zeitung - Germany | Monday, 21. November 2011

Merkel's dominance can torpedo EU reform

German Chancellor Angela Merkel spoke out several times last week in favour of changing the Treaty of Lisbon and giving the European Court of Justice the last say on the budget policies of the euro countries and the right to impose sanctions. A hopeless plan, writes the left-liberal daily Süddeutsche Zeitung, as French President Nicolas Sarkozy "would prefer to pressure Merkel finally to unblock the money press at the European Central Bank. But he's not because he hopes to be re-elected in the spring. After all, if he were to go against the chancellor and her reform plan the resulting row would be enough for France to lose its AAA rating. Sarkozy would be chased out of power. As a result, Merkel finds herself in a relatively predictable situation. But she may tend to underestimate what is ultimately a decisive factor: » more

German Chancellor Angela Merkel spoke out several times last week in favour of changing the Treaty of Lisbon and giving the European Court of Justice the last say on the budget policies of the euro countries and the right to impose sanctions. A hopeless plan, writes the left-liberal daily Süddeutsche Zeitung, as French President Nicolas Sarkozy "would prefer to pressure Merkel finally to unblock the money press at the European Central Bank. But he's not because he hopes to be re-elected in the spring. After all, if he were to go against the chancellor and her reform plan the resulting row would be enough for France to lose its AAA rating. Sarkozy would be chased out of power. As a result, Merkel finds herself in a relatively predictable situation. But she may tend to underestimate what is ultimately a decisive factor: the resistance against German predominance. Germany is more powerful than ever before in Europe; never in the history of modern Europe has Germany been perceived as being so almighty. This situation cries out to be corrected."

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All available articles from » Stefan Kornelius

Les Echos - France | Monday, 21. November 2011

Draghi's reserve harms ECB's credibility

Mario Draghi, head of the European Central Bank, stated on Friday at the Frankfurt European Banking Congress that the ECB could not purchase the bonds of highly indebted states indefinitely without jeopardising its credibility. But the central bank's credibility is harmed precisely by such a reserved policy, the business paper Les Echos writes: » more

Mario Draghi, head of the European Central Bank, stated on Friday at the Frankfurt European Banking Congress that the ECB could not purchase the bonds of highly indebted states indefinitely without jeopardising its credibility. But the central bank's credibility is harmed precisely by such a reserved policy, the business paper Les Echos writes: "At a juncture when three crisis countries - Greece, Italy and Spain - now almost simultaneously have new governments that are fully aware of the sacrifices to come, it is vital to give them a little time. But today the price of time - the interest rate - is exorbitant for these countries and is leading them into perdition. What virtue is there in impassively watching them perish? ... The ECB should ask itself how much credibility it would have left if the Eurozone, whose stability it helps ensure, were to collapse."

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All available articles from » Nicolas Barré

Corriere della Sera - Italy | Monday, 21. November 2011

Indignants help Conservatives to win

The Spanish Socialists suffered massive losses in the parliamentary elections, obtaining just 29 percent of the vote. The movement of the Indignant also played a part in the Socialist debacle, writes the liberal-conservative daily Corriere della Sera: » more

The Spanish Socialists suffered massive losses in the parliamentary elections, obtaining just 29 percent of the vote. The movement of the Indignant also played a part in the Socialist debacle, writes the liberal-conservative daily Corriere della Sera: "Inexperience, the tendency to improvise and Zapatero's U-turn on tackling the crisis explain the negative judgement pronounced by many Spaniards who didn't belong to the Indignant movement against his rule. But it's obvious that the centre-left governments are no longer under threat just from the traditional parties of the far left who foster the rules of democracy, but also from movements that don't respect these rules any more or exploit them opportunistically. ... They wield their power by abstaining from voting. The Indignant sent a clear message to the ruling Socialists: If you carry on like this we will ensure your defeat."

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All available articles from » Michele Salvati

Le Figaro - France | Monday, 21. November 2011

Conservative victory could save euro

The election victory of Spain's Conservatives could be a turning point in the euro crisis, writes the conservative daily Le Figaro: » more

The election victory of Spain's Conservatives could be a turning point in the euro crisis, writes the conservative daily Le Figaro: "Unlike Italy and Greece, Spain has a major advantage in this difficult phase of reforming its budget. The government has broad-based support among the population and has a comfortable majority in the two chambers of parliament. ... In forming a new cabinet and with his first measures Mariano Rajoy now has the chance to create a favourable climate that will hopefully calm the markets. ... Nothing is for sure yet, but if Spain manages to extricate itself from the crisis and pull the other southern European economies out with it, the change of government in Madrid could be a turning point in the euro crisis."

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All available articles from » Pierre Rousselin

Polityka Online - Poland | Monday, 21. November 2011

Madrid must start reforms now

As Spain's new prime minister Mariano Rajoy has a chance to put the ailing country back on its feet if he acts swiftly enough, writes the left-liberal news portal Polityka Online: » more

As Spain's new prime minister Mariano Rajoy has a chance to put the ailing country back on its feet if he acts swiftly enough, writes the left-liberal news portal Polityka Online: "Rajoy must impose several unpopular reforms on the Spanish - as soon as possible and disregarding the social climate. Because Spain can prevent a financial catastrophe, as one of the Spanish analysts has already said. It just needs to effect a manoeuvre called the 'Ave Maria' in American Football which consists in shooting the ball from a great distance at the last minute and scoring a point. Spain must meet its EU obligations including reducing its budget deficit by 4.4 percent in the next few years. This can only be achieved if the new government makes drastic cuts in public spending and saves 30 billion euros."

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All available articles from » Agnieszka Mazurczyk

Kurier - Austria | Monday, 21. November 2011

New government needs EU's help

Spain's new government urgently needs the support of the EU to get its finances in order, writes the liberal daily Kurier: » more

Spain's new government urgently needs the support of the EU to get its finances in order, writes the liberal daily Kurier: "Tightening the belt, the recipe for Spain that is now familiar to every last punter, may be necessary. But this country is far too important to be allowed to stagnate on the southern edge of Europe, and needs more: an EU economic policy that not just opens markets and builds motorways but also helps countries like Spain to become reliable long-term economic partners - even against the dogmas of the free market. Madrid's new government cannot accomplish that on its own. Many people are once more dusting off the term 'Marshall Plan' for Southern Europe. That only goes to show how long we have gone without putting enough thought into such genuine economic cooperation."

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All available articles from » Konrad Kramar

O Kosmos tou Ependiti - Greece | Sunday, 20. November 2011

Berlin and Paris erode European identity

A growing number of European media are raising the question of whether Greece should be part of the European Union at all, including most recently the French daily Le Monde. This is one of many signs that European identity is being weakened, writes the business paper O Kosmos tou Ependiti in its leading article: » more

A growing number of European media are raising the question of whether Greece should be part of the European Union at all, including most recently the French daily Le Monde. This is one of many signs that European identity is being weakened, writes the business paper O Kosmos tou Ependiti in its leading article: "The erosion gathers speed each time the two leading forces in Europe, France and Germany, bombard Europeans with more divisive terminology: The Northern and Southern Europeans, the indebted and the non-indebted, the productive and the lazy, the disciplined and the undisciplined, the rich and the poor. ... Without Merkel and Sarkozy ever having attempted to find out why after so many decades of European integration and convergence the inequality gap in terms of GDP per capita is still gaping, with it being eight times as high in Luxembourg, the richest country, as it is in Romania, the poorest. In this way 'European identity', whose content is dissolving, is changing in meaning and turning into the opposite: otherness. All of a sudden people see themselves more as Greeks, Germans, French or Romanians, and less as Europeans."

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Süddeutsche Zeitung - Germany | Friday, 18. November 2011

US debt less dangerous than Europe's

US sovereign debt has exceeded the 15-billion-dollar debt ceiling, bringing it up to 99 percent of the country's gross domestic product. Yet the European debt crisis remains much more perilous than the US crisis, the left-liberal daily Süddeutsche Zeitung points out: » more

US sovereign debt has exceeded the 15-billion-dollar debt ceiling, bringing it up to 99 percent of the country's gross domestic product. Yet the European debt crisis remains much more perilous than the US crisis, the left-liberal daily Süddeutsche Zeitung points out: "One of the US's strengths is that even in times of crisis it can take out debt in its own currency. In theory the Eurozone can do this too - after all the euro remains a strong currency. But a 'Eurozone' as such doesn't actually exist. ... The US also has other advantages compared to Europe. Its economy remains innovative and dynamic despite all the bad news. Most of the companies that have changed the world in recent times - for example Google and Facebook - were founded in the US. Moreover its population is growing thanks to immigration and a higher birth rate. Taken together these factors add up to economic expansion and the ability to grow out of its debts. All this is lacking in most of Europe's problem countries."

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Politis - Cyprus | Thursday, 17. November 2011

Only Papademos can change Greece

Greek tax inspectors had Georgios Petzetakis, one of Greece's best-known industrialists, arrested on Tuesday. He allegedly owes the state more than two million euros in taxes. At least the new transitional government is serious about fighting tax evasion, the liberal-conservative daily Politis writes approvingly: » more

Greek tax inspectors had Georgios Petzetakis, one of Greece's best-known industrialists, arrested on Tuesday. He allegedly owes the state more than two million euros in taxes. At least the new transitional government is serious about fighting tax evasion, the liberal-conservative daily Politis writes approvingly: "When the two big parties Pasok and Nea Demokratia were in power, not a single tax evader was arrested. ... The new prime minister Lucas Papademos used the word 'fairness' in his first official address. ... Will further tax fraudsters be arrested now? There are dozens who have cheated the state. But it was unable to hold them to account. ... The state only has itself to blame, because it became a willing accomplice. ... If anything is to change in Greece, it must happen in the next three months [before the planned elections in February]. After that we will once more be lumped with the 'saviours' from Pasok and Nea Demokratia. ... They will not give up so easily because they've got used to the system of clientelism."

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All available articles from » Giorgos Tzivas

Pravda - Slovakia | Friday, 18. November 2011

Only real Federation can save euro

The example of Italy illustrates that the crisis is not restricted to the outskirts of the Eurozone, the left-leaning daily Pravda writes in consternation: » more

The example of Italy illustrates that the crisis is not restricted to the outskirts of the Eurozone, the left-leaning daily Pravda writes in consternation: "What is surprising is the speed of the process. The euro will be saved neither by the departure of a few untrustworthy or inept leaders, nor by replacing them with technocrats, regardless of how good their reputations may be. It will also not be rescued by the willingness of some governments to save until the last dog is hung. ... Only one thing can help the Eurozone - and with it the entire project of European integration: a decisive step toward political union, a European Federation. The concrete proposals in this direction have been on the table for some time now."

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All available articles from » Radovan Geist

The Daily Telegraph - United Kingdom | Friday, 18. November 2011

Germany must pay for euro bailout

In the run-up to today's visit to Germany by British Prime Minister David Cameron, a dispute has broken out between the two countries over the financial transactions tax, which Chancellor Angela Merkel is urging Cameron to adopt. Britain must not be made to pick up the euro tab, the conservative Daily Telegraph writes indignantly: » more

In the run-up to today's visit to Germany by British Prime Minister David Cameron, a dispute has broken out between the two countries over the financial transactions tax, which Chancellor Angela Merkel is urging Cameron to adopt. Britain must not be made to pick up the euro tab, the conservative Daily Telegraph writes indignantly: "Mrs Merkel is in no position to lecture Britain about its responsibilities. After all, it was Germany's determination to push through EU integration that helped create the current crisis, by allowing heavily indebted countries to join the euro in contravention of the conditions set by the Maastricht Treaty. While a disorderly collapse of the euro is not in the UK's interests, nor is it our responsibility to foot the bill for the rescue mission. Rather it is Germany which needs to face up to the consequences of the monetary union that it championed."

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Heti Válasz - Hungary | Friday, 18. November 2011

András Láncz sees the EU plunging into chaos

The EU is incapable of adhering to its own political principles in the current crisis, and the radical parties of Europe are benefiting from this, philosopher András Lánczi fears in the conservative weekly Heti Válasz: » more

The EU is incapable of adhering to its own political principles in the current crisis, and the radical parties of Europe are benefiting from this, philosopher András Lánczi fears in the conservative weekly Heti Válasz: "The EU simply hasn't managed to reconcile political leadership, economic freedom and justice. Political leadership is efficient when all the decision-makers know what goals all the involved parties have in common. Economic freedom, on the other hand, created new economic disparities that can't be ironed out by the euro. The stronger economies have fared much better than the weaker ones with the euro. So it's difficult to talk of a justice for which a political community would be an indispensable prerequisite. Meanwhile, the EU can hardly be described as such a community because it is made up of nation states. ... While Brussels is avoiding questioning the national sovereignty of the individual states at all costs it is busy creating a federal state. ... In this context political chaos is inevitable. ... This in turn will give the radical forces in Europe a boost."

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Neue Zürcher Zeitung - Switzerland | Friday, 18. November 2011

Roman Herzog sees European superstate as too rigid

The present crisis is forcing reform on Europe. The former German president Roman Herzog expresses the view in the liberal-conservative Neue Zürcher Zeitung that the community of states will only be able to function if it doesn't mutate into a super state: » more

The present crisis is forcing reform on Europe. The former German president Roman Herzog expresses the view in the liberal-conservative Neue Zürcher Zeitung that the community of states will only be able to function if it doesn't mutate into a super state: "It is wrong to believe that an institution must be made as big as possible to make it strong. Rapid growth and uniformity can just as easily cripple it and even leave it incapable of reacting. In certain situations a major organisation can be a good thing; and out of this realisation the EU was born. But it can only remain flexible and able to react if it restricts itself to the absolutely necessary and doesn't try to assume the role of a superstate, responsible for everything. ... Therefore the tendencies towards centralisation that are so much in evidence in Brussels should meet with every conceivable opposition. The world is constantly changing, new problems and dangers are emerging at an increasingly rapid pace, and new possibilities and opportunities too. If one mistake isn't to be compounded by another it's time we placed our trust in small institutions."

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La Stampa - Italy | Friday, 18. November 2011

Experts are the least to blame

The Italian Senate on Thursday gave a vote of confidence to the new prime minister Mario Monti and his cabinet of experts. Only the right-wing populists of the Northern League voted against it. Meanwhile thousands of demonstrators took to the streets and criticised the cabinet as a "government of bankers". But the criticism misses the mark, the liberal daily La Stampa writes: » more

The Italian Senate on Thursday gave a vote of confidence to the new prime minister Mario Monti and his cabinet of experts. Only the right-wing populists of the Northern League voted against it. Meanwhile thousands of demonstrators took to the streets and criticised the cabinet as a "government of bankers". But the criticism misses the mark, the liberal daily La Stampa writes: "When danger lurks the temptation is large to seek approval by pointing accusingly at the culprits. Until yesterday the supposed interpreters of the voice of the people were demonising the political caste, blaming it for more than it is actually culpable of. Now the protest seems to be directed against the elite in general, which will come as a relief for the politicians - sorrow shared is a sorrow halved. But the Italian banks are only marginally to blame, and the Italian central bank did nothing wrong at all. On the contrary, it tried to curb the debt. But who cares when the goal is attack. The Northern League, now in opposition, because it hopes to grab votes, and the extreme Left because needs to fabricate a new enemy now that Berlusconi is no longer available."

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All available articles from » Stefano Lepri

Le Monde - France | Friday, 18. November 2011

European constitution preserves democracy

The Occupy movement is taking over streets and city squares across Europe because it believes only bankers and technocrats are making the most important decisions. To preserve democracy Europe needs a fully-fledged constitution, writes legal expert Dominique Rousseau in the left-liberal daily Le Monde: » more

The Occupy movement is taking over streets and city squares across Europe because it believes only bankers and technocrats are making the most important decisions. To preserve democracy Europe needs a fully-fledged constitution, writes legal expert Dominique Rousseau in the left-liberal daily Le Monde: "The parliamentary republic is a political model. Seen from outside, it leads one to believe that the heads of government are responsible to the people and parliament. In truth they are only accountable to the markets. In a nutshell: such republics are plutocracies. ... Threatened by bankruptcy, Louis XVI convened his Estates-General in 1788, who in 1789 declared themselves a constitution-giving National Assembly. They declared all those who lived on French soil French citizens. The European Parliament should show the same courage today. It is the sole institution that is legitimised by a general election. For that reason it can declare itself a constitution-giving body and present the European people with a constitution on which they can vote, starting with the words 'We, the people of Europe'."

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Correio da Manhã - Portugal | Thursday, 17. November 2011

Euro 2012 can pay off debts

After the return matches on Tuesday for the Uefa Euro 2012 football championships it is clear that the teams of all EU debtor states will participate. Miguel Alexandre Ganhão recommends in the tabloid Correio da Manhã that the Troika should follow the event closely: » more

After the return matches on Tuesday for the Uefa Euro 2012 football championships it is clear that the teams of all EU debtor states will participate. Miguel Alexandre Ganhão recommends in the tabloid Correio da Manhã that the Troika should follow the event closely: "This is certainly not the beginning of the end of the crisis, but it does send an important signal. ... Football now has a huge opportunity to buck the pitiless logic of the financial markets and offer a true prospect of economic recovery. My suggestion: the games should have direct repercussions on the countries' debt. A goal for bankruptcy candidates like Greece, Ireland, Portugal, Spain and Italy would lead to a partial waiving of their national debt or a further injection of funds. Roughly a billion euros would ride on each match - in the case of a victory for the creditor this amount would of course be added to the loser's debt. Matches pitting Germany against Portugal would have unparalleled appeal, just like those between France and Greece or the Netherlands and Ireland."

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Corriere della Sera - Italy | Thursday, 17. November 2011

Politics fails owing to inflexibility

Italy's new prime minister has not appointed a single politician to his cabinet. The liberal-conservative daily Corriere della Sera explains why the politicians have failed: » more

Italy's new prime minister has not appointed a single politician to his cabinet. The liberal-conservative daily Corriere della Sera explains why the politicians have failed: "To blame a market conspiracy for all the problems would be wrong, for even if there was a plot the total stagnation of the economy weighs heavily on us. This is where the roots of the politicians' incompetence are to be found. The politicians have two shortcomings: a lack of willingness to reform evident among many social democrats and too little liberalism on the conservative side. ... Both failings are two sides of the same coin. The liberal culture has been suppressed by a policy cult in which democracy is confused with statism, the exploitation of state benefits and privileges. The results of this attitude are there for all to see."

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All available articles from » Giuseppe Bedeschi

Die Zeit - Germany | Thursday, 17. November 2011

Euro depends on Monti and Merkel

The survival of the euro depends not just on Italy's new government but also on German Chancellor Angela Merkel, writes the liberal weekly Die Zeit: » more

The survival of the euro depends not just on Italy's new government but also on German Chancellor Angela Merkel, writes the liberal weekly Die Zeit: "It's not enough for the caretaker prime minister Monti to economise and flexibilise temporarily. ... The likely outcome is therefore that the Eurozone countries will end up sharing the debt. This will mean Angela Merkel taking on a double task. She would have to convince her parliament to break another taboo - and impose unusually harsh rules for austerity and reform on her frightened partners. Only in this way can she ensure that the debtor states earn the solidarity of the richer countries year after year instead of simply getting used to it. ... And the chancellor must explain to the Germans a contradiction that is typical of this crisis of the century: While the Eurozone of the future must be prepared to show the door to permanent debt sinners, the monetary union of today simply can't afford to do this in the case of Italy."

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Die Presse - Austria | Thursday, 17. November 2011

Withdrawals can save Eurozone

Risk premiums on European government bonds rose considerably on Tuesday, including for the first time those on the securities of Finland, Austria and the Netherlands, all of which have very high ratings. To save the monetary union the pros and cons of reducing the size of the Eurozone should at least be seriously considered, writes the liberal-conservative daily Die Presse: » more

Risk premiums on European government bonds rose considerably on Tuesday, including for the first time those on the securities of Finland, Austria and the Netherlands, all of which have very high ratings. To save the monetary union the pros and cons of reducing the size of the Eurozone should at least be seriously considered, writes the liberal-conservative daily Die Presse: "Some legal experts say it might be possible to convert back to the drachma or lira at the original exchange rate, and only then devalue the new currency. If that won't work there will be no alternative but a hefty debt restructuring. In any case the costs would be carried by the other euro countries when they bail out their banks. After leaving the euro the crisis countries would nevertheless regain the freedom to adjust their currency to their economic performance. There is still hope things won't go that far, because if individual countries leave the Eurozone it could tear apart the European Union and its financial system. On the long term, however, it might be the only way of saving the euro project."

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All available articles from » Jakob Zirm

Le Canard enchaîné - France | Thursday, 17. November 2011

Super Mario's dubious credentials

The fact that Mario Monti, of all people, is now to lead Italy out of the crisis is slightly ironic, writes the satirical weekly newspaper Le Canard enchaîné: » more

The fact that Mario Monti, of all people, is now to lead Italy out of the crisis is slightly ironic, writes the satirical weekly newspaper Le Canard enchaîné: "One reference in his CV can't help but leave you wondering. He was advisor to the American bank Goldman Sachs, which played a key role in the subprime crisis of 2008. In Brussels Monty was European Commissioner first for the Internal Market and then for Competition, that is to say he organised the opening of the borders and unbridled free trade. ... He has been admonished several times ... by the European Court of Justice for his 'excessively legalistic' decisions and 'very German approach to his task'. And now this pillar of the European Union and the single currency has been called in to repair the damage that he and his buddies have caused. ... Good luck nonetheless, 'Super Mario', and above all good luck to the Italians. ... And too bad if the pizza tastes of sauerkraut!"

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Público - Portugal | Wednesday, 16. November 2011

Technocrats take over when politicians fail

The rise of non-elected technocrats in Rome and Athens shows how catastrophically the elected politicians have failed, writes Europe expert Fabrizio Tassinari in the liberal daily Público: » more

The rise of non-elected technocrats in Rome and Athens shows how catastrophically the elected politicians have failed, writes Europe expert Fabrizio Tassinari in the liberal daily Público: "Naturally a technocratic government is an anomaly to the extent that it represents a severe criticism of the performance of a country's entire political class. But the voters in the hard-hit countries of the Eurozone appear to have already reached their own conclusions about their elected politicians months ago. Lao-Tse, the founder of Taoism, wrote that 'a good leader is at his best when people don't even notice that he's there'. Now that Europe's crisis-stricken governments are increasingly being taken over by non-elected technocrats one can almost see the citizens nodding their heads in agreement."

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Dilema Veche - Romania | Thursday, 17. November 2011

Ovidiu Nahoi fears Balkan chaos if Greece loses euro

If Greece exits the Eurozone this could endanger the peaceful developments on the Balkans, writes Ovidiu Nahoi in the conservative weekly Dilema Veche: » more

If Greece exits the Eurozone this could endanger the peaceful developments on the Balkans, writes Ovidiu Nahoi in the conservative weekly Dilema Veche: "What message is conveyed to these countries when people toy with the idea of expelling Greece? We shouldn't forget that in these parts Greece - whether rightly or wrongly - is seen as the country that most resembles the West thanks to it long membership in the EU and Nato. If Greece was 'thrown out', regardless of how, this would certainly be interpreted as a sign that the process of integration is being suspended, if not ended. The old friendships and hostilities would be revived and outdated nationalist projects would be dragged out of the attic. Conflicts that until now have smouldered under the surface could be reignited. And this in a political environment that has changed considerably since the 1990s."

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All available articles from » Ovidiu Nahoi

Trud - Bulgaria | Tuesday, 15. November 2011

Evgeni Dainov on the advantages of a two-speed EU

As a result of the euro crisis more and more politicians are speaking out in favour of a two-speed Europe. Bulgaria would be far better off outside the hard core of the EU, writes political scientist Evgeni Dainov in the daily Trud: » more

As a result of the euro crisis more and more politicians are speaking out in favour of a two-speed Europe. Bulgaria would be far better off outside the hard core of the EU, writes political scientist Evgeni Dainov in the daily Trud: "It wouldn't be so bad at all if Merkozy left us out of the 'core' of the Eurozone. That means, the 'core' would pay off the debts of Greece and Italy and rescue the French banks. We, on the other hand, would remain together with the more liberalised market economies with disciplined budgets. The leader of our club would be the UK, which is certainly preferable to Merkozy. In any event it would never occur to the Brits to impose higher taxes or the French model of a government-controlled economy on us. British papers are already calling on Prime Minister Cameron to take over the leadership of the ten EU countries not belonging to the Eurozone. Judging by British politics, sooner or later that's just what he's going to do."

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All available articles from » Evgeniy Daynov

Libération - France | Wednesday, 16. November 2011

Sarkozy pits poor against poorest

In a speech on Tuesday in Bordeaux, Nicolas Sarkozy announced that social welfare spongers are in for tough times. Clearly he has failed to grasp the essence of the crisis, writes the left-liberal daily Libération: » more

In a speech on Tuesday in Bordeaux, Nicolas Sarkozy announced that social welfare spongers are in for tough times. Clearly he has failed to grasp the essence of the crisis, writes the left-liberal daily Libération: "A chronicle of the crisis: the tax paradises remain paradisiacal. The speculators go on speculating. The rich just keep getting richer. And the people alone end up picking up the tab. ... What we have here is a crisis of morals, with potentially devastating repercussions. In this critical situation Nicolas Sarkozy has chosen to condemn the 'thieves'. Does he mean the traders, the managers of speculative investment funds or professional speculators who shift billions with one click? No, he means the people who cheat the welfare system. ... Pitting the poor against the poorest and making people believe the true scandal is the malfunctioning of the social welfare state, that will go down as a classic example of political guile."

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All available articles from » Nicolas Demorand

Cinco Días - Spain | Wednesday, 16. November 2011

The EU's confused rules on rating agencies

EU internal market commissioner Michel Barnier presented his proposals for new regulations for reining in the rating agencies in the European Parliament on Tuesday. The business paper Cinco Días praises the intention but says the proposals haven't been properly thought through: » more

EU internal market commissioner Michel Barnier presented his proposals for new regulations for reining in the rating agencies in the European Parliament on Tuesday. The business paper Cinco Días praises the intention but says the proposals haven't been properly thought through: "The tough measures of the EU regarding the rating agencies are well meant but muddled. ... Barnier's plan to encourage new agencies to enter the market is hardly compatible with his ambitious idea of making agencies that don't stick to the rules liable for the losses investors incur as a result. Given the size of the credit market the prospect of this huge responsibility could dissuade competition instead of promoting it. ... Any attempt to limit the influence of the rating agencies is welcome. But in its present form the risks of Barnier's measures outweigh the advantages."

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Lidové noviny - Czech Republic | Wednesday, 16. November 2011

Josef Zieleniec on necessary change in Europe

Europe's politicians must get used to the idea that the EU needs fundamental changes in the near future, writes former Czech foreign minister Josef Zieleniec in a guest commentary for the conservative daily Lidové noviny: » more

Europe's politicians must get used to the idea that the EU needs fundamental changes in the near future, writes former Czech foreign minister Josef Zieleniec in a guest commentary for the conservative daily Lidové noviny: "European integration and the monetary union are above all a political project that needs to be carried through whatever the cost. But let's be clear: it's not possible to solve the crisis and stabilise development in the long term without radically deepening integration in the Eurozone. ... A common budgetary policy decided at summit meetings is not feasible. A harmonised financial policy without common bonds, and the latter without some form of common tax for the entire Eurozone is likewise hard to imagine. But budgetary and economic policy are essential fields of policy. Therefore the Eurozone will have to make a decision regarding a significant deepening of political integration. Many countries will face the dilemma of whether they want join in - including the Czech Republic."

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Aamulehti - Finland | Wednesday, 16. November 2011

Even independent governments do politics

Now that the politicians in Greece and Italy have lost the people's trust these countries are hoping that governments made up of experts will do a better job. However this doesn't help the cause of democracy, writes the liberal daily Aamulehti: » more

Now that the politicians in Greece and Italy have lost the people's trust these countries are hoping that governments made up of experts will do a better job. However this doesn't help the cause of democracy, writes the liberal daily Aamulehti: "Elections are a democratic way of getting rid of politicians who are no longer trusted. The author Bertolt Brecht once sarcastically proposed that a new people should be elected when a government has lost its citizens' trust. A third alternative that is now being tested in Italy and Greece is a government made up of non-political experts who replace the political leadership. The difference between these two forms of governments is however only superficial. The decisions of the experts also have political repercussions, even if officially they are independent. As regards democracy the expert governments are overrated. They do not act independently for the common good. They do politics just like the politicians, but covertly."

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Le Soir - Belgium | Tuesday, 15. November 2011

Belgium playing with fire

EU Commissioner Karel de Gucht said in an interview on Monday that Belgium could be the next victim of the financial markets. Meanwhile the designated Belgian Prime Minister Elio Di Rupo is making slow progress with the 2012 austerity budget. The daily Le Soir calls for swift decisions: » more

EU Commissioner Karel de Gucht said in an interview on Monday that Belgium could be the next victim of the financial markets. Meanwhile the designated Belgian Prime Minister Elio Di Rupo is making slow progress with the 2012 austerity budget. The daily Le Soir calls for swift decisions: "After so many months of negotiations the formation of a government cannot fail because of the budget. This would be incomprehensible and irresponsible. Naturally, budget decisions entail debate and conflict but the basic facts and the conditions are well-known to everyone! They are virtually dictated by economic necessity, and the European financial sector will determine their extent and the structural reforms. ... This may be regrettable but it's too late to complain now. We have run out of time and arguments. To play with fire and hope that a mistake could have positive side effects would be suicidal."

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All available articles from » Béatrice Delvaux

Blog Bagehot's Notebook - United Kingdom | Tuesday, 15. November 2011

British want to help refashion Europe

The British Prime Minister David Cameron wants to use the euro crisis to reform the EU. In a speech delivered in parliament he called among other things for EU powers to be transferred back to the member states. In doing so Cameron is moving closer to the German ideas for reform, the blog Bagehot's Notebook comments in the liberal-conservative weekly The Economist: » more

The British Prime Minister David Cameron wants to use the euro crisis to reform the EU. In a speech delivered in parliament he called among other things for EU powers to be transferred back to the member states. In doing so Cameron is moving closer to the German ideas for reform, the blog Bagehot's Notebook comments in the liberal-conservative weekly The Economist: "Chancellor Angela Merkel has told Mr Cameron that she would strongly prefer to decide the future shape of Europe by agreement with all 27 nations, and not just within the 17-member euro area. ... Cameron takes the risk of British marginalisation seriously, and is facing down his most zealous Eurosceptic MPs. None of that means that reform of the EU is a done deal. Many British governments have vowed to engage constructively with Europe and been disappointed and frustrated. Membership of the EU is very often maddening. But, on balance, as Mr Cameron correctly noted tonight, the alternatives for Britain are worse."

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NRC Handelsblad - Netherlands | Tuesday, 15. November 2011

Yes Rome can

The power changes in Athens and Rome have been greeted with relief internationally. But the new governments have little room for manoeuvre, warns the liberal daily NRC Handelsblad: » more

The power changes in Athens and Rome have been greeted with relief internationally. But the new governments have little room for manoeuvre, warns the liberal daily NRC Handelsblad: "The financial markets, the IMF, the European Commission and the heads of government in fact dictate the policies that the highly indebted countries must implement. That means reforms and unpopular austerity measures. It is good that the Italian Senate and Chamber of Deputies on the bailout package amounting to 60 billion euros. But soon it will be a question of remaining steadfast when the euphoria is over and the austerity measures start to hurt. In contrast to Greece, Italy's starting position is not so bad. The country may have a huge debt burden but its economy is basically healthy. In Italy, it's clear, the necessary reforms are not a question of ability but of willpower."

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Expansión - Spain | Tuesday, 15. November 2011

Markets want facts, not promises

Despite the new governments in Italy and Greece, the situation on the European market for sovereign bonds became more critical on Monday, with the risk premium for ten-year Spanish bonds climbing once again above 6.0 percent. The liberal business paper Expansión demands facts from the governments of Italy and Greece, not just empty promises: » more

Despite the new governments in Italy and Greece, the situation on the European market for sovereign bonds became more critical on Monday, with the risk premium for ten-year Spanish bonds climbing once again above 6.0 percent. The liberal business paper Expansión demands facts from the governments of Italy and Greece, not just empty promises: "The markets won't let themselves be beguiled for long by the siren-songs of Europe's institutions, no matter how eloquent they may sound. Investors want to see concrete facts and not just more promises if they are to regain their confidence in Europe, as well as in the EU - as an unfinished and crippled project - and particularly in the member states, which have not done their homework on budget planning or have started to do it too late and too hesitantly."

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To Vima Online - Greece | Monday, 14. November 2011

Papademos doesn't need far right

For the first time since the end of the military dictatorship in 1974 a far-right nationalist party, the Popular Orthodox Rally (Laos), is to participate in the Greek government. Prime Minister Lucas Papademos has made his first major mistake with this decision, the left-liberal online paper To Vima complains: » more

For the first time since the end of the military dictatorship in 1974 a far-right nationalist party, the Popular Orthodox Rally (Laos), is to participate in the Greek government. Prime Minister Lucas Papademos has made his first major mistake with this decision, the left-liberal online paper To Vima complains: "We shouldn't forget: Laos chairman Giorgos Karatzaferis has called for an amnesty for junta members. Let's examine the deeper meaning of this demand: He asked the citizens to forgive those who toppled democracy. Laos is not simply a far right party like many others all over Europe. ... It resembles these parties in its basic characteristics: xenophobia, repression, Christianity, distrust of all things cosmopolitan. But Laos has a trait that makes it different from the others: its nearness to a dictatorship. ... The new government has made its first big mistake. ... Papademos didn't need the right-wing extremists. He chose them."

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All available articles from » Laurie Keza

Corriere del Ticino - Switzerland | Tuesday, 15. November 2011

Technocrats no chance against recession

Having governments in Greece and Italy led by independent politicians is no guarantee of success because even technocrats can do little to avert the looming recession in Europe, writes the liberal daily Corriere del Ticino: » more

Having governments in Greece and Italy led by independent politicians is no guarantee of success because even technocrats can do little to avert the looming recession in Europe, writes the liberal daily Corriere del Ticino: "The impact of such measures will become clear not in the short term but only in the medium and long term. This is the main problem, because Italy and the euro are running out of time. A stringent austerity policy has recessive consequences that are only compounded by the recession in the Eurozone and the weak global economic growth. A deflationary spiral accompanied by a general impoverishment of the country will result, and could even force it to sell off the family silver. This is the real danger Italy faces with the Monti government and a reality Greece, Portugal and Spain too must confront."

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All available articles from » Alfonso Tuor

La Stampa - Italy | Tuesday, 15. November 2011

Female quota for technocrat cabinet, please!

Italy's prime minister designate Mario Monti initiated talks with several parties for the formation of a government on Monday. The independent economist hopes to be able to propose himself and a small cabinet of experts for a vote of confidence at the latest on Friday. The liberal daily La Stampa warns that his technocrat cabinet is exclusively male: » more

Italy's prime minister designate Mario Monti initiated talks with several parties for the formation of a government on Monday. The independent economist hopes to be able to propose himself and a small cabinet of experts for a vote of confidence at the latest on Friday. The liberal daily La Stampa warns that his technocrat cabinet is exclusively male: "A government of men only would once again stamp Italy as an anomaly and immature. In a world where Angela Merkel, Christine Lagarde and Hillary Clinton also call the shots our credibility depends also on recognising the anything but secondary role of female competence. The image of twelve men in suits taking the oath would be insufferable for many women, and not just in Italy. A technocrat government must be free of political power struggles but oriented on civil society, and that means not disregarding politics, in the higher sense of the word."

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All available articles from » Mariella Gramaglia

Le Figaro - France | Tuesday, 15. November 2011

Papandreou triggers democracy debate

With Lucas Papademos and Mario Monti, financial experts are now at the helm of two European countries. That raises serious questions for democracy, writes the conservative daily Le Figaro: » more

With Lucas Papademos and Mario Monti, financial experts are now at the helm of two European countries. That raises serious questions for democracy, writes the conservative daily Le Figaro: "The extent and duration of their mandates must allow them to work efficiently. But in both cases these mandates must be limited to allow a return to democratic legitimacy under optimal conditions. It must not be said that European policy is being created by trampling the Europeans underfoot. If we have come this far it's because Giorgos Papandreou used the idea of a referendum to wriggle out of the commitments he made at the Brussels summit. Since then the question of how to democratically control the decision-making process has once again become central. It cannot be avoided when the time comes to put in place a veritable European economic government."

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All available articles from » Pierre Rousselin

Blog A Europa desalinhada - Portugal | Monday, 14. November 2011

ECB must guarantee debts

The European Central Bank must send a small but clear signal to overcome the euro crisis, writes Le Monde's chief editor Alain Frachon in the blog A Europa desalinhada: » more

The European Central Bank must send a small but clear signal to overcome the euro crisis, writes Le Monde's chief editor Alain Frachon in the blog A Europa desalinhada: "One sentence would be enough to stem the euro crisis, many economists say. One short sentence. The ECB must announce loudly and clearly that it is willing to take on the role of lender of last resort for the most indebted member states in the Monetary Union - and the euro would instantly be on the road to recovery. This way the markets could also be kept in check, and - oh joy -  what the rating agencies had to say would be irrelevant. This move would allow the pressure from austerity policies to be eased ... which would prompt growth and facilitate debt reduction. Even if it this could not happen without incurring costs, it could help the Eurozone break out of the vicious circle into which it has lapsed: just like in bowling, where the big black ball topples over one pin after the next: first Athens, then Dublin, Lisbon, Madrid, Rome - and perhaps soon Paris."

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Süddeutsche Zeitung - Germany | Monday, 14. November 2011

Thomas Kirchner on how to save the old EU

The former structure of the EU is crumbling and the new European capital will be Berlin, but there are still ways to save the original community, Thomas Kirchner writes in the left-liberal daily Süddeutsche Zeitung: » more

The former structure of the EU is crumbling and the new European capital will be Berlin, but there are still ways to save the original community, Thomas Kirchner writes in the left-liberal daily Süddeutsche Zeitung: "If the European treaties were to be changed now, it would basically involve making sure that what Germany and France want actually happens. ... Anyone who's against that must try to revive the old EU. How to further the integration of the Eurozone without splitting up the Union? The only conceivable way would be to strengthen the collaborative element. Jean-Claude Trichet, the former head of the European Central Bank, recently dreamed in his Humboldt address of a sort of two-chamber system with the Council of Ministers as the senate, the EU Parliament as the lower house and the Commission as executive. The former Commissioner Emma Bonino, for her part, wants to give the EU a 'light federalism'. Brussels would receive a larger budget, roughly five percent of the EU's GNP, and several clearly outlined additional competences, for example foreign, defence and immigration policy. That all has not been fully worked out and seems downright utopian after the struggle over the Treaty of Lisbon. But anything is possible with this crisis."

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Daily Mirror - United Kingdom | Monday, 14. November 2011

Ciao, Silvio

It was high time the conceited Cavaliere resigned, the left-leaning tabloid The Mirror comments in view of the crisis: » more

It was high time the conceited Cavaliere resigned, the left-leaning tabloid The Mirror comments in view of the crisis: "Whether it was bungs or ­bunga-bunga parties, Silvio Berlusconi's leadership was a disgrace. Italy, and Europe, is well rid of the ­shameless, leering lothario. His cavalier attitude to the ­principles of high office made his country a laughing stock. But his reckless handling of Italy's finances is truly unforgiveable. Its economy is on its knees and the rest of Europe teeters on the brink of catastrophe. The fact he still believes he can make a comeback is evidence of his appalling vanity. It is time to say 'ciao, Silvio' once and for all."

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Il Sole 24 Ore - Italy | Monday, 14. November 2011

Monti is Italy's insolvency administrator

The task of the designated prime minister Mario Monti is basically that of an insolvency administrator, the business paper Il Sole 24 Ore concludes: » more

The task of the designated prime minister Mario Monti is basically that of an insolvency administrator, the business paper Il Sole 24 Ore concludes: "A poorly managed company files for bankruptcy or is bought up by a healthy company. For states like Italy a 'hostile takeover' is fortunately unimaginable today. ... So the only option is bankruptcy. When a company goes bust a court appoints an administrator, not a manager. His task is not to draw up development plans but to reorganise the company either to put it in someone else's hands or to sell it. ... It is a temporary administration mandate, not a political one, and the only objective is to solve the problems that politics was incapable of solving."

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All available articles from » Luigi Zingales

Spiegel Online - Germany | Monday, 14. November 2011

Georg Diez explains Germany's triumphant march in the EU

Two new books on the Germans are supposed to help people understand how the EU has become so German, writes columnist Georg Diez on the news portal Spiegel Online: » more

Two new books on the Germans are supposed to help people understand how the EU has become so German, writes columnist Georg Diez on the news portal Spiegel Online: "In recent weeks Germany has won the Second World War. Whoops. Did I spill the beans there? Naturally not with weapons, and not the Germans of back then. We, the new and good Germans, have won it with our billions. ... And this is why now, in a bid to convey a sense of meaning in the crisis, we have a hefty book inscribed with the title in gold letters: Die deutsche Seele (The German soul), so that we can understand exactly what it is between Abendbrot [cold supper], the abyss and work mania on the one hand and Winnetou [a reference to the Karl May classic Winnetou and Old Shatterhand], sausage and inner conflict that makes us so German. ... 'The German Genius' is the title of an almost 1,000-page, far lighter but pretty fantastic book written by the British author Peter Watson in which he expresses his admiration of German culture without breaking out in goose pimples - he describes astutely and coolly how the present has been constructed according to the German model. ... So are these the books we need to culturally cushion our EU triumph? On the inside an eerie soul; on the outside all-round genius? It helps, of course, if we are no longer perceived as the fearful Germans, the foolish Germans, the dumb Germans. But on the other hand, who are we really? We are the technocrats carrying Goethe with us everywhere we go."

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Die Presse - Austria | Monday, 14. November 2011

Expert governemnt dependent on populists

In Rome as in Athens experts have now taken the reins. They may have the knowledge for their task but they don't stand a chance against the populists lurking behind the scenes, writes the liberal-conservative daily Die Presse: » more

In Rome as in Athens experts have now taken the reins. They may have the knowledge for their task but they don't stand a chance against the populists lurking behind the scenes, writes the liberal-conservative daily Die Presse: "It will be an interesting experiment. In Italy as in Greece the crisis has put people at the helm of transitional governments who would never have stood a chance in 'normal' election campaigns: cool-headed technocrats who are not so big on charisma. People who understand financial policy and know what needs to be done now, but lack the political power base. The populist-free 'expert government' that ex-EU commissioner Mario Monti, a professor from Milan, is now putting together will therefore nonetheless be dependent on the political heavyweights pulling the strings in the background. ... Consequently the Italian recovery experiment will function only until one of the populists in the background sees a chance to capitalise politically on the undoubtedly ever increasing disgruntlement of the people." 

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Blog Coulisses de Bruxelles - France | Monday, 14. November 2011

Change of course: ECB backs weak euro countries

According to Marko Kranjec, Slovenian member of the General Council of the European Central Bank, the ECB will continue to purchase the bonds of indebted euro countries. Jean Quatremer writes on his blog Coulisses de Bruxelles that Kranjec's statement indicates the ECB is changing its course: » more

According to Marko Kranjec, Slovenian member of the General Council of the European Central Bank, the ECB will continue to purchase the bonds of indebted euro countries. Jean Quatremer writes on his blog Coulisses de Bruxelles that Kranjec's statement indicates the ECB is changing its course: "A growing number of politicians and economists, notably in France, are convinced that at the edge of the precipice the ECB will have no choice but to change its tactics. ... Marko Kranjec no doubt meant to say that the ECB will not let the Eurozone collapse. Well then why not just come out and say it, and send a clear signal to the markets? On the one hand, to maintain pressure on states to get their public finances in order. ... On the other hand, out of fear of fuelling protest in Germany. But as British Prime Minister David Cameron has said, 'the moment of truth is approaching'. Very soon now Berlin will have to decide how far it is willing to go to save the common currency."

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Hospodářské noviny - Czech Republic | Monday, 14. November 2011

Monti must rescue Eurozone

Italy's prime minister designate, Mario Monti, has said he is convinced his country can overcome the crisis by pulling together. But it is he who faces the biggest challenge, writes the liberal business paper Hospodářské noviny: » more

Italy's prime minister designate, Mario Monti, has said he is convinced his country can overcome the crisis by pulling together. But it is he who faces the biggest challenge, writes the liberal business paper Hospodářské noviny: "The expectations that are being placed on Monti are almost inhuman. First of all he must gain the confidence of the financial markets. They, in turn, will react according to whether Monti and his government enjoy the trust of the political parties and Italy as a whole. The economist Mario Monti knows, however, that his task is even greater than that. He doesn't just have to rescue Italy, but the entire Eurozone."

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All available articles from » Adam Černý

O Kosmos tou Ependiti - Greece | Sunday, 13. November 2011

Giannis Kibouropoulos prefers drachma to euro junta

Since Friday Greece has a caretaker government led by banker Lucas Papademos. This means the brutal euro junta now definitively has the country under its thumb, columnist Giannis Kibouropoulos gripes in the business paper O Kosmos tou Ependiti: » more

Since Friday Greece has a caretaker government led by banker Lucas Papademos. This means the brutal euro junta now definitively has the country under its thumb, columnist Giannis Kibouropoulos gripes in the business paper O Kosmos tou Ependiti: "We are witnessing a pan-European putsch. A euro junta is trying to establish itself in all the countries threatened with bankruptcy. ... Instead of using weapons it is bombarding the people with the fear of insolvency, blackmailing them with the threat of being kicked out of the Eurozone and 'raping' the sovereignty and democracy of their countries. ... If the euro junta calls into question the existence of a state, its sovereignty, its democracy and the conditions for the survival of its citizens, then what exactly is the incentive to stay in the Eurozone? ... What is the incentive to avoid bankruptcy and a return to the national currency, which are being presented to the politically mutilated citizens as a nightmare scenario?"

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Main focus of Friday, 11. November 2011

Papademos new Greek prime minister

The independent Lucas Papademos will be sworn in as the head of a new transitional government in Greece today, Friday. After days of negotiation the ... » more

The independent Lucas Papademos will be sworn in as the head of a new transitional government in Greece today, Friday. After days of negotiation the conservatives and socialists agreed on Thursday on the former vice president of the ECB. Papademos now faces a Herculean task and if he fails his country must leave the Eurozone, commentators write.

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La Stampa - Italy | Friday, 11. November 2011

Italy needs National Unity

In Italy, the formation of a new government led by former EU Commissioner Mario Monti seems increasingly likely. The economist emerged as the favourite for replacing Silvio Berlusconi on Thursday. New elections are not a good alternative in the present situation, writes the liberal daily La Stampa: » more

In Italy, the formation of a new government led by former EU Commissioner Mario Monti seems increasingly likely. The economist emerged as the favourite for replacing Silvio Berlusconi on Thursday. New elections are not a good alternative in the present situation, writes the liberal daily La Stampa: "A new parliamentary group has formed, that of the irresponsible. Unfortunately it has many supporters. It consists of deputies and senators who are not thinking of Italy right now but of their own interests. ... The country is in great peril. Everything indicates that the only way out is the formation of a National Unity government. The view that new elections would be better must be respected, but only if it is represented by politicians who don't put their own interests first. This, however, is not the case. We are dealing here with a pack of jackals."

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Heti Válasz - Hungary | Friday, 11. November 2011

Péter Heim sees euro crisis as not so bad

Europe's crisis is first and foremost of a political rather than economic nature, writes the economist Péter Heim in the conservative weekly Heti Válasz: » more

Europe's crisis is first and foremost of a political rather than economic nature, writes the economist Péter Heim in the conservative weekly Heti Válasz: "The whole world is talking about the huge crisis rocking Europe and the global recession Europe could spark in 2012. For me the situation is by no means as dramatic as people make it out to be. ... The roots of Europe's problems are above all to be sought in its uncoordinated financial policy. When the euro was created the fact that it was not enough to write down the financial policy rules, but that they also had to be adhered to was completely ignored. ... The crisis in Europe is not least of a political nature. After all, Europe has ample economic resources to bring the situation quickly under control. However it's clear that without the sort of financial policy discipline we're seeing in Germany there is no way out. ... And if Europe had suffered a major economic crisis, the euro would have lost value this year, not gained it."

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Frankfurter Allgemeine Zeitung - Germany | Friday, 11. November 2011

Herculean task for Papademos

Greece's designated Prime Minister Lucas Papademos faces a Herculean task in view of the critical situation in his country, writes the conservative daily Frankfurter Allgemeine Zeitung: » more

Greece's designated Prime Minister Lucas Papademos faces a Herculean task in view of the critical situation in his country, writes the conservative daily Frankfurter Allgemeine Zeitung: "The EU Commission estimates that next year the Greek national debt will be almost 200 percent of the GDP. Faced with this unimaginable situation it comes as no surprise why it took so long to find a new prime minister in Athens after Papandreou announced his resignation. It speaks for the statesmanship of Lucas Papademos that rather than being deterred by the sheer magnitude of the need for consolidation he agreed to lead a transitional government. ... There couldn't be a more dismal starting point: unemployment is at a new high and Europe is menaced with recession. In keeping with the season, the mood is bleak indeed."

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Blog Charlemagne's Notebook - United Kingdom | Friday, 11. November 2011

Sarkozy's formula divides Europe

During a debate with students on Tuesday French President Nicolas Sarkozy advocated a two-speed Europe in which the countries of the Eurozone would be more closely integrated than the remaining countries. The blog Charlemagne's Notebook in the liberal-conservative weekly The Economist says the idea is good but fears that the wrong approach could be taken when put into practice: » more

During a debate with students on Tuesday French President Nicolas Sarkozy advocated a two-speed Europe in which the countries of the Eurozone would be more closely integrated than the remaining countries. The blog Charlemagne's Notebook in the liberal-conservative weekly The Economist says the idea is good but fears that the wrong approach could be taken when put into practice: "Done properly, by keeping the euro open to countries that want to join (like Poland) and deepening the single market for those that do not (like Britain), the creation of a more flexible EU of variable geometry could ease many of the existing tensions. Further enlargement need no longer be so neuralgic; further integration need no longer be imposed on those who do not want it. But done wrongly, as one fears Mr Sarkozy would have it, this will be a recipe for breaking up Europe. Not two-speed Europe but two separate Europes."

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Cinco Días - Spain | Friday, 11. November 2011

Two-speed Europe endangers euro

A two-speed Europe such as being pushed for by French President Nicholas Sarkozy threatens the unity of the Eurozone, the left-liberal business paper Cinco Días warns: » more

A two-speed Europe such as being pushed for by French President Nicholas Sarkozy threatens the unity of the Eurozone, the left-liberal business paper Cinco Días warns: "Much to the disgust of the European institutions Germany and France are working on a legal framework that would allow for the much talked of two-speed Europe and would permit those countries that want to move towards deeper integration of their economic, financial and labour policies. This initiative seems inevitable in a Union that can no longer allow itself to be paralysed by decisions taken in the Finnish or Slovakian parliaments, as happened recently. But this project of Angela Merkel and Nicolas Sarkozy poses a huge risk to the unity of the Eurozone and the other EU countries around it. A split would damage not just the weaker economies but the region as a whole. If the project is supposed to be a warning from Berlin to the countries lagging behind Brussels must ensure that this warning doesn't turn into a threat to the survival of the euro when the goal is supposedly to strengthen it."

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Le Figaro - France | Friday, 11. November 2011

Yvan Rioufol sees federalists as profiteers of the euro crisis

In reaction to the crisis, European federalists want to push forward with the creation of a supranational state. But in doing so they act against the will of the people, essayist Ivan Rioufol writes in the conservative daily Le Figaro: » more

In reaction to the crisis, European federalists want to push forward with the creation of a supranational state. But in doing so they act against the will of the people, essayist Ivan Rioufol writes in the conservative daily Le Figaro: "A growing number of Europeans believe they are no longer in control of their situation because their fates lie in the hands of technocrats with starched collars, grey accountants and other Soviet-type commissars. Opinion polls in France show that 60 percent of people feel democracy is not functioning properly. ... The federalists of today want to profit from the crisis in the Eurozone. They are turning their backs on the nation state and want to replace it with a supranational Europe. This attitude is symptomatic of a long-standing indifference to the spirit of the people, who are the new wretched."

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Lidové noviny - Czech Republic | Friday, 11. November 2011

Recession jeopardises euro bailout

The EU Commission warned on Thursday that Europe could be gripped by a major recession in the coming year. This is not good news, writes the conservative daily Lidové noviny: » more

The EU Commission warned on Thursday that Europe could be gripped by a major recession in the coming year. This is not good news, writes the conservative daily Lidové noviny: "The banking and debt crisis is already spreading to the real economy. People are cautious about spending and companies are cautious about investing. EU Commissioner Olli Rehn admits that the Eurozone economy is crippled by a lack of confidence and a sense of insecurity. The stagnation, growing unemployment and increased public debt feared for the coming year can only be stopped if politicians can prevent the Eurozone from drifting apart. Until now, however, they have no prescription for how to do so. But the recession also means that the euro bailout will fail. The collapse of the Eurozone, only months ago considered a catastrophe that could constitute a major threat to peace, is increasingly being perceived as a serious alternative."

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Wiener Zeitung - Austria | Friday, 11. November 2011

Europe's party democracy has failed

The fact that technocrats are taking over the task of government in Greece and Italy symbolises the failure of party democracy, the state-run liberal daily Wiener Zeitung writes: » more

The fact that technocrats are taking over the task of government in Greece and Italy symbolises the failure of party democracy, the state-run liberal daily Wiener Zeitung writes: "What is so annoying are the structural parallels of a system failure: the willingness to accept the total discrediting of democratic legitimisation so that in the end a large majority believes a temporary suspension of party democracy will bring about the longed-for rescue. In other words, we are witnessing the ultimate triumph of expertocracy over politics. ... This is the result of a widespread weariness with what is perceived as the laborious and crippling procedures of balancing antagonistic interests in parliament. Practical necessities are the only ostensible guide for the actions of experts. ... The job of the parties is to establish a consensus by means of public discourse and elections on which path to take. Both the Greeks and the Italians have failed miserably in this respect. Now the experts are taking the helm. ... This is without doubt a step forward in the midst of an existential crisis but it is also a declaration of bankruptcy for party democracy."

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All available articles from » Walter Hämmerle

To Ethnos - Greece | Wednesday, 9. November 2011

Papandreou resigns to remain PM

The Greek Prime Minister Giorgos Papandreou announced his resignation on Wednesday but his intention is to only withdraw temporarily from the post, the left-liberal daily To Ethnos writes: » more

The Greek Prime Minister Giorgos Papandreou announced his resignation on Wednesday but his intention is to only withdraw temporarily from the post, the left-liberal daily To Ethnos writes: "While the entire country is talking about the future prime minister it underestimates the ramifications of Papandreou remaining leader of his party Pasok. No one is demanding that he give up this post. This is a great mistake on the part of his opponents within the party. They have failed to understand his plan. Because he has instructed the minister for economic affairs Evangelos Venizelos and the opposition leader Antonis Samaras to ratify the agreement for an eternal austerity programme and the nation's submission Papandreou can be sure that these two will 'burn themselves' politically. His temporarily giving up responsibility for the 'dirty work' but remaining Pasok's leader means that the ruling party will be running for election in four months' time! ... He, and no other, will be the candidate for the office of prime minister, and his reputation will be undamaged by the new measures!"

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Les Echos - France | Thursday, 10. November 2011

European Central Bank must losen up

Above all the European Central Bank is to blame for Italy's now having to pay interest rates of over seven percent on its government bonds, writes the liberal business paper Les Echos: » more

Above all the European Central Bank is to blame for Italy's now having to pay interest rates of over seven percent on its government bonds, writes the liberal business paper Les Echos: "Why is it that England can borrow money at an interest rate of 2.2 percent over ten years while Italy must pay 7.4 percent, even though Britain's state finances are in worse shape than Italy's? The difference between the two countries depends among other things on the role played by the central banks. As in all big countries, the central bank, the Bank of England, acts as a lender of last resort. ... The head of the US Federal Reserve, Ben Bernanke, cooled the panic on financial markets in 2008 by reminding people that if need be the Fed would also act as lender of last resort. The Eurozone is endangered because the ECB is unwilling to take on such a role. This must change. It doesn't mean becoming overly lax or losing credibility. Other central banks are ample proof of that."

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All available articles from » Nicolas Barré

Il Sole 24 Ore - Italy | Thursday, 10. November 2011

Emergency government can calm markets

Former EU commissioner Mario Monti is under discussion for the post of prime minister of an Italian caretaker government. This government is Italy's only chance ... » more

Former EU commissioner Mario Monti is under discussion for the post of prime minister of an Italian caretaker government. This government is Italy's only chance to win back the confidence of the financial markets, writes the liberal business newspaper Il Sole 24 Ore. "There is no alternative to an emergency National Unity government. All the political forces - above all the representatives of Berlusconi's conservative PDL party - must agree on people who have already proven that they speak the language of the financial markets and the states. This will enable them to conduct the negotiations on par with their partners and convince investors of the solidity and credibility of Italian government bonds. Therefore, dear deputies and senators, it is your responsibility to give Italy an emergency government that is led by trustworthy men. Only such a government can prescribe the medicine the Italians need and at the same time restore the world's trust in the country."

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Público - Portugal | Wednesday, 9. November 2011

Jospeh Nye on Angela Merkel's cautious visions

The complaints about the weakness of Europe's political leaders are growing louder. German Chancellor Angela Merkel is often criticised for failing to promote a vision of Europe as Helmut Kohl did. But the US political expert Joseph Nye doubts in the daily Pùblico that the critics are right: » more

The complaints about the weakness of Europe's political leaders are growing louder. German Chancellor Angela Merkel is often criticised for failing to promote a vision of Europe as Helmut Kohl did. But the US political expert Joseph Nye doubts in the daily Pùblico that the critics are right: "Without a vision, it is difficult to lead others anywhere. ... But one must be cautious about visions. Sometimes leaders think that vision can solve most of their problems, but the wrong vision - or an overly ambitious vision - can do damage. ... Merkel has proceeded cautiously on saving the euro. She faced public scepticism about using German funds to bail out the Greek economy. Her coalition was divided on the issue, and her party lost state elections. If she had acted more boldly, she might have lost even more support, but the steps that she agreed to remained insufficient to reassure markets. At the end of October, however, she finally articulated a vision of the future of Europe that persuaded the German Bundestag to agree to a package of measures to save the euro. Whether she waited too long - and whether her vision will prove convincing - will be determined in the coming months."

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Cinco Días - Spain | Thursday, 10. November 2011

Italy beyond bailout

In view of the high yields on Italian government bonds the left-liberal business paper Cinco Días no longer believes that Italy will be able to hold out against the pressure of the markets: » more

In view of the high yields on Italian government bonds the left-liberal business paper Cinco Días no longer believes that Italy will be able to hold out against the pressure of the markets: "The announced resignation of Italian Prime Minister Silvio Berlusconi has shown everyone that the fall of an incompetent government is no longer enough to reduce the pressure of the markets on a struggling country. There can be no doubt that Berlusconi's exit will improve Rome's prospects, but the gesture is not enough to restore the investors' confidence in a country that has accumulated so much debt - 1.9 billion euros, or 120 percent of its GDP. ... The risk premium on Italian bonds rose yesterday like the mercury in a thermometer. ... Italy is thus following step by step the same fatal path that Ireland and Portugal took before they were bailed out. The big difference here is that because of its size it can't be saved with the same measures as these countries or Greece."

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El País - Spain | Saturday, 5. November 2011

Moisés Naím recommends Latin America as model for Europe

Europe can learn much from how the Latin American countries overcame their economic crises, writes Venezuela's former minister of trade and industry Moisés Naím in the left-liberal daily El País: » more

Europe can learn much from how the Latin American countries overcame their economic crises, writes Venezuela's former minister of trade and industry Moisés Naím in the left-liberal daily El País: "Between 1980 and 2003 Latin America went through 38 economic crises. The region, the politicians and the public have all learned much from this painful experience. The most important lesson could be summed up as the 'force of the package'. The 'package' is a combination of economic measures implemented over time in a comprehensive, coherent, trustworthy and politically sustainable way. ... Unfortunately the temptation to avoid these comprehensive and coherent measures is just as great as their beneficial impact. The most common mistake in Latin America was to meet the crisis with half-hearted and insufficient means, in the belief that unpopular measures could be put off indefinitely. And that's how things have unfolded in Europe as well. ... Hopefully Europe can overcome this crisis just as the new Latin America learned to do. In this sense the Latin Americanisation of Europe is a well-intentioned wish."

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De Standaard - Belgium | Wednesday, 9. November 2011

Financial markets topple Berlusconi

The planned resignation of Silvio Berlusconi is a merciful release that nonetheless leaves a bitter aftertaste, writes the liberal daily De Standaard: » more

The planned resignation of Silvio Berlusconi is a merciful release that nonetheless leaves a bitter aftertaste, writes the liberal daily De Standaard: "As long as Berlusconi was sitting in the Palazzo Chigi no one believed that Italy would enact the economic reforms demanded of it to calm the markets. Because he has lost the very last remnants of his credibility Berlusconi must now step down - in the interest of all Europe. For if Italy, like Greece, begins to falter the European edifice would come under such pressure that it could be fatal. The whole episode leaves a bitter aftertaste: it was only because the democratically elected Italian politicians felt the sharpened knife of the financial markets and the EU in their backs that they plucked up the courage to get rid of Berlusconi. ... This does not bode well for the country, because the imminent departure of the Cavaliere is merely a first step towards Italy regaining the confidence of the international financial markets."

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The Guardian - United Kingdom | Wednesday, 9. November 2011

No successor in sight

There is no sign of an adequate successor to outgoing Italian Prime Minister Berlusconi, the left-liberal daily The Guardian writes: » more

There is no sign of an adequate successor to outgoing Italian Prime Minister Berlusconi, the left-liberal daily The Guardian writes: "Italians as individuals have low levels of debt, as do Italian businesses. Britain would be happy to have a middle band of family companies as varied as that which Italy still possesses, or some of the major corporations which Italy still boasts. The Italian economy is not a shipwreck. But the Italian ship of state needs a credible new captain. Unfortunately, there is no obvious charismatic choice. Throughout the Berlusconi years, an inadequate opposition has played into his hands. A figure from his own party, with Berlusconi still behind the scenes, would almost certainly fail to convince the markets. An interim government of experts might briefly calm things down, but a new election would almost certainly do the opposite. Whether a better government can solve Italy's problems if it stays in the eurozone is the biggest question of all."

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De Groene Amsterdammer - Netherlands | Wednesday, 9. November 2011

Aukje van Roessel sees Europe's democracy in distress

The euro crisis is a crisis of democracy, writes journalist Aukje van Roessel in the left-leaning weekly De Groene Amsterdammer, commenting on the cancelled plans for a referendum in Greece: » more

The euro crisis is a crisis of democracy, writes journalist Aukje van Roessel in the left-leaning weekly De Groene Amsterdammer, commenting on the cancelled plans for a referendum in Greece: "If we take a closer look at Europe we can see a great gap between an elite and the average citizens. Even before Papandreou's plan for a referendum it was clear from the discussions about a solution to the euro crisis that the people were seen as a burden, as blocking a real solution. A number of economists accuse the Eurozone countries of showing too much consideration for their voters. This criticism reveals an essentially anti-democratic stance. Democracy as a form of government is going through a difficult period, not just in Europe. ... But the rise of the economic superpower China demonstrates that growing prosperity is also possible without democracy. And when Islamist parties win the free elections in Arab countries this raises questions about the rights and liberties of women and minorities. These developments are a challenge to Western democracies. Or are we perhaps willing to sacrifice even democracy for the sake of our prosperity?"

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Spiegel Online - Germany | Wednesday, 9. November 2011

Jan Fleischhauer sees Habermas as an hysterical doomsayer

The commotion over the euro crisis has reached a hysterical pitch, notes journalist Jan Fleischhauer in his column for news portal Spiegel Online. In particular he criticises German philosopher Jürgen Habermas' warnings of a "post-democracy": » more

The commotion over the euro crisis has reached a hysterical pitch, notes journalist Jan Fleischhauer in his column for news portal Spiegel Online. In particular he criticises German philosopher Jürgen Habermas' warnings of a "post-democracy": "When Habermas starts talking he really goes for maximum impact, as we see. This is the way it was 25 years ago when he spoke of 'the West's political culture' going to the dogs. ... Now it's financial fascism he wants to save us from. ... Contrary to his reputation as a cool-headed great thinker, Habermas clearly belongs to the ranks of the apocalyptic-minded hysterical doomsayers. In his account of the euro crisis, politics has long since been caught up in the wheels of the economy. ... Instead of trying to ensure social equality the democratic decisionmakers are preoccupied with providing the markets with business. They are the slaves or, like the German Chancellor, the willing accomplices of 'a crazed financial capitalism' that is interested solely in the short-term prosperity of the shareholders and regards the democratic legitimation processes as superfluous. ... In reality all the rhetoric is aimed at exonerating the politicians of their responsibility, leaving them free to continue with the politics of convenience."   

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Corriere della Sera - Italy | Wednesday, 9. November 2011

Slow-motion resignation is risky

Prime Minister Berlusconi plans to pass the reforms promised at the summits in Brussels and Cannes before he leaves office. But the delay in his departure poses major risks, the liberal-conservative daily Corriere della Sera warns: » more

Prime Minister Berlusconi plans to pass the reforms promised at the summits in Brussels and Cannes before he leaves office. But the delay in his departure poses major risks, the liberal-conservative daily Corriere della Sera warns: "Berlusconi is resigning, but in slow motion. The gesture is testimony to a commendable sense of responsibility but it could lead to a dangerous pause in activities that would be fatal for a country that has been exposed to the speculators' attacks for months. The coming weeks threaten to be very difficult. Above all if the government comes across as wanting to postpone the final decisions rather than making them as quickly as possible. ... This would produce a gaping abyss."

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All available articles from » Massimo Franco

Kurier - Austria | Wednesday, 9. November 2011

Italians don't want reforms

Berlusconi's announced departure won't change much in the Italians' relationship to politics, the daily Kurier suspects: » more

Berlusconi's announced departure won't change much in the Italians' relationship to politics, the daily Kurier suspects: "Like other Southern European countries, Italy's political tradition is different to that in the north. They give the state less - for example in taxes - but also demand less in return. The harmony regarding economic policy without which the European Monetary Union cannot function in the long run cannot be achieved under such a system - no matter how many hundreds of billions of euros the EU pumps towards Sicily. Fundamental reforms would be necessary. But where is the government that could enact such reforms supposed to come from all of a sudden - and do the Italians even want such a government? After all, they've already had a few decades of democracy to think it over."

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Blog Pitsirikos - Greece | Tuesday, 8. November 2011

Greeks too lazy to lead their country

Greece still lacks a new government; it is due to be announced today, Wednesday. The blogger Pitsirikos makes fun of the delay in forming an interim government: » more

Greece still lacks a new government; it is due to be announced today, Wednesday. The blogger Pitsirikos makes fun of the delay in forming an interim government: "The explanations given by the candidates for why they won't accept the office of prime minister are justifying the foreign media in all they have said and written about us Greeks in recent years. We see that there are jobs but no one wants to take them. This confirms the opinion of foreigners who describe us as lazy. If the Greeks don't even want the job of prime minister then perhaps their aversion to hard work in agriculture is also more comprehensible. ... And then we complain about the high level of unemployment."

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Cyprus Mail - Cyprus | Tuesday, 8. November 2011

Cyprus's anti-crisis policy irresponsible

Rating agency Moody's on Friday lowered the creditworthiness of the Republic of Cyprus to just one notch about junk status. Moody's justified the step by pointing to the Cypriot banks' strong involvement in Greece. The liberal daily Cyprus Mail criticises the hesitant anti-crisis policy of the government: » more

Rating agency Moody's on Friday lowered the creditworthiness of the Republic of Cyprus to just one notch about junk status. Moody's justified the step by pointing to the Cypriot banks' strong involvement in Greece. The liberal daily Cyprus Mail criticises the hesitant anti-crisis policy of the government: "Things were so desperate the Central Bank governor on Saturday spoke of the need to raise taxes, a catastrophic measure during a recession. But there is no other option given the government's refusal to address the structural rigidities in the government budget, for fear of upsetting the unions. The suspicion is that the government would prefer to enter the support mechanism and have unpopular measures imposed on it, rather than be burdened with the political cost of such decisions. It is a colossally irresponsible approach because the harm this does to Cyprus as a financial services centre may be irreparable."

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Politis - Cyprus | Monday, 7. November 2011

Greek opposition leader is opportunist

In Greece the tug of war over a National Unity government and socialist Prime Minister Giorgos Papandreou's successor goes on. According to media reports the talks are faltering because opposition leader Antonis Samaras doesn't want the MPs of his conservative party to participate in the government since it would entail approving unpopular austerity measures. The liberal daily Politis sees Samaras as an irresponsible opportunist: » more

In Greece the tug of war over a National Unity government and socialist Prime Minister Giorgos Papandreou's successor goes on. According to media reports the talks are faltering because opposition leader Antonis Samaras doesn't want the MPs of his conservative party to participate in the government since it would entail approving unpopular austerity measures. The liberal daily Politis sees Samaras as an irresponsible opportunist: "It's obvious that Samaras wants to turn the disgruntlement with Papandreou's government and his Pasok party to his own advantage. He wants to rise to power, but not as the chosen leader of the people but as the man who charges against the current government on the wave of protest. What an adventure! Ignoring the huge problems the country is facing Samaras simply says to himself: Now that I have the chance to take charge I'll seize it. This is a brand of political alchemy that has no regard for the future of the country."

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Corriere della Sera - Italy | Tuesday, 8. November 2011

PM's stubborness hurts the country

By clinging to power Berlusconi has done himself and Italy a disservice, the liberal-conservative daily Corriere della Sera laments: » more

By clinging to power Berlusconi has done himself and Italy a disservice, the liberal-conservative daily Corriere della Sera laments: "Europe perceives us as a country without direction ruled by a man who is obsessed with the drama of his own downfall. He is clinging to the card table with the stubbornness of a gambler who hopes right to the last card that his luck will change and he will win back all he has lost. If Berlusconi cares at all about how he will go down in Italian history he made the worst possible decision in these recent days. If he believes that resistance can help his government he is making an unforgivable mistake. It won't help his country, which is being unfairly mocked by its European partners and castigated by the markets, and it won't help the liberal-conservative party that every democratic country needs."

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All available articles from » Sergio Romano

Financial Times - United Kingdom | Tuesday, 8. November 2011

French cuts misguided

The French government on Monday announced additional cuts of 18.6 billion euros for the coming year, with a further 65 billion euros in spending cuts planned before 2016. But the move will change little in structural terms, the liberal-conservative business paper Financial Times concludes: » more

The French government on Monday announced additional cuts of 18.6 billion euros for the coming year, with a further 65 billion euros in spending cuts planned before 2016. But the move will change little in structural terms, the liberal-conservative business paper Financial Times concludes: "The real problem with these latest measures is that they fail to send a clear and confident signal to markets that France is on the path to structural reforms that will really stimulate longer-term growth - especially as the cuts may have to be revisited if the economy slows yet again. Rightly, the government is cautious about how it cuts spending in the short term. But this should be no impediment to setting out a longer-term vision. ... It might be naive to think that six months before an election any government would set out such goals. Yet Mr Sarkozy was elected in 2007 promising bold change. It may be that, with his popularity at record lows, he would have little to lose and much to gain from taking a more radical approach."

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La Vanguardia - Spain | Tuesday, 8. November 2011

All Italians have failed

Berlusconi's political end is drawing closer, writes the liberal daily La Vanguardia and criticises the passivity of the Italian people: » more

Berlusconi's political end is drawing closer, writes the liberal daily La Vanguardia and criticises the passivity of the Italian people: "Without doubt Silvio Berlusconi has been a dark chapter in Italian politics - the most discredited, incompetent and sad leader in the country's recent history. And although a strong opposition has finally formed against Berlusconi on the streets the tragic thing about Italy is that it won't be the weight of his shameful behaviour that will make him fall but the weight of the public debt. In other words it won't be the citizens but the economy that is throwing him out of office. ... Italy's problem is that Berlusconi has been able to stay in power because he was able to maintain his popularity ratings and his considerable influence. ... Now the Cavaliere is being criticised. But these should above all be times of profound self-criticism. Berlusconi was able to govern as he did because Italy as a whole has failed."

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Hospodárske noviny - Slovakia | Tuesday, 8. November 2011

Berlusconi won't give up

Silvio Berlusconi on Monday denied the rumour being spread in the media that he would step down. Much to his country's detriment Berlusconi will be around for a while yet, writes the Slovakian business paper Hospodárske noviny: » more

Silvio Berlusconi on Monday denied the rumour being spread in the media that he would step down. Much to his country's detriment Berlusconi will be around for a while yet, writes the Slovakian business paper Hospodárske noviny: "When the news agency Reuters spread unconfirmed reports yesterday that Berlusconi would step down either today or tomorrow share prices rose. Allegedly his own party colleagues were urging him to resign. When the prime minister declared that he didn't want to give up the gloomy mood set in again. The ups and downs in share prices could show Berlusconi what to do. Looking back at his political career, peppered with scandals, allegations of corruption and potential links to the underworld it's hardly likely that this media mogul will so easily abandon the position of head of government to which he has repeatedly returned."

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All available articles from » Ivan Szabó

Der Standard - Austria | Tuesday, 8. November 2011

Paul Lendvai condemns opportunists in Athens and Rome

In Greece and Italy only opportunists and unscrupulous incompetents are at work instead of politicians who are genuinely committed to their country, complains the publicist Paul Lendvai in the left-liberal daily Der Standard: » more

In Greece and Italy only opportunists and unscrupulous incompetents are at work instead of politicians who are genuinely committed to their country, complains the publicist Paul Lendvai in the left-liberal daily Der Standard: "In fact what the events in Athens and Rome demonstrate is the bankruptcy of the entire political class. In both countries it is questionable whether there can be a functioning government in the near future. Berlusconi, the symbol of political shamelessness, is preparing his fifth CD on 'true love', but the opposition can't even agree on a programme. Meanwhile in crass opposition to his party colleagues in Portugal, Ireland and the EU Parliament, the Greek opposition leader Antonis Samaras, an unbridled nationalist and opportunist, is not interested in the bailout of his country but only in gaining power. Whether the parties and politicians of Greece and Italy can leap over their shadows despite the apocalyptic mood unfortunately remains to be seen."

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Helsingin Sanomat - Finland | Tuesday, 8. November 2011

Italy has better politicians

Italy can only find a way out of the crisis under a new political leadership, the liberal daily Helsingin Sanomat comments: » more

Italy can only find a way out of the crisis under a new political leadership, the liberal daily Helsingin Sanomat comments: "The Berlusconi system owes its success to its leader's personality cult, but at the same time it has wasted the bulk of its energy on hushing up his legal and moral problems. The necessary economic and administrative reforms always came second. Italy's international reputation has suffered. But the crisis has also allowed Italy to show that its system is not only based on disregarding the rule of law, on corruption and using the television to dumb down the public. Without a doubt: there are still responsible candidates for leadership in the country."

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Delo - Slovenia | Tuesday, 8. November 2011

Euro must better defend itself

The finance ministers of the Eurozone met on Monday to discuss how to expand the euro bailout fund in such a way that countries like debt-stricken Italy can also be protected. They called above all for the crisis countries to economise. But precisely this is the wrong approach, the left-liberal daily Delo warns: » more

The finance ministers of the Eurozone met on Monday to discuss how to expand the euro bailout fund in such a way that countries like debt-stricken Italy can also be protected. They called above all for the crisis countries to economise. But precisely this is the wrong approach, the left-liberal daily Delo warns: "Austerity measures alone in times of weak growth will not be enough, especially not in countries that are already heading towards recession precisely because they have cut spending. This is why it is absolutely vital that the euro group strengthens its defence walls to protect the weakest members against the attacks of speculative capital. The fact that Italy has fallen out of favour on the stock exchanges is another warning sign that far from being over, the crisis of the euro is actually worsening."

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All available articles from » Bozo Masanovic

Der Spiegel - Germany | Sunday, 6. November 2011

Niall Ferguson on the monetary union as Europe's downfall

The Monetary Union is a severe setback to Europe, British historian Niall Ferguson writes in the weekly magazine Der Spiegel, drawing a comparison with the problems of reunified Germany: » more

The Monetary Union is a severe setback to Europe, British historian Niall Ferguson writes in the weekly magazine Der Spiegel, drawing a comparison with the problems of reunified Germany: "Back then the former citizens of the GDR saw that while the deutschmark gave them greater buying power on the short term, on the long term it above all meant mass unemployment. Hence since the German reunification West German taxpayers basically pay a large portion of East Germans to do nothing. ... Now the question is whether the (West) German taxpayers will accept the same burden in the far larger Monetary Union, formed by Germany in 1999 with ten other European states. That's not what the opinion polls indicate. ... As long as the people of the German Federal Republic have the feeling that they are the only ones working hard in Europe - and that they're the ones writing the checks to boot - European integration will pursue its backward progression while the degeneration of the economic union continues apace."

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El País - Spain | Monday, 7. November 2011

New prime minister will have it easier

The successor of Greek Prime Minister Papandreou will have more political leeway than he himself has, writes the left-liberal daily El País: » more

The successor of Greek Prime Minister Papandreou will have more political leeway than he himself has, writes the left-liberal daily El País: "It's a paradox: Although Papandreou was forced to resign his successor will have more room for manoeuvre - at least regarding domestic politics - than he does. This is because Papandreou - whether intentionally or unintentionally - has made the potential dangers clear to both the country's allies and his own citizens. It's difficult to predict how the situation will develop in this country which is facing not just an economic crisis but also falling apart politically and socially. The solution that is beginning to emerge doesn't appear to be the worst even if the instability that poses a threat to all Europe remains."

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Naftemporiki - Greece | Monday, 7. November 2011

Political poker harms Greece

The tug of war between socialists and conservatives  over an interim coalition government in Greece shows how incompetent they are, writes the conservative business paper Naftermporiki: » more

The tug of war between socialists and conservatives  over an interim coalition government in Greece shows how incompetent they are, writes the conservative business paper Naftermporiki: "The game of political poker between the two sides - witnessed not just by the Greeks but by the whole world - demonstrates above all one thing: ... Even though we are in free fall the personal interests of the politicians take priority. ... In recent days the fact that we are facing a political rather than an economic problem has been confirmed. It is a purely political problem when the very same political leadership that in the past few years contributed to the bankruptcy of the country cannot agree on solutions to save the country."

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Trouw - Netherlands | Monday, 7. November 2011

Opposition must assume responsibility

An interim government without Prime Minister Papandreou still doesn't ensure Greece's rescue, the Christian-social daily Trouw warns: » more

An interim government without Prime Minister Papandreou still doesn't ensure Greece's rescue, the Christian-social daily Trouw warns: "One can hardly accuse Papandreou of lacking courage. He has said bluntly in parliament that the agreements for saving the euro and the tough austerity measures this entails are the price for decades of corruption and cronyism. Papandreou's bravery however turned into recklessness when he announced a referendum. This venture cast doubts on the rescue plan and caused the Greek drama to further escalate. ... The biggest opposition party now seems willing to assume responsibility. But the party's leader Samaras will have to prove that he was not just out for Papandreou's scalp. And he must realise that the survival of the Greek economy is at stake here. If this is the outcome of the past turbulent week then perhaps a small victory has been won."

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Upsala Nya Tidning - Sweden | Monday, 7. November 2011

Athens gropes its way out of the crisis

The formation of a transitional government in Greece is a first tentative step towards solving the country's problems, the liberal daily Upsala Nya Tidning writes: » more

The formation of a transitional government in Greece is a first tentative step towards solving the country's problems, the liberal daily Upsala Nya Tidning writes: "Now at least there is a chance that the parties will reach agreement on a package for solving the crisis. This was a change of course in the shadow of the gallows. But for this change the loans Greece needs to avoid bankruptcy would have been withheld. Responsibility now weighs heavily on the shoulders of opposition leader Antonis Samaras. The new coalition is fragile - as fragile as the economic recovery of Greece."

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Der Standard - Austria | Saturday, 5. November 2011

Italy too big to save

Italy agreed on Friday at the G20 summit in Cannes to allow the International Monetary Fund (IMF) to monitor its financial policy. A decision that was sorely needed, writes the left-liberal daily Der Standard: » more

Italy agreed on Friday at the G20 summit in Cannes to allow the International Monetary Fund (IMF) to monitor its financial policy. A decision that was sorely needed, writes the left-liberal daily Der Standard: "There is hardly any alternative to closer budgetary monitoring. It's unthinkable that Italy, like Greece, should be decoupled from the money market and seek the security of the bailout fund. Neither Europe nor the IMF has enough funds for that. Italy isn't just 'too big to fail', it's 'too big to save'. Greece's debts amount to 340 billion euros - Italy needs loans of over 400 billion in 2012 alone. Politically, too, it's hard to imagine a bailout for Rome. What politician could sell citizens a bailout package like that?"

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The Guardian - United Kingdom | Sunday, 6. November 2011

The powerlessness of the most powerful

US President Barack Obama is the most powerful person in the world according to this year's list compiled by US business magazine Forbes, followed by Russian Prime Minister Vladimir Putin and Chinese President Hu Jintao. But the current crisis reveals just how powerless they all are, writes the left-liberal daily The Guardian with an eye to the G20 summit in Cannes: » more

US President Barack Obama is the most powerful person in the world according to this year's list compiled by US business magazine Forbes, followed by Russian Prime Minister Vladimir Putin and Chinese President Hu Jintao. But the current crisis reveals just how powerless they all are, writes the left-liberal daily The Guardian with an eye to the G20 summit in Cannes: "The G20 proved that its leaders are strong in only one sense. Each is powerful enough to veto another's idea of how to extricate themselves from the crisis. China said no to the French cry for help. Germany resisted everyone else's pleas to empower the European Central Bank. America was cool to Britain's urgings to make the IMF the saviour of the situation. The result is that we have lurched closer to the absolute catastrophe of a wave of sovereign defaults in the eurozone."

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Frankfurter Allgemeine Zeitung - Germany | Sunday, 6. November 2011

Jürgen Habermas on Merkozy's post-democratic approach

Europe's politicians, and in particular German Chancellor Angela Merkel and President Nicolas Sarkozy, are trying to contravene the principles of democracy for the sake of unclear economic goals, writes philosopher Jürgen Habermas in the conservative daily Frankfurter Allgemeine Zeitung: » more

Europe's politicians, and in particular German Chancellor Angela Merkel and President Nicolas Sarkozy, are trying to contravene the principles of democracy for the sake of unclear economic goals, writes philosopher Jürgen Habermas in the conservative daily Frankfurter Allgemeine Zeitung: "This is the spectacle of the degeneration of those values and convictions that once embodied the idea of Europe. Some of the protagonists of the financial markets are thinking ahead to what will happen next in this story of decline and collapse. ... The British newspaper the 'Telegraph' reported on a joke circulating in financial circles and apparently also within the British cabinet: it would be good if a military junta forced its way into power in Greece now because military juntas are not allowed to be EU members. ... You don't have to appreciate all the unconscious dimensions of the joke to understand the extent to which the moral agreements of the post-war period are being trampled upon in the name of a higher financial-economical logic. ... The Greek disaster serves however as a warning not to adopt the post-democratic approach that Merkel and Sarkozy have taken. A concentration of power in an inter-governmental committee of heads of government who foist their agreements on national parliaments is the wrong approach." 

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Main focus of Friday, 4. November 2011

Papandreou hints at resignation

Greek Prime Minister Giorgos Papandreou on Thursday cancelled his plan for a referendum, clearing the path for negotiations with the opposition. Papandreou did not rule ... » more

Greek Prime Minister Giorgos Papandreou on Thursday cancelled his plan for a referendum, clearing the path for negotiations with the opposition. Papandreou did not rule out the possibility of resigning should it facilitate the formation of a transitional government. He is not the leader Greece needs right now, some commentators write. Others call on citizens all over Europe to participate in solving the crisis.

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La Vanguardia - Spain | Friday, 4. November 2011

Conservatives set to win election in Spain

The campaign for the parliamentary elections scheduled for November 20 began today, Friday, in Spain. The conservative Partido Popular (PP) will win by a large majority, the liberal daily La Vanguardia affirms with absolute certainty: » more

The campaign for the parliamentary elections scheduled for November 20 began today, Friday, in Spain. The conservative Partido Popular (PP) will win by a large majority, the liberal daily La Vanguardia affirms with absolute certainty: "In the midst of a financial and banking crisis compounded by the economic crisis in the industrial nations of the West and a correspondingly high unemployment rate, which in Spain has almost reached five million. In the midst of this perfect storm an election campaign begins in which the cards have already been dealt out and there is barely any room for surprises. The PP led by Mariano Rajoy has all the polls on its side, with a clear absolute majority. Meanwhile they predict a historical defeat for the [socialist] PSOE led by Alfredo Pérez Rubalcaba. It is not just the impact of the crisis that is castigating the government and rewarding the opposition but the glaring and dramatic lack of solutions offered by the Zapatero government and PSOE."

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Frankfurter Allgemeine Zeitung - Germany | Friday, 4. November 2011

ECB more predictable with Draghi

In his first act as new president of the European Central Bank (ECB) Mario Draghi on Thursday surprised observers by lowering the base interest rate from 1.5 percent to 1.25 percent. The conservative daily Frankfurter Allgemeine Zeitung praises Draghi's clear approach in unstable times: » more

In his first act as new president of the European Central Bank (ECB) Mario Draghi on Thursday surprised observers by lowering the base interest rate from 1.5 percent to 1.25 percent. The conservative daily Frankfurter Allgemeine Zeitung praises Draghi's clear approach in unstable times: "The political chaos in Greece has the markets very much on edge, and many shareholders had wished for additional help in the crisis. But after his first Governing Council session as ECB president, Draghi appeared clear, calm and comprehensible. ... Recently domestic consumption and foreign demand had weakened, among other indicators, and the mood in industry had been alarmingly dismal. Draghi is not deterred by what is still a high rate of inflation, as it will sink to below two percent next year due to basis effects and the weak state of the economy. Draghi's argumentation is clearer than that of his predecessor Jean-Claude Trichet, and that will make the ECB more predictable."

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Imerisia - Greece | Friday, 4. November 2011

No more trust in politicians

Prime Minister Giorgos Papandreou will propose a vote of confidence in parliament late on Friday evening. But to judge by recent political developments it is clear that Greece no longer has a political leader, writes the business paper Imersia: » more

Prime Minister Giorgos Papandreou will propose a vote of confidence in parliament late on Friday evening. But to judge by recent political developments it is clear that Greece no longer has a political leader, writes the business paper Imersia: "Everywhere people are talking about the lack of a strong leadership, both in Europe and in our country. The Eurozone's misadventures are commonly attributed to a weak political leadership. ... The same could be said of the political leadership in Greece. ... Instead of assuming their responsibilities and serving the interests of our country, which entails defending it from threats posed by its EU partners as well as the threat of begin expelled from the Eurozone they are only interested in their own power. All the citizens have realised this. We hear the politicians repeat monotonously that they are fighting for the interests of the people but no one believes them any more. All the trust has evaporated."

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Le Figaro - France | Friday, 4. November 2011

Europeans have a right to co-determination

In not going through with the announced referendum Prime Minister Papandreou is ignoring the will of the people, and that is a mistake, the conservative daily Le Figaro writes: » more

In not going through with the announced referendum Prime Minister Papandreou is ignoring the will of the people, and that is a mistake, the conservative daily Le Figaro writes: "The arrogance of the powerful reached it peak this week in the hefty comments criticising the prime minister for rashly announcing a referendum on austerity measures that his fellow citizens must support. Such invective is reminiscent of 2005, when the French voted against the European constitution. Greece is called the cradle of democracy. But if you expect people to tighten their belts when they were not really responsible for the crisis, the least you can do is ask them first. ... One thing is certain: Europe will not come together as long as it ignores the indignant, as it is now doing. The people are the key to the crises, and they are currently gaining the upper hand. Without their support there can be no solution."

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All available articles from » Ivan Rioufol

De Volkskrant - Netherlands | Friday, 4. November 2011

Greece needs more adept prime minister

After the flurry over the referendum Greek Prime Minister Papandreou will face a motion of confidence in parliament today, Friday. But he is no longer the right man for the job, writes the left-liberal daily De Volkskrant: » more

After the flurry over the referendum Greek Prime Minister Papandreou will face a motion of confidence in parliament today, Friday. But he is no longer the right man for the job, writes the left-liberal daily De Volkskrant: "Chancellor Merkel and President Sarkozy have for the first time said that bailing out the euro is more important than bailing out Greece. This pressure has got things moving in Athens. No only the important Finance Minister Venizelos adopted a clear stance against the referendum. Even the opposition, which until now had been characterised only by opportunism, has shown its readiness to push through the bailout package by political means. But for that to be the case there must be a transitional government of national unity led by a prime minister who stands above party affiliations. A logical demand, but a bitter pill for Papandreou, who has weathered many a storm with honourable steadfastness. But Greece is undergoing a true national crisis that calls for the greatest political skills."

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Právo - Czech Republic | Friday, 4. November 2011

Everything points to a smaller Eurozone

Despite the current turbulence the single currency is not about to collapse, however several states may end up leaving the Eurozone, the left-leaning daily Právo writes: » more

Despite the current turbulence the single currency is not about to collapse, however several states may end up leaving the Eurozone, the left-leaning daily Právo writes: "If Greece really does fall, it can't be ruled out that other states will be dragged down with it. Financial experts have long been sketching scenarios in which only Germany, some Scandinavian countries and a few surrounding states retain the euro. But even that would be no reason to abandon the euro and go back to the Deutschmark, the guilder or the schilling. Because that would also mean the German Central Bank would once again have the decisive influence over monetary development in Europe, as it did as in the 1980s - something none of Berlin's partners want. So what are the prospects for the euro? The common currency isn't in danger. But some Eurozone states most certainly are."

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All available articles from » Michal Mocek

Der Standard - Austria | Friday, 4. November 2011

Euro power politics prevail

Greece has learned the hard way that individual countries don't really have much say when the euro is at stake, the left-liberal daily Der Standard concludes: » more

Greece has learned the hard way that individual countries don't really have much say when the euro is at stake, the left-liberal daily Der Standard concludes: "The country urgently needs money, in four weeks at latest. But for the euro partners and the IMF to transfer their billions there must be functioning decision-making structures in Athens. A vicious circle for which Papandreou, under pressure from all sides, is ultimately responsible. He played poker too long for stakes that were too high. This no longer works in the euro community - that is the most important consequence of the crisis in the past two years. And when the euro ship does start to tilt badly it is euro power politics that calls the shots. This may be necessary but it is nonetheless a backward step for the Union."

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The Guardian - United Kingdom | Friday, 4. November 2011

New elections destabilise Greece

The Greek opposition party Nea Dimokratia is calling for a transition government to organise new elections within six weeks. Far from calming the situation in the country elections will have the opposite effect, the left-liberal daily The Guardian fears: » more

The Greek opposition party Nea Dimokratia is calling for a transition government to organise new elections within six weeks. Far from calming the situation in the country elections will have the opposite effect, the left-liberal daily The Guardian fears: "Greece will now enter a tense election period that will put more strain on public finances (with collapsing revenues and rising expenditures) and, more importantly, will not resolve the problems of political instability and legitimacy. It is very unlikely that the elections will bring into power a strong and stable government. More likely, they will bring new rounds of political bargaining for the formation of a coalition government and for an agreement on a policy programme consistent with the Eurozone bailout agreement. The events of today are, in one way or another, a positive development. But the future does not look any brighter - not yet and not any time soon."

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Main focus of Thursday, 3. November 2011

No more aid for Greece for now

Athens will receive no more financial help before the referendum in early December. German Chancellor Merkel, French President Sarkozy and IMF head Christine Lagarde were ... » more

Athens will receive no more financial help before the referendum in early December. German Chancellor Merkel, French President Sarkozy and IMF head Christine Lagarde were clear on this point after their crisis meeting on Wednesday evening in Cannes. Such tactics are justified to pressure Greeks into voting for the Eurozone, commentators write.

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Naftemporiki - Greece | Thursday, 3. November 2011

Athens lacks any plan

If in the referendum in early December the Greeks decide against the austerity measures and by extension against staying in the Eurozone, the government will have a real problem, writes the business paper Naftemporiki: » more

If in the referendum in early December the Greeks decide against the austerity measures and by extension against staying in the Eurozone, the government will have a real problem, writes the business paper Naftemporiki: "There is probably no Plan B because the claims made by members of the government that in such an event the EU summit agreement would be renegotiated are not to be taken seriously. The announcement that a referendum will be held will no doubt delay the agreement on a debt restructuring. The original plan was that it would take effect at the start of 2012, after the negotiations with the banks. But what foreign bank could take negotiations with the Greek government for waiving 50 percent of its debt seriously when it knows that the agreement could go up in smoke at any time? The only thing that is certain before the Yes or No is that we are in a very critical phase, and without any plan once more."

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All available articles from » Panos Kakouris

Hospodářské noviny - Czech Republic | Thursday, 3. November 2011

Like a bickering married couple

The Greek Prime Minister has caused a sort of European marital dispute, the business paper Hospodářské noviny writes: » more

The Greek Prime Minister has caused a sort of European marital dispute, the business paper Hospodářské noviny writes: "The biggest problem is the injured egos of Merkel and Sarkozy. All of their reactions can be brought down to a single denominator: 'How can Papandreaou do this to us, when all we had in mind was his best interests?' They summoned the Greek prime minister to explain what he thought he was up to and what he planned to do next. ... You can understand their reaction. There they were at the last summit until four in the morning, depriving themselves of sleep to come up with what looked like a realisable plan, and then this. That can be really galling. But you can also understand the Greek prime minister, who's got a revolution on his hands that he'd gladly put behind him. All in all the situation is reminiscent of a marriage dispute about faithfulness and the big question 'Why?' Not a good starting point for a sensible compromise."

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All available articles from » Julie Hrstková

Diário de Notícias - Portugal | Thursday, 3. November 2011

Referendum supposed to calm tensions

Internationally the Greek referendum may have caused a commotion but in Greece Prime Minister Giorgos Papandreou is hoping it will calm the general mood, writes the daily Diário de Notícias: » more

Internationally the Greek referendum may have caused a commotion but in Greece Prime Minister Giorgos Papandreou is hoping it will calm the general mood, writes the daily Diário de Notícias: "The puzzling decision that has caused veritable chaos on the financial markets can only have one explanation: Papandreou is reacting to the contradictory responses in the opinion polls. It's true that almost 60 percent spoke out against the austerity package imposed by the stability measures, but it's also true that asked whether they want to leave the Eurozone 76 percent responded that they wanted to stay. Protesting on the streets is fine but turning their backs on Europe - that's not an option. In other words, the Greek parliament has - explicitly or implicitly - decided to turn the referendum on the agreement with the troika into a plebiscite in favour of Greek staying in the Eurozone in a bid to legitimise the policy of long-term austerity measures that remaining in the Eurozone implies. And he expects to win."

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Main focus of Wednesday, 2. November 2011

Turmoil over Greek referendum

Greek Prime Minister Giorgos Papandreou will hold the planned referendum despite massive criticism and plunging share prices around the world. His cabinet approved the referendum ... » more

Greek Prime Minister Giorgos Papandreou will hold the planned referendum despite massive criticism and plunging share prices around the world. His cabinet approved the referendum on the austerity measures on Tuesday. While some commentators say Papandreou is acting irresponsibly with regard to Europe, others praise what they say is a stony but necessary path to democratic legitimation.

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Magyar Nemzet - Hungary | Wednesday, 2. November 2011

EU begging from China

While all Europe is panicking over the unexpected announcement of a referendum on the austerity measures in Greece, the conservative daily Magyar Nemzet points out that the euro bailout fund rests on shaky foundations and depends on Chinese money: » more

While all Europe is panicking over the unexpected announcement of a referendum on the austerity measures in Greece, the conservative daily Magyar Nemzet points out that the euro bailout fund rests on shaky foundations and depends on Chinese money: "The financing of the euro bailout fund depends on external factors, primarily China's good will. The reason for this is that the EU's financial resources are drying up and the US is up to its neck in debt. ... The fact that the director of the euro bailout fund headed straight for Beijing immediately after the EU summit to ask the Chinese leadership for help proves how important China is for the Union. The bailout fund is to be expanded from 440 billion to a trillion euros. ... The leading EU states will also no doubt have to slip into the role of petitioner regarding China at tomorrow's G20 summit in Cannes, too. But Chinese help will have a hefty price tag. Beijing is already covering 500 billion euros in EU sovereign debt. The sky over Europe is growing darker with each day that passes."

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All available articles from » István Lovas

Süddeutsche Zeitung - Germany | Wednesday, 2. November 2011

Papandreou acting irresponsibly

Europe has shown that it is willing to assume responsibility for Greece. The Greek referendum, on the other hand, testifies to a lack of responsibility towards Europe, the left-liberal daily Süddeutsche Zeitung comments reproachfully: » more

Europe has shown that it is willing to assume responsibility for Greece. The Greek referendum, on the other hand, testifies to a lack of responsibility towards Europe, the left-liberal daily Süddeutsche Zeitung comments reproachfully: "By resolving to hold a referendum without consulting others Papandreou has cast Europe back into the uncertainty that reigned in the days leading up to the EU summit. ... Worse still: while in the past weeks there was still room to negotiate there is now the threat of a complete standstill. ... It's difficult to see a way out of this situation: if Papandreou pulls back again now he will be disavowing his own actions and the anger on Athens' streets and within his own government will only intensify. If he goes through with the plan Angela Merkel and Nicolas Sarkozy, the Eurozone states and the EU as a whole, the ECB and the IMF - in other words pretty much the rest of the world - will have to come up with an idea for how to fill in the time until the decision is made and also what to do if a majority of Greeks votes against the rescue plans."

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Dienas Bizness - Latvia | Wednesday, 2. November 2011

Referendum weakens stock exchanges

The drop in share prices after the Greek referendum was announced is a worrying development, the business paper Dienas Bizness writes: » more

The drop in share prices after the Greek referendum was announced is a worrying development, the business paper Dienas Bizness writes: "In essence Papandreou wants a referendum on the following question: 'Dear people, do you want us to settle our debts with our international creditors?' ... One could laugh at the southern Europeans and their ability to get the better of their creditors but unfortunately this policy has far-reaching consequences: immediately after the referendum announcement share prices plummeted on Europe's stock exchanges. It's no secret that Germany in particular is very apprehensive about the fate of Greece, because many German pension funds hold Greek government bonds. So the Germans are less concerned about the Greeks than about their own money. However you can't blame them for that, and if the German financial system suffers a blow it would trigger a new crisis all over Europe."

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The Daily Telegraph - United Kingdom | Wednesday, 2. November 2011

Eurocrats refuse to admit their mistakes

The flurry over the Greek referendum highlights Europe's true problem, writes the conservative newspaper The Daily Telegraph, namely the Eurocrats' fear of the bitter truth about the common currency: » more

The flurry over the Greek referendum highlights Europe's true problem, writes the conservative newspaper The Daily Telegraph, namely the Eurocrats' fear of the bitter truth about the common currency: "Eurocrats are prepared to pay any price rather than admit that the single currency was a mistake - or, more precisely, to expect their peoples to pay, since EU officials are exempt from national taxation. The peripheral countries are to suffer poverty, unemployment and emigration, the core countries perpetual tax rises, so that supporters of the euro can save face. It's chilling to write these words, but EU leaders are evidently prepared to vitiate Greek democracy and wreck the Greek economy rather than allow the euro to break apart."

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Libération - France | Wednesday, 2. November 2011

The people must decide

The referendum in Greece is the right way to bring more democracy to Europe, writes the left-liberal daily Libération: » more

The referendum in Greece is the right way to bring more democracy to Europe, writes the left-liberal daily Libération: "Papandreou is posing the only legitimate question: what do the people think of the brutal austerity measures that will come crashing down upon their heads? One must be thankful to the Greeks, on the avant-garde of despair, for asking the question and being the first to answer it. And for reminding us in passing that economic crises are always a prelude to a decline in democracy. We are experiencing the effects of a purely negative catastrophe-federalism that is leading to certain states to being placed under guardianship, robbed of their sovereignty, controlled by their creditors and effectively governed by leaders elected in other countries. According to this schema the people are no more than a variable and democracy a risky endeavour. In Europe even a positive federalism, equipped with governing and control mechanisms, will also lead to partial losses of sovereignty. ... This must be counterbalanced by democratic institutions."

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Blog Jugular - Portugal | Tuesday, 1. November 2011

Greeks can decide their own fate

The hefty reactions from politics and industry to the announcement of the referendum in Greece prove four things, writes economics expert João Pinto e Castro on the blog portal Jugular: » more

The hefty reactions from politics and industry to the announcement of the referendum in Greece prove four things, writes economics expert João Pinto e Castro on the blog portal Jugular: "Firstly: the idea behind last week's agreement was not to cut the Greek debt by 50 percent but to ensure that 50 percent is paid. Now that the agreement is looking wobbly again the shares have plunged once more. Secondly: the German government is not the only one entitled to worry about public opinion. The Greeks have the say in their own country and their government must answer to them, even if this entails enormous risks. Thirdly: even countries in major difficulties have a certain amount of room to negotiate. It has become clear that both debtors and creditors have a problem because both made mistakes in assessing the risks and in the end both will have to give up something. Fourthly: when muscle-flexing is the only language recognised in international relations everyone uses all the trumps at their disposal to achieve the desired effect."

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Les Echos - France | Tuesday, 1. November 2011

Germans find billions, Greeks seek them

After correcting a massive accounting mistake, the nationalised German bank Hypo Real Estate is now worth 55 billion euros more than it was previously valued at, lowering Germany's public debt by 2.6 percent. That highlights the difference between Germany and Greece, writes the business paper Les Echos: » more

After correcting a massive accounting mistake, the nationalised German bank Hypo Real Estate is now worth 55 billion euros more than it was previously valued at, lowering Germany's public debt by 2.6 percent. That highlights the difference between Germany and Greece, writes the business paper Les Echos: "It is written in the Bible (after all, it's All Saints' Day): 'The first will be the last.' Here however the first remain the first. When Greece falsifies its accounts of course it's to hide the fact that everything is going wrong. But when Germany makes a mistake naturally it's in its favour. ... Germany is more than ever the anti-Greece. On paper, Germany's accounting mistake should and could compensate for that of the Greeks. But as we do not share our debts on this continent, that's not how things work. ... As today is a holiday there's no harm in a little joke: in the countries of Northern Europe people are serious and drink beer. In the countries of Southern Europe people are less serious and drink wine. We all know where France stands."

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All available articles from » Dominique Seux

Heti Válasz - Hungary | Tuesday, 1. November 2011

Péter Ákos Bod on the difficult position of rating agencies

Many politicians who cannot understand why their country's credit rating has been downgraded are currently directing their anger against the rating agencies Moody's, Fitch and Standard & Poor's. Economist Péter Ákos Bod defends the agencies in the conservative weekly paper, Heti Válasz: » more

Many politicians who cannot understand why their country's credit rating has been downgraded are currently directing their anger against the rating agencies Moody's, Fitch and Standard & Poor's. Economist Péter Ákos Bod defends the agencies in the conservative weekly paper, Heti Válasz: "Simply the news that one of the three rating agencies is taking a closer look at a country redirects capital flows. ... When investing their money the players on the capital markets rely to a great extent on how the agencies assess the creditworthiness of Greece or Turkey. ... The rating agencies, who grade the creditworthiness of a state, don't have an easy time of things: micro-economic data can provide a pretty accurate picture of the state a country is in. But the assessments of the rating agencies refer to the medium and long-term prospects of a country. And here government measures, the resolution of politicians and social reactions play an important role. ... This is why it is enormously difficult to grade the creditworthiness of a country over a number of years."

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Financial Times - United Kingdom | Tuesday, 1. November 2011

Europe will fail in any case

German Chancellor Angela Merkel has argued repeatedly in the past weeks that "if the euro fails, Europe will fail as well". The liberal-conservative business paper the Financial Times agrees: » more

German Chancellor Angela Merkel has argued repeatedly in the past weeks that "if the euro fails, Europe will fail as well". The liberal-conservative business paper the Financial Times agrees: "Solving the eurozone crisis requires policies diametrically opposed to those of the EU, most notably those to do with the single market. The needs of market integration are different for a monetary union in trouble than for a wider club of countries primarily interested in free trade. From a eurozone perspective, the single market's main failure has been an inability to cut persistent economic imbalances: rather than a single market, the eurozone needs the equivalent of an economics minister. … For Britain, Sweden, Denmark and other non-eurozone countries the question is no longer simply whether they should join the euro, or not. It is whether they want to remain in an organisation with which they will have increasingly less in common."

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La Tribune - France | Monday, 31. October 2011

Europe a baffling speculative trade

After investors were intoxicated by exploding share prices on Thursday in the wake of the euro summit, share prices sank once again on Friday. Brussels is becoming a commercial bank that can no longer convey the European dream, the economic daily La Tribune writes: » more

After investors were intoxicated by exploding share prices on Thursday in the wake of the euro summit, share prices sank once again on Friday. Brussels is becoming a commercial bank that can no longer convey the European dream, the economic daily La Tribune writes: "It's becoming increasingly difficult for Europe's leaders to announce a victory after what was heralded a 'historic' summit. As usual, most Europeans will view with considerable bafflement the list of rather technical details that is hastily being called a 'bailout plan'. For the moment only the markets have shown enthusiasm for what looks more like an exercise in banking creativity than a decision taken by leaders inspired by vision or - let's be realistic - simple political will. There's nothing better than a 'special investment vehicle' to convey the European dream to the disconcerted Europeans."

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All available articles from » Jacques Rosselin

Naftemporiki - Greece | Monday, 31. October 2011

Haircut of no avail to Greeks

With the haircut decided last Wednesday, Greece is to reduce its debt to GDP ratio from the current 160 percent to 120 percent by 2020. Since the country's indebtedness was already at 127 percent of GDP in 2009, the conservative daily Naftemporiki asks why anyone should endure ten years of austerity measures only to reach the same level of indebtedness as in the days when Greece first had to ask for international help: » more

With the haircut decided last Wednesday, Greece is to reduce its debt to GDP ratio from the current 160 percent to 120 percent by 2020. Since the country's indebtedness was already at 127 percent of GDP in 2009, the conservative daily Naftemporiki asks why anyone should endure ten years of austerity measures only to reach the same level of indebtedness as in the days when Greece first had to ask for international help: "Were the decisions taken back then the wrong ones? Unfortunately that's what the facts point to. ... Unemployment has now reached 20 percent. By next summer an additional 183,000 businesses will presumably close down. In addition pensions and salaries will continue to shrink, and people will be taxed at higher than average rates. But do we really need all that just to reach the level we were at in 2009 by 2020? ... These decisions now give every citizen the right to judge the 'damaged political system'. ... We need clear words and clear solutions."

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România Liberă - Romania | Monday, 31. October 2011

Tom Gallager on the hypocritical euro bailout

The euro was not well thought out as a project, the British political scientist Tom Gallagher writes in the daily România Liberă, and criticises the EU's plan to bail out the euro passed at the crisis summit last week: » more

The euro was not well thought out as a project, the British political scientist Tom Gallagher writes in the daily România Liberă, and criticises the EU's plan to bail out the euro passed at the crisis summit last week: "It has been shown that the euro - the key pillar of European integration - stands on a brittle foundation. Instead of being the basis for a common European economy, the common currency has led the EU into an unparalleled crisis. ... The euro groups together 17 states whose economic and financial situations could not be more different.  No thought was put into that in advance, nor was there any serious debate on the sustainability of the project. We were naive and thought that the huge differences between the heavyweight industrial countries and the financially weak countries whose economies was primarily based on consumption would disappear as if by miracle with European integration . ... Last week a deeply hypocritical plan was passed. Because in reality it rescued the banks and Greece's other creditors, but not the Greek people or the Greek economy. Unfortunately, Europe is not in the best hands."

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Financial Times Deutschland - Germany | Friday, 28. October 2011

Greek debt reduction still fictitious

Greece will never be able to overcome its debt crisis without stronger growth, the liberal business paper Financial Times Deutschland fears: » more

Greece will never be able to overcome its debt crisis without stronger growth, the liberal business paper Financial Times Deutschland fears: "Will the markets still react as euphorically when the technical details about the 'voluntary' debt restructuring and bank recapitalisation become known? How much risk premium will investors demand for sovereign bonds that are only partially guaranteed by the ESFS lever? And then there is still Greece, the country without a business model that has to get by with a debt ratio of 120 percent of its GDP until 2020. It remains very questionable if what still amounts to a huge mountain of debt is any more bearable for the country (or any more palatable for the capital markets). However without stronger growth - also driven by EU funding - this goal is already fictitious today."

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Magyar Nemzet - Hungary | Friday, 28. October 2011

EU instrument demonstrates European spirit

With their decisions on the euro bailout Europe's politicians have found a way out of the crisis, writes the conservative daily Magyar Nemzet: » more

With their decisions on the euro bailout Europe's politicians have found a way out of the crisis, writes the conservative daily Magyar Nemzet: "The apparatus of the Union has proven that it unites not just the organizational talents of the Italians, the flexibility of the Germans, the modesty of the French and the generosity of the Netherlands but also the European spirit, which produces concrete solutions. ... Only now has the Union arrived at the conclusion that it never had a proper system of rules to counter the crisis and that its scripts for allowing the weaker countries to join were bad. Through their inadequate response to the crisis and helplessness the political leadership has seen its credibility wane considerably. Meanwhile the empathy of the stronger with regard to the weaker countries has also dwindled. Since Wednesday we have cause for hope that they have found a way out of the crisis."

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All available articles from » Anna Szabó

De Morgen - Belgium | Friday, 28. October 2011

Austerity measures lower purchasing power

The European states moved a little closer to each other politically at the euro bailout summit, but the economic problems of individual states continue, admonishes the left-liberal daily De Morgen: » more

The European states moved a little closer to each other politically at the euro bailout summit, but the economic problems of individual states continue, admonishes the left-liberal daily De Morgen: "Under the pressure of the crisis Europe has taken a step towards further political integration. The individual countries have given up another bit of their autonomy and accepted close reciprocal supervision whereby each country must design its budget according to the same standards and norms. ... But the problem is that there is no sign of how to give the economy a new boost. On the contrary: drastic austerity measures to reduce the sovereign debt of European countries are likely to have a negative impact on purchasing power, investments and growth. As far as financial policy is concerned, things are looking rosier, but economically too little has been resolved."

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Les Echos - France | Friday, 28. October 2011

Berlin and Paris still under pressure

Europe's heads of state and government must not rest on their laurels after the EU summit in Brussels, the business paper Les Echos writes: » more

Europe's heads of state and government must not rest on their laurels after the EU summit in Brussels, the business paper Les Echos writes: "The image of Angela Merkel and Nicolas Sarkozy stripping away 50 percent of Greece's bank debts is a perfect illustration of the need for solidarity in the European project. Nevertheless we should not be content with what is quite literally solidarity by default. The Franco-German duo must now invest the same energy into creating an institutional framework that is better suited to the constraints imposed by an expanded Union. Too many crucial details remain to be concretised for anyone to say right now whether the Eurozone bailout is a miracle or a sleight of hand. Vital now for Europe is to learn to do without either."

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La Repubblica - Italy | Friday, 28. October 2011

Timothy Garton Ash finds national EU debates poorly timed

The British parliament on Monday rejected a motion for a referendum on exiting the EU, while the German Bundestag on Wednesday approved the expansion of the euro bailout fund. Historian Timothy Garton Ash sees the EU debates taking place in national parliaments as sensible, but finds the timing unfortunate: » more

The British parliament on Monday rejected a motion for a referendum on exiting the EU, while the German Bundestag on Wednesday approved the expansion of the euro bailout fund. Historian Timothy Garton Ash sees the EU debates taking place in national parliaments as sensible, but finds the timing unfortunate: "I also believe that, given time, the case for a sustainable continuation of today's EU would win the argument. Although triggered by scepticism - euro-scepticism in Germany, a broader Euroscepticism in Britain - both these parliamentary debates actually produced some vigorous articulation of the underlying case for 'Europe'. We should not be afraid of open debate. Bring it on. The catch is in the 'given time'. Ten years ago, we still had that time. If this were just a matter of national parliaments and plebiscites, we would still have that time. But it isn't and we don't. The markets could pull the rug from under the euro any day. We gather bond traders are already pulling back from Spanish, Italian and even French government bonds. A final irony is that they are doing so partly in order to protect the financial interests of European pension funds: that is to say, the long-term retirement benefits of some of the very same people who, in another capacity, as national voters, are making it so difficult to arrive at a solution that would impress the markets. Answers, anyone?"

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Diário de Notícias - Portugal | Friday, 28. October 2011

No collapse of financial system

Stock markets in Europe and the US rallied on Thursday in reaction to the decisions made at the euro crisis summit. The daily Diário de Notícias expresses relief: » more

Stock markets in Europe and the US rallied on Thursday in reaction to the decisions made at the euro crisis summit. The daily Diário de Notícias expresses relief: "Bank share prices rose on the Lisbon stock markets by more than seven percent - that's triple the average market gains. Everything points to the 50 percent 'haircut' for Greece not developing into a new disaster like the Lehman bankruptcy in 2008. ... But time must be allowed to take effect. It has been proved that the Greek sovereign debt can be reduced without triggering a collapse of the European financial system. The steep rise in stock prices is an expression of the investors' relief. But there is still a long way to go before it can be claimed that the euro is safe from further financial crises."

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Blog A Europa desalinhada - Portugal | Thursday, 27. October 2011

Jürgen Habermas calls for more political integration of EU

The current euro crisis demands stronger EU political integration, writes the German social philosopher Jürgen Habermas in the Blog A Europa desalinhada: » more

The current euro crisis demands stronger EU political integration, writes the German social philosopher Jürgen Habermas in the Blog A Europa desalinhada: "In the short term, the crisis will require careful attention from Europe's political actors. But above and beyond this effort, they should not neglect the problem of fundamental weaknesses in the structure of the monetary union that can only be resolved by the development of an adequate political union: the EU does not have the necessary competence to harmonise national economies, which are marked by drastic divergences in their capacity to compete. The "pact for Europe" that has recently been reinforced has only served to aggravate a long-standing problem: non-binding agreements in the circle of government leaders are either ineffective or anti-democratic, and it is for this reason that they should be replaced by common decisions taken in a clearly defined institutional framework. The German federal government has become the catalyst for the increasing dissolution of solidarity in Europe, because it has spent too long ignoring the single constructive issue that the Frankfurter Allgemeine Zeitung has laconically described as the issue of 'More Europe'."

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Main focus of Thursday, 27. October 2011

EU makes breakthrough in debt crisis

The heads of state and government of the EU reached agreement in Brussels late on Wednesday night on a debt restructuring and a new rescue ... » more

The heads of state and government of the EU reached agreement in Brussels late on Wednesday night on a debt restructuring and a new rescue package for Greece, among other things. This is Athens' last chance, commentators write, and also demand greater financial integration in the EU.

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Imerisia - Greece | Thursday, 27. October 2011

Greece must pull up its socks

Participants at the EU summit agreed with private creditors to write off 50 percent of Greece's debt. But the fight to restructure the Greek budget has only just begun, warns the left-liberal business paper Imerisia: » more

Participants at the EU summit agreed with private creditors to write off 50 percent of Greece's debt. But the fight to restructure the Greek budget has only just begun, warns the left-liberal business paper Imerisia: "As of today it must be clear that there will be no new help from Europe. No one's going to come and bail us out if we start amassing debt again. On the contrary: we have to learn to live on what we produce. ... Greece must finally start producing surpluses to pay back its debts. The country must become an attractive location for investors. ... The Greek economy must become more productive and competitive. And this new national effort cannot come about by giving in to the unions' maximum demands or with businesses that are dependent on the state. ... As of today we've all got to change!"

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Cinco Días - Spain | Thursday, 27. October 2011

Recapitalisation no help to Spanish banks

Europe's key banks are to increase their capital reserves and hold nine percent in core capital to cushion any defaults on bonds from Eurozone debtor countries. But for Spain this form of recapitalisation will be pointless, fears the business paper Cinco Días: » more

Europe's key banks are to increase their capital reserves and hold nine percent in core capital to cushion any defaults on bonds from Eurozone debtor countries. But for Spain this form of recapitalisation will be pointless, fears the business paper Cinco Días: "The EU governments hope to restore confidence in the European financial system by forcing the banks to raise their capital after recognising the potential losses that could arise as a result of sovereign debt. But the problem of the Spanish banks is their exposure to debts from the construction sector, not government bonds. ... In theory each euro in additional capital would help the banks towards recovery. But the recapitalisation doesn't create any incentives for solving the problems of the loans that have been made to the building sector."

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Les Echos - France | Thursday, 27. October 2011

Common Europe not saved yet

The measures decided on for the bailout of indebted states circumvent the fundamental question of how much Community Europeans actually want in future, writes the business paper Les Echos: » more

The measures decided on for the bailout of indebted states circumvent the fundamental question of how much Community Europeans actually want in future, writes the business paper Les Echos: "The resolutions on the instruments necessary to solve the crisis fail to answer the basic question nagging at the EU: do we want to go on living together at all? ... The European project has recently seemed pointless and increasingly aroused the mistrust of the citizens - just think of the No on the part of the French and the Dutch to the Constitution in 2005 - when the fear of a collapse of the Eurozone gave us a salutary shock. ... Under acute pressure the ECB as been assigned a new role and the euro bailout fund marks the beginning of a federalised budget approach. ... But this doesn't add up to a project because these advances were made half-heartedly and behind the citizens' backs. There is a great risk that the European spirit will fade as soon as the urgency of the present situation has passed."

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Die Presse - Austria | Thursday, 27. October 2011

Stable euro requires more reforms

In view of the decisions taken on the euro bailout at the crisis summit in Brussels, the liberal-conservative daily Die Presse calls for more reforms: » more

In view of the decisions taken on the euro bailout at the crisis summit in Brussels, the liberal-conservative daily Die Presse calls for more reforms: "In a second step a fiscal union must be created - at least in part. Why not introduce the financial transaction tax - which is advocated by both Left and Right - as a European tax in exchange for a reduction in national EU membership fees? And why not do the same with part of the value added tax (part of which the states already transfer to Brussels) in return for the long overdue democratic legitimation of the Commission? The people could then directly elect the Commission president in European elections, who would be bound to explain to them what he plans to do with these taxes - together with his candidate for European finance minister."

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Main focus of Wednesday, 26. October 2011

Berlusconi endangers euro bailout

The EU Commission has urgently demanded that Italian Prime Minister Silvio Berlusconi present an austerity and reform plan for his country at the EU summit ... » more

The EU Commission has urgently demanded that Italian Prime Minister Silvio Berlusconi present an austerity and reform plan for his country at the EU summit today, Wednesday. According to commentators Berlusconi must finally comply with the demand otherwise both his government and the euro bailout will be in grave danger.

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El País - Spain | Wednesday, 26. October 2011

Rome stands in the way of summit success

Because Italy's Prime Minister Silvio Berlusconi has failed to push through austerity measures at home the left-liberal daily El País sees the success of the euro crisis summit taking place today, Wednesday, in jeopardy: » more

Because Italy's Prime Minister Silvio Berlusconi has failed to push through austerity measures at home the left-liberal daily El País sees the success of the euro crisis summit taking place today, Wednesday, in jeopardy: "Prime Minister Berlusconi proved on Monday incapable of keeping his umpteenth promise to his European colleagues that he would push through an austerity package. He has announced it several times since the beginning of August only to retract it soon after. That he is now torn between his coalition partners, who are against the austerity measures, and his actual duties regarding his European allies, who quite rightly demand cuts, doesn't bode well for his political survival. This wouldn't be such a bad thing if it didn't endanger the stability of a major country and therefore also the euro. Let's hope that these obstacles don't stand in the way of the success of this crucially important summit."

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Il Sole 24 Ore - Italy | Wednesday, 26. October 2011

High time for Berlusconi to act

After Germany and France's covert criticism of Italy's crisis management the liberal business paper Il Sole 24 Ore calls on Prime Minister Silvio Berlusconi to finally take action: » more

After Germany and France's covert criticism of Italy's crisis management the liberal business paper Il Sole 24 Ore calls on Prime Minister Silvio Berlusconi to finally take action: "Neither Merkel nor Sarkozy are entitled to humiliate the people of an EU founding state. Such behaviour incites doubts about Europe's ability to master the crisis. This is one reason more to end the undignified show in Italy in which a prime minister and a government are constantly avoiding decisions and seeking the last compromise or the last vote in their fight for political survival. No, Mr Prime Minister. Italy takes precedent. ... Do something for your country. Do it by decree and assume the political responsibility for it before the parliament and the people. No one, not even you, can justify Italy following directly in Greece's footsteps."

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NRC Handelsblad - Netherlands | Wednesday, 26. October 2011

Italy has no time for outrage

On Tuesday Italian Prime Minister Silvio Berlusconi was once again urged by the EU Commission to present an austerity and reform programme at today's summit of EU heads of state and government. According to the liberal daily NRC Handelsblad, rather than complaining about the demands Italy should get to work and comply with them: » more

On Tuesday Italian Prime Minister Silvio Berlusconi was once again urged by the EU Commission to present an austerity and reform programme at today's summit of EU heads of state and government. According to the liberal daily NRC Handelsblad, rather than complaining about the demands Italy should get to work and comply with them: "Perhaps Italians feel offended by foreign interference in their domestic affairs and the disrespect shown to their prime minister, whom after all they've been keeping in power for years. However now is not the time to pay too much attention to their disgruntlement. The Italian government would do better to invest its energy into living up to Prime Minister Berlusconi's promises, and tabling a plan at the European summit for reviving the country's economy and giving it new prospects in view of the high levels of youth unemployment. An then this plan must be implemented."

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Neue Zürcher Zeitung - Switzerland | Wednesday, 26. October 2011

EU fails to address the crux of the crisis

In view of the conflicts that arise at crisis summits on the euro bailout, the liberal-conservative daily Neue Zürcher Zeitung hardly sees a chance for a common European financial and economic policy: » more

In view of the conflicts that arise at crisis summits on the euro bailout, the liberal-conservative daily Neue Zürcher Zeitung hardly sees a chance for a common European financial and economic policy: "Every idea proposed so far for allowing Brussels to intervene has resulted in the partial curtailment or waiving of national parliaments' rights. For the EU there can be no getting around - or solving - this democratic policy dilemma. For that reason Wednesday's summit will no doubt agree on a substantial debt restructuring for Greece as well as other technical measures, but it will not address the core of the crisis."

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Sme - Slovakia | Tuesday, 25. October 2011

Fear in Europe hinders solution to crisis

Before the second instalment of the EU summit on the euro bailout tomorrow in Brussels, the liberal daily Sme analyses why previous attempts to save the euro have failed: » more

Before the second instalment of the EU summit on the euro bailout tomorrow in Brussels, the liberal daily Sme analyses why previous attempts to save the euro have failed: "Sarkozy fears he will lose the elections in April. Merkel is afraid that with agreements made in Brussels she will fail to persuade the Bundestag's budget committee because the bill is too high for German taxpayers. The other 25 countries are afraid the Franco-German motor could stall. Politicians are afraid of how markets will react to their decisions, and the people are afraid of what the politicians will come up with next. They don't want 'more Europe' at a time when they must fear for their pensions, jobs and salaries. ... In just a year and a half 14 summits on the euro bailout have taken place, but the politicians haven't had the courage to say just how bad things really are. And there's every reason to fear that once more nothing will come of the summit on Wednesday."

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Le Monde - France | Tuesday, 25. October 2011

Unemployment root of Europe's woes

Europe's unemployment rate lies on average at 9.5 percent, according to the European statistics office Eurostat. High unemployment is responsible for the crisis, writes the French Green Party politician Pierre Larrouturou in the left-liberal daily Le Monde: » more

Europe's unemployment rate lies on average at 9.5 percent, according to the European statistics office Eurostat. High unemployment is responsible for the crisis, writes the French Green Party politician Pierre Larrouturou in the left-liberal daily Le Monde: "The 'indignant' are right: 'This isn't a crisis, it's a complete rip-off!' ... The real roots of the crisis are thirty years of unemployment and insecurity. Wages have declined due to mass unemployment. And it's because of unemployment, mini-jobs and low salaries that our economies are continually in need of more debt. Unemployment isn't just a consequence of the crisis, it's one of its major causes. To overcome our dependency on debt we must regulate the markets and tax the highest revenues, but above all we must solve the problem of unemployment. Only by giving a real job and the ability to negotiate salaries to the masses will we find a durable solution to the crisis."

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Jornal de Negócios - Portugal | Monday, 24. October 2011

George Soros on Europe's way out of the crisis

The European heads of state and government have finally understood that they can no longer put off finding a solution to their problems, writes US investor George Soros in the business daily Jornal de Negócios, adding some tips of his own: » more

The European heads of state and government have finally understood that they can no longer put off finding a solution to their problems, writes US investor George Soros in the business daily Jornal de Negócios, adding some tips of his own: "They must also address the weakness of Europe's banking system. Indeed, Europe's banking and sovereign-debt problems are mutually self-reinforcing. ... The banking system needs to be guaranteed first, and recapitalized later. Governments cannot afford to recapitalize the banks now; it would leave them with insufficient funds to deal with the sovereign-debt problem. It will cost much less to recapitalize the banks after the crisis has abated. ... A new agreement for the eurozone, negotiated in a calmer atmosphere, should not only codify the practices established during the emergency, but also lay the groundwork for an economic-growth strategy. During the emergency period, fiscal retrenchment and austerity are unavoidable; but, in the longer term, the debt burden will become unsustainable without growth - and so will the European Union itself."

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Main focus of Monday, 24. October 2011

EU again postpones euro bailout

The heads of state and government of the EU met in Brussels on Sunday to discuss the debt crisis. But they don't intend to present ... » more

The heads of state and government of the EU met in Brussels on Sunday to discuss the debt crisis. But they don't intend to present the solutions until Wednesday's special summit. Commentators say the Union remains unable to act, not least because Germany and France are too often at odds.

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La Vanguardia - Spain | Monday, 24. October 2011

EU must finally take action

The renewed postponement of important decisions again demonstrates the Union's indecisiveness in times of crisis, the daily La Vanguardia writes: » more

The renewed postponement of important decisions again demonstrates the Union's indecisiveness in times of crisis, the daily La Vanguardia writes: "It's well known that the EU takes two steps forward and one and a half backward because of the need to reach a consensus and the tensions generated by competing national interests. In these times of crisis the steps forward are getting shorter and the steps backward bigger, particularly since Germany is showing signs of fatigue in its role as European driving force, which reinforces the impression of an ungovernable EU. ... The situation is serious enough. The countries of the Eurozone must find a solution that saves the euro and strengthens Europe. To do this they must pass a series of measures that guarantees 'global stability', as president of the EU Commission Barroso put it."

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The Independent - United Kingdom | Monday, 24. October 2011

Bad timing of UK debate on EU exit

The British parliament will debate today, Monday, whether citizens should vote in a referendum on the UK exiting the EU. In the opinion of the liberal daily The Independent the timing could hardly be worse: » more

The British parliament will debate today, Monday, whether citizens should vote in a referendum on the UK exiting the EU. In the opinion of the liberal daily The Independent the timing could hardly be worse: "If the eurozone fails, a large chunk of the UK economy is endangered, too. More than anything else, it is international apprehension about the eurozone that is stalling economic recovery in Britain. This is why we have in recent months been treated to the unlikely spectacle of eurosceptic ministers insisting that the strength and survival of the eurozone are in Britain's best interests. This is why both Mr Cameron and the Liberal Democrat leader, Nick Clegg, have insisted on imposing a whip on their MPs voting today. And this is why a debate, which would otherwise have been of very little consequence except for the purpose of letting off some eurosceptic steam, could hardly have been less helpfully timed – for Mr Cameron, or for Europe."

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La Repubblica - Italy | Monday, 24. October 2011

Italy bears part of blame for crisis

German Chancellor Angela Merkel and French President Nicolas Sarkozy were right to berate Italy for escalating the debt crisis at the EU summit, the left-liberal daily La Repubblica writes: » more

German Chancellor Angela Merkel and French President Nicolas Sarkozy were right to berate Italy for escalating the debt crisis at the EU summit, the left-liberal daily La Repubblica writes: "The 'Merkozy' duo made some clear distinctions on Sunday: on the one hand Greece and Italy and on the other the remaining countries implicated in the debt crisis. Italy won't like being put on par with the country that triggered the debt crisis. But it's obvious that Italy, if not the genesis of the crisis, is at least responsible for making it worse. For the government was far too late in deciding to intervene. It is also more than understandable that the German and French taxpayers who are now expected to foot the bill for the bailout want to ensure that the beneficiaries of the bailout can't continue to postpone unavoidable decisions."

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Libération - France | Monday, 24. October 2011

France loses influence to Germany

Germany and France showed a united front at the euro summit on the weekend. But appearances are deceptive, writes the left-liberal daily Libération: » more

Germany and France showed a united front at the euro summit on the weekend. But appearances are deceptive, writes the left-liberal daily Libération: "There is a clear leader in the old Franco-German tandem, and not just since yesterday. The euro was originally conceived along the lines of the German mark. ... This domination was at first tempered by the strength and courage needed to introduce the common currency. However the brutal repercussions of the financial crisis have now brought the truth to light. From Germany's perspective France's status, its right to a say and its influence have dwindled. The French president's proposals for solving the euro crisis - as pertinent as they may be - have not been heard. President Sarkozy hangs on the chancellor's every move. For all his resolve, our financial credibility has taken a severe beating."

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Kurier - Austria | Monday, 24. October 2011

Europe paralysed

The EU heads of state and government want to save Greece and soothe the financial markets at another summit on Wednesday. But the liberal daily Kurier now doubts if Europe is at all still capable of taking action against the crisis: » more

The EU heads of state and government want to save Greece and soothe the financial markets at another summit on Wednesday. But the liberal daily Kurier now doubts if Europe is at all still capable of taking action against the crisis: "It can't go on like this with the crisis and decision management in the EU. When are the state leaders finally going to say which Europe they want? One that continues muddling along, risking the end of the monetary union or one that transfers democratic powers to the European Parliament? If answers don't come soon the governments will have to fear their citizens will join ranks against them as either nationalist populists or an 'Occupy Brussels' movement of people who want a stronger Europe. They will ask: Were you asleep? Have you mortgaged our future? As long as every head of government remains focused on domestic politics Europe will be a pawn of other powers. To the detriment of all EU citizens."

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O Kosmos tou Ependiti - Greece | Sunday, 16. October 2011

Giannis Kibouropoulos on the haircut and shaven-headed Greeks

A debt restructuring, or "haircut", is currently under discussion as a solution to the Greek debt crisis. According to reports in the media private creditors are to waive half of the country's debts. Columnist Giannis Kibouropoulos writes in the weekly O Kosmos tou Ependiti about the real and symbolic significance of such a haircut: » more

A debt restructuring, or "haircut", is currently under discussion as a solution to the Greek debt crisis. According to reports in the media private creditors are to waive half of the country's debts. Columnist Giannis Kibouropoulos writes in the weekly O Kosmos tou Ependiti about the real and symbolic significance of such a haircut: "It looks like an entire society, all Europe and the whole world have been transformed into one huge hairdresser's salon. ... Everything is coming off: public and private debts, salaries, pensions, incomes, assets, public expenditure and goods, individual and collective rights, freedom, national sovereignty, democracy. ... Cutting off one's hair has for centuries been a key symbol of humiliation and the disciplining of soldiers, a symbol of punishment for prisoners, a symbol of the degrading discrimination of political exiles, prisoners of war and concentration camp prisoners. ... So there is an enduring relationship between power and the haircut. ... We, the citizens of a country on the brink of bankruptcy, are already wandering around Europe as shaven-headed pariahs. As if we were suffering collective punishment for an adventure the whole continent is experiencing, if not the whole world."

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Hospodárske noviny - Slovakia | Monday, 17. October 2011

Slovaks will suffer from euro bailout

Slovakia's endorsement of the extended euro bailout fund was a huge mistake, writes the business daily Hospodárske noviny: » more

Slovakia's endorsement of the extended euro bailout fund was a huge mistake, writes the business daily Hospodárske noviny: "The message from the G20 finance ministers is unmistakable. The Eurozone must pay a higher price for the Greek and Italian debt crisis than initially believed. ... A plan will be presented at the upcoming EU summit for the recapitalisation of private European banks, to facilitate the Greek bailout and maximise the 'firing power' of the bailout fund. As a result Slovakia will have to make further billions available in the coming year. ... In a nutshell, with their pensions of 360 euros the Slovakians must finance the Italian government - and indirectly the Italian pensioners with pensions of 1,700 euros - simply because Berlusconi refuses to economise. Then come the Spanish with pensions of 1,400 euros, and then the Belgians at 2,100 euros. The consequences for Slovakia will be fatal."

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Nasz Dziennik - Poland | Friday, 14. October 2011

In the end Germany always wins

Germany's dominance in Europe is so great that Slovakia had no choice but to agree to the extension of the euro bailout fund, writes the nationalist Catholic daily Nasz Dziennik: » more

Germany's dominance in Europe is so great that Slovakia had no choice but to agree to the extension of the euro bailout fund, writes the nationalist Catholic daily Nasz Dziennik: "Football is a simple game; 22 men chase a ball for 90 minutes and at the end the Germans always win', the former top-scoring striker of the English league, Gary Lineker, once quipped. The confusion that currently reigns in the Eurozone countries over the extension of the euro bailout fund shows that democracy in the Union increasingly resembles football in the times of Gary Lineker. ... In the fight with the German leadership the Slovaks didn't have a chance. To paraphrase Gary Lineker you could say that EU democracy is a system in which 27 EU states reach their decisions independently, and in the end they all dance to Germany's tune."

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Süddeutsche Zeitung - Germany | Friday, 14. October 2011

EFSF remains vulnerable

Even after the Slovakian parliament's green light, the expanded euro bailout fund still remains vulnerable, the left-liberal daily Süddeutsche Zeitung newspaper criticises: » more

Even after the Slovakian parliament's green light, the expanded euro bailout fund still remains vulnerable, the left-liberal daily Süddeutsche Zeitung newspaper criticises: "The fund will only function if the two largest economies in the Eurozone, Germany and France, maintain their top-tier AAA credit rating. The AAA rating for Berlin and Paris guarantees the top rating for the fund as well - the prerequisite for it to function. If the top grade was lowered in one of the two countries, the entire EFSF would implode and the euro would face its end. And this is the real danger. In the midst of the biggest crisis since its founding the Eurozone is placing all its hopes in a single instrument that is fragilely constructed - and worse still could become a plaything for national interests."

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El País - Spain | Friday, 14. October 2011

Recapitalization does not concern all banks

EU Commission President José Manuel Durão Barroso called on Wednesday for key European banks to quickly increase their capital reserves. The left-liberal daily El País warns that before placing demands on credit institutions their respective situations should be taken into account separately: » more

EU Commission President José Manuel Durão Barroso called on Wednesday for key European banks to quickly increase their capital reserves. The left-liberal daily El País warns that before placing demands on credit institutions their respective situations should be taken into account separately: "The problem with 'urgent recapitalisation' is that is doesn't distinguish between the banks that could encounter difficulties (those that have lent to Greece) and others which need to address entirely different but equally pressing problems (profitability or the lack of credit). For the latter, boosting their capital reserves would mean immobilising even greater sums of money and further squeezing the money supplies. What's more, it's not easy to find fresh capital on the market to improve the balance sheets. Not even within the three to six-month period proposed by the Commission."

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Blog Coulisses de Bruxelles - France | Friday, 14. October 2011

Bailout fund becomes monetary fund

The extended euro bailout fund EFSF just approved by the Slovakian parliament soon won't be enough, Jean Quatremer speculates in his blog Coulises de Bruxlles: » more

The extended euro bailout fund EFSF just approved by the Slovakian parliament soon won't be enough, Jean Quatremer speculates in his blog Coulises de Bruxlles: "The EFSF has evolved considerably over the past year. Slowly but surely it has become a genuine European monetary fund. But this evolution is still not completed. The Eurozone is currently planning a further extension to increase its effectiveness without having to raise state guarantees at the same time. ... According to this plan the 440 billion euros to which the bailout fund currently has access are to be increased to between 1.5 to 2 trillion euros. ... However it seems to be out of the question that the EFSF will be transformed into a bank so as to supply itself with money from the ECB by using sovereign bonds purchased on the market as guarantees. Berlin and Frankfurt are namely afraid that the ECB will soon own nothing but worthless securities."

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Delo - Slovenia | Friday, 14. October 2011

Euro crisis blocks EU enlargement

The EU Commission on Wednesday presented its progress report on nine possible candidates for EU membership. Although some states received a positive assessment, for the time being the EU will hold back on enlargement owing to the euro crisis, the left-liberal daily Delo suspects: » more

The EU Commission on Wednesday presented its progress report on nine possible candidates for EU membership. Although some states received a positive assessment, for the time being the EU will hold back on enlargement owing to the euro crisis, the left-liberal daily Delo suspects: "Europe is currently concerned above all with the crisis of the Eurozone. ... The Balkans, the Eastern Partnership and the countries of North Africa have been forgotten. In these times when there is no Konrad Adenauer, Helmut Schmidt or Helmut Kohl in sight and the EU also lacks a competent crisis manager, the crisis of the Eurozone eclipses the global financial crisis of 2008. Under such circumstances the possibilities for enlargement are slim indeed, despite the positive assessment of potential candidates by the EU Commission."

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Hospodárske noviny - Slovakia | Friday, 14. October 2011

EU doesn't take Slovakia seriously

Slovakia was put under tremendous pressure to approve the extended euro bailout fund in the second vote, writes the liberal business paper Hospodárske noviny: » more

Slovakia was put under tremendous pressure to approve the extended euro bailout fund in the second vote, writes the liberal business paper Hospodárske noviny: "The view from outside Slovakia is sad indeed. We come across like a servant who took it upon himself to decide what he does with his own money and who is now being punished with the loss of his sovereignty. ... Slovakia had every right to block the endless rule changes imposed by Germany and France for the bailout fund. This is not an EU institution and came into existence informally and in contradiction of the Treaty of Lisbon. We were subjected to brutal pressure from Brussels. ... Our government then fell as a consequence, and [opposition leader] Fico - an expert on how to get into debt - was called in to help. ... All of that we did so that Europe would take us seriously. But Brussels has never taken us seriously, and that's not going to change now."

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All available articles from » Dag Daniš

Les Echos - France | Thursday, 13. October 2011

Barroso's plans a burden on banks

In his speech on the state of the European Union on Wednesday Commission President José Manuel Barroso presented a five-point plan for stability and growth. But his ideas could have the opposite effect, writes the business paper Les Echos: » more

In his speech on the state of the European Union on Wednesday Commission President José Manuel Barroso presented a five-point plan for stability and growth. But his ideas could have the opposite effect, writes the business paper Les Echos: "The temptation to go too far in trying to regulate the crisis must be avoided. ... Traders take for granted that the recapitalisation of the banks will be done on the basis of a new minimum equity ration of nine percent, a threshold that far exceeds the norms set by Basel III which were already judged very high. By wanting to be overly virtuous the Union could achieve the opposite of what it wants to accomplish. That is, it could dissuade private investors from investing in these credit institutes which present limited perspectives for profit, thereby restricting their ability to finance the economy. A dismal prospect indeed."

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La Repubblica - Italy | Thursday, 13. October 2011

Bernardo Valli on the leading Berlin-Paris duo and its history

Europe is being governed by Paris and Berlin in the crisis, writer Bernardo Valli comments and explains the historical background of the Franco-German axis in the left-liberal daily La Repubblica: » more

Europe is being governed by Paris and Berlin in the crisis, writer Bernardo Valli comments and explains the historical background of the Franco-German axis in the left-liberal daily La Repubblica: "History is the driving force behind the joint act presented by the odd couple Angela Merkel and Nicolas Sarkozy. The Franco-German axis was triumphantly born almost 50 years ago. On January 22, 1963, General Charles de Gaulle signed an agreement with German Chancellor Konrad Adenauer in the Elysée palace's Murat Salon. The historical embrace between the 72-year-old former military officer, First World War prisoner and resistance hero of the Second World War and the 87-year-old Christian Democrat who constructed the democratic West Germany. The advocates of Europe remained unmoved by this fateful embrace, deeming it to be a bad move. That was a grave mistake. They failed to recognise the Elysée Treaty as a further token of friendship between two nations that had been enemies for a long time and as an important contribution to Europe's integration."

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Magyar Nemzet - Hungary | Thursday, 13. October 2011

Euro bailout puts Fico back in power

In order to push the extension of the euro bailout through the Slovakian parliament despite Tuesday's impasse the ruling Christian Democrats and the social democratic opposition party Smer have agreed to call early elections for March 2012. The elections will see ex-prime minister Robert Fico return to power, the conservative daily Magyar Nemzet fears: » more

In order to push the extension of the euro bailout through the Slovakian parliament despite Tuesday's impasse the ruling Christian Democrats and the social democratic opposition party Smer have agreed to call early elections for March 2012. The elections will see ex-prime minister Robert Fico return to power, the conservative daily Magyar Nemzet fears: "It looks very much now like the euro bailout fund will in the end be ratified in Slovakia with the votes of the opposition party Smer. The price for this, however, is early parliamentary elections. According to the opinion polls Fico and his party would achieve a clear victory if the elections were held right now. ... It seems highly unlikely that the wrecked Right will be able to recover before the elections. ... This means Smer will soon be displaying its skills in the art of genuine and unchecked hatred of Hungary once more. Let's not fool ourselves: Fico and his party have learned nothing during their brief period in the opposition. The Hungarian minority in Slovakia and Hungarian diplomacy are facing hard times."

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Hospodářské noviny - Czech Republic | Thursday, 13. October 2011

Petr Honzejk on the Euro-scepticism of the Czechs and Slovaks

Reflecting on the Slovakian rejection of the extension of the euro bailout fund in the first vote and the dogged resistance of Czech President Václav Klaus to the Treaty of Lisbon, commentator Petr Honzejk asks in the business paper Hospodářské noviny why the Czechs and Slovaks have become vociferous Eurosceptics: » more

Reflecting on the Slovakian rejection of the extension of the euro bailout fund in the first vote and the dogged resistance of Czech President Václav Klaus to the Treaty of Lisbon, commentator Petr Honzejk asks in the business paper Hospodářské noviny why the Czechs and Slovaks have become vociferous Eurosceptics: "We take everything we can get from European integration. Schengen? Fine! Away with the criminal Iron Curtain! Freedom of movement for workers and capital? You bet! ... But when it's about commitments it's a whole different kettle of fish: They strip us of our sovereignty, say the Czechs. There's no question of our pensioners paying for others, say the Slovaks. Every community is based on solidarity, but when it's our turn to contribute we have a problem. Then the message to Europe from the Czechs and Slovaks is: 'You give? All right. We must also give? How dare you expect this of us?'"

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Delo - Slovenia | Wednesday, 12. October 2011

Eurozone needs more discipline

The faltering plans to extend the EFSF euro bailout should not be the only measure aimed at combating the European debt crisis, writes theleft-liberal daily Delo: » more

The faltering plans to extend the EFSF euro bailout should not be the only measure aimed at combating the European debt crisis, writes theleft-liberal daily Delo: "The Eurozone must once more return to a strict limitation of budget deficits and common debt. In as far as possible sanctions for deficit sinners should be automatic, and at the very least a common control mechanism should be pushed through. And if banks keep lending money to irresponsible states they should be made to pay the price. The corruption which afflicts Greece and other states must be fought as soon as it becomes apparent."

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All available articles from » Barbara Kramzar

Expansión - Spain | Wednesday, 12. October 2011

Spanish banks unfairly downgraded

The rating agencies Standard & Poor's and Fitch downgraded the credit rating of ten Spanish banks on Tuesday, including the listed major banking groups Santander and BBVA. The business paper Expansión cautiously defends the financial institutions: » more

The rating agencies Standard & Poor's and Fitch downgraded the credit rating of ten Spanish banks on Tuesday, including the listed major banking groups Santander and BBVA. The business paper Expansión cautiously defends the financial institutions: "In both cases the argument is similar: the fragile prospects of the Spanish economy, a real estate sector that still hasn't recovered four years after the bubble burst and growing tensions on the capital market that are shutting off financing sources. ... It's obvious that the economy determines the future of its banks and vice versa but the rating agencies appear to have forgotten that Santander and BBVA are two increasingly diversified and internationalised groups and therefore ultimately less dependent on the domestic economy. Despite their downgrading they continue to be among Europe's best performing banks."

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Hospodářské noviny - Czech Republic | Wednesday, 12. October 2011

Just an internal power struggle

Slovakia's vote on expanding the euro bailout fund was actually about the balance of power on the domestic front, writes the business paper Hospodářské noviny: » more

Slovakia's vote on expanding the euro bailout fund was actually about the balance of power on the domestic front, writes the business paper Hospodářské noviny: "It was idealistic to believe that Europe would give up its ambitions just because Slovakia, or rather the leader of one of the coalition parties there, is against them. Another key factor is that the vote on raising the contribution to the bailout fund had little to do with Europe or saving the euro or Greece. It was really about a domestic trade-off over the post of head of government and about who gets to call the shots on the Slovakian budget. Which means that in the end it was all about money again. And not just money for Europe."

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La Stampa - Italy | Wednesday, 12. October 2011

Don't leave ECB alone in crisis

The outgoing ECB president Jean-Claude Trichet called on the European Community to act swiftly to address the debt and bank crisis in a speech to the EU Parliament in Brussels on Tuesday. The liberal daily La Stampa seconds him in the view that Europe cannot rely solely on the ECB in the debt crisis: » more

The outgoing ECB president Jean-Claude Trichet called on the European Community to act swiftly to address the debt and bank crisis in a speech to the EU Parliament in Brussels on Tuesday. The liberal daily La Stampa seconds him in the view that Europe cannot rely solely on the ECB in the debt crisis: "The ECB is effectively pursuing a policy of financial stability in addition to price stability today. If it fails to carry out this task precisely and clearly it will continue to be expected to stand instead for political leadership. In view of the interdependence of Europe's economies they must declare a certain amount of fiscal solidarity to be inevitable. Until this happens the ECB will be left to manage the crisis on its own. Continuing to address the problems and inequalities with a flood of money will only postpone the consequences and ultimately make them worse."

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Les Echos - France | Wednesday, 12. October 2011

Slovakia highlights EU's weaknesses

Slovakia's No to the extension of the euro bailout fund is a clear illustration of the weaknesses of the EU, the business paper Les Echos writes: » more

Slovakia's No to the extension of the euro bailout fund is a clear illustration of the weaknesses of the EU, the business paper Les Echos writes: "Whatever course this episode takes, it illustrates once again the absurdity of the EU's mode of operation. Slovakia's vote - with five million inhabitants - carries just as much weight as that of Germany, France or Italy regarding the future of Greece and the euro. It is legitimate that an organ should exist where all states have the same voting rights, as is the case in the US Senate. But this equality is not practicable when it concerns central decision-making processes or when, like today, a decision is urgently needed. There are several potential scenarios: one could replace the principle of unanimity with the majority principle, or abandon the principle of one country, one vote. But one thing is clear: if Europe wants to move forward it's got to shift into a higher gear."

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All available articles from » Dominique Seux

El País - Spain | Tuesday, 11. October 2011

A chance for Poland and Europe

The victory of the pro-European Polish Prime Minister Donald Tusk and his liberal-conservative Civic Platform party in the parliamentary elections is in the eyes of the left-liberal daily El País a major opportunity for Poland and for Europe: » more

The victory of the pro-European Polish Prime Minister Donald Tusk and his liberal-conservative Civic Platform party in the parliamentary elections is in the eyes of the left-liberal daily El País a major opportunity for Poland and for Europe: "Tusk's re-election paves the way for a certain normalisation of political life in Poland, which until now has suffered under the same lack of constancy as in other Eastern European countries. The Civic Platform has neither adopted an anti-European stance nor used the communist past of the country to divide the nation. It has simply sought the advantages Poland has through its EU membership. ... Poland's image under the Kaczyńskis has changed radically since Tusk took over power, with his discrete form of government. His victory gives Poland the opportunity to consolidate the success attained so far and expand the country's clout in the European project. Not only to his own advantage but also to that of the entire European Union."

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Les Echos - France | Tuesday, 11. October 2011

Europe postpones crisis solution

The EU summit planned for next week in Brussels has been postponed because the heads of government have not yet been able to clarify their positions on a debt restructuring for Greece and the recapitalisation of European banks. This delay is dangerous and typical of Europe's handling of the crisis, writes the business paper Les Echos: » more

The EU summit planned for next week in Brussels has been postponed because the heads of government have not yet been able to clarify their positions on a debt restructuring for Greece and the recapitalisation of European banks. This delay is dangerous and typical of Europe's handling of the crisis, writes the business paper Les Echos: "Reviewing the crisis management by the Eurozone leaders ... since the beginning of the Greek crisis at the start of 2010 there has been one constant: the propensity to deny reality and put off to the last possible moment the measures that are expected by the markets and our G20 partners and recommended by numerous experts. ... It is only now, in the last couple of days - when we are once more on the edge of the abyss - that the need for the recapitalisation of certain banks is finally on the agenda, although it has long been known that this was necessary to resolve the debt crisis. ... The costs of the procrastination - a loss of credibility for political leaders, recession and perhaps worse - have been largely underestimated."

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To Vima Online - Greece | Tuesday, 11. October 2011

Greece faces haircut

Greece is drawing closer and close to a debt restructuring. The leader of the Euro Group Jean-Claude Juncker hinted in an interview aired on Austrian television on Monday at a haircut amounting to at least 50 to 60 percent. The Greek government must prepare itself for the measure, demands the left-liberal online paper To Vima: » more

Greece is drawing closer and close to a debt restructuring. The leader of the Euro Group Jean-Claude Juncker hinted in an interview aired on Austrian television on Monday at a haircut amounting to at least 50 to 60 percent. The Greek government must prepare itself for the measure, demands the left-liberal online paper To Vima: "Greece's policymakers and its entire political class can't simply sit back and wait for this fateful decision to come. Everyone must react now, start coordinating, seeking solutions together and drawing up alternative plans that eliminate the dangers facing the country. It could all happen very quickly and therefore necessary preparations must be made. At times like these there's no time to consider political or personal interests. National interests have top priority and demand everyone's mobilisation. Otherwise the damage will be immeasurable - for everyone."

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Expansión - Spain | Monday, 10. October 2011

Berlin and Paris step up battle against crisis

With their announcement of plans to stabilise the European banks Angela Merkel and Nicolas Sarkozy are finally pressing ahead in the fight against the European debt crisis, the liberal business daily Expansión writes jubilantly: » more

With their announcement of plans to stabilise the European banks Angela Merkel and Nicolas Sarkozy are finally pressing ahead in the fight against the European debt crisis, the liberal business daily Expansión writes jubilantly: "Historically Germany and France have played a key role in the creation of the European Union. And as the summit between the two countries indicates, they are not willing to relinquish that role. This is good news. Chancellor Angela Merkel and President Nicolas Sarkozy agreed yesterday to finally make a decisive move to save Europe. ... And they want to do this before the G20 summit scheduled for early November in Cannes. Why this deadline? Everything points to the European politicians wanting to arrive at the meeting with their homework completed so as to avoid embarrassing rebukes from Obama."

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La Repubblica - Italy | Monday, 10. October 2011

A fruitless summit

The Franco-German summit held on Saturday evening in Berlin has once again failed to produce concrete results, writes the left-liberal daily La Repubblica: » more

The Franco-German summit held on Saturday evening in Berlin has once again failed to produce concrete results, writes the left-liberal daily La Repubblica: "Yet another Franco-German summit ends with weighty but vague promises. But perhaps this vagueness is the price the Merkel and Sarkozy duo must pay for attempting to play a leading role in the European Union for which they lack both the necessary powers and, it would appear, also the skills. After two years of steering the European ship through the financial storm the results of the Franco-German course are rather mediocre. Merkel may bear the largest portion of the blame for the delays and the major blunders but in his role of servile cavalier to the chancellor the French president also shares responsibility."

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Bild - Germany | Monday, 10. October 2011

Bailed out institutions should repay money

German Chancellor Angela Merkel and French President Nicolas Sarkozy intend to present a plan on protecting Europe's banks by the end of October. But the state's support to banks must not be unconditional, writes the tabloid Bild: » more

German Chancellor Angela Merkel and French President Nicolas Sarkozy intend to present a plan on protecting Europe's banks by the end of October. But the state's support to banks must not be unconditional, writes the tabloid Bild: "The bottom line is that the governments are stepping in to save the banks like they did after the Lehman bankruptcy. But the only ones to bear the risk are the taxpayers. It's scandalous that the 'gentlemen in pinstripes' have once again gambled themselves into a corner. No one forced the bankers to buy Greek bonds. But the profits were tempting - and greed outweighed common sense. For that reason the state should only come to the rescue under one condition: it must make the banks pay for its help as soon as they can. If you take a risk and lose, you've got to bear the consequences. It's high time the bankers learned that too."

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Sme - Slovakia | Monday, 10. October 2011

Slovaks must remain good euro partners

One day before the Slovak parliament votes on the euro bailout package on Tuesday the outcome is still completely uncertain. A No would be fatal not just for the euro but also for Slovakia's image, warns the liberal daily Sme: » more

One day before the Slovak parliament votes on the euro bailout package on Tuesday the outcome is still completely uncertain. A No would be fatal not just for the euro but also for Slovakia's image, warns the liberal daily Sme: "It's not just about showing solidarity with the Greeks any more. It's about solidarity with those who are just as critical of the Greeks as we are but are still seeking and must find a solution. ... The politicians of the other 16 Eurozone countries didn't approve the bailout because they haven't got a clue but because they realise that blocking it could only worsen the situation. With a No we would stigmatise ourselves as a country that can't be relied on. A whole process would be set in motion to exclude us from bodies that make key decisions on the euro. ... Dear MPs, it's your move now."

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Profil - Austria | Saturday, 8. October 2011

Georg Hoffmann-Ostenhof on the benefit of debt

With an eye to the euro bailout fund an article published last week in the British weekly The Economist points out that the German word for "debts" (Schulden) derives from the word for "guilt" (Schuld). Georg Hoffmann-Ostenhof warns in the weekly Profil against condemning all debt on religious grounds: » more

With an eye to the euro bailout fund an article published last week in the British weekly The Economist points out that the German word for "debts" (Schulden) derives from the word for "guilt" (Schuld). Georg Hoffmann-Ostenhof warns in the weekly Profil against condemning all debt on religious grounds: "Debts are not all the same. If you don't fritter away the money you borrow but use it half-way sensibly, the younger generations will be the main beneficiaries. ... Of course over time the mountain of debt must be cleared away. But the religiously-hued, timorous obsession with savings, the focus placed by the economic policy of certain countries on guilt and atonement have only exacerbated the European crisis and brought a total collapse into the realm of the thinkable. So what do we need? Less morals, more courage. And a thoroughgoing secularisation of economics."

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Les Echos - France | Monday, 10. October 2011

Just a bank bailout not enough

The German-French plans for a bank bailout are insufficient, writes the liberal business paper Les Echos: » more

The German-French plans for a bank bailout are insufficient, writes the liberal business paper Les Echos: "After 18 months of trial and error, the time of half-measures finally seems to belong to the past. At least the two driving forces of the EU are showing a political will. Nevertheless caution is called for. ... Merely introducing a plan for restructuring the banks does not mean the end of the crisis. On the contrary, it would be inefficient and costly because it would only provide a short breather. ... As long as the Greek insolvency continues and Italy's finances are not put in order long-term confidence cannot be restored in the Eurozone. Such a plan would also be costly because in choosing to bailout its banks as a first step, Europe would put itself at the mercy of the markets. ... The countdown has started. Europe has three weeks to find a recipe for success."

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Corriere del Ticino - Switzerland | Friday, 7. October 2011

Billions for banks useless

The stock markets reacted positively on Thursday to the proposal from Berlin and Brussels to recapitalise the European banks. It's just unfortunate that it's still not clear where the 200 billion euro the IMF estimates will be necessary for the operation will come from, the liberal daily Corriere del Ticino writes mockingly: » more

The stock markets reacted positively on Thursday to the proposal from Berlin and Brussels to recapitalise the European banks. It's just unfortunate that it's still not clear where the 200 billion euro the IMF estimates will be necessary for the operation will come from, the liberal daily Corriere del Ticino writes mockingly: "Because the rescue can hardly be financed on the markets the states will have to fork out the money either directly or via the bailout fund. The operation will increase the gaps in the budgets of many states and raise the risk premium on their government bonds. The problem of excessive sovereign debt can only be resolved with a debt restructuring. Of course, economic growth would be better but that is precisely what is lacking both in Europe and the US. The proposal to recapitalise is therefore not a free decision but an emergency solution and looks very much like the approaches that were adopted shortly before Lehman Brothers went bankrupt. A quick measure that costs billions and rather than helping to overcome the crisis only helps to gain some time."

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All available articles from » Alfonso Tuor

To Vima Online - Greece | Friday, 7. October 2011

Rösler attacks Greece

Germany's economics minister Philipp Rösler travelled to Athens on Thursday accompanied by around 50 company managers and bosses. Today he meets up with Greek Prime Minister Giorgos Papandreou. But with his recently presented "Marshall Plan for Greece" Rösler is aiming for a Greek sell-out, according to the left-liberal online newspaper To Vima: » more

Germany's economics minister Philipp Rösler travelled to Athens on Thursday accompanied by around 50 company managers and bosses. Today he meets up with Greek Prime Minister Giorgos Papandreou. But with his recently presented "Marshall Plan for Greece" Rösler is aiming for a Greek sell-out, according to the left-liberal online newspaper To Vima: "Our country has turned into a new El Dorado for our 'partners' in Berlin. First the country has been systematically ruined and now everything is to be sold off for dirt cheap and in the end our national sovereignty will also disappear. This is naturally much worse than the actual Marshall Plan. ... The person whose party won only two percent of the vote in Berlin's regional elections bears a large part of the responsibility for Greece's and Europe's disaster because he is doing all he can to bring about a union of independent states under German rule."

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Der Standard - Austria | Friday, 7. October 2011

Kenneth Rogoff on the drawbacks of a financial transactions tax

Last week EU Commission President José Manuel Barroso called in his speech on the state of the Union for a tax on financial transactions. The former chief economist of the IMF Kenneth Rogoff explains in the left-liberal daily Der Standard the downsides of such a tax: » more

Last week EU Commission President José Manuel Barroso called in his speech on the state of the Union for a tax on financial transactions. The former chief economist of the IMF Kenneth Rogoff explains in the left-liberal daily Der Standard the downsides of such a tax: " Higher transactions taxes increase the cost of capital, lowering investment. With a lower capital stock, output would trend downward, reducing government revenue and offsetting the direct gain from the tax. In the long run, wages would fall and ordinary workers would end up bearing a share of the cost. More broadly, financial transactions taxes violate the general public-finance principle that it is inefficient to tax intermediate factors of production, particularly ones that are highly mobile and fluid in their response. ... There is, in short, ample reason to be angry at financiers and real change is needed in how they operate. But the financial transactions tax is no solution to Europe's problems - or to the world's."

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Gazeta Wyborcza - Poland | Friday, 7. October 2011

Greece allowed to go bankrupt soon

The proposal to aid Europe's banks voiced among others by the President of the EU Commission José Manuel Durão Barroso prompts the conclusion that Greece may soon go bankrupt, writes the daily Rzeczpospolita: » more

The proposal to aid Europe's banks voiced among others by the President of the EU Commission José Manuel Durão Barroso prompts the conclusion that Greece may soon go bankrupt, writes the daily Rzeczpospolita: "That means Barroso has officially admitted that Brussels is seriously considering a debt restructuring for Greece. Until now this possibility had been rejected. The belief that Athens was fulfilling the expectations of the European Commission and the International Monetary Fund was considered the only way to structure reality and calm the financial markets. That's the only reason it received support."

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Blog Coulisses de Bruxelles - France | Thursday, 6. October 2011

Europe wants a solution at last

The European Central Bank announced two special programmes to support European banks after a meeting on Thursday. Europe's politicians are finally taking action, writes Jean Quatremer in his blog Coulisses de Bruxelles: » more

The European Central Bank announced two special programmes to support European banks after a meeting on Thursday. Europe's politicians are finally taking action, writes Jean Quatremer in his blog Coulisses de Bruxelles: "Panic on board: after months of denial the European governments have finally admitted that Europe's banks represent an serious threat. The collapse of the Franco-Belgian bank Dexia has roused them from their stupor. ... In the next few days there will be one meeting of European leaders after another, not only to forestall the impending bank disaster, but also to find a global answer to the sovereign debt crisis: a meeting of the ECB took place in Berlin on Thursday, the Franco-German summit is slated for Sunday - also in Berlin - and the European Council will meet on October 17th and 18th. This time around the governments of Europe seem determined to avoid the cacophony of autumn 2008."

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Hospodárske noviny - Slovakia | Friday, 7. October 2011

Slovak euro bailout still uncertain

The Slovakian Speaker of Parliament Richard Sulík is beginning to relent on the controversial question of whether the country should approve the expansion of the euro bailout facility. The parliament is to vote on the issue next Tuesday. The neoliberal Sulík, however, insists that a commission of all the parliamentary parties be set up to decide on each cent that is paid out. The business paper Hospodárske noviny sees the proposal as unrealistic: » more

The Slovakian Speaker of Parliament Richard Sulík is beginning to relent on the controversial question of whether the country should approve the expansion of the euro bailout facility. The parliament is to vote on the issue next Tuesday. The neoliberal Sulík, however, insists that a commission of all the parliamentary parties be set up to decide on each cent that is paid out. The business paper Hospodárske noviny sees the proposal as unrealistic: "Firstly Germany and France would never agree to members of the [neoliberal] SaS or the [right-wing extremist] SNS ultimately having right of veto over their plans for saving the euro. That's not the way things work in the Eurozone. The Germans want to bolster the bailout facility, not torpedo it. ... It's entirely possible that Sulík's plan is just a ruse, because he knows this is a condition the government can't fulfil. In this way Sulík can justify his No on Tuesday."

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All available articles from » Dag Daniš

Lidové noviny - Czech Republic | Thursday, 6. October 2011

Bail out banks, not states

The willingness that the EU has so far signalled  to support big banks if necessary is a step in the right direction, the conservative daily Lidové noviny comments: » more

The willingness that the EU has so far signalled  to support big banks if necessary is a step in the right direction, the conservative daily Lidové noviny comments: "Certainly, this means yet another wave of socialism, nevertheless it is the only possible intervention that can calm the jittery financial markets and ease the economic crisis. The International Monetary Fund has tellingly pointed out that it is necessary to tackle the true problems, that is to restructure not the states but the banks that carelessly got into debt and are now facing huge losses. The second sign of realism is the insight that Greece's bankruptcy is unavoidable. Paris, too, has got used to the idea of major losses for private investors. The parallel between the two decisions is no coincidence. An orderly state bankruptcy with no clear rules on what will happen to the endangered banks is a no go."

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All available articles from » Lenka Zlámalová

Le Monde - France | Thursday, 6. October 2011

Europe must strengthen itself

In order to stop a second banking crisis, Europe must speak as one and take decisive action, writes economist Julia Cagé in the left-liberal daily Le Monde: » more

In order to stop a second banking crisis, Europe must speak as one and take decisive action, writes economist Julia Cagé in the left-liberal daily Le Monde: "In the throes of the crisis it makes no sense to deplore the omnipotence of the financial markets or the powerlessness of politics trembling under the rating agencies' Sword of Damocles. What is needed are concrete, effective solutions that can be easily implemented within the European framework in its current form. And the first of these solutions is the consolidation of Europe. Because if the crisis means that the states are too weak in relation to the markets, the only way to tackle the crisis is to strengthen the states. And the only way to do that is to reinforce the European Union and the Eurozone. Today strengthening the states of Europe means uniting them vis-à-vis the markets, instead of what we have seen in the past months, namely futile action, sluggish implementation of decisions and only agreeing to the most timid of measures."

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Wiener Zeitung - Austria | Wednesday, 5. October 2011

Nationalise the banks

The only way to prevent a new bank crisis is to nationalise struggling financial institutions, writes the state-run liberal newspaper Wiener Zeitung: » more

The only way to prevent a new bank crisis is to nationalise struggling financial institutions, writes the state-run liberal newspaper Wiener Zeitung: "The debt crisis has lowered the countries' credit standing and the banks' creditworthiness along with it. Now they need capital - and plenty of it. Since private investors are barely interested in financial institutions, in many European countries there will be no alternative but to nationalise banks. ... And once state capital is in play in the next round it can only go into ordinary shares. This is the only chance to ensure that the sale of shares also generates a profit for the state. So the banks are facing hard times. ... And the policymakers face the tremendous challenge of implementing the necessary measures in such a way that they don't trigger panic reactions. Only coordinated European action can achieve this."

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Il Sole 24 Ore - Italy | Thursday, 6. October 2011

Berlin talks European again

With her decision to approve financial aid for ailing banks German Chancellor Angela Merkel has rediscovered her European language, the business paper Il Sole 24 Ore comments in delight: » more

With her decision to approve financial aid for ailing banks German Chancellor Angela Merkel has rediscovered her European language, the business paper Il Sole 24 Ore comments in delight: "Angela Merkel's decision to recapitalise German banks with state money should they need it represents a double U-turn. On the one hand it acknowledges that the crisis is escalating as a result of the interaction between sovereign debt and bank balance sheets and is therefore not just a problem for undisciplined countries. On the other it is an open admission that Berlin's 'policy of uncertainty' was counter-productive. It consisted in leaving a question mark over whether financial aid would be given and therefore enabled the financial markets to put the debt-stricken countries under pressure. ... The only alternative to the strategy of uncertainty is joint administration of the budgets and economies of those countries that are bailed out by the EU."

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All available articles from » Carlo Bastasin

Cinco Días - Spain | Wednesday, 5. October 2011

New stress tests needed

The financial problems of banking giant Dexia are just the tip of the iceberg, says the business paper Cinco Días, and therefore demands a reassessment of the financial institutions: » more

The financial problems of banking giant Dexia are just the tip of the iceberg, says the business paper Cinco Días, and therefore demands a reassessment of the financial institutions: "Dexia is by no means an isolated case but rather the first visible victim of the severe damages that the debt crisis have inflicted on Europe's credit institutions. The fact that it passed last summer's stress tests with flying colours demonstrates not just that the results of the tests aren't reliable but also how much things have changed since that snapshot of the banking system. And it's hardly surprising considering that in the stress tests there were no markdowns for loans, not even for Greek loans. Last July the markdowns for Greek loans were estimated at 21 percent but that figure has gone up to around 50 percent in the meantime. This trend renders the results of the tests worthless and makes a new test that accurately reflects the current economic situation necessary." 

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Corriere della Sera - Italy | Wednesday, 5. October 2011

Moody's downgrades Berlusconi's credibility

Rating agency Moody's sees looming risks for the Italian economy, prompting it to downgrade the country's credit rating on Tuesday, as Standard & Poor's has already done. The true reason however is not the economic risks but the lack of political credibility, writes the liberal-conservative daily Corriere della Sera and calls for Prime Minister Silvio Berlusconi's resignation: » more

Rating agency Moody's sees looming risks for the Italian economy, prompting it to downgrade the country's credit rating on Tuesday, as Standard & Poor's has already done. The true reason however is not the economic risks but the lack of political credibility, writes the liberal-conservative daily Corriere della Sera and calls for Prime Minister Silvio Berlusconi's resignation: "What have the creditworthiness watchdogs got against us? It's quite simple. We are neither creditworthy nor are we taken seriously. These days no one invests in Italy and anyone who lends us money demands usurious interest. Our reputation is in tatters. ... Reforms for privatisation and liberalisation have all gone no further than the paper they are written on. The tax burden is not being increased, nor is spending (800 billion euros) being cut. Meanwhile our prime minister is completely preoccupied with his private affairs. Instead of discussing the European Central Bank's reminder of payment our parliament is busy with secretly recorded conversations. We call once again on the Prime Minister to announce new elections and not run for re-election so as not to drag the entire conservative government down into the abyss."

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Der Tagesspiegel - Germany | Wednesday, 5. October 2011

Bailout fund only protects the investors

Angered by the way politicians have handled the European debt crisis journalist Harald Schumann himself became a speculator. He bought 18,790 euros worth of Greek government bonds in July and sold them only a month later at a net profit of 784 euros. The efforts to postpone Greece's bankruptcy have served the financial sector's interests, writes Schumann in the liberal-conservative daily Tagesspiegel: » more

Angered by the way politicians have handled the European debt crisis journalist Harald Schumann himself became a speculator. He bought 18,790 euros worth of Greek government bonds in July and sold them only a month later at a net profit of 784 euros. The efforts to postpone Greece's bankruptcy have served the financial sector's interests, writes Schumann in the liberal-conservative daily Tagesspiegel: "Independently of their political convictions all the experts who are not tied to the financial sector called as early as spring 2010 for a quick waiving of debts. ... But the powerful financial sector opposed this. Its idealistic all-purpose lobbyist Josef Ackermann ... warned that it was 'inconceivable to allow the country to fall', saying the main thing was to 'put out the small fires before they turned into big ones'. The reason for his stance was simply that the customers of Deutsche Bank, in previous years one of the partners of the Greek finance ministry in selling bonds, shouldn't have to make losses. ... In a deliberate manoeuvre aimed at deceiving the public this is still being referred to as the 'rescue' of the Greeks (and Irish and Portuguese) even though in reality the only ones who are being kept from suffering any damage are those who made bad investments."

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Finanz und Wirtschaft - Switzerland | Wednesday, 5. October 2011

Threat of new bank crisis

If the Dexia banking group goes bankrupt due to its Greek bonds and other risky securities it could spell the beginning of a new banking crisis, the weekly Finanz und Wirtschaft writes: » more

If the Dexia banking group goes bankrupt due to its Greek bonds and other risky securities it could spell the beginning of a new banking crisis, the weekly Finanz und Wirtschaft writes: "The banks' problems can easily be communicated to other financial markets - as well as the real economy - by the banks themselves. Should entrepreneurs encounter greater difficulties financing themselves as a result, liquidity problems could occur in the real economy too. In that case above all those countries will be hit where the banks are already viewed with considerable distrust on the markets. Spain, where the situation is exacerbated by the high number of non-performing loans, making its banks reluctant to approve loans, is one of them. But those aren't the only countries whose banks must be viewed with the greatest caution."

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Delfi - Estonia | Wednesday, 5. October 2011

Finns achieve Phyrric victory

The Finnish government managed to push through its request for additional securities for its contribution to the Greek bailout fund on Tuesday. But this won't bring advantages for Finland, the news portal Delfi writes: » more

The Finnish government managed to push through its request for additional securities for its contribution to the Greek bailout fund on Tuesday. But this won't bring advantages for Finland, the news portal Delfi writes: "Certainly, here in Estonia people will also ask why we haven't done the same. But the exception made for Greece is more an issue of domestic politics than a financial policy advantage. Judging by the compromise made with the rest of the Eurozone Finland's success appears to be a Pyrrhic victory. It will get the additional guarantees, but only under tough conditions. It must pay its contribution to the ESM in the first year and not within five years like the other Eurozone countries, it receives less interest, the guarantee funds are frozen for 15 to 30 years and - most importantly - the guarantees cannot exceed 20 percent of Finland's contributions to the fund. ... The fact that after showing initial interest the Netherlands backed off from the idea of such additional guarantees demonstrates just how unattractive this system is."

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La Tribune - France | Tuesday, 4. October 2011

Athens crisis demands a new Europe

The decision on the next instalment of the bailout payments to Greece was postponed until early November by the EU finance ministers at their meeting in Luxembourg on Monday. That gives Europe 30 days to reinvent itself, the business paper La Tribune writes: » more

The decision on the next instalment of the bailout payments to Greece was postponed until early November by the EU finance ministers at their meeting in Luxembourg on Monday. That gives Europe 30 days to reinvent itself, the business paper La Tribune writes: "In fact for the last several months there has been talk of creating a European economic government. ... Hypotheses about a new treaty, a federation of nation states or a two-speed or even three-speed Europe are being seriously discussed, even by the most pro-European voices. Intergovernmentalism is back. The heads of state are firmly at the helm of the European ship, with the founding Franco-German tandem at the forefront. Unfortunately recent months have shown how badly this tandem works. Sometimes its vision is harmonised and sometimes it's bureaucratic, but it is rarely historic. Nevertheless, the opportunity to reinvent Europe has arrived."

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All available articles from » Jacques Rosselin

Respekt - Czech Republic | Tuesday, 4. October 2011

Slovakia politically unready for Eurozone

Slovakia is considered the main hurdle in the approval process for expanding the euro bailout plan. So far Prime Minister Iveta Radičová has fought in vain to secure a Yes vote from the co-governing neo-liberals under parliamentary speaker Richard Sulik. The liberal Czech weekly Respekt warns Bratislava of the dangers of national egotism: » more

Slovakia is considered the main hurdle in the approval process for expanding the euro bailout plan. So far Prime Minister Iveta Radičová has fought in vain to secure a Yes vote from the co-governing neo-liberals under parliamentary speaker Richard Sulik. The liberal Czech weekly Respekt warns Bratislava of the dangers of national egotism: "With a No vote this small country, whose economy is of a negligible size in the context of the Eurozone, would spark a crisis the dimensions of which no one dares to estimate. Radičová needs the agreement of the Slovakian parliament by the EU summit in mid-October. Sulik, for his part, wants a guarantee that Slovakia won't pay a cent. Here the national egoism dividing Europe shows its face. ... The fact is that Greece wasn't economically prepared for the euro. Slovakia was economically prepared for the euro, but not politically."

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Elsevier - Netherlands | Monday, 3. October 2011

Europe in the Greeks' grip

The Greek government announced on Sunday that it will not be able to meet the deadline for fulfilling the conditions stipulated by the International Monetary Fund. Europe urgently needs to free itself from the stranglehold of the Greeks, the conservative news magazine Elsevier warns: » more

The Greek government announced on Sunday that it will not be able to meet the deadline for fulfilling the conditions stipulated by the International Monetary Fund. Europe urgently needs to free itself from the stranglehold of the Greeks, the conservative news magazine Elsevier warns: "No one wants an escalation of the crisis. ... But the direction things are now taking won't lead anywhere. The Greeks are being rewarded even though they don't deserve it. And again and again they have demonstrated that this is what they want. ... What is required is resolute action. Ireland needed an emergency loan from Europe and the IMF after the credit crunch. Once it had it the country took drastic measures to clean up its public finances and the banking sector. The direct consequences were painful for the country and included a high level of unemployment. But now Ireland is recovering. ... European politicians would do well to force Greece to clean up its act - otherwise they mush give up on the euro. Trapped in this perpetual stranglehold, Europe can't make any progress."

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All available articles from » Philip Willems

To Ethnos - Greece | Thursday, 29. September 2011

Giorgos Delastik on the departure from the European idea

The EU Commission on Monday published a survey according to which many EU citizens take a dim view of the advantages offered by the European single market. Roughly 65 percent of German respondents felt that large businesses are the only ones to profit from the single market. But the Germans aren't the only ones turning their backs on the European vision, writes columnist Giorgos Delastik in the left-liberal daily To Ethnos: » more

The EU Commission on Monday published a survey according to which many EU citizens take a dim view of the advantages offered by the European single market. Roughly 65 percent of German respondents felt that large businesses are the only ones to profit from the single market. But the Germans aren't the only ones turning their backs on the European vision, writes columnist Giorgos Delastik in the left-liberal daily To Ethnos: "More and more of the hundreds of millions of Europeans share this scepticism. They feel isolated from the so-called 'European idea' and view the completion of the EU, to the extent that it is being pursued these days, as a threat to their standard of living. Clearly the European elites feel they have the power to push through their idea for completing Europe without the approval of half a billion EU citizens. But it's not certain that things will always be that way."

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Le Figaro - France | Friday, 30. September 2011

Victory for Europe

Europe has shown once again that it is able to deal with crisis situations, the conservative daily Le Figaro writes with an eye to the ... » more

Europe has shown once again that it is able to deal with crisis situations, the conservative daily Le Figaro writes with an eye to the the German Bundestag's vote on the euro bailout fund. "This blank cheque from the Bundestag is doubtlessly a personal victory for the chancellor, but it is also a victory for Europe. Amidst all the internal frictions and the need to respect democratic schedules and consult national parliaments, Europe sometimes comes across as unfortunately indecisive. But despite all the sarcasm and criticism, when the chips are down it always shows it can set aside internal conflicts if need be. And in so doing it also puts the lie to those - like some in the US - who criticise its disorganisation and poor crisis management and start playing the taskmaster after they themselves caused one of the worst economic crises the world has ever seen."

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All available articles from » Gaëtan de Capèle

Delfi - Estonia | Friday, 30. September 2011

Estonia's vote for euro rescue only option

The Estonian parliament also voted in favour of boosting the euro rescue fund on Thursday. Web portal Delfi says it did the right thing: » more

The Estonian parliament also voted in favour of boosting the euro rescue fund on Thursday. Web portal Delfi says it did the right thing: "It's too simplistic to describe the stability facility a 'debility facility' or to write if off with statements like: 'Why should an Estonian with an average wage of 800 euros throw money at the Greeks?'. This way of thinking is inappropriate and above all typical of those who bear no responsibility for the economy. Of course it's the Greeks' own fault that their country is now on the brink of insolvency. The problem is that in a common economic and monetary zone there's no 'that's their problem' but only 'that's our problem'. If the crisis is left to take its course it will trigger a tsunami on the stock exchanges that would also reach Estonian shores - and our economy, which has only just started showing signs of growth again, certainly wouldn't survive it."

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Tages-Anzeiger - Switzerland | Friday, 30. September 2011

Germany working on its reputation

The Bundestag's decision on the euro bailout fund shows that despite its reputation Germany is ready to incur high financial risks in support of the euro: » more

The Bundestag's decision on the euro bailout fund shows that despite its reputation Germany is ready to incur high financial risks in support of the euro: "Nevertheless, this commitment contrasts strangely with the country's image abroad. In many European capitals Germany is considered stingy, indecisive and egoistic. The German experts at the European Central Bank are considered troublemakers because they're not willing to go along with an unconditional opening of the purse strings. In Athens in particular. There, 'Merkel' has become a swear word. Angry demonstrators regularly protest against the alleged 'financial nazis' in Berlin. Yesterday shows that these accusations are unfounded. ... Germany is better - and more European - than its reputation."

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All available articles from » Nauer, David

Lidové noviny - Czech Republic | Friday, 30. September 2011

Merkel needs monoculture of opinion

In the vote on expanding the euro bailout package in the German Bundestag on Thursday many MPs voted contrary to their own convictions in order to secure Chancellor Angela Merkel's majority, the conservative daily Lidové noviny suspects: » more

In the vote on expanding the euro bailout package in the German Bundestag on Thursday many MPs voted contrary to their own convictions in order to secure Chancellor Angela Merkel's majority, the conservative daily Lidové noviny suspects: "Why was the whole thing turned into such a drama, with even the 'to be or not to be' of the coalition brought into play? The last thing Merkel, her finance minister Wolfgang Schäuble and the other decision-makers responsible for the government stance need is a stream of opposition forming against them. In order to stay in power as long as possible the kind of mono-culture of opinion must prevail among the major policymakers which existed when the euro was founded, and which at the same time bears direct responsibility for the outbreak of the current crisis. Yet in Germany everyone knows or at least suspects that the path taken with yesterday's decision is a further step in the wrong direction." 

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The Economist - United Kingdom | Friday, 30. September 2011

Lilliputians fighting the crisis

Despite the German parliament's green light for the expansion of the euro bailout facility the liberal business paper The Economist is pessimistic about the outcome: » more

Despite the German parliament's green light for the expansion of the euro bailout facility the liberal business paper The Economist is pessimistic about the outcome: "Even if a catastrophe in Europe is avoided, the prospects for the world economy are darkening, as the rich world's fiscal austerity intensifies and slowing emerging economies provide less of a cushion for global growth. ... In the aftermath of the Lehman crisis, policymakers broadly did the right thing. ... Now, more often than not, policymakers seem to be getting it wrong. ... Too many rich-world politicians have failed to tell voters the scale of the problem. In Germany, where the jobless rate is lower than in 2008, people tend to think the crisis is about lazy Greeks and Italians. Mrs Merkel needs to explain clearly that it also includes Germany's own banks - and that Germany faces a choice between a costly solution and a ruinous one. ... At a time of enormous problems, the politicians seem Lilliputian."

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Handelsblatt - Germany | Friday, 30. September 2011

Robbing the financially innocent

The German Bundestag acted irresponsibly with its vote to increase Germany's contribution to the euro bailout fund, writes the liberal business paper Handelsblatt: » more

The German Bundestag acted irresponsibly with its vote to increase Germany's contribution to the euro bailout fund, writes the liberal business paper Handelsblatt: "Very likely our children will realise that their parents and their representatives set a mechanism in motion that robbed them of their financial innocence even before they were born. A mechanism that concocted a mountain of debt for the future that in their lifetimes will make Europe dwindle to insignificance compared with other economic regions. ... Excuses to the effect that the money is only a loan guarantee are of little use. They merely reveal that none of those who have said 'Yes' to the increased bailout fund can know what the consequences of this decision will be. In such a situation It would have helped to stick to what is known for certain. For example the Swabian proverb: Those who pledge money would do better to give it outright. Those who can't give money shouldn't pledge it. The Members of the Bundestag failed to heed these words."

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All available articles from » Oliver Stock

Frankfurter Allgemeine Zeitung - Germany | Wednesday, 28. September 2011

Problem child too optimistic

Greek Prime Minister Giorgos Papandreou has backed up his country's austerity goals with Barack Obama's electoral slogan "Yes we can". But the conservative daily Frankfurter Allgemeine Zeitung has its doubts: » more

Greek Prime Minister Giorgos Papandreou has backed up his country's austerity goals with Barack Obama's electoral slogan "Yes we can". But the conservative daily Frankfurter Allgemeine Zeitung has its doubts: "Well-meant promises and appeals for solidarity will not suffice to convince members of parliament in the countries that are stocking the bailout fund, because if that were enough their own voters would soon make them pay for such a trusting stance. ... The leader of Europe's problem child must be admired for his optimism, as genuine as it is. But 'yes we can' is not the slogan it once was. Dark clouds have gathered over the American president, the state of the economy is miserable and Obama's prospects dismal. The optimism of days gone by has dissipated, replaced by a sleazy search for culprits. ... The grotesque effects of indebtedness are now making themselves felt. Hopefully the Greeks 'can' indeed."

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All available articles from » Klaus-Dieter Frankenberger

Avvenire - Italy | Wednesday, 28. September 2011

Berlin grants Athens' wish

Greek Prime Minister Giorgos Papandreou has accomplished his mission in Berlin, writes the Catholic daily Avvenire, as it looks very much like the German parliament will approve the expansion of the euro bailout fund on Thursday: » more

Greek Prime Minister Giorgos Papandreou has accomplished his mission in Berlin, writes the Catholic daily Avvenire, as it looks very much like the German parliament will approve the expansion of the euro bailout fund on Thursday: "Papandreou has fulfilled his mission of saving Greece in Berlin. Germany has declared its confidence in Athens' reform and is taking the next step. German Chancellor Angela Merkel is no longer blocking a revision of the EU treaties. ... Germany has recognised the economic and political responsibility it bears and will continue to bear in the Eurozone. It seems certain that the German Bundestag will give its approval for the euro bailout fund tomorrow - even if it's not yet clear whether Angela Merkel's government can rely on its majority."

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De Tijd - Belgium | Wednesday, 28. September 2011

Nailbiting game goes on

German Chancellor Angela Merkel has assured Greek Prime Minister Papandreou of her support. This mild tone, particularly compared with earlier statements, is in line with the stance of other politicians in Europe and the US in recent days, the business paper De Tijd writes: » more

German Chancellor Angela Merkel has assured Greek Prime Minister Papandreou of her support. This mild tone, particularly compared with earlier statements, is in line with the stance of other politicians in Europe and the US in recent days, the business paper De Tijd writes: "This all smacks of the typical human desire - particularly prevalent among politicians - to adorn oneself with laurels. But you can only adorn yourself with laurels when there are laurels to be had. In this sense the mild tone could indicate that a convincing solution to the European debt crisis is being worked out behind the scenes. That's what the financial markets assumed yesterday. But were they not too rash? ... Nothing has changed compared with last week - apart from the fact that more precious time has elapsed. For Greece, Europe, the US and the rest of the world this crisis remains a nailbiter. And for investors it's like flying through thick fog."

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All available articles from » Pierre Huylenbroek

To Vima Online - Greece | Wednesday, 28. September 2011

Greek prime minister is lying

Greece wants to balance its annual budge as early as 2012, Prime Minister Georgos Papandreou said on Tuesday in a meeting with German Chancellor Angela Merkel in Berlin. Papandreou is deliberately lying, the left-liberal online newspaper To Vima writes: » more

Greece wants to balance its annual budge as early as 2012, Prime Minister Georgos Papandreou said on Tuesday in a meeting with German Chancellor Angela Merkel in Berlin. Papandreou is deliberately lying, the left-liberal online newspaper To Vima writes: "In truth Greece can't meet the required targets. ... To conceal this reality with lies only makes things worse. The government must finally come clean with its creditors. ... It must calculate the costs, tell the truth and start taking measures to deal with it. ... And it must explain why it failed to carry out the task it undertook. Because what it agreed to was based on false presumptions and a lack of possibilities. ... But also because the government does not believe what it says and is incapable of slimming down its huge state, its unions and interest groups."

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Jyllands-Posten - Denmark | Wednesday, 28. September 2011

Politicians can't sell European idea

At 22.5 percent, support for the euro in Denmark has sunk to a historically low level, according to a survey by Danske Bank. And two thirds of Germans are against the proposed increase of the Euro bailout fund on which the Bundestag will vote on Thursday. Europe's politicians are to blame for the general dissatisfaction, writes the liberal-conservative daily Jyllands-Posten: » more

At 22.5 percent, support for the euro in Denmark has sunk to a historically low level, according to a survey by Danske Bank. And two thirds of Germans are against the proposed increase of the Euro bailout fund on which the Bundestag will vote on Thursday. Europe's politicians are to blame for the general dissatisfaction, writes the liberal-conservative daily Jyllands-Posten: "Popular support for European integration has constantly dwindled. Not because the majority of Europeans are fundamentally against the European Union or European cooperation as such, but because the politicians have not been able to demonstrate the advantages they would have for the man on the street. ... Above all the European governments have failed to make clear to the world that the common currency is far better than the national currencies it replaced. ...For the survival of the euro it is essential that the Monetary Union be broadened into a financial and political Union, one that can effectively prevent a new monetary crisis like that in Greece. Tomorrow the Bundestag will vote on increasing the EU bailout fund. A No could be the beginning of the end for the euro."

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Blog Coulisses de Bruxelles - France | Tuesday, 27. September 2011

Sluggish EU politicians worsen crisis

Speaking at an election campaign meeting on Monday, Barack Obama accused the European heads of state and government of reacting sluggishly to the debt crisis. No wonder this impression also dominates the markets, Europe correspondent Jean Quatremer writes in his blog Coulisses de Bruxelles: » more

Speaking at an election campaign meeting on Monday, Barack Obama accused the European heads of state and government of reacting sluggishly to the debt crisis. No wonder this impression also dominates the markets, Europe correspondent Jean Quatremer writes in his blog Coulisses de Bruxelles: "Two years of hesitation, turnarounds and  paying lip service to half-hearted measures approved under the pressure of events have caused the markets to doubt the Eurozone's resolve to save its own currency. It's no wonder that the sovereign debt crisis, at first limited to Greece alone, has now infected all of the peripheral countries in the Eurozone, Italy included, and threatens to degenerate into a banking crisis that  would plunge the Eurozone and much of the world into a new recession. ... The delays are causing confusion and nervousness in the markets, which do not always grasp the subtleties of European mechanisms. ... Basically, the markets do not perceive the passage of time in the same way politicians do."

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Ta Nea - Greece | Tuesday, 27. September 2011

Merkel's fear escalating crisis

German Chancellor Angela Merkel will meet the Greek Prime Minister Giorgos Papandreou in Berlin today to discuss the Greek bailout. The left-liberal daily Ta Nea explains in an open letter why the Greeks can no longer put up with any more austerity measures: » more

German Chancellor Angela Merkel will meet the Greek Prime Minister Giorgos Papandreou in Berlin today to discuss the Greek bailout. The left-liberal daily Ta Nea explains in an open letter why the Greeks can no longer put up with any more austerity measures: "Dear Frau Merkel, today you will meet the weakened prime minister of an angry country. The Greek prime minister is weak because he was unable to effect the changes his people expected of him. ... You are right to demand discipline and seriousness from Greece. But you can't expect this of a country that is prostrate, nor from a society that feels humiliated. The one-sided policy of stringent economising on which you insist is catastrophic. We need measures to promote growth. History has taught us this, as well as reputable people in Europe and the US. ... Frau Merkel, you are afraid and you are infecting other people with your fear. But fear is the worst recipe for overcoming the crisis."

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All available articles from » Michalis Mitsos

Právo - Czech Republic | Tuesday, 27. September 2011

Jiří Pehe on the Czechs' know-it-all attitude in crisis

Czech politicians from President Václav Klaus to cabinet members are behaving like useless know-it-alls in the crisis, publicist Jiří Pehe comments in the left-leaning daily Právo: » more

Czech politicians from President Václav Klaus to cabinet members are behaving like useless know-it-alls in the crisis, publicist Jiří Pehe comments in the left-leaning daily Právo: "Our politicians may stress that the collapse of the euro or the EU crisis could have terrible consequences for us. At the same time, however, we Czechs refuse to actively search for solutions. But belated wiseacring helps no one in the crisis. What would be of help to the Czechs' spiritual hygiene however would be if it were written once in history books that we not only talked but also offered to help. The know-it-all complex only intensifies the syndrome of a small people that is convinced of its uniqueness on the one hand, but which regularly succumbs to larger powers on the other. Nevertheless part of our society is clearly pleased by Klaus's attitude that he 'knew it all along'."

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Süddeutsche Zeitung - Germany | Tuesday, 27. September 2011

Common financial policy needed

Under the latest proposals for solving the debt crisis the euro rescue fund (EFSF) should be able to borrow unlimited funds from the European Central Bank. But that means state deficits would be financed by printing money, the left-liberal daily Süddeutsche Zeitung warns: » more

Under the latest proposals for solving the debt crisis the euro rescue fund (EFSF) should be able to borrow unlimited funds from the European Central Bank. But that means state deficits would be financed by printing money, the left-liberal daily Süddeutsche Zeitung warns: "If the euro states receive permanent access to the central bank the result will be inflation. That will not necessarily raise consumer prices. But it will almost certainly lead to the creation of new speculation bubbles, and securities and real estate prices will swell. The US and its politically-directed Federal Reserve provide daunting examples of the results of such a course of action. The ECB should only agree to serve as a fire brigade for a limited period of time and under strict conditions. In return it must have the euro states agree to create a common fiscal policy and automatic sanction mechanisms for deficit sinners. ... Together the euro countries are in a better position than the US, but their many voices render the Monetary Union vulnerable to attack."

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All available articles from » Martin Hesse

Il Sole 24 Ore - Italy | Tuesday, 27. September 2011

Bailout fund to become a bad bank

Representatives of the US and China have called on European politicians to expand the EFSF bailout fund. But in a climate of growing uncertainty it is more important to restore trust in Europe's banking system, writes the business daily Il Sole 24 Ore: » more

Representatives of the US and China have called on European politicians to expand the EFSF bailout fund. But in a climate of growing uncertainty it is more important to restore trust in Europe's banking system, writes the business daily Il Sole 24 Ore: "The European Central Bank is performing this task for now, and quite effectively, but it is beyond that institution's area of competence. This is a source of uncertainty. To stop the spiral of distrust the European bailout fun must quickly take the form of a modern bad bank. ... In order to expand the fund in this direction the EU should immediately compile a list of all the member states that are in danger of insolvency. The aim is to gain an overview of the toxic securities on the balance sheets of Europe's banks. The fund should then purchase these securities and carry the risk of insolvency. Then the ECB would finally be responsible for liquidity only once more and only guarantee the government bonds of the stronger economies."

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All available articles from » Donato Masciandaro

Blog Démystifier la finance - France | Sunday, 25. September 2011

EU must save itself

At the annual meeting of the IMF held in Washington on the weekend, the world's economic powers declared that they stand united in the fight against the crisis. But one can hardly expect too much commitment to bailing out Europe from the international community and the IMF, writes Georges Ugeux on his blog Démystifier la finance: » more

At the annual meeting of the IMF held in Washington on the weekend, the world's economic powers declared that they stand united in the fight against the crisis. But one can hardly expect too much commitment to bailing out Europe from the international community and the IMF, writes Georges Ugeux on his blog Démystifier la finance: "The statements of the major emerging countries leave little doubt as to their view of the situation. They rightly believe that Europe can solve its problems without international intervention. ... So it's in vain to hope for support on their part. Similarly, one cannot expect the IMF to invest massively in support of the EU. ... Europe is in a crisis, and the Europeans must get a grip on the problem. No one will help Europe of their own accord, even if aid is offered here and there. The agreements between the G20, the IMF and the EU are more a declaration of intent than a true commitment."

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Hospodárske noviny - Slovakia | Tuesday, 27. September 2011

Merkel better off than Radičová

Like the German Chancellor Angela Merkel, the Slovakian head of government Iveta Radičová is also facing a parliament vote on expanding the euro bailout fund. But while in the worst case Merkel can count on the backing of the Social Democrats to achieve a majority next Thursday Radičová can't in the October 11 vote, the business paper Hospodárske noviny points out: » more

Like the German Chancellor Angela Merkel, the Slovakian head of government Iveta Radičová is also facing a parliament vote on expanding the euro bailout fund. But while in the worst case Merkel can count on the backing of the Social Democrats to achieve a majority next Thursday Radičová can't in the October 11 vote, the business paper Hospodárske noviny points out: "In Germany all the MPs vote according to their true convictions. But here in Slovakia the battle over rescuing the euro has turned into a political tug-of-war that has nothing to do with the subject at hand. ... The German Social Democrats would forfeit their reputation as one of the driving forces behind the European Left. Our Social Democrats under Robert Fico are only concerned with getting back into power as quickly as possible - even if it means betraying the left-wing colleagues in Greece and Portugal."

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All available articles from » Pavel Novotný

Der Standard - Austria | Monday, 26. September 2011

Not only politicians to blame for euro crisis

At the annual meeting of the International Monetary Fund in Washington on the weekend representatives of the US, Mexico, Brazil and South Africa declared that crisis management to save the euro has been inadequate. But confining themselves to attacking the politicians is negligent, the left-liberal daily Der Standard writes: » more

At the annual meeting of the International Monetary Fund in Washington on the weekend representatives of the US, Mexico, Brazil and South Africa declared that crisis management to save the euro has been inadequate. But confining themselves to attacking the politicians is negligent, the left-liberal daily Der Standard writes: "The fact is, however, that the only ones taking the punches in the international arena are the politicians. The logic here is that markets have to be efficient, hence it follows that market failures are in principle political failures. In the subsequent discussion the political class is sent to the pillory, after which it is left entirely incapable of playing a guiding role. But until the deep-rooted problems on the market are addressed Europe can pass as many bailout packages as it like but it won't solve the issue. Here the mass media also has a responsibility to carry on this debate without prejudice."

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All available articles from » Andras Szigetvari

La Stampa - Italy | Friday, 23. September 2011

Separate banks' investment arms from retail arms

Stock markets the world over plunged on Thursday. This latest slide is being attributed to the fears that economic growth will slow down and the ongoing concerns about the Eurozone. An end must be put to the power wielded by the financial markets, demands the liberal daily La Stampa: » more

Stock markets the world over plunged on Thursday. This latest slide is being attributed to the fears that economic growth will slow down and the ongoing concerns about the Eurozone. An end must be put to the power wielded by the financial markets, demands the liberal daily La Stampa: "The first step is to recognise that the political measures adopted to fight the crisis so far have failed. ... This is why governments must finally gather the courage to at least partially break away from the anonymous tyranny of the financial markets. This means imposing rules on the markets to reduce their destructive power without however nullifying their positive impact. Rules that limit the speculative potential without affecting the basic function of the financial markets. The UK took a first step in this direction when the government introduced a law separating the banks' speculative investment arms from their normal retail arms."

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Gazeta Wyborcza - Poland | Friday, 23. September 2011

Europe sends US stock markets plunging

The chief of the US Federal Reserve, Ben Bernanke, warned on Wednesday that the state of the US economy is again in danger of worsening and announced the purchase of government bonds amounting to 400 billion dollars. Share prices on US stock markets promptly plunged on Thursday, but this wasn't necessarily the result of the announcement, writes analyst Piotr Kuczyński of the Polish investment company Xelion in a commentary for the liberal daily Gazeta Wyborcza: » more

The chief of the US Federal Reserve, Ben Bernanke, warned on Wednesday that the state of the US economy is again in danger of worsening and announced the purchase of government bonds amounting to 400 billion dollars. Share prices on US stock markets promptly plunged on Thursday, but this wasn't necessarily the result of the announcement, writes analyst Piotr Kuczyński of the Polish investment company Xelion in a commentary for the liberal daily Gazeta Wyborcza: "It's not true that the massive losses on stock markets across the world are solely down to the statements made by the Fed boss. That would be too simplistic. ... The situation on the Old Continent remains very tense. The financial markets have reacted to the rating agencies' downgrading of the Italian banks. Moreover, rumours about [the liquidity problems at] French banks as well as the situation in Greece are frightening investors where the problems remain unsolved."

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Kathimerini - Greece | Wednesday, 21. September 2011

Referendum on euro exit no good for Greece

The Greek government on Tuesday refuted a report published by the daily Kathimerini according to which the socialist Prime Minister Giorgos Papandreou plans to hold a referendum on whether the country should remain in the Eurozone or withdraw. The conservative Kathimerini doesn't believe the government and criticises the plan: » more

The Greek government on Tuesday refuted a report published by the daily Kathimerini according to which the socialist Prime Minister Giorgos Papandreou plans to hold a referendum on whether the country should remain in the Eurozone or withdraw. The conservative Kathimerini doesn't believe the government and criticises the plan: "This is no time for holding referendums. The country is on the brink of the abyss and needs a strong government with clear goals. ... A referendum would be expensive for our bankrupt country and only cause more stress and confusion. It would be better if the government gave up its obsession because anything that increases insecurity only causes damage. If Greece manages to find its way out of the current crisis it will have the luxury and also the leeway to hold referendums every year."

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Les Echos - France | Thursday, 22. September 2011

Poor IMF prognoses not to be taken too seriously

The IMF lowered its forecast for global business activity on Tuesday. Sluggish growth in the industrial states and the European debt crisis have caused the organisation to forecast four percent growth for the global economy in 2011 and 2012, instead of the previous 4.3 and 4.5 percent respectively. But the longer the crisis lasts, the more hot air the analysts produce, writes the business paper Les Echos: » more

The IMF lowered its forecast for global business activity on Tuesday. Sluggish growth in the industrial states and the European debt crisis have caused the organisation to forecast four percent growth for the global economy in 2011 and 2012, instead of the previous 4.3 and 4.5 percent respectively. But the longer the crisis lasts, the more hot air the analysts produce, writes the business paper Les Echos: "Let's not mince our words: these figures would instil fear in our hearts if we hadn't already heard so many similar ones! ... These aren't the first IMF forecasts ... nor will they be the last! That suggests the somewhat brazen consideration: day after day, Brussels, the OECD, the IMF, the public and private analysts publish a never-ending stream of forecasts and comments. .. It makes make you want to agree with writer Erik Orsenna who says that in today's over-informed, pathologically agitated world, it's the commentators who play the key role in politics and the economy. And above all more heed is paid to them than to the people actually calling the shots. Nevertheless, those calling the shots haven't done a thing to change the situation either."

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Les Echos - France | Wednesday, 21. September 2011

The primacy of politics

Rating agencies like Standard and Poor's, which have downgraded the ratings of Greece, the US and now Italy, seem to be all-powerful. But in reality economic developments are determined by politics, writes the business paper Les Echos: » more

Rating agencies like Standard and Poor's, which have downgraded the ratings of Greece, the US and now Italy, seem to be all-powerful. But in reality economic developments are determined by politics, writes the business paper Les Echos: "Time and again Standard & Poor's has provoked the fury of politicians, who find the decision unfounded and inopportune. Sometimes they're right, even if the economists at the IMF have shown that the agencies have acted wisely on sovereign debt. But the main issue today lies elsewhere, in the recurring message contained in Standard & Poor's reports. It can be summed up in a few words: the primacy has reverted to politics. ... We will never get out of the economic crisis without strong, innovative and visionary political decisions. In the tempest even more than in calm weather, it is necessary that politics retains its primacy."

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Jornal de Negócios - Portugal | Tuesday, 20. September 2011

Fernando Sobral on the fly in Portugal's soup of consensus

The "Madeira deficit" has now grown to twice the amount originally stated. The debts concealed by the president of the Portuguese province of Madeira, Alberto João Jardim, are said to amount to around two billion euros. But Jardim is not the sole culprit here, writes journalist Fernando Sobral in the business paper Jornal de Negócios: » more

The "Madeira deficit" has now grown to twice the amount originally stated. The debts concealed by the president of the Portuguese province of Madeira, Alberto João Jardim, are said to amount to around two billion euros. But Jardim is not the sole culprit here, writes journalist Fernando Sobral in the business paper Jornal de Negócios: "A fly has fallen into the soup of national consensus and the bowl is overflowing. ... Everyone knew of the existence of this fly. However it turned up at an inconvenient time, because it has a nasty bite. It was the last thing [Prime Minister] Passos Coelho needed in his attempts to make us look different to Greece. 'Fear is the path to the dark side,' said Yoda to Anakin Skywalker in 'Star Wars'. It was the fear of Alberto João Jardim that led the way to the dark side of Madeira's budget. But there would have been no need for that fear if those in charge had calmly put a stop to his doings. ... Jardim is guilty, but he is not the only one. ... The Madeira deficit is the quagmire of Portuguese democracy."

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Dagens Nyheter - Sweden | Wednesday, 21. September 2011

Sweden's finance policy works

Sweden's conservative Finance Minister Anders Borg presented his draft budget for 2012 in parliament this week. But there wasn't much to debate because the figures speak for themselves, writes the liberal daily Dagens Nyheter: » more

Sweden's conservative Finance Minister Anders Borg presented his draft budget for 2012 in parliament this week. But there wasn't much to debate because the figures speak for themselves, writes the liberal daily Dagens Nyheter: "The traditional debate on the budget was extremely brief this year. Nevertheless, the 15 billion kronor [1.65 million euros] for investment are insufficient, because almost half of that sum is earmarked for measures meant to protect Sweden from the potential repercussions of the global debt crisis. ... But Sweden's budget is balanced, and public debt lies at 35 percent of GDP. You don't see figures like that in many other countries. ... The Socialist-Green Party opposition has no common economic policy. ... Economic policy demands credibility, and on that score the opposition has a hard time competing with the finance minister."

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Frankfurter Allgemeine Zeitung - Germany | Wednesday, 21. September 2011

Italians need alarm signals

The downgrading of Italy's credit rating could force through the financial restructuring the country urgently needs but is incapable of achieving on its own, the conservative daily Frankfurter Allgemeine Zeitung writes: » more

The downgrading of Italy's credit rating could force through the financial restructuring the country urgently needs but is incapable of achieving on its own, the conservative daily Frankfurter Allgemeine Zeitung writes: "The public administration is unproductive, the distribution of competences among the various institutions is chaotic, the unions insist on old privileges, and the labour law induces small businesses to refrain from hiring more than 15 employees. Bank of Italy governor Draghi has made it clear to the judiciary that greater efficiency on their part could boost growth by one percent per year. ... Berlusconi lacks credibility and the biggest opposition party continues to shift to the left, away from austerity and reform programmes. And for its part the Centre offers nothing but rhetoric devoid of content. No politician wants to admit that it is the country's precarious situation that has allowed the crisis of small peripheral states to morph into a crisis of confidence in all of Europe. The only thing that can help is warning and alarm signals. Without pressure from outside Italy will not make any progress."

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All available articles from » Tobias Piller

Gazeta Wyborcza - Poland | Wednesday, 21. September 2011

Markets hardly care about ratings

The decision by Standard & Poor's to lower Italy's credit rating won't have a major impact because the markets have long since identified Italy as a credit risk, writes analyst Alfred Adamiec of the Polish investment house DM Alfa in a commentary for the liberal daily Gazeta Wyborcza: » more

The decision by Standard & Poor's to lower Italy's credit rating won't have a major impact because the markets have long since identified Italy as a credit risk, writes analyst Alfred Adamiec of the Polish investment house DM Alfa in a commentary for the liberal daily Gazeta Wyborcza: "You only need look at the interest rates on Italian debt securities. On Tuesday it was 5.67 percent and in August it even climbed to six percent. By comparison the interest rate on German bonds with a ten-year repayment period is currently at 1.77 percent. That the markets are quicker to act than the agencies is also apparent in the reaction of the stock markets. Or rather the fact that there has been no reaction. The major European indexes began the day with a slight minus but they soon began to compensate for these losses. The investors are becoming increasingly immune to credit downgradings."

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Kathimerini - Greece | Sunday, 18. September 2011

Greece facing threat of civil war

The Greek Minister of Finance Evangelos Venizelos reiterated the Greek government's resolve to implement further spending cuts at the EU finance ministers' meeting in Poland. But such measures could plunge Greece's society into chaos and violence, fears the conservative daily Kathimerini: » more

The Greek Minister of Finance Evangelos Venizelos reiterated the Greek government's resolve to implement further spending cuts at the EU finance ministers' meeting in Poland. But such measures could plunge Greece's society into chaos and violence, fears the conservative daily Kathimerini: "The Eurozone is not a reality show where members can expel the weakest link by driving it into an economic Armageddon. If our sick economy is forced to implement further measures this will undoubtedly lead to a social explosion. ... The Greek people are making great efforts and many sacrifices, unlike the government, which is swimming in an ocean of lies. ... The danger is so great that the EU and the International Monetary Fund are withdrawing their support for this pseudo-government, and chaos will inevitably ensue. ... The political and social stability is already disappearing. At the next demonstration all it will take is one rubber bullet to set off a full-scale civil war."

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All available articles from » Zeza Zikou

Blog Coulisses de Bruxelles - France | Monday, 19. September 2011

Europe's explosive undecisiveness

US Treasury Secretary Timothy Geithner will no doubt have been shocked to see so much indecisiveness among his colleagues at the meeting of EU finance ministers, writes Jean Quatremer in his blog Coulisses de Bruxelles: » more

US Treasury Secretary Timothy Geithner will no doubt have been shocked to see so much indecisiveness among his colleagues at the meeting of EU finance ministers, writes Jean Quatremer in his blog Coulisses de Bruxelles: "It makes the Americans nervous to see the Europeans playing with matches next to a powder keg. The common currency seems to be in more danger than ever, but not only are the 17 Euro states unable to find a solution that would calm the markets once and for all, they also squabble in public about things they've already agreed on, which only exacerbates investors' panic. ... Ultimately the only thing that could prevent the markets from speculating against the debts of a certain country is the establishment of a common European treasury and the issuance of euro bonds . But that would mean a huge increase in federalism, something the states are clearly not yet ready for."

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Correio da Manhã - Portugal | Sunday, 18. September 2011

Portugal deceived EU just like Greece

Alberto João Jardim, the president of the Portuguese province of Madeira, concealed debts amounting to just under 1.1 billion euros for three whole years. This will further hinder Lisbon's efforts to clean up Portugal's finances. The tabloid Correio da Manhã is appalled: » more

Alberto João Jardim, the president of the Portuguese province of Madeira, concealed debts amounting to just under 1.1 billion euros for three whole years. This will further hinder Lisbon's efforts to clean up Portugal's finances. The tabloid Correio da Manhã is appalled: "The discovery of the billion deficit compounds the damage to the country's reputation on the finance markets. Portugal's rating is already low, but with this latest scandal the difference between Portugal and Greece becomes only one of scale: Greece may have concealed more deficits, but Portugal too has betrayed its EU partners. ... Jardim is a master of political blackmail. He always managed to trick the finance ministers who were threatening to cut off funding. What many Portuguese saw as 'folklore' was in fact a huge diversionary tactic aimed at keeping the money coming. We are all paying for the politicians' irresponsible behaviour in getting the country into huge debt. He who drags us into the abyss should not be allowed to continue holding public office."

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All available articles from » Armando Esteves Pereira

Frankfurter Allgemeine Zeitung - Germany | Monday, 19. September 2011

Rescue fund has its shortcomings

The president of Germany's Bundesbank, Jens Weidmann, criticised the ECB's use of monetary policy measures to finance sovereign debt after the meeting in Poland came to an end. Clearly not enough thought has been put into planning the EFSF rescue fund, the conservative daily Frankfurter Allgemeine Zeitung concludes: » more

The president of Germany's Bundesbank, Jens Weidmann, criticised the ECB's use of monetary policy measures to finance sovereign debt after the meeting in Poland came to an end. Clearly not enough thought has been put into planning the EFSF rescue fund, the conservative daily Frankfurter Allgemeine Zeitung concludes: "In future the fund is not just to provide loans to preserve debt-stricken countries from going bankrupt, it is also to be used to recapitalise the banks. Consequently there are growing doubts about whether the fund can also continue to play the role of resident bond-buyer. Those now considering allowing the EFSF to cover 'only' the risks involved in buying up bonds continue to need the ECB to buy bonds. So the latter would effectively continue to finance states through monetary policy. In this case the demands for an extension of the EFSF would not be long in coming. The debate would be reopened. The one side would demand more money for the fund while the other would crank up the pressure on the ECB, all for the sake of saving the euro." 

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All available articles from » Werner Mussler

Cinco Días - Spain | Monday, 19. September 2011

Germany's euro policy becoming clearer

After the meeting in Wroclaw the business paper Cinco Días says it can discern a refreshing change in the German stance: » more

After the meeting in Wroclaw the business paper Cinco Días says it can discern a refreshing change in the German stance: "A certain order now seems to be emerging from the apparent chaos. In recent weeks the German authorities have started to seem more amenable to finding long-term solutions to the monetary union's crisis. For the time being Berlin continues to insist that the debt-ridden peripheral states exercise tight control over their budgets. Regarding the future Merkel and others have clearly signalled that they are open to discussion without taboos. Germany's partners should do everything they can to support this new and refreshing attitude. At the beginning of the Eurozone finance ministers' meeting Angela Merkel reiterated her opposition to eurobonds, which have often been hailed as a panacea. But listen closely and you'll detect a clear change in Berlin's tone. Significantly, the German politicians have started talking about the phase after the crisis."

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Süddeutsche Zeitung - Germany | Friday, 16. September 2011

Euro candidates should have a say on crisis

The finance ministers of the Eurozone meet today in the Polish city of Wrocław to discuss solutions to the debt crisis. In the run-up to the summit several East European euro candidates have voiced criticism of the fact that they are being given no say in the efforts to resolve the crisis. The left-liberal daily Süddeutsche Zeitung sympathises with their stance: » more

The finance ministers of the Eurozone meet today in the Polish city of Wrocław to discuss solutions to the debt crisis. In the run-up to the summit several East European euro candidates have voiced criticism of the fact that they are being given no say in the efforts to resolve the crisis. The left-liberal daily Süddeutsche Zeitung sympathises with their stance: "Since the Eurozone countries decided at their special summer summit in July to integrate more and left no room for doubt that they were serious about it, no one is joking around any more. The euro candidates are beginning to realise that switching to the euro, whether it happens sooner or later, entails showing solidarity with the other members. And that means jumping in to help out supposedly rich countries if necessary. However it's also just as clear that there is no going back now without damaging the common currency. Euro countries and euro candidates are all sitting in the same boat and need to steer it together."

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Il Sole 24 Ore - Italy | Friday, 16. September 2011

Banks save themselves not the euro

With the dollar credits the banks are chiefly helping themselves rather than the euro, writes the business paper Il Sole 24 Ore: » more

With the dollar credits the banks are chiefly helping themselves rather than the euro, writes the business paper Il Sole 24 Ore: "The coordinated action of the five big central banks won't do much for the ailing countries and their sovereign bonds, but the banks can heave a sigh of relief. Above all the French ones, which were still boasting that they didn't need dollar financing right up until a day before the move. The intervention of the currency politicians has put fresh wind in the stock markets' sails and bolstered the euro because the financial markets are used to reacting with knee-jerk euphoria to every bit of news that eases the effects of the crisis on the short term. On the medium term however the European currency stands to suffer from the banks' decision, which looks like the first step toward quantitative easing, or in other words a money glut."

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All available articles from » Walter Riolfi

Magyar Narancs - Hungary | Thursday, 15. September 2011

Anna Unger sees need for EU economic government

The debt crisis in Greece and other member states is a test of endurance for the EU. A common fiscal policy is the only solution, concludes political scientist Anna Unger in the left-liberal weekly Magyar Narancs: » more

The debt crisis in Greece and other member states is a test of endurance for the EU. A common fiscal policy is the only solution, concludes political scientist Anna Unger in the left-liberal weekly Magyar Narancs: "It is common knowledge that preserving the economic and monetary union is crucial for Europe's survival. ... The creation of a common market was also at the time an indispensable step for ensuring Europe's growing prosperity. The lasting success of this common market is inconceivable without the monetary union. Even when the idea of the euro was still in conception it was already clear that a sustainable common currency had to be based on a common budgetary policy, or at least one founded on rules that applied to everyone. In principle, the conditions for this are already stipulated in the Maastricht Treaty's convergence criteria and also in the Stability and Growth Pact that guarantees the common currency. ... Notwithstanding, many member states have violated the Maastricht criteria with impunity. Consequently there is no alternative but to restrict the autonomy of the member states regarding budgetary policy. In addition, the governments, which are often inclined to take independent action, must be institutionally brought to heel." 

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Tages-Anzeiger - Switzerland | Wednesday, 14. September 2011

Obama understands Europe better than Merkel

US President Barack Obama warned Europeans on Tuesday to take decisive action against the debt crisis. The liberal daily Tages-Anzeiger also finds loan-based state aid a good idea: » more

US President Barack Obama warned Europeans on Tuesday to take decisive action against the debt crisis. The liberal daily Tages-Anzeiger also finds loan-based state aid a good idea: "The [German] economy is experiencing a boom the likes of which it hasn't seen in years. And Angela Merkel's government wants to keep it that way. It is forcing the deficit sinners to economise rigorously and demanding that the European Central Bank nip the slightest sign of inflation in the bud - no matter what the cost. Unfortunately it's costing a lot. In debt-stricken countries, private households, companies and the state are all cutting costs. To prevent a deflationary spiral of impoverishment these countries at the same time need to achieve a trade surplus. However they in fact all have a trade deficit. So they face a paradoxical trend: despite economising their debts are growing. Only if the state intervenes and starts spending and making more debt can the downwards spiral into poverty be stopped. Barack Obama has grasped this, but Angela Merkel still hasn't."

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Les Echos - France | Tuesday, 13. September 2011

French banks rock solid

Fears over the consequences of the big French banks' strong involvement in Greece caused their share prices to drop on Monday. Since August the banks in question have received no more short-term dollar loans. But the markets' reactions are exaggerated, writes the business paper Les Echos: » more

Fears over the consequences of the big French banks' strong involvement in Greece caused their share prices to drop on Monday. Since August the banks in question have received no more short-term dollar loans. But the markets' reactions are exaggerated, writes the business paper Les Echos: "As far as liquidity goes the situation is under control. Certainly, access to the dollar has been more difficult since the start of August, but it hasn't been cut off altogether. And the ECB has repeated in the last couple of days that it would provide the necessary liquidity. Consequently the French banks are not in such dire straits. Like the entire European banking sector, they are victims of the indecision of the Eurozone governments faced with the Greek peril. Neither an injection of funds nor a public liquidity mechanism are called for. In fact, like all Europeans what the banks really need is a rapid political solution to the the sovereign debt crisis, to prevent all risk of contagion."

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Trouw - Netherlands | Tuesday, 13. September 2011

Euro rescue only possible with Athens

Dutch politicians are also speculating about a Greek withdrawal from the Eurozone. But such a step would have catastrophic consequences, warns the Christian-social daily Trouw: » more

Dutch politicians are also speculating about a Greek withdrawal from the Eurozone. But such a step would have catastrophic consequences, warns the Christian-social daily Trouw: "If Greece leaves the Eurozone it won't just have dramatic consequences for that country but for Italy, Portugal, Ireland and other weak euro partners too. Credit institutions would refuse to do business with them or charge a high premium for the extra risk. This could break up the Monetary Union. It's obvious that Europe needs more political integration to steer the Single Market and Monetary Union more effectively. ... The member states have long refused to admit this necessity. Now the problems in the Eurozone are so big that it will be almost impossible to achieve further integration in time. This is, however, the only path. ... And that path doesn't begin with saying goodbye to Athens."

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Elsevier - Netherlands | Saturday, 10. September 2011

Falcons' pullout threatens euro

With Jürgen Stark's departure yet another strong critic of the purchase of sovereign bonds has left the Executive Board of the European Central Bank. His departure threatens the very existence of the euro, the conservative news magazine Elsevier writes: » more

With Jürgen Stark's departure yet another strong critic of the purchase of sovereign bonds has left the Executive Board of the European Central Bank. His departure threatens the very existence of the euro, the conservative news magazine Elsevier writes: "The German pullout shows yet again how deep the rift is between the doves in the South and the falcons in the North. Now it seems the doves at the Central Bank have won out. The Italian Mario Draghi will take over as ECB chairman on November 1. Although he casts himself as a German falcon, as a top-ranking official he nevertheless helped to spruce up Italy's budget figures to bring it into the Eurozone back then. ... In Germany, support for the euro bailout is fading fast. If not even the Central Bank can be trusted now, resistance will only grow stronger. Merkel will have even greater difficulty garnering support for her policy within the coalition. And if the paymaster Germany no longer plays along, the euro will soon be a thing of the past."

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Financial Times - United Kingdom | Monday, 12. September 2011

Germans must boost trust in ECB

As Jürgen Stark left the bank in protest at the euro bailout, Germany in particular must focus on strengthening trust in the institution, the liberal-conservative business paper the Financial Times demands: » more

As Jürgen Stark left the bank in protest at the euro bailout, Germany in particular must focus on strengthening trust in the institution, the liberal-conservative business paper the Financial Times demands: "Germany demanded an independent central bank, and that is what it got. ... Yet a central bank's independence can only be sustained if politicians and the public trust it. That trust must now be protected by those in a position to do so, including the ECB's incoming president, Mario Draghi, whose job Mr Stark has just made harder. But most importantly, it is up to those in Germany who disagree with Mr Stark. With the politics of the Eurozone crisis largely determined in Germany, it is time for the ECB's German friends to speak up."

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Le Figaro - France | Monday, 12. September 2011

Europe's homemade debt trap

It's not the markets that are to blame for the debt crisis, but European states like France that have lived on credit for the last 30 years, writes Pierre de Lauzun of the French Association of Financial Markets (Amafi) in the conservative daily Le Figaro: » more

It's not the markets that are to blame for the debt crisis, but European states like France that have lived on credit for the last 30 years, writes Pierre de Lauzun of the French Association of Financial Markets (Amafi) in the conservative daily Le Figaro: "No speculators or investors have ever forced a state to run itself into debt. Immediately before the crisis, at the end of 2006, our debt already stood at 65 percent of GDP. And that's the way it's been for more than thirty years now. We're in this awkward situation because we made it easy for ourselves by accepting the deficit and indebtedness as a solution. Of course that's far easier than having to decide between lower public spending and higher taxes. But it's not a sign of a well-functioning democracy. The crisis faced by the countries of Southern Europe is now forcing us to come to our senses and pull the emergency brake before it's too late. In any event it's no use turning the markets into scapegoats."

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Blog Coulisses de Bruxelles - France | Friday, 9. September 2011

Merkel turns into a European

After the Federal Constitutional Court approved Germany's participation in the euro bailout, Chancellor Angela Merkel gave a speech to the Bundestag on Wednesday in which she spoke out for a stronger Europe. The speech marks the end of the German 'third way', writes Jean Quatremer in his blog Coulisses de Bruxelles: » more

After the Federal Constitutional Court approved Germany's participation in the euro bailout, Chancellor Angela Merkel gave a speech to the Bundestag on Wednesday in which she spoke out for a stronger Europe. The speech marks the end of the German 'third way', writes Jean Quatremer in his blog Coulisses de Bruxelles: "Under pressure from events Berlin has gradually come to understand that much more federalism is needed to save the euro. Because it is now clear that the half-measures ... taken in the last 18 months on the initiative of the Franco-German tandem have not reassured the markets. It has taken some time for the ruling majority in Berlin to admit that an explosion of the euro would be more prejudicial than beneficial to Germany , 'because the euro is much more than a currency', as the chancellor stressed to the Bundestag on Wednesday. ... Thus the tone has completely changed in Berlin, at least among the political class: more federalism is now clearly an option."

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Cinco Días - Spain | Friday, 9. September 2011

Trichet stubborn on key interest rate

Jean-Claude Trichet, president of the European Central Bank, announced on Tuesday that the key interest rate would be left at 1.5 percent, ignoring calls for it to be lowered. The business paper Cinco Días criticises Trichet for being stubborn: » more

Jean-Claude Trichet, president of the European Central Bank, announced on Tuesday that the key interest rate would be left at 1.5 percent, ignoring calls for it to be lowered. The business paper Cinco Días criticises Trichet for being stubborn: " ECB President Jean-Claude Trichet, whose term in office ends in less than two months' time, has always seen the bank as an anchor in troubled times. But he is walking the thin line between stability and immobility. ... No one expected the ECB to cut interest rates after raising them less than two months ago. And the Central Bank's view that the liquidity of European banks does not pose a major problem may still turn out to be right. But the ECB could at least have acknowledged future economic risks and held out the prospect of some kind of flexibility. However Trichet seems to have washed his hands of the matter, leaving it to his successor."

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Äripäev - Estonia | Wednesday, 7. September 2011

Monetary union for the Baltic region

In view of the debate over the future of the euro the business paper Äripäev calls for a new approach in monetary policy: » more

In view of the debate over the future of the euro the business paper Äripäev calls for a new approach in monetary policy: "Some say rescuing Greece is an indispensable step while others talk of the inevitable collapse of the Eurozone - but there are no alternative proposals, much less visions, to be heard. The danger here is that anyone who thinks differently is considered to be either crazy or the enemy. But it would be worthwhile to consider a couple of radical ideas. Why shouldn't something completely new be created in the long term? For example a Nordic crown that would be used in Denmark, Norway, Sweden, Finland and Estonia? The next step could be to extend this monetary union to the entire Baltic region. There are already close economic ties here and particularly in the crisis it has become clear that the states bordering on the Baltic form Europe's most dynamic region."

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Jornal de Negócios - Portugal | Monday, 5. September 2011

Simon Tilford on the glaring weaknesses of the Eurozone

Europe's economy has failed to pick up and the future of the euro remains uncertain. The institutional weaknesses of the Eurozone are to blame, writes the chief economist of the European Reform Centre, Simon Tilford, in the business paper Jornal de Negócios: » more

Europe's economy has failed to pick up and the future of the euro remains uncertain. The institutional weaknesses of the Eurozone are to blame, writes the chief economist of the European Reform Centre, Simon Tilford, in the business paper Jornal de Negócios: "The attempt to run a common monetary policy without a common treasury has failed. ... We now know that the best credit must stand behind the rest, or else bear runs, such as those that have derailed Greece, Ireland, and Portugal - and that now threaten to do the same to Italy and Spain - are inevitable. Debt mutualization alone will not save the euro, but, without it, the Eurozone is unlikely to survive intact. ... Borrowing costs remain unsustainably high for many eurozone economies – and not just those in the periphery. The economic growth potential of Spain and Italy, for example, now hovers around 1%, but their borrowing costs exceed 6%. By contrast, German sovereign yields have fallen sharply, lowering public and private-sector borrowing costs. This is a recipe for further economic divergence and insolvency in the Eurozone. To prevent this, the Eurozone needs a 'risk-free' interest rate. ... For core countries, eurobonds would certainly be a cheaper option than underwriting loans to struggling member-states."

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De Tijd - Belgium | Monday, 5. September 2011

Don't forget to save the euro

This is an important week for the rescue of the euro. On Monday the ECB will publish its figures on the purchase of bonds and on Wednesday the German Constitutional Court is expected to give its ruling on the Greek bailout. But who will save the euro in the meantime? the business paper De Tijd asks anxiously: » more

This is an important week for the rescue of the euro. On Monday the ECB will publish its figures on the purchase of bonds and on Wednesday the German Constitutional Court is expected to give its ruling on the Greek bailout. But who will save the euro in the meantime? the business paper De Tijd asks anxiously: "There are some bad signs. In Rome, Prime Minister Berlusconi seems to be chiefly preoccupied with the question of how he himself can avoid the tax for the rich. In Belgium, the all-important negotiations on building a new coalition have once again been postponed, and in Germany, which as the biggest sponsor holds the keys for the euro in its hands, Chancellor Merkel's government is taking knock after knock owing to constant bickering and indecisiveness regarding the euro. It is waiting anxiously to see whether the Federal Constitutional Court will give the green light for the second, feeble Greek rescue plan. It's not too late yet, but time is really running out."

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All available articles from » Kurt Vansteeland

Neue Zürcher Zeitung - Switzerland | Thursday, 1. September 2011

Thomas Mayer and Daniel Gros call for a European Monetary Fund

For weeks the euro countries have been busying themselves with the task of stabilising the common currency and have discussed numerous measures for doing so. But the only practicable solution is to establish a European Monetary Fund, write Thomas Mayer, Chief Economist of Deutsche Bank, and Daniel Gros, Director of the Centre for European Policy Studies, in the liberal-conservative daily Neue Zürcher Zeitung: » more

For weeks the euro countries have been busying themselves with the task of stabilising the common currency and have discussed numerous measures for doing so. But the only practicable solution is to establish a European Monetary Fund, write Thomas Mayer, Chief Economist of Deutsche Bank, and Daniel Gros, Director of the Centre for European Policy Studies, in the liberal-conservative daily Neue Zürcher Zeitung: "At the start of 2010 we argued for the establishment of a European Monetary Fund (EMF). At first this suggestion was dismissed as unrealistic, but since then many elements of our proposal have been put into practice. We believe it is essential to establish the European crisis mechanism as a bank, that is, to turn the institutions that have been created so far into a fully-fledged EMF. ... According to our research, this can be accomplished in full accordance with the Treaty of Lisbon merely through a regulation passed by the European Council. But setting up an EMF is no panacea; it is still imperative that national debts be reduced. However as this can't happen overnight, the EMF could provide security for the Monetary Union during the adjustment phase."

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Les Echos - France | Wednesday, 31. August 2011

Entire Eurozone in danger

Italy has decided not to introduce a solidarity tax on incomes over 90,000 euros per year, contravening the austerity plan initiated at the beginning of August. With this move Italian Prime Minister Silvio Berlusconi has endangered all the euro countries, writes the business paper Les Echos: » more

Italy has decided not to introduce a solidarity tax on incomes over 90,000 euros per year, contravening the austerity plan initiated at the beginning of August. With this move Italian Prime Minister Silvio Berlusconi has endangered all the euro countries, writes the business paper Les Echos: "Berlusconi's methods may be satisfactory for some of his supporters. But that doesn't ease Italy's problem in the least. With public debt at 120 percent of GDP, Italy needs money. ... Silvio Berlusconi can implement almost any austerity plan he wants in September - perhaps even an entirely new version - by making use of the vote of confidence. In the European context, however, such behaviour is hardly acceptable because it runs the risk of dragging the entire Eurozone into the Italian crisis. This shows once more that the Eurozone is urgently in need of economic government as demanded by Angela Merkel and Nicolas Sarkozy."

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All available articles from » Jacques Hubert-Rodier

Hospodárske noviny - Slovakia | Wednesday, 31. August 2011

Merkel and Radičová fighting for euro bailout

German Chancellor Angela Merkel must reckon with not obtaining all the votes of her coalition when the German parliament votes on the new euro rescue fund in September. But according to the Slovak business paper Hospodárske noviny, at least she'll be able to count on the opposition if needed - unlike Slovakia's head of government Iveta Radičová: » more

German Chancellor Angela Merkel must reckon with not obtaining all the votes of her coalition when the German parliament votes on the new euro rescue fund in September. But according to the Slovak business paper Hospodárske noviny, at least she'll be able to count on the opposition if needed - unlike Slovakia's head of government Iveta Radičová: "Merkel's position is comparable with Radičová's, but Germany's stance is diametrically opposed to ours. Germany won't try to play it clever and be the last country to vote on the euro bailout. It doesn't need to because if necessary the left-wing opposition will help Merkel. ... When the Slovakian Left was in power it voted unanimously for the euro bailout. Now however [its leader] Robert Fico rejects a guarantee for this bailout. He knows that in this way he can undermine the authority of the head of government."

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All available articles from » Arpád Soltész

Trouw - Netherlands | Tuesday, 30. August 2011

Europe's politicians lack European spirit

The former Belgian Prime Minister Guy Verhofstadt complained in a Dutch TV appearance on Sunday that Europe's politicians are no longer campaigning for the European ideal. He cited former French president François Mitterrand, who delivered an imposing speech on European unity in the EU Parliament back in 1992, as a model for today's EU politicians. Today the European idea is in danger, warns the Christian-social daily Trouw in its leading article: » more

The former Belgian Prime Minister Guy Verhofstadt complained in a Dutch TV appearance on Sunday that Europe's politicians are no longer campaigning for the European ideal. He cited former French president François Mitterrand, who delivered an imposing speech on European unity in the EU Parliament back in 1992, as a model for today's EU politicians. Today the European idea is in danger, warns the Christian-social daily Trouw in its leading article: "Looking back we see the differences between now and then. The great European ideal endorsed not just by Mitterrand but also German Chancellor Helmut Kohl and other European leaders is barely perceptible today. Today's leaders waver, scheme, weigh up their national interests against those of Europe and keep a nervous eye on the opinion polls. If the leaders don't promote the European ideal we can't expect the citizens to be enthusiastic. With these historical references to Mitterrand Verhofstadt made clear exactly what is going wrong in Europe and the Netherlands."

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El País - Spain | Tuesday, 30. August 2011

Euro bonds can save Europe

The Spanish Congress votes today on the incorporation of a debt cap into the country's constitution. Former Socialist Prime Minister Felipe González supports the initiative but calls for further measures: » more

The Spanish Congress votes today on the incorporation of a debt cap into the country's constitution. Former Socialist Prime Minister Felipe González supports the initiative but calls for further measures: "The debt cap shouldn't just apply in Spain but should be extended to the EU in general and the Eurozone in particular. However this necessary measure still isn't enough to ensure the economic government that is currently failing - in Europe and the US. The EU must stop playing the role of fire brigade it has slipped into, putting out the fires at the last minute. In principle no one doubts that in a borderless single market with a single currency, the financial and economic policies of the individual member states need to be coordinated. We mustn't lose any more time or continue delaying necessary measures such as the issue of euro bonds. Otherwise the Eurozone will be bled dry country by country and the entire edifice of Europe will collapse."

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All available articles from » Felipe González

Il Sole 24 Ore - Italy | Tuesday, 30. August 2011

Balance the budget first

Euro bonds are not the way out of the current debt crisis, especially for hard-up countries like Italy, writes the business paper Il Sole 24 Ore: » more

Euro bonds are not the way out of the current debt crisis, especially for hard-up countries like Italy, writes the business paper Il Sole 24 Ore: "All the talk about euro bonds threatens to distract us from finding a solution to the current emergency situation. No foreign god is going to step in and save us from this. There is no longer any alternative to the path towards a permanent balancing of the budget. ... This is what we should be thinking about, not euro bonds. ... They are however an important project for the future of Europe. So we should keep proposing them to other countries, but discretely as long as we haven't restored our credibility by cleaning up our own finances. They are not a remedy for this problem which we are not in a position to resolve on our own."

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All available articles from » Gianni Toniolo

Evenimentul Zilei - Romania | Friday, 26. August 2011

Mircea Cărtărescu on the illusory United States of Europe

The Romanian President Traian Băsescu has made a plea for the creation of a United States of Europe. But it is hardly likely that such a mega state will ever emerge, writes the Romanian author Mircea Cărtărescu in the daily Evenimentul Zilei: » more

The Romanian President Traian Băsescu has made a plea for the creation of a United States of Europe. But it is hardly likely that such a mega state will ever emerge, writes the Romanian author Mircea Cărtărescu in the daily Evenimentul Zilei: "The European states have a thousand-year history behind them. They have their own language, traditions, psychology, ethos and collective unconscious that has grown from a mixture of memories, illusions, unhealed wounds and amassed frustrations within this common history. ... This past nourishes nationalist sentiment superiority and inferiority complexes among the people of Europe. ... A united Europe will never be as united as the United States of America. Its only chance is to strike an equilibrium between the nationalism of the member states and the European spirit. ... But if the European spirit is synonymous for the type of over-centralised bureaucracy and standardisation that now runs roughshod over local situations, the chances of more integration are slim."

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Libération - France | Tuesday, 30. August 2011

Common bonds will be abused

Euro bonds can mean greater cumulative debt in Europe, write the economics professors Romain Rancière and Aaron Tornell in the left-liberal daily Libération: » more

Euro bonds can mean greater cumulative debt in Europe, write the economics professors Romain Rancière and Aaron Tornell in the left-liberal daily Libération: "Unlike the support mechanisms of the IMF and the European Union, issuing euro bonds will not be limited to periods of crisis. On the contrary, in times of prosperity as the fiscal situation improves, more countries will become eligible to emit a growing number of euro bonds. Each one of these states will then be interested in refinancing its standard bonds by issuing euro bonds, the default risk being implicitly borne by the other states. In this way the states would follow their own interests and ignore the effect the growing number of euro bonds in circulation would have on the entire the Eurozone states as a whole. ... This form of 'tragedy of commons' leads to an excessive total debt, with dramatic consequences when the prosperity ends."

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El País - Spain | Monday, 29. August 2011

US Fed manages crisis better than ECB

The heads of the central banks of the world's leading economies met in Jackson Hole in the US on Friday. The left-liberal daily El País says the US Federal Bank is reacting more appropriately to the crisis than the European Central Bank: » more

The heads of the central banks of the world's leading economies met in Jackson Hole in the US on Friday. The left-liberal daily El País says the US Federal Bank is reacting more appropriately to the crisis than the European Central Bank: "It has assessed the true risks more accurately, seeing the danger of inflation as far less serious than the much more worrying threat of economic standstill and the resulting unemployment. Its attitude became clear a few weeks ago when it announced that it was leaving the base interest rate at around zero until mid-2013. The European Central Bank, on the other hand, has reacted prematurely. Not only has it repeatedly raised its interest rates but it is also jeopardising the feeble recovery and jobs by demanding austerity programmes that may be necessary, but could also have been put off for the medium term, as the boss of the International Monetary Fund Christine Lagarde has once again proposed. The result is that the crisis now poses a greater threat to the Eurozone, even though it broke out in the US."

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De Morgen - Belgium | Monday, 29. August 2011

New bank bailout will affect everyone

Christine Lagarde, director of the International Monetary Fund (IMF), called for European banks to shore up their capital levels at an international economic conference in Jackson Hole, US, on Saturday. That the money for this will have to come from the state governments will be difficult to explain to the Belgians, warns the left-leaning daily De Morgen: » more

Christine Lagarde, director of the International Monetary Fund (IMF), called for European banks to shore up their capital levels at an international economic conference in Jackson Hole, US, on Saturday. That the money for this will have to come from the state governments will be difficult to explain to the Belgians, warns the left-leaning daily De Morgen: "The bank bailout of 2008 jacked up Belgium's debts to a dangerous level. Another cash injection running into the billions at a time like now, when the economy is teetering and everyone is having to tighten their belts, is simply a horrifying prospect. Henry Paulson, the former Federal Reserve chairman, admitted during a hearing in the US Senate last year that he never managed to give the American people a satisfactory explanation of why saving the banks was good for them and not for the Wall Street sharks. Our government must be able to do this if it wants to sell the measures that will affect each one of us, and families too."

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Financial Times Deutschland - Germany | Friday, 26. August 2011

Issue euro bonds without Germany

The Eurozone should issue joint bonds without Germany's participation, writes the liberal business paper Financial Times Deutschland: » more

The Eurozone should issue joint bonds without Germany's participation, writes the liberal business paper Financial Times Deutschland: "The total value of all US government bonds in circulation amounts to 6.6 trillion euros. ... This stands in stark contrast to Europe's fragmented national bond market. At the end of 2010 Italy had bonds in ciruclation amounting to 1.5 trillion euros, Germany had 1.4 trillion and France 1.3 trillion. Investors can sell these bonds off far more easily than American or Japanese securities. If they decide to get rid of their European bonds, it will cause far more of a shock than in large markets. ... The Eurozone must issue joint bonds but without Germany and its like-minded partners, the Netherlands, Austria, Finland and Slovakia. Greece would also have to be excluded - the country needs special treatment in any event. The remaining eleven countries could create a bond market worth 3.5 trillion euros, one whose marcro-economic data would only be minimally worse than for the Eurozone as a whole."

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All available articles from » Martin Sandbu

Expansión - Spain | Thursday, 25. August 2011

Debt cap strengthens Spain

That Spain is moving fast to put a debt cap in its constitution will do the country good and calm the markets, writes the business paper Expansión: » more

That Spain is moving fast to put a debt cap in its constitution will do the country good and calm the markets, writes the business paper Expansión: "This is one of the best pieces of news the ailing Spanish economy has heard for some time. In addition to the legal and financial security this measure brings, the psychological impact on the markets will boost the efficiency of the measure because there is still a great deal of uncertainty regarding the trading of Western government bonds. As other analysts have already observed, the problems with the issue of Spanish government bonds lie not with the rating agencies but the confidence and credibility we inspire in the investors and the markets as a whole. A situation like the current one in which every issue of bonds is like a final examination can't go on for much longer."

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Cinco Días - Spain | Wednesday, 24. August 2011

Merkel takes the helm in Europe

The government and opposition in Spain agreed on a constitutional reform on Tuesday to incorporate the budget deficit limitation demanded by Germany and France into the country's constitution. For the business daily Cinco Días this is a clear sign of Germany's leading role: » more

The government and opposition in Spain agreed on a constitutional reform on Tuesday to incorporate the budget deficit limitation demanded by Germany and France into the country's constitution. For the business daily Cinco Días this is a clear sign of Germany's leading role: "The Congress demonstrated once more yesterday that Germany has taken over the helm of the Eurozone and is dictating both the rhythm and the route to steer through the troubled waters of the crisis. So Spain is bowing to the German dictates and agreeing to amend its constitution to achieve a balanced budget. In this crisis the German leader is adopting a subtly different tone in comparison with previous German chancellors,  who were at pains not to wield too much power so as to avoid waking bad memories of the past. ... Today Germany is merely trying to conceal its true power. It demonstratively enters pacts with France or takes partial cover behind the positions of the Netherlands, Austria and Finland."

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NRC Handelsblad - Netherlands | Wednesday, 24. August 2011

Euro bonds no magic remedy

As the debt crisis in the Eurozone shows no sign of abating, debate continues on the subject of euro bonds. The liberal daily NRC Handelsblad has words of warning: » more

As the debt crisis in the Eurozone shows no sign of abating, debate continues on the subject of euro bonds. The liberal daily NRC Handelsblad has words of warning: "Euro bonds can be an efficient means of raising money on the capital markets. But such bonds are no solution without the requisite national budget discipline and automatic sanctions against violations. Failing that they would only bring additional problems and constitute nothing more than a quick way of getting ahead in the crisis. Like someone who is highly indebted wanting to take out further loans through a creditworthy member of their family. Anyone who doesn't agree on how interest on the loan will be paid back runs a great risk of conflict. On a European level such a policy could also lead to discord and away from a reliable, stable euro."

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La Repubblica - Italy | Wednesday, 24. August 2011

Barbara Spinelli on undemocratic forces in the EU

The crisis of the European Union is due to a democratic deficit, writes expert on international relations Barbara Spinelli in the left-liberal daily La Repubblica: » more

The crisis of the European Union is due to a democratic deficit, writes expert on international relations Barbara Spinelli in the left-liberal daily La Repubblica: "Our lives are being shaped today not by policies forged in the name of public welfare but by non-elected rulers, speculators and rating agencies who decide our fate and have appointed themselves as the new judges of democracy. Or by those who are supposed to represent us - the EU and its central bank - but who lack the necessary authority because the old nation states deny it to them. The throne of democracy in Europe is empty. The mini-summits between Merkel and Sarkozy are ridiculous. They simulate a Europe that they have denied the necessary institutions and means to become a true power. They want a Europe that conforms to their own wishes and ideas but is only a delusion of power. ... In reality this image is dominated by dark, invisible forces that use it as a disguise."

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Dilema Veche - Romania | Tuesday, 23. August 2011

Mircea Vasilescu sees EU beset by crisis of confidence

The EU is currently undergoing a deep crisis of confidence, Mircea Vasilescu writes in the left-liberal weekly Dilema Veche: » more

The EU is currently undergoing a deep crisis of confidence, Mircea Vasilescu writes in the left-liberal weekly Dilema Veche: "You can't lead a mega-state with a half a billion inhabitants with the same indecision or the same mentality as in the 19th century, when nation states were all the vogue. Nor can you beat your drum and say you want a 'Europe of the citizens' without convincing them that Europe is actually worth it. The enormous sums put into communication programmes by the European Commission have had precious little result: in bad times people retreat into their national communities and say European integration hasn't got them anywhere. Because the fact is they feel better protected by their own nations, where they have points of reference that are more help to them than the abstract words of Brussels bureaucrats. And the lack of true European leaders also raises doubts about the viability of the EU project. The entire world is currently looking at Sarkozy and Merkel, not at Barroso or Van Rompuy."

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De Volkskrant - Netherlands | Monday, 22. August 2011

The euro divides Europe

A European economic government to solve the euro crisis would only divide Europe, the cultural historian René Cuperus warns in the left-liberal daily De Volkskrant: » more

A European economic government to solve the euro crisis would only divide Europe, the cultural historian René Cuperus warns in the left-liberal daily De Volkskrant: "The deep chasms from the times of the referendums on the European constitution are gaping once more. The mainstream, which sees a united Europe as the only solution, versus the populists. This is dangerous. Because it's highly unlikely that a United States of the Eurozone, in which national budgets are subordinate to a European institution, will obtain a majority among the citizens of Europe. ... Economically speaking, the euro obviously doesn't work. ... But also from a political point of view the euro threatens to have a catastrophic impact. It is not a common currency but a divisive currency. So it's time for plan B: we must seek European integration without the euro."

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Il Sole 24 Ore - Italy | Tuesday, 23. August 2011

Romano Prodi and Alberto Quadrio-Curzio call for Eurobonds

German Chancellor Angela Merkel on Monday reaffirmed her strong rejection of the idea of  Eurobonds. But the introduction of such bonds as well as a European Monetary Fund (EMF) would have many advantages, former Italian prime minister Romano Prodi and political scientist Alberto Quadrio-Curzio write on the business paper Il Sole 24 Ore: » more

German Chancellor Angela Merkel on Monday reaffirmed her strong rejection of the idea of  Eurobonds. But the introduction of such bonds as well as a European Monetary Fund (EMF) would have many advantages, former Italian prime minister Romano Prodi and political scientist Alberto Quadrio-Curzio write on the business paper Il Sole 24 Ore: "The EMF would bring true innovation. It would issue Eurobonds that unite four characteristics of former proposals for European bonds. ... The advantages of the Eurobonds issued by the EMF would be enormous. The European Monetary Fund would prevent any form of opportunism in administrating the national debts of individual countries. The second advantage lies in the size of a European bond market. The average yields could be reduced in comparison with the national risk premiums. ... This would mean the Eurozone's Eurobonds could compete with US government bonds." 

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Le Monde - France | Thursday, 18. August 2011

Transaction tax is justified

The Franco-German plans for fighting the debt crisis include a tax on financial transactions. Such a step would compensate taxpayers for the losses incurred to save the banking system, writes the left-liberal daily Le Monde: » more

The Franco-German plans for fighting the debt crisis include a tax on financial transactions. Such a step would compensate taxpayers for the losses incurred to save the banking system, writes the left-liberal daily Le Monde: "The idea of taxing international financial transactions entered the public debate as a positive consequence of the financial crisis in 2008. ... The tax on financial transactions is justified above all because of the repercussions of the crisis on public budgets, and because of the considerable sums that had to be raised to rescue the bank system. A tax levied on all transactions would be fair compensation for the burden taxpayers had to bear to prevent the collapse of the banking system."

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Právo - Czech Republic | Friday, 19. August 2011

Jiří Pehe approves of loss of sovereignty

Relieved at the proposals by French President Nicolas Sarkozy and German Chancellor Angela Merkel for rescuing the euro, political scientist Jiří Pehe answers in the left-leaning daily Právo those who complain that this means the end of national sovereignty: » more

Relieved at the proposals by French President Nicolas Sarkozy and German Chancellor Angela Merkel for rescuing the euro, political scientist Jiří Pehe answers in the left-leaning daily Právo those who complain that this means the end of national sovereignty: "It was clear from the start that a common monetary policy could not exist on the long term without a common budget policy. The alternative would be the collapse of the Eurozone and the EU, with catastrophic consequences. No one in Europe exercises true economic sovereignty. For the Czech Republic to have such sovereignty it would have to stop exporting to the EU altogether. Reasonable politicians should call for more integration. Otherwise we'll be sidelined and have to look on while others take decisions that effect us directly but in which we have no say from our 'island of sovereignty'."

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Heti Válasz - Hungary | Friday, 19. August 2011

Péter Heim on differences between the European and US Crises

Both the EU and the US are battling a crisis but in the US the problems are more serious, writes economist Péter Heim in the conservative weekly Heti Válasz: » more

Both the EU and the US are battling a crisis but in the US the problems are more serious, writes economist Péter Heim in the conservative weekly Heti Válasz: "Many say that the crisis in Europe is more serious but the facts tell a different story. While the US's public debt amounts to 100 percent of its GDP, the average in Europe is 85 percent. Not to mention that the US has a considerable trade deficit while in Europe it's balanced. On top of that the US population's consumption in relation to its GDP is six percent higher than in Europe. ... The US problem is smaller politically but all the bigger economically than Europe's. In the United States the macro-economic problems are huge. Because the exchange rate is not fixed the US can improve its situation temporarily by devaluing the dollar. ... Because of the Eurozone the states of Europe will have to take the clearly more difficult but only viable path: that of budgetary discipline."

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România Liberă - Romania | Friday, 19. August 2011

Lucian Davidescu sees no solution in EU integration

In a speech given on Thursday, Romania's president Traian Băsescu said he favoured the transferral of more national powers to the EU to create a "United States of Europe". The daily România Liberă is sceptical: » more

In a speech given on Thursday, Romania's president Traian Băsescu said he favoured the transferral of more national powers to the EU to create a "United States of Europe". The daily România Liberă is sceptical: "Already there are major differences within the Union and so far the time has lacked to overcome them: the gap between the strong, well-developed industrial nations and the weaker developing countries still trying to catch up. ... A more integrated EU, a United States of Europe, would aggravate this problem rather than solve it. For Europe faces a choice between two scenarios: either inflation as a result of the national debts [through the purchase of government bonds] being monetised, with the euro countries all bearing the losses together, or deflation when the states whittle down their spending and reduce their economies."

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All available articles from » Lucian Davidescu

Trouw - Netherlands | Friday, 19. August 2011

Merkel and Sarkozy forge true European policies

The proposals of German Chancellor Angela Merkel and French President Nicolas Sarkozy for a solution to the debt crisis may have failed to calm the markets, but they do send an important signal, writes the Christian-social daily Trouw: » more

The proposals of German Chancellor Angela Merkel and French President Nicolas Sarkozy for a solution to the debt crisis may have failed to calm the markets, but they do send an important signal, writes the Christian-social daily Trouw: "Despite all the uncertainties and doubts: Merkel and Sarkozy have taken on responsibility. Of all people it was the representatives of the countries which themselves failed to meet the stability criteria in 2003 who have done this. This is an important political signal. A common euro policy is bitterly need and will sooner or later involve a loss of sovereignty on the part of the individual states. That may now be a matter of indifference to Merkel and Sarkozy, but words won't help us out of the crisis. This will only be achieved with concrete steps toward forging true European policies."

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Tiroler Tageszeitung - Austria | Thursday, 18. August 2011

Merkel and Sarkozy too fast for Eurozone

The proposals agreed on at the Franco-German summit in Paris are right, but they will overtax many euro countries, writes the liberal-conservative daily Tiroler Tageszeitung: » more

The proposals agreed on at the Franco-German summit in Paris are right, but they will overtax many euro countries, writes the liberal-conservative daily Tiroler Tageszeitung: "The direction the two biggest economies in the EU are taking is clear: as the vanguard of the entire EU, the monetary union should push forward the integration of the member states. This step is absolutely necessary to bring Europe out of the bitter debt crisis. ... Merkel and Sarkozy have thought far ahead. That's a good thing, because a new Europe needs strong visions. But just because the alpha wolves agree it doesn't mean all the euro countries are ready for more integration. Now is the time for deliberation. With the Treaty of Lisbon and mutual liability for public debts through the rescue package, the EU has developed by leaps and bounds in recent times. But in the fight against the debt crisis Europe must not strain itself and stumble over its own fast pace."

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Les Echos - France | Wednesday, 17. August 2011

Devalue the euro

The debt crisis in some euro countries can only be overcome by devaluing the single currency, the three economists Gérard Lafay, Jean-Jacques Rosa und Philippe Villin write in the liberal business paper Les Echos: » more

The debt crisis in some euro countries can only be overcome by devaluing the single currency, the three economists Gérard Lafay, Jean-Jacques Rosa und Philippe Villin write in the liberal business paper Les Echos: "The only measure that can prevent the worst from happening is a quick and massive devaluation of the euro, which has been strongly over-valued since 2003. That would be a direct attack on the factor which has contributed the most to the weakening of our economies. By re-establishing competitiveness in all the economies of the Eurozone this step would make way for renewed growth prospects. Only such a move can reduce the imbalance between debt and the GDP and re-establish financial solvency. ... How is this to be done? By sinking the interest rate of the ECB to near zero. This would have direct repercussions on international capital flows and consequently an immediate impact on the value of the euro."

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The Economist - United Kingdom | Wednesday, 17. August 2011

Debt crisis needs short-term solution

By not introducing euro bonds Merkel and Sarkozy have failed to calm the markets, the online edition of liberal business magazine The Economist writes: » more

By not introducing euro bonds Merkel and Sarkozy have failed to calm the markets, the online edition of liberal business magazine The Economist writes: "After their summit, Ms Merkel and Mr Sarkozy both dismissed the calls for the issuing of common Eurobonds. Instead, said Mr Sarkozy, they had agreed to revive proposals for a tax on financial transactions, and to press for all the Eurozone countries to have balanced-budget rules written into their constitutions. The prospects of achieving either of these, in the short term at least, do not look great: they are, at best, longer-term solutions when what the euro-area crisis needs is something much more short-term. Although stockmarkets in Europe had recovered much of their earlier losses by the end of Tuesday's trading, the summit will have done little to reassure nervous investors that the Eurozone's leaders are any closer to finding a way out of the crisis."

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Les Echos - France | Wednesday, 17. August 2011

Only euro bonds can end the crisis

The solution to the debt crisis proposed by Nicolas Sarkozy and Angela Merkel does not foresee the introduction of euro bonds. Nevertheless such securities are the sole way out of the crisis, writes the business paper Les Echos: » more

The solution to the debt crisis proposed by Nicolas Sarkozy and Angela Merkel does not foresee the introduction of euro bonds. Nevertheless such securities are the sole way out of the crisis, writes the business paper Les Echos: "Not just as a way out of the crisis, but also to further the construction of Europe and prevent it from imploding. Because the crisis the Eurozone finds itself in came about within a shaky monetary union with a common currency and autonomous budget policies. The countries that have started to falter because of their excessive public spending no longer have monetary policy options at their disposal to get back on their feet. They will be attacked as long as speculators trade their debts on the markets. And those countries that have had sound policies all along will not be spared in the ensuing crash."

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Le Monde - France | Friday, 12. August 2011

Legitimise euro bonds democratically

French President Nicolas Sarkozy and German Chancellor Angela Merkel meet on Tuesday in Paris to discuss solutions to the European debt crisis, one of which could be a common debt security, the so-called euro bonds. The control body that would oversee such an instrument must be democratically legitimated, writes the left-liberal daily Le Monde: » more

French President Nicolas Sarkozy and German Chancellor Angela Merkel meet on Tuesday in Paris to discuss solutions to the European debt crisis, one of which could be a common debt security, the so-called euro bonds. The control body that would oversee such an instrument must be democratically legitimated, writes the left-liberal daily Le Monde: "Euro bonds can effectively counteract speculation. But in exchange the ailing states must but be placed under supervision so as to avoid unpleasant surprises like that in Greece. ... Such supervision immediately raises the question of how it, as well as the painful economic, financial and social-policy restructuring attempts demanded from the countries in question, can be democratically legitimised. The question also arises regarding the legitimacy of a self-proclaimed control body, as well as that of a veritable government of the Eurozone whose central element would be to convene at the meetings of Europe's heads of state and government."

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Trud - Bulgaria | Monday, 8. August 2011

Bulgarians celebrate the financial crisis

Against the background of the smouldering European debt crisis and the US's financial difficulties many an expert is warning about the next global financial crisis. But the crisis-ridden Bulgarians couldn't care less, quips the daily Trud: » more

Against the background of the smouldering European debt crisis and the US's financial difficulties many an expert is warning about the next global financial crisis. But the crisis-ridden Bulgarians couldn't care less, quips the daily Trud: "We have no fear of a new crisis, especially because we are still in the middle of the last one. Before that we were in a host of other crises which replaced one another seamlessly and before that in socialism. So we're used to carrying on in a crisis. We have got so used to it that if there were no crisis we wouldn't feel at home or know what to do with ourselves. We even have a proverb for it: 'The better things are, the worse they can get.' And when the chips are down, we can always print more dollars. Some would call that counterfeit money, but it not less secured by real gold than the genuine American stuff."

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taz - Germany | Monday, 8. August 2011

Investors stay cool

Standard & Poor's downgrade of the United States creditworthiness comes hardly as a surprise for the investors, writes the left-leaning daily die tageszeitung: » more

Standard & Poor's downgrade of the United States creditworthiness comes hardly as a surprise for the investors, writes the left-leaning daily die tageszeitung: "Investors don't depend on the rating agency to assess the debt crisis in the US - and have long since made their own analyses. ... They are staying remarkably cool, as indicated by the extremely low interest rates the US is paying for its loans: 2.5 percent with a ten-year repayment period. Because inflation is at 3.6 percent investors are even willing to put up with losses as long as they can park their money in the US. This is not what distrust looks like. ... The investors are not wrong when they say the US is a safe haven. The threat of bankruptcy has political, not economic reasons. Tax hikes for the wealthy would be enough to considerably reduce the deficit in the US budget."

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Les Echos - France | Monday, 8. August 2011

Politicians fail in debt crisis

By downgrading the US credit rating the rating agency Standard & Poor's has made it clear that politicians have failed to fulfil their controlling function, the liberal business paper Les Echos writes: » more

By downgrading the US credit rating the rating agency Standard & Poor's has made it clear that politicians have failed to fulfil their controlling function, the liberal business paper Les Echos writes: "The representative democracy we live in emerged three centuries ago from a simple idea: to avoid a debt spiral and bankruptcy, public finances must be controlled by public representatives and not left to the discretion of the king. Today this fundamental mission is no longer being accomplished in the US, which was long considered the model of such representative democracy. And in our old Europe doubt is also growing over the states' ability to honour their financial engagements, as we saw last week on the markets. The politicians multiply their reassurances, but they are losing their credibility as the debt grows. To bolster confidence, deeds are needed rather than words. Not just the health of the financial markets is at stake, but also the future of democracy."

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Le Monde - France | Monday, 1. August 2011

Nicolas Baverez on supranational solutions to the debt crisis

The governments in Europe, the US and Japan have proved unable to curb their colossal public debts. Proof enough that national state policies have failed, writes business expert and historian Nicolas Baverez in the left-liberal daily Le Monde. Only supra-national bodies like the European Union can manage the risks of the 21st century, Baverez argues: » more

The governments in Europe, the US and Japan have proved unable to curb their colossal public debts. Proof enough that national state policies have failed, writes business expert and historian Nicolas Baverez in the left-liberal daily Le Monde. Only supra-national bodies like the European Union can manage the risks of the 21st century, Baverez argues: "The state is losing its monopoly on risk management. The thing is not just to repair but to anticipate. It's not enough to intervene, the time has come to guarantee the sustainability of political action. The state must take on more responsibility and coordinate the economic and social actors while transferring certain competences to the international level. ... Europe must tell the truth about the duration of the crisis, the end of growth on credit and the false principles that led to the creation of the euro. ... Europe can no longer act as the scapegoat of the national governments' powerlessness. It must be rethought, accepted and firmly anchored in the public mind as a manager of systematic risk."

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Gazeta Wyborcza - Poland | Friday, 29. July 2011

Finally introduce euro bonds

Italy has borrowed almost 8 billion euros on the capital market, requiring it to offer investors a high risk premium. Even following the second rescue package for Greece the debt crisis is continuing to dog the euro, the chief economist of the Polish finance institute PBP Ignacy Morawski writes in the liberal daily Gazeta Wyborcza. He calls for the introduction of euro bonds: » more

Italy has borrowed almost 8 billion euros on the capital market, requiring it to offer investors a high risk premium. Even following the second rescue package for Greece the debt crisis is continuing to dog the euro, the chief economist of the Polish finance institute PBP Ignacy Morawski writes in the liberal daily Gazeta Wyborcza. He calls for the introduction of euro bonds: "The project to issue euro bonds is currently only being outlined in the newspapers. Yet the likelihood that the politicians will seriously consider it is great. If Ireland and Portugal don't succeed in restoring their creditworthiness by the end of the coming year, a new rescue package of around 90 billion euros may be necessary. For that is what will be required to service the loans for the years 2013 to 2015, not counting the public loans. In addition, a further 350 billion euros may be needed if the crisis spreads to Spain."

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Financial Times Deutschland - Germany | Thursday, 28. July 2011

France's debts endanger euro rescue

The International Monetary Fund (IMF) warned France about failing to meet its savings targets and called for more budgetary discipline on Wednesday. Although the liberal business newspaper Financial Times Deutschland is not surprised by the warning, it says it only makes the issue more volatile: » more

The International Monetary Fund (IMF) warned France about failing to meet its savings targets and called for more budgetary discipline on Wednesday. Although the liberal business newspaper Financial Times Deutschland is not surprised by the warning, it says it only makes the issue more volatile: "The IMF is calling on France to economise - ironically for the first time under its new French director Christine Lagarde - otherwise the country may lose its top 'AAA' rating. The facts about the French economy and debts are known, the danger that the country will be drawn into the debt crisis has been discussed in Paris for two years now. These harsh words are therefore no less surprising than Italy's dangerous debt situation. ... However, the warning has a new urgency, because together with Germany, France forms the core of the euro defence centre. If France loses its top rating, Europe will face a problem of such magnitude that many will yearn for the times when Greece had to be rescued over the weekend. The EU's whole rescue strategy would be wiped out."

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WOZ - Die Wochenzeitung - Switzerland | Thursday, 14. July 2011

Elmar Altvater sees rating agencies as neoliberal charlatans

In the wake of the debt crisis the rating agencies have become the target of criticism. Political scientist Elmar Altvater explains in the left-wing weekly WOZ why the agencies should be abolished: » more

In the wake of the debt crisis the rating agencies have become the target of criticism. Political scientist Elmar Altvater explains in the left-wing weekly WOZ why the agencies should be abolished: "Rating agencies are in cahoots with the international banking system - and help the banks to achieve additional profits: The worse the rating, the greater the risk of default. The extra risk can then be translated into a higher interest rate and hence into a bigger profit for the creditor. Greece is currently having to pay double-digit interest. ... That is a guarantee that a highly indebted country will never pay off its debts. State bankruptcy becomes the only way out. [In addition] the rating agencies also engage in geopolitics. With their country ratings they not only influence the value of government bonds, but also indirectly currency exchange rates. When the euro is weak, the US dollar recovers. And thus the dollar can continue to be the currency in which oil bills are paid. For the United States paying in their currency is central. The rating agencies assume the function of a sovereign entity without being sovereign. They are part of the guild of neoliberal charlatans. Their licenses should be withdrawn."

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Hospodářské noviny - Czech Republic | Tuesday, 26. July 2011

No alternative to euro for Czechs

Against the backdrop of the debt crisis in the Eurozone the Czechs' objections to the introduction of the euro are growing. According to the most recent surveys more than two-thirds of the population want to keep the Czech koruna. The business paper Hospodářské noviny, however, sees no alternative to the euro: » more

Against the backdrop of the debt crisis in the Eurozone the Czechs' objections to the introduction of the euro are growing. According to the most recent surveys more than two-thirds of the population want to keep the Czech koruna. The business paper Hospodářské noviny, however, sees no alternative to the euro: "In Greece, which is feeling the consequences of the euro first-hand and has not had good experiences with it economically, two-thirds of the population is still against reverting to the drachma, and support for the euro is at around 58 percent. ... The end of the euro and the ensuing chaos would not be good either for Greece or the Czechs, whose economy depends on the Eurozone. Certainly the euro should not be hastily introduced in the Czech Republic. But there is no better alternative. The notion that the koruna could save us is even more naïve than to believe that Greece can pay its debts."

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All available articles from » Julie Hrstková

Financial Times - United Kingdom | Friday, 22. July 2011

Cyprus slides into debt crisis

The Republic of Cyprus too could slide into a debt crisis, the head of the Cyprus Central Bank, Athanasios Orphanides, warned earlier this week. This is the price for the government's inaction in recent years, according to the liberal-conservative daily Financial Times: » more

The Republic of Cyprus too could slide into a debt crisis, the head of the Cyprus Central Bank, Athanasios Orphanides, warned earlier this week. This is the price for the government's inaction in recent years, according to the liberal-conservative daily Financial Times: "Cyprus does not face short-term funding difficulties, but its bond yields have risen sharply in recent months, pointing to investors' concerns about the very high exposure to Greece of its commercial and financial sector. The communist-led government's failure to keep public expenditure under control during the world financial crisis of the past three years has greatly exacerbated the problem. ... The biggest problem is the government's refusal or inability to undertake the fiscal and structural reforms essential for long-term survival in the eurozone. In this sense Cyprus is even more remiss than its struggling Mediterranean neighbours."

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Hospodářské noviny - Czech Republic | Friday, 22. July 2011

Way out of the crisis now clear

The decisions taken at the EU summit on helping Greece chart the way out of the crisis, the business Hospodářské noviny writes in delight: » more

The decisions taken at the EU summit on helping Greece chart the way out of the crisis, the business Hospodářské noviny writes in delight: "At long last the Eurozone deserves our praise. The plan for bailing out Greece and other problem states seems to be a viable, long-term, rational course that will stimulate the economy. That's better than anything we dared to hope for originally. ... The idea of a Marshall Plan for Greece to help its economy, boost investments and secure sustainable growth for the country is nothing less than brilliant. It's also a positive development that the banks have expressed their commitment to the plan, even if certain details still need to be sorted out. ... The main thing is that so far the markets have reacted positively to the proposals, and this is evident in the rise in the value of the euro. And also the fact that the investors are expressing their satisfaction. The summit hasn't completely resolved Europe's debt crisis but at least it has marked out the way to end this crisis."

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El País - Spain | Thursday, 21. July 2011

Breaking German taboos

German Chancellor Angela Merkel is under enormous pressure at today's EU summit, the left-liberal daily El País notes: » more

German Chancellor Angela Merkel is under enormous pressure at today's EU summit, the left-liberal daily El País notes: "Time is running out, and the room for manoeuvre is diminishing. The time is coming, perhaps today, when the fate of the euro will be sealed. It depends on Angela Merkel, the most powerful but also the most stubborn woman in the world. She has been dragging her feet for 18 months now, resisting the logic that she herself has defended: if the euro falls, Europe will fall along with it. There can no longer be any doubts regarding the Greek debt crisis: the labyrinth into which we have plunged, guided by Germany's growing aversion to European integration, has only one exit: more European integration. Even if it means breaking with the German taboos forbidding anything that would turn the EU into a transfer union, be it by bailing out insolvent countries, creating eurobonds or having the European Central Bank purchase devalued debts."

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All available articles from » Lluís Bassets

Les Echos - France | Monday, 18. July 2011

Tests ignore sovereign bankruptcy

The criteria used in the stress tests for banks, though tougher that last year's, still ignore the real problems, the business newspaper Les Echos criticises: » more

The criteria used in the stress tests for banks, though tougher that last year's, still ignore the real problems, the business newspaper Les Echos criticises: "They provide no answer to the most urgent question with respect to the European financial system; the impact on the Eurozone of one state going bankrupt. With their politically motivated decision not to break this taboo, those monitoring the banks have held up a distorting mirror to them. Efforts were made to simulate indirectly the risks of debt default on the banks' portfolios for state debt. With respect to the Greek debt crisis, the financial markets estimate losses of fifty percent whereas the tests limit this to twenty-five percent. In view of the forthcoming EU summit, which many see as crucial, that is doubtless too little."

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All available articles from » François Vidal

Elsevier - Netherlands | Monday, 18. July 2011

Euro crisis a test for Van Rompuy

The Eurozone summit on the debt crisis scheduled for Thursday will also be a test for President of the European Council Herman Van Rompuy, in the opinion of the conservative news magazine Elsevier: » more

The Eurozone summit on the debt crisis scheduled for Thursday will also be a test for President of the European Council Herman Van Rompuy, in the opinion of the conservative news magazine Elsevier: "Van Rompuy is simply head of the Council and not president or chief of the European Union. That was never the intention. After all, the real boss - the chancellor of the largest member state - is in Berlin. ... In the meantime the question mark over the future of the single currency is larger than ever. Now the moment has come for Van Rompuy to prove himself as manager in the euro storm. He failed to do this in the last few days. Calls for a political response from the EU to the debt crisis became ever louder, but Brussels remained silent. On Friday evening Van Rompuy finally twittered the long-awaited answer: the heads of state and government will meet on Thursday, 21 July. That is the beginning of a solution."

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All available articles from » Carla Joosten

Ta Nea - Greece | Monday, 18. July 2011

Athens can rely on the US

During her visit to Greece on Sunday US Secretary of State Hilary Clinton reassured the country that the US would support it in resolving the debt crisis. The Greeks can count on the US, the left-liberal daily Ta Nea writes gleefully: » more

During her visit to Greece on Sunday US Secretary of State Hilary Clinton reassured the country that the US would support it in resolving the debt crisis. The Greeks can count on the US, the left-liberal daily Ta Nea writes gleefully: "The Cassandras who predicted that the US and Europe would abandon Greece to its fate after getting their hands on some of the borrowed money have been proven wrong. ... What Clinton said both publicly and behind closed doors reinforces our confidence that the country has another protector in the decisive battle to continue with the European course. The fact that the US president is communicating with the European heads of state and government and calling on them to find a definitive solution at the summit next Thursday sends a clear message to the political centres and markets."  

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Lidové noviny - Czech Republic | Thursday, 14. July 2011

EU should sacrifice Greece and Portugal

The Italian government has announced a tougher economy drive and economic reforms in the face of the European debt crisis. For their part the smaller ... » more

The Italian government has announced a tougher economy drive and economic reforms in the face of the European debt crisis. For their part the smaller southern European crisis states should leave the Eurozone, the conservative daily Lidové noviny urges, because "if Greece and Portugal go bankrupt it won't destroy the Eurozone. If both countries lost the euro it would solve many problems for them and others too. Europe has enough money to give them the chance of a new start. Italy and Spain, on the other hand, must retain the euro. Spain certainly needs to tidy up its banking system and Italy must scrimp and save. All four countries should reorganise their labour markets with the main goal of providing more jobs for young people. The lack of prospects for the younger generation will lead to a fatal collapse of the social welfare state model. ... If the financial markets saw these steps being taken their faith in Europe could be restored. The measures that are currently being taken are just like flogging a dead horse."

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All available articles from » Pavel Kohout

Jornal de Negócios - Portugal | Tuesday, 12. July 2011

Pedro Santos Guerreiro thanks Berlusconi for new crisis

The looming debt crisis in Italy offers a chance for the eurozone finally to solve its problems, in the opinion of the publisher of the business newspaper Jornal de Negócios, Pedro Santos Guerreiro: » more

The looming debt crisis in Italy offers a chance for the eurozone finally to solve its problems, in the opinion of the publisher of the business newspaper Jornal de Negócios, Pedro Santos Guerreiro: "States that turn away from crisis-ridden countries as if they were lepers are not being sadistic, they're being selfish. ... But now European politicians must stop behaving like cavemen and finally tackle the problems together. ... Nobody believes in the current rescue model any more. ... Neither the market, nor the creditors, nor the rating agencies. They believe in the German and French government leaders. And Merkel is playing Europe's Sócrates [the Portuguese ex-premier], ruining it with her rejectionist stance. That's where the cynicism comes from: thank you, Berlusconi. Thank you very much for being so stubborn towards a credible finance minister whose possible resignation has brought the third-largest economy in the Eurozone into the limelight. Yesterday was a terrible days for the markets. ... But it did become clear that it is no longer possible to conceal the problems of Greece, Portugal and Ireland. For quarantine does not protect against infection."

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To Ethnos - Greece | Tuesday, 12. July 2011

Last chance for rescue

By delaying the Greek bailout the EU has put many countries in danger, writes the left-liberal daily To Ethnos: » more

By delaying the Greek bailout the EU has put many countries in danger, writes the left-liberal daily To Ethnos: "With the alleged goal of making private creditors participate in a solution to the crisis in Greece, Germany and the other northern European countries have found themselves in a vicious circle. It delayed the crisis for a couple of months and has put not just Greece but also other countries in southern Europe at the mercy of the rating agencies. Time is running out. The Greek government's warning to the Europeans that there must be no more delays sounds dramatic, like the very last call for help. ... The EU must now prove that it has a leadership that is listening to that call."  

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Süddeutsche Zeitung - Germany | Tuesday, 12. July 2011

Europe and US will survive debt crisis

The US and Europe are both caught up in a severe debt crisis, but the problems are solvable, writes the left-liberal daily Süddeutsche Zeitung: » more

The US and Europe are both caught up in a severe debt crisis, but the problems are solvable, writes the left-liberal daily Süddeutsche Zeitung: "Never in times of peace have the industrialised states as a whole been in so much debt as they are today. ... Yet Europe's debt problems and those of the US are of a different nature. The crisis on Europe's periphery, which may now spread to Italy, is acute and must be resolved immediately. There is still the danger of a global panic emanating from Greece. However if it manages to overcome this acute crisis things won't look too bad for Europe. ... The US, on the other hand, still has time. Today there are many people predicting the inevitable bankruptcy of the US, Germany and other countries. Such prognoses are nonsense. The debt problems are solvable if the politicians are willing to solve them."

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All available articles from » Nikolaus Piper

Le Figaro - France | Tuesday, 12. July 2011

The euro's days are numbered

The debt crisis is spreading to Italy and Spain, making the euro worryingly unstable, writes Roland Laskine in a blog for the conservative daily Le Figaro: » more

The debt crisis is spreading to Italy and Spain, making the euro worryingly unstable, writes Roland Laskine in a blog for the conservative daily Le Figaro: "Contrary to the hopes of the stock market traders who had been counting on an intermediate solution to the Greece question, the euro crisis is now threatening to engulf Italy and Spain as well. These countries are already offering interest rates of 5.5 and 6 percent on ten-year government bonds, the highest rates in fourteen years! Europe does not have the strength to bail out these two economies should the situation become really serious. The theory that the euro will collapse is gradually starting to be taken more seriously by currency traders. If Italy and Spain prove unable to reschedule their debts under acceptable conditions, we can indeed assume that the days of the single currency are numbered."

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Blog Coulisses de Bruxelles - France | Monday, 11. July 2011

US model solves Europe's crisis

Out of fear that the debt crisis could spread to Italy, EU council president Herman van Rompuy has convened a crisis meeting for Monday. For Jean Quatremer, commenting in his blog Coulisses de Bruxelles, the ongoing debt crisis is proof that Europe can only survive if it adopts the US model: » more

Out of fear that the debt crisis could spread to Italy, EU council president Herman van Rompuy has convened a crisis meeting for Monday. For Jean Quatremer, commenting in his blog Coulisses de Bruxelles, the ongoing debt crisis is proof that Europe can only survive if it adopts the US model: "The reason for the euro crisis is the lack of an economic controlling mechanism: a single currency for 17 sovereign states each with their own economic and financial policies can't work for long. The markets recognised this before the politicians. They see the situation as follows: either we found the 'United States of Europe' or we revert to national currencies. Even if the deliberations are still at an early stage, particularly regarding the institutional aspects, only a radical, federal restructuring can save the euro. Nicolas Sarkozy has admitted this in private for some months now."

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El País - Spain | Monday, 11. July 2011

Next debt crisis ahead

Belgium's failure to form a government increases the risk of it being caught up in the maelstrom of the debt crisis and dragging Europe with it, the left-liberal daily El País fears: » more

Belgium's failure to form a government increases the risk of it being caught up in the maelstrom of the debt crisis and dragging Europe with it, the left-liberal daily El País fears: "It has always been difficult to form a government with Christian Democrats, Socialists, Liberals and Greens from two different camps: Walloons and Flemish, French-speaking and Dutch-speaking citizens. ... All the problems arise from the complexity of this party political landscape, very much to the detriment of Belgium. This leaves the country incapable of carrying out the comprehensive reforms urgently needed to steer it out of the danger zone of sovereign debt. Only recently the president of the Euro group warned that Italy and Belgium were objectively in a worse position than Spain. And for Europe as a whole it would not be good if more trouble spots appeared."

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La Repubblica - Italy | Friday, 1. July 2011

Italy's government pretends to economise

The Italian cabinet on Thursday passed an austerity package to the tune of several billion euros aimed at balancing out the country's budget by 2014 and making it immune to the debt crisis. The announced measures are nothing but hot air because the Berlusconi government assiduously avoids unpopular decisions to remain in power, writes the left-liberal daily La Repubblica: » more

The Italian cabinet on Thursday passed an austerity package to the tune of several billion euros aimed at balancing out the country's budget by 2014 and making it immune to the debt crisis. The announced measures are nothing but hot air because the Berlusconi government assiduously avoids unpopular decisions to remain in power, writes the left-liberal daily La Repubblica: "The government is incapable of making decisions. Its majority is too weak and confused to chart out a clear course. Every decision degenerates into a bad compromise. The executive is entrapped in its own weakness and a coalition that become prematurely exhausted - as if it could foresee the end of its term of office. The weakness of the government is most apparent in the budget plan. It comes across like an empty shell, a collection of good intentions that are to be fulfilled at some distant point in the future."

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All available articles from » Claudio Tito

Frankfurter Allgemeine Zeitung - Germany | Wednesday, 29. June 2011

China puts Europe under pressure

During his tour of Europe China's Premier Wen Jiabao has ordered only 88 aircraft manufactured by the European producer Airbus, rather than the announced 100. The company had even entertained hopes of selling 150 aircraft. Here the Chinese leadership is showing its true face, warns the conservative Frankfurter Allgemeine Zeitung: » more

During his tour of Europe China's Premier Wen Jiabao has ordered only 88 aircraft manufactured by the European producer Airbus, rather than the announced 100. The company had even entertained hopes of selling 150 aircraft. Here the Chinese leadership is showing its true face, warns the conservative Frankfurter Allgemeine Zeitung: "It uses contracts to exert pressure and force the EU Commission to make concessions. Chinese airlines should be exempted from emission trading, unlike all the others. Before that had Beijing threatened the European airlines with a compulsory levy if Brussels didn't give in. Bolstered by its new economic and financial significance in the economic and debt crisis, the Middle Kingdom is flexing its muscles. It mixes state and private economic interests and flouts previous agreements. Unabashed, it nevertheless demands the status of a market economy from the EU. The Airbus case shows China does not deserve that by a long stretch."

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All available articles from » Christian Geinitz

Neue Zürcher Zeitung - Switzerland | Wednesday, 29. June 2011

Vote now, pay later

The nomination of Christine Lagarde as head of the International Monetary Fund could cost Europe a pretty penny, the liberal conservative daily Neue Zürcher Zeitung fears: » more

The nomination of Christine Lagarde as head of the International Monetary Fund could cost Europe a pretty penny, the liberal conservative daily Neue Zürcher Zeitung fears: "As a financial politician with a legal background and against the backdrop of the European debt crisis, she will push on with the course of expansion adopted under Strauss-Kahn. This foresees the IMF increasing its financial resources - supposedly to help alleviate crises - rather than contributing to real solutions. Economic positioning on the international financial architecture and a fitting role for the IMF can hardly be expected. Lagarde and the IMF members who support expansion will be presented with the bill when emerging and developing countries demand equal treatment for IMF loans. The time will come when new crises erupt in the emerging countries and the IMF is called to task. When that happens, the Fund's paymasters could well regret Lagarde's appointment."

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Delfi - Estonia | Monday, 27. June 2011

Seek new solutions for Greece

The EU heads of state and government agreed on new financial aid for Greece at their summit in Brussels last week. But according to web portal Delfi the danger of the debt crisis expanding has still not been banished: » more

The EU heads of state and government agreed on new financial aid for Greece at their summit in Brussels last week. But according to web portal Delfi the danger of the debt crisis expanding has still not been banished: "As long as Germany and France are prepared to carry the losses as Greece's major creditors nothing too dramatic will happen. But the forbearance of the two leading EU states will at some point wear out when they see that the impact on the financial markets is less than expected. It's difficult to say which side will lose its patience first: the Greeks who are being forced to put up with more and more austerity measures or the financial backers who have to cover the losses that this proud people have caused. But sooner or later it will happen and then the financial system of the entire world is in danger. This is why a couple of capable economists should start looking right now for completely different solutions to the debt crisis."

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All available articles from » Ivar Raig

Berliner Zeitung - Germany | Friday, 17. June 2011

Reasons for German fears

The Debt crisis in Greece, nuclear power, E. coli - why are the Germans afraid of just about everything that comes their way? trend researcher Matthias Horx asks in the left-liberal daily Berliner Zeitung, giving two answers: » more

The Debt crisis in Greece, nuclear power, E. coli - why are the Germans afraid of just about everything that comes their way? trend researcher Matthias Horx asks in the left-liberal daily Berliner Zeitung, giving two answers: "Children who were traumatised in their childhood by violence or abuse, as epigenetic researchers tell us, can in fact pass on their propensity for fear to their descendants. ... Millions of Germans who had to flee their homes or were witness to social collapse, the loss of possessions and war have passed these fears on to their children, and now these fears are bound up with current phenomena. Greece is Weimar [synonym for the failed democracy prior to the Nazi dictatorship]. ... Nevertheless, no one has yet given the simplest answer. ... Those who are afraid enjoy privileges. They can never be wrong because if things don't turn out as bad as feared, it's  because they were so good at sending out the warning signal. Fear ennobles. Fear authorises. Those who are afraid relieve themselves of responsibility. The anthropologists tell of the shaman phenomenon whereby the 'doom-sayers' have always had the best huts and the best meat. Or in our society it's simply that this childish regression pays off. With broadcast time, attention and the comforting feeling of sharing the same fate."

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Financial Times Deutschland - Germany | Thursday, 16. June 2011

Premier is best man for the job

Greek Prime Minister Papandreou's refusal to step down and his demand for a vote of confidence are the best options in the present situation, writes the liberal daily Financial Times Deutschland: » more

Greek Prime Minister Papandreou's refusal to step down and his demand for a vote of confidence are the best options in the present situation, writes the liberal daily Financial Times Deutschland: "Papandreou cannot be held directly responsible for the aberrations of the past, because his party only took office in October 2009. Since the start of the debt crisis the Social Democrat has done practically everything the Europeans and the International Monetary Fund have demanded of him. That however was clearly too much for his own people. ... In terms of competence there is doubtless no one better suited to pulling Greece out of this morass. But at the moment his programme can only be implemented politically by the country as a whole. The opposition, too, must back the cuts. That's the only fair-minded thing to do."

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Le Monde - France | Tuesday, 14. June 2011

EU must remain social despite crisis

After yet another downgrading of Greece's credit rating the Eurozone is discussing additional austerity measures. These must be flanked by a social package, three European political scientists write in the left-liberal daily Le Monde: » more

After yet another downgrading of Greece's credit rating the Eurozone is discussing additional austerity measures. These must be flanked by a social package, three European political scientists write in the left-liberal daily Le Monde: "The EU must give environmental, social, and educational issues the same priority as budgetary concerns. There must be a social investment pact as a counterweight to the Stability Pact. This will put European investment in a positive light and send a signal to the people suffering from the crisis and austerity measures that Europe also stands for a better future, precisely by investing in its youth. Like the Structural Funds, European financial aid should support social investment policies. While ensuring that the debt crisis is averted, the European Union could also see to it that member states introduce social investment policies."

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All available articles from » Frank Vandenbroucke, » Anton Hemerijck, » Bruno Palier

De Tijd - Belgium | Friday, 10. June 2011

Trichet threatens Greece

Jean-Claude Trichet, president of the European Central Bank (ECB), spoke out on Thursday against debt relief for Greece. The business paper De Tijd sees this as a dangerous move: » more

Jean-Claude Trichet, president of the European Central Bank (ECB), spoke out on Thursday against debt relief for Greece. The business paper De Tijd sees this as a dangerous move: "The debt crisis will perhaps be a greater challenge for the ECB than maintaining price stability. Trichet has once again made it clear that the ECB rejects debt restructuring for Greece. He approves a voluntary extension of Greece's government bonds, but the ECB has no intention of renewing the expired Greek bonds in its own portfolio. This could send a counter-productive signal. If the ECB doesn't want to take the trouble, why should the other banks do so? If all the creditors follow the ECB's example a tough, painful and dangerous restructuring of Greece's debts will be more inevitable than ever."

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Jornal de Negócios - Portugal | Tuesday, 7. June 2011

Kenneth Rogoff calls for quick debt restructuring for Greece

Europe is bent on the wrong strategy for the debt crisis, writes Harvard professor and former IMF chief economist Kenneth Rogoff in the business paper Jornal de Negócios: » more

Europe is bent on the wrong strategy for the debt crisis, writes Harvard professor and former IMF chief economist Kenneth Rogoff in the business paper Jornal de Negócios: "Instead of restructuring the manifestly unsustainable debt burdens of Portugal, Ireland, and Greece (the PIGs), politicians and policymakers are pushing for ever-larger bailout packages with ever-less realistic austerity conditions. Unfortunately, they are not just 'kicking the can down the road,' but pushing a snowball down a mountain. ... Might Europe get lucky? Is there any chance that the snowball of debt, dysfunction, and doubt will fall apart harmlessly before it gathers more force? Amidst so much uncertainty, anything is possible. ... Today's strategy, however, is far more likely to lead to blowup and disorderly restructuring. Why should the Greek people (not to mention the Irish and the Portuguese) accept years of austerity and slow growth for the sake of propping up the French and German banking systems, unless they are given huge bribes to do so?"

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Élet és Irodalom - Hungary | Friday, 3. June 2011

EU cannot solve Greek debt crisis

Greece will need new financial help by July 1 at the latest, which the euro countries will no doubt approve. Economist Miklós Losoncz takes a sceptical view of the process in the left-liberal weekly Élet és Irodalom: » more

Greece will need new financial help by July 1 at the latest, which the euro countries will no doubt approve. Economist Miklós Losoncz takes a sceptical view of the process in the left-liberal weekly Élet és Irodalom: "In the light of developments in the past year it has become clear that the plan to restructure the Greek budget is unrealistic. The rigid austerity measures passed to this end have not had the desired effect. ... In the past year the budget deficit (10.5 percent) far surpassed the amount estimated in the emergency programme (8.1 percent). The country's gross domestic product will also sink this year. That means its tax revenues will fall ten billion euros short of expectations. ... The differences of opinion point to the fact that the EU is unable to deal with either Greece's debt crisis or with similar crises in other European countries in the context of the Economic and Monetary Union."

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All available articles from » Miklós Losoncz

Le Figaro - France | Friday, 3. June 2011

EU squabbling once again

Conflict in the EU over the E. coli bacteria demonstrates once again that the community is dysfunctional, writes the conservative daily Le Figaro: » more

Conflict in the EU over the E. coli bacteria demonstrates once again that the community is dysfunctional, writes the conservative daily Le Figaro: "We live in times of isolation, with everyone in his own corner. Germany is blaming Spain for the killer cukes. Regarding nuclear energy, certainly a key issue in terms of national sovereignty, Berlin has opted for a unilateral phase-out. Regarding immigration, Italy fails to respect the common rules vis-à-vis France. And what to say about the friction over saving Greece from the debt crisis? According to the president of the ECB, a European finance ministry would establish order in the Eurozone. But you can't help doubting that when you see that neither Herman Van Rompuy nor Catherine Ashton nor Manuel Barroso are able to ease the conflicts and disaccord on other fronts."

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All available articles from » Yves Thréard

Eesti Päevaleht - Estonia | Tuesday, 24. May 2011

EU fails at fighting debt crisis

The rating agency Standard & Poor's lowered Italy's ratings outlook from "stable" to "negative" on Saturday. The EU and the European Central Bank must now ... » more

The rating agency Standard & Poor's lowered Italy's ratings outlook from "stable" to "negative" on Saturday. The EU and the European Central Bank must now calm the trouble waters, urges the daily Eesti Päevaleht. Otherwise "it is to be feared that the interest rates Italy must pay for new debts will gradually rise higher and higher until one day it will be clear that Italy needs either faster economic growth than it has long been able to achieve or help from EU stability mechanisms. True, the focus of the debt crisis is now primarily on Greece, but financial aid is also needed by Ireland and Portugal, while Spain and Italy are also in danger. Some even see Belgium at risk. This long list shows that continuing  the EU's hitherto ineffective strategy can even overtax the lender countries, even if politicians deny it."

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Die Welt - Germany | Monday, 9. May 2011

Debt crisis will cost EU taxpayers billions

The debt crisis in Greece and Portugal will cost Europe's taxpayers a pretty penny and could lead to the collapse of the Euro system, the conservative daily Die Welt writes: » more

The debt crisis in Greece and Portugal will cost Europe's taxpayers a pretty penny and could lead to the collapse of the Euro system, the conservative daily Die Welt writes: "It's no surprise that no responsible politician is willing to risk something like that. But things don't have to stay that way. If the Greeks and Portuguese don't get a grip on their problems with the EU's help, few other options are left open. Either the Europeans in the North finance the poor countries in the South with tax billions for fear their own prosperity may dwindle, or movements like the 'True Finns' will lead the EU to turn off the money tap and these states will have to leave the EU. Both alternatives will cost Europe's taxpayers billions. Europe's policy-makers will need patience and wisdom to weather this crisis."

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De Tijd - Belgium | Monday, 9. May 2011

No escape without help

The talks about Greece's debt crisis highlight the fact that the country can no longer overcome the crisis on its own, writes the business paper De Tijd: » more

The talks about Greece's debt crisis highlight the fact that the country can no longer overcome the crisis on its own, writes the business paper De Tijd: "It's high time Brussels and Frankfurt recognised that their emergency programme for Greece and Ireland doesn't tackle the core of the problem. Ireland and Greece have a solvency problem, not a liquidity problem. Athens and Dublin will never be able to squeeze enough out of their taxpayers over the next few years to pay off all their debts. And no doubt the moment will come in the not too distant future when the Greek and Irish citizens tire of their Sisyphean task. ... Sisyphus sums up perfectly the core of both the Greek and the Irish problem. ... A mountain of national debt and a catastrophic lack of competitiveness. ... The Greeks and Irish will never be able to free themselves of their national and bank debts through their own efforts alone."

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Lidové noviny - Czech Republic | Thursday, 5. May 2011

Rescue plan unrealistic

The example of Portugal shows why rescuing highly indebted countries is so controversial, writes the conservative daily Lidové noviny: » more

The example of Portugal shows why rescuing highly indebted countries is so controversial, writes the conservative daily Lidové noviny: "The first problem is unfair treatment. The conditions for Lisbon are softer than for Greece or Ireland. Was Portugal the more skilful negotiator? Or is it already clear that the first two countries won't be able to fulfil their obligations? The preferential treatment doesn't help improve relations in Europe. The second problem is the unrealistic approach. Portugal promised spending cuts that parliament had just rejected. ... Indebted countries need a currency depreciation, lower interest rates and if necessary bankruptcy, meaning a write-off of non-collectable debts. Without at least one of these alleviation measures no one will ever emerge from the debt crisis."

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Corriere della Sera - Italy | Wednesday, 4. May 2011

Debt crisis transcends EU borders

Portugal is to receive 78 billion euros from the EU bailout fund and the International Monetary Fund (IMF), the country's acting prime minister José Sócrates revealed on Tuesday evening in Lisbon. However the EU should not underestimate the opposition of the emerging economies to the rescue of Eurozone countries, warns the liberal-conservative daily Corriere della Sera: » more

Portugal is to receive 78 billion euros from the EU bailout fund and the International Monetary Fund (IMF), the country's acting prime minister José Sócrates revealed on Tuesday evening in Lisbon. However the EU should not underestimate the opposition of the emerging economies to the rescue of Eurozone countries, warns the liberal-conservative daily Corriere della Sera: "The opposition of the Bric states to the Portuguese and Greek bailouts is turning into a full-blown revolt of the new powers against the predominance of the old ones in the IMF. In recent decades Brazil, the Asian countries and Russia have had to accept tough conditions for IMF loans, imposed by Europe. Today they are paying Europe back in kind. The Bric states demanded a debt conversion as a precondition for Portugal's bailout. ... Soon they will demand the same for Athens. The outcome of the negotiations is uncertain. What's clear is that the debt crisis of the euro countries is a political problem that has transcended the EU's borders."

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Corriere della Sera - Italy | Monday, 18. April 2011

Stop populism spiral

The victory of the right-wing populist True Finns party in Finland's general elections puts the euro's stability at risk and is therefore a wake-up call for all of Europe, the liberal-conservative daily Corriere della Sera writes: » more

The victory of the right-wing populist True Finns party in Finland's general elections puts the euro's stability at risk and is therefore a wake-up call for all of Europe, the liberal-conservative daily Corriere della Sera writes: "The Finnish voters have sent a message beyond the country's borders. ... Not just in Finland, but elsewhere too, the inability of governments to give the single currency a credible structure is encouraging anti-European populism. ... The euro crisis alone does not explain the Finns' discontent, but it is fanning the populist anger which is increasingly impeding the bailout of struggling states. This is why the governments in Helsinki and The Hague now have little room for manoeuvre, and it increases the risk of the debt crisis spreading, which in turn fosters more populism. The spiral must be stopped before it's too late."

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Cinco Días - Spain | Thursday, 7. April 2011

Economising doesn't always help

That Portugal too is seeking an EU bailout should be a lesson to the preachers of austerity in Europe, writes the business paper Cinco Días: » more

That Portugal too is seeking an EU bailout should be a lesson to the preachers of austerity in Europe, writes the business paper Cinco Días: "On the one hand Portugal's fall demonstrates that economic survival in a monetary union requires a transformation that guarantees competitiveness. On the other it exposes the limitations of the austerity dogmas. Lisbon, unlike Berlin or Paris, adhered scrupulously to Brussels' recommendations for complying with the Stability Pact and reducing its deficit to under 3 percent of the GDP. But this terrible medicine not only didn't cure the patient, it weakened it to such an extent that it wasn't even able to survive the first winter of the debt crisis."

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Dnevnik - Bulgaria | Monday, 28. March 2011

Euro pact hurts poor countries

To prevent further debt crises in euro countries, the heads of state and government of the Eurozone agreed last Thursday on a stability pact for the euro. But the daily Dnevnik finds the agreement discriminating: » more

To prevent further debt crises in euro countries, the heads of state and government of the Eurozone agreed last Thursday on a stability pact for the euro. But the daily Dnevnik finds the agreement discriminating: "The countries outside the Eurozone had no part in the negotiations. Nevertheless they were put under enormous political pressure to declare 'volontary' support for the pact. The pact clearly violates the principle of equality in the EU and serves to usher in a policy that will only harm the poor countries and hinder their economic growth. The pact for the euro aims to coordinate and harmonise taxes. But that has nothing to do with the stability of the euro, and is mainly pursued by France in the hope of prohibiting low tax rates. ... But if poor countries have the same high tax rates as the rich ones, they will never achieve growth and prosperity."

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Kathimerini - Greece | Monday, 14. March 2011

Nikos Xidakis on Greece's excluded youth

Greece has so far failed to take advantage of the enormous potential of its youth in finding a solution to its debt crisis, writes columnist Nikos Xidakis in the conservative daily Kathimerini: » more

Greece has so far failed to take advantage of the enormous potential of its youth in finding a solution to its debt crisis, writes columnist Nikos Xidakis in the conservative daily Kathimerini: "This is the young generation of globalisation and the Internet. Our ageing society is plagued by a low birth rate, a lack of morals and overwhelming pessimism, and this generation is the most valuable asset it has. But the young generation is excluded, undervalued and suppressed. Our country has failed to use these young people to regenerate itself, because the system is not interested in its rebirth, or even its survival. It turns its back on this generation, ignoring and sacrificing it. ... Here we see our government's appalling lack of  enthusiasm and motivation. We lack self-respect and any sense of solidarity. These deficiencies are compounding each other. ... But this mechanism will soon collapse. And then a new Greece will emerge from the pains we have suffered, ... one marked by self-respect, social mobility, hope and common goals. Above all it will share the most difficult objective: the will to survive as a free nation."

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Neue Zürcher Zeitung - Switzerland | Monday, 28. February 2011

Conservatives profit from crisis

It's astonishing that the social democratic Labour Party wasn't able to capitalise more from the financial policy failings of the current ruling party Fianna Fáil, the liberal-conservative daily Neue Zürcher Zeitung comments: » more

It's astonishing that the social democratic Labour Party wasn't able to capitalise more from the financial policy failings of the current ruling party Fianna Fáil, the liberal-conservative daily Neue Zürcher Zeitung comments: "With all the knocks Fianna Fáil has had it's surprising that the social democratic Labour Party and the Left in general hasn't managed to profit more from the anger of the electorate over the ruling party's failings in financial policy. ... It's as if the Irish voters had reached the conclusion that without the strong involvement of the conservatives, overcoming the debt crisis won't be possible. And here and there the realisation that the lacking supervision of banks and their loan policies can't simply be blamed on the conservative camp but was a system error which Labour, too, failed to clearly identify may also have played a role in securing votes for Fine Gael."

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La Repubblica - Italy | Tuesday, 15. February 2011

German-style bailout fund

The finance ministers of the Eurozone countries on Monday agreed to endow the planned European Stability Mechanism (ESM) with 500 billion euros as of 2013. As far as the left-liberal daily La Repubblica is concerned this represents a minimal raise for the fund hardly worth mentioning, which is exactly what Germany wanted: » more

The finance ministers of the Eurozone countries on Monday agreed to endow the planned European Stability Mechanism (ESM) with 500 billion euros as of 2013. As far as the left-liberal daily La Repubblica is concerned this represents a minimal raise for the fund hardly worth mentioning, which is exactly what Germany wanted: "The decision seems to be a new victory for the harsh course pushed by Germany. In recent weeks and months, several European government representatives had called for the fund to be raised considerably, with Belgian Finance Minister Didier Reyners going as far as to propose a trillion euros. But Berlin has stubbornly resisted all steps to raise guarantees for less disciplined countries, arguing that distributing the burden of European debt equally could lower the incentive to consolidate their budgets."

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Diário Económico - Portugal | Tuesday, 8. February 2011

Eurozone wriggles its way out of the crisis

After last Friday's EU summit the financial paper Diário Económico expresses satisfaction that Europe has found a way out of the crisis: » more

After last Friday's EU summit the financial paper Diário Económico expresses satisfaction that Europe has found a way out of the crisis: "After all the Greek tragedy and a good few shocks on the way ... a little light seems to be shining at the end of the euro tunnel. Even if 'flexibility' was taken off the list of target at the EU summit, Germany nonetheless showed its willingness to expand the EU bailout fund. But in return the Merkel-Sarkozy duo wants to move towards European economic governance. Or in other words, in exchange for money it demands greater financial discipline, especially from the southern countries. And all this for the sake of saving the euro and preempting IMF action: the dirty washing is done at home. ... Anything is better than sitting back and doing nothing, but let's be clear: coordinating fiscal and pension policy, imposing deficit limits ... and stipulating salary indexes [according to inflation] still doesn't amount to 'economic governance'."

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Hospodářské noviny - Czech Republic | Monday, 7. February 2011

German bailout model hard to implement

The proposals put forward by German Chancellor Angela Merkel at the EU special summit are as striking as they are hard to implement, writes the business paper Hospodářské noviny: » more

The proposals put forward by German Chancellor Angela Merkel at the EU special summit are as striking as they are hard to implement, writes the business paper Hospodářské noviny: "In essence this is all about the price Germany is demanding for the euro bailout. The plan comprises six rules, including raising the retirement age and standardising business tax. ... These measures are supposed to create a Europe whose members have no need for the emergency lending fund into which the economically successful Germany pumps the most money. ... Even if it may seem reasonable to adopt such a series of proposals, Merkel is going to have a hard time finding support for the stabilisation plan. Especially since it curtails the rights of the EU Commission to a certain extent, which isn't exactly optimal for the small countries. Nevertheless this pact shouldn't be thrown out with the bathwater at such an early stage of its development."

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De Standaard - Belgium | Monday, 7. February 2011

Merkel shows Europe the way

Germany came under fire because of its demands for stricter rules at the EU summit. In the opinion of the daily De Standaard this is unfair: » more

Germany came under fire because of its demands for stricter rules at the EU summit. In the opinion of the daily De Standaard this is unfair: "At the moment no one is doing more for Europe and our financial health than Angela Merkel. At present all she gets is criticism for this. In her own country, where they say she is being too lenient with the weaker member states, and in Europe, where the heads of government who have neither the power nor the courage to take the necessary political decisions see her proposals as dictates. ... Merkel says what everyone knows has been true since we built up a monetary union: without political convergence the project won't survive. The quicker everyone admits this fact and acts accordingly, the better. For if it doesn't happen voluntarily then it will have to be pushed through by force."

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The Irish Times - Ireland | Monday, 7. February 2011

Debt brake for Ireland dubious proposal

The states of the Eurozone plan to negotiate the "pact for competitiveness" proposed by Germany at a special summit in March. The debt brake foreseen in the pact will trigger a fierce debate in Ireland, the liberal daily The Irish Times predicts: » more

The states of the Eurozone plan to negotiate the "pact for competitiveness" proposed by Germany at a special summit in March. The debt brake foreseen in the pact will trigger a fierce debate in Ireland, the liberal daily The Irish Times predicts: "Part and parcel of the package is also the German idea of a 'debt brake', a constitutional mechanism in each state that would prohibit governments from overborrowing. The idea has been well-received by Fine Gael and even Labour, although whether such a constitutional amendment would be desirable or politically achievable in Ireland needs proper debate. However desirable in theory, a debt brake aimed at preventing irresponsible conduct by government would have been irrelevant and could well have seriously exacerbated the crisis. A referendum would certainly prompt a row about EU 'bullying' and loss of sovereignty and would be far from certain to win approval."

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Frankfurter Allgemeine Sonntagszeitung - Germany | Sunday, 6. February 2011

Proposals smack of planned economy

Standardising Europe's social systems and labour costs as proposed by German Chancellor Angela Merkel is reminiscent of a planned economic system, writes the conservative daily Frankfurter Allgemeine Sonntagszeitung in disapproval: » more

Standardising Europe's social systems and labour costs as proposed by German Chancellor Angela Merkel is reminiscent of a planned economic system, writes the conservative daily Frankfurter Allgemeine Sonntagszeitung in disapproval: "Who tells the politicians what the ideal value for unit labour costs is in Europe? Who tells them how high taxes must optimally be? And who tells them, if you please, what the right salary is? There are good reasons to believe that standardised taxes will always be too high for one European country and too low for another. ... Above all, however, a uniform economic policy will rob the weakest countries of their biggest opportunity, namely lowering their salaries and taxes in comparison with those of other countries - so as to make their products cheaper on world markets. Using competition as a coordinating system relies on the very opposite mechanism. If the countries of Europe are able to reap the benefits of their own respective economic policies, each will have an incentive to implement better tax, wage and budget policies."

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Il Sole 24 Ore - Italy | Friday, 4. February 2011

When in Europe do as the Germans

With the "pact for competitiveness" Germany wants to dictate the economic rules for all Europe but is only out for its own advantage, the business paper Il Sole 24 Ore writes: » more

With the "pact for competitiveness" Germany wants to dictate the economic rules for all Europe but is only out for its own advantage, the business paper Il Sole 24 Ore writes: "If everything goes according to plan the Franco-German pact for growth and competitiveness won't make any mention of balance of trade surpluses. For that could mean that Berlin would have to boost domestic demand to promote growth in the rest of Europe. By way of compensation, however, there is a codex for the gradual Germanisation of Europe: amendments to national constitutions to have amortisation of deficits enshrined in the law, raising the retirement age to adjust to ageing populations, putting an end to wage adjustment, stipulating indicators for competitiveness and potential penalties for those who fail to adhere to the rules. ... This would be the economic governance France has been striving for, but with a very German note to it."

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To Ethnos - Greece | Thursday, 3. February 2011

Putsch of the two big players

The "pact for competitiveness" German Chancellor Angela Merkel and French President Nicolas Sarkozy are currently pushing for is an imposition, the left-liberal daily To Ethnos complains: » more

The "pact for competitiveness" German Chancellor Angela Merkel and French President Nicolas Sarkozy are currently pushing for is an imposition, the left-liberal daily To Ethnos complains: "Europe's employees will become poorer and poorer! A splendid prospect for the future of the Eurozone. ... The way in which decisions are being forced through in the states of the Eurozone and EU nowadays is nothing short of a coup d' état. One may or may not agree with Merkel's proposals. ... But what is absolutely unacceptable is this method of foisting these measures on the states. Even though ... they will radically change the lives of European citizens the politicians are planning to pass hastily drafted resolutions instead of preparing an appropriate treaty."

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Die Weltwoche - Switzerland | Friday, 4. February 2011

Rating agencies control euro crisis

The crisis of the financial markets has shown that rating agencies do not deserve the huge respect they used to enjoy, writes Swiss economist Bernd Schips in the weekly Weltwoche, noting that notwithstanding they have continued to to be strangely influential in the euro crisis: » more

The crisis of the financial markets has shown that rating agencies do not deserve the huge respect they used to enjoy, writes Swiss economist Bernd Schips in the weekly Weltwoche, noting that notwithstanding they have continued to to be strangely influential in the euro crisis: "Rating agencies have had a hand in the ongoing currency turbulence. Their downgrading of Greece's credit rating is understandable, not so their extending of creditworthiness problems to countries such as Portugal and Spain - before the financial crisis these were well on the way to consolidating their national budgets - without also raising doubts about the rating of the US or the UK. Honi soit qui mal y pense! [Shame on him who thinks evil of it]. When people talk about developments on the financial markets, they often refer to 'market pressure', without sparing a thought for who actually triggers and controls it."

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euinside - Bulgaria | Thursday, 3. February 2011

Pay the piper, call the tune

With their pact for competitiveness Germany and France are bringing their political clout to bear in the Eurozone while the role of the EU Commission remains unclear, the online portal euinside comments: » more

With their pact for competitiveness Germany and France are bringing their political clout to bear in the Eurozone while the role of the EU Commission remains unclear, the online portal euinside comments: "It would be shrewd, outrageous and totally in keeping with the spirit of the Deauville deal if Merkel and Sarkozy managed to force Barroso to give his personal backing for the adoption of the pact, as already happened with the changes to the EU treaty. ... But he who pays calls the tune, and no one has a greater interest in having the Germans on their side that the member states. For its part the Commission wants the rapid expansion of the rescue fund for the Eurozone. From this point of view no one can afford to cross Berlin in the present situation."

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La Vanguardia - Spain | Friday, 4. February 2011

Merkel rules Europe

German Chancellor Angela Merkel met with Spanish Prime Minister José Luis Rodríguez Zapatero in Madrid on Thursday. The crisis has substantially increased Merkel's sphere of influence, the liberal daily La Vanguardia notes: » more

German Chancellor Angela Merkel met with Spanish Prime Minister José Luis Rodríguez Zapatero in Madrid on Thursday. The crisis has substantially increased Merkel's sphere of influence, the liberal daily La Vanguardia notes: "Raising the retirement age, boosting and improving production while receiving less pay and decoupling salary increases from the rate of inflation - these are just a few of the sacrifices that the traditionally diligent and industrious German society has made to weather the economic crisis. These sacrifices, as well as Germany's great economic weight in the European context, have conferred on Angela Merkel, who visited Madrid yesterday, a power that extends far beyond the borders of her own country. In her hands rests not only the future of her own country but that of the European Union in general and its currency in particular."

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Le Monde - France | Thursday, 3. February 2011

Good news from Berlin

With their joint initiative for more competitiveness Germany and France hope to steer the EU out of the economic and financial crisis, the daily Le Monde writes, reserving particular praise for Berlin's efforts: » more

With their joint initiative for more competitiveness Germany and France hope to steer the EU out of the economic and financial crisis, the daily Le Monde writes, reserving particular praise for Berlin's efforts: "Even if the - very French - expression 'economic governance' is not part of Berlin's vocabulary this is precisely what it's all about. The pact is meant to entail a host of obligations, at least for the 17 countries of the Eurozone, and ideally for the whole Union. If we recall German Chancellor Angela Merkel's reluctance when it came to helping Athens back in spring 2010 we can only be surprised and delighted by the current course steered by the German government. Germany's withdrawal is no longer on the cards. On the contrary: Merkel wants to be a driving force behind the construction of the economic and monetary union."

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Cinco Días - Spain | Monday, 31. January 2011

Davos props up the euro

The World Economic Forum in Davos ended on Sunday. The euro in particular has benefited from the meeting, the business paper Cinco Días points out: » more

The World Economic Forum in Davos ended on Sunday. The euro in particular has benefited from the meeting, the business paper Cinco Días points out: "The Eurozone crisis could be nearing its end. At the World Economic Forum in Davos, political leaders are optimistic that a global consensus could be achieved in the next few weeks. If this is the case the critical phase of the crisis could be over and even Greece would have the chance to get out of its impasse. There is no agreement yet, but the stars are aligning. Germany has realised that it has a great interest in the survival of the single currency - and will do everything necessary to ensure this happens. The peripheral nations also seem willing to go further and give Berlin the cover it needs to sell the idea to the German public that further help is needed."

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Frankfurter Rundschau - Germany | Wednesday, 26. January 2011

High interest on EFSF bond

The European Financial Stability Facility (EFSF) placed its first bonds on capital markets on Tuesday. Investors made a beeline for the bonds, bidding almost 45 billion euros instead of the anticipated five billion. This success was paid for with high interest, the left-liberal Frankfurter Rundschau notes, but nonetheless expresses understanding for the move: » more

The European Financial Stability Facility (EFSF) placed its first bonds on capital markets on Tuesday. Investors made a beeline for the bonds, bidding almost 45 billion euros instead of the anticipated five billion. This success was paid for with high interest, the left-liberal Frankfurter Rundschau notes, but nonetheless expresses understanding for the move: "On the one hand, in marketing terms it's a good idea to be generous with a first bond issue. After all, investors should come back for more. And on the other hand the bonds are extremely illiquid assets, and therefore have to be more expensive. As a comparison: you can buy and sell 200 times as many German government bonds. And investors have the key European futures contracts to protect themselves against fluctuations. All of that must be taken into consideration to understand why these bonds yield more."

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Der Standard - Austria | Tuesday, 25. January 2011

Confused EU politicians upsetting markets

A week before the next EU summit on the future of the Eurozone is due to take place the left-liberal daily Der Standard criticises the half-hearted policies of European politics: » more

A week before the next EU summit on the future of the Eurozone is due to take place the left-liberal daily Der Standard criticises the half-hearted policies of European politics: "With its rash approach Europe is losing much time and money. Its growth is lagging further and further behind that of those other regions and the important investments are also passing Europe by. To make matters worse there's the economic division of the continent, which is also making it increasingly difficult to steer the monetary union. This should set off enough alarm bells to make things move in the right direction again. But instead of doing their homework [the EU politicians] prefer to test out new trial balloons without any coordination in terms of time or place. Obviously the seriousness of the situation has not been recognised. It's not the euro that's upsetting the markets but the confused policy of the monetary union. The concern of the markets is proving to be entirely justified."

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Frankfurter Allgemeine Zeitung - Germany | Tuesday, 18. January 2011

From monetary to debt union

Meeting on Monday in Brussels, the finance ministers of the euro countries failed to reach agreement on financial boosting the bailout fund. The conservative daily Frankfurter Allgemeine Zeitung nevertheless criticises the discussion over raising effective debt in the context of the European Financial Stability Facility (EFSF): » more

Meeting on Monday in Brussels, the finance ministers of the euro countries failed to reach agreement on financial boosting the bailout fund. The conservative daily Frankfurter Allgemeine Zeitung nevertheless criticises the discussion over raising effective debt in the context of the European Financial Stability Facility (EFSF): "Have people failed to notice that debtors without excessive safeguards never get the best marks? More probable is that after Ireland and Portugal, Brussels is counting on Spain, Belgium and Italy also dipping into the billion-euro EFSF barrel. If so, another very different set of questions arises. Can the less stable countries of the Monetary Union bear the burden of all the debt sinners without additional costs? The increase in interest that the EU Commission must pay for its Community loan mechanism shows that borrowing would become more expensive for Berlin, as well as as for German citizens and companies. If the bonds of over-indebted states were also purchased with the EFSF billions, it would be tantamount to introducing joint liability euro bonds through the back door. Then the restructuring of the Monetary Union into a debt union would be done and dusted."

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ABC - Spain | Friday, 14. January 2011

Let's be a little more strict

In some things Spain should follow Germany's example, writes the conservative daily ABC: » more

In some things Spain should follow Germany's example, writes the conservative daily ABC: "It wouldn't hurt us to adopt the kind of political stringency and moral determination that helped German society emerge from the crisis before the others. To exercise ourselves in their somewhat Lutheran collective discipline and respect for work. To be more efficient, dynamic, austere and less amateurish. While our Catalan nationalists want to be more like Quebéc and the Basques more like Switzerland … all of Spain should be taking a leaf out of Germany's book. It has a federal structure without the state losing authority or cohesion because of that, as is happening here with the autonomous regions. Germany has already done the homework we haven't even started to tackle, among other things because while it hurried to fight the recession we have spent two years discussing it and denying it."

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Financial Times - United Kingdom | Friday, 14. January 2011

Voters have got the message

The German economy has grown rapidly in recent months. That enables the German government to support the euro politically, the liberal-conservative daily Financial Times notes with satisfaction: » more

The German economy has grown rapidly in recent months. That enables the German government to support the euro politically, the liberal-conservative daily Financial Times notes with satisfaction: "The strong recovery has undoubtedly calmed the political climate since the storms provoked by the Greek rescue last spring. ... Most of the political class is now resolved to support eurozone members in trouble. The electorate, always mistrustful of the monetary union, is also becoming more accepting of a German responsibility to help overcome the sovereign debt crisis in Europe. One must hope that this continues. …  Berlin has signalled a readiness for fresh thinking on the eurozone rescue mechanisms ahead of forthcoming summits. That will take a delicate domestic balancing act. As important regional elections are approaching, German voters do not want to feel like the dupes of a profligate eurozone periphery.  But the message that the euro is good for Germany is getting through."

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To Vima Online - Greece | Friday, 14. January 2011

Defeat for rating agencies

The mood in Europe has changed and Germany now seems willing to commit itself to rescuing the Eurozone. This is a defeat for the rating agencies, writes the left-liberal daily To Vima: » more

The mood in Europe has changed and Germany now seems willing to commit itself to rescuing the Eurozone. This is a defeat for the rating agencies, writes the left-liberal daily To Vima: "Everyone can see that Europe will back the euro and that Germany, after insisting that all countries exercises financial discipline, is now prepared to do its duty regarding the Eurozone. … And the markets more than anyone have taken note of this, reckoning with a stronger Europe in the near future and adapting themselves accordingly. … The rating agencies have seen the vacuum and are beginning to get scared. … The problematic cycle of international affluence and speculation is now experiencing a real trouncing. And the agencies must bear the consequences because they can't be the culprits of the crisis and the winners at the same time."

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All available articles from » Antonis Karakousis

El País - Spain | Thursday, 13. January 2011

Portugal satisfies financial markets

The most important European share indexes rose on Wednesday and the issue of Portuguese government bonds went better than expected, the left-liberal daily El País notes with satisfaction: » more

The most important European share indexes rose on Wednesday and the issue of Portuguese government bonds went better than expected, the left-liberal daily El País notes with satisfaction: "Positive signals for Europe. Germany has registered its highest growth rate since reunification, and better still, the pressure on the government bonds of Europe's peripheral states has slackened - particularly as regards Portugal. ... The confirmation that this economy is growing faster than expected and that its politicians are sticking to their guidelines regarding the 2010 budget deficit has brought the markets to their senses. The other factor which helps to explain the positive behaviour of the government bonds and shares markets is the European Commission's search for alternatives to strengthen the Eurozone's defence mechanisms."

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Financial Times Deutschland - Germany | Thursday, 13. January 2011

Larger bailout fund would be counterproductive

EU Commission President José Manuel Barroso wants to expand the EU bailout fund to reassure the markets. The liberal Financial Times Deutschland criticises this initiative: » more

EU Commission President José Manuel Barroso wants to expand the EU bailout fund to reassure the markets. The liberal Financial Times Deutschland criticises this initiative: "This step might have been worth discussing had Portugal been forced to take avail of EU aid. But as things stand now Barroso could actually end up making investors even more nervous. Such an intiative won't be interpreted as a sign of strength but as an indication that the EU is already preparing for Spain, Italy and Belgium to go bankrupt. German Chancellor Angela Merkel and French President Nicolas Sarkozy would therefore be well advised to contradict Barroso in terms of content. But yet again the EU is presenting a picture of disunity which certainly won't do anything to calm the situation. It might be worthwhile to consider expanding the options of the bailout fund and making the purchase of government loans possible."

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Rzeczpospolita - Poland | Wednesday, 12. January 2011

Asian help a menace to Europe

China has already expressed its interest in acquiring more European government bonds, and now Japan is following suit with the announcement that it wants to buy European Financial Stability Fund (EFSF) bonds to support the Eurozone. The conservative daily Rzeczpospolita warns against such help: » more

China has already expressed its interest in acquiring more European government bonds, and now Japan is following suit with the announcement that it wants to buy European Financial Stability Fund (EFSF) bonds to support the Eurozone. The conservative daily Rzeczpospolita warns against such help: "Both countries have huge amounts of reserves which they need to invest somewhere. Until now they've mostly opted for buying US assets, among other reasons because they wanted to keep their exchange rate low against the dollar. Currencies have played a key role in their export strategies because US consumers have proved the most loyal buyers of Chinese and Japanese goods. ... Now these export powers are trying to diversify their currency reserves in the direction of the euro. One consequence will be that the euro will rise against the yuan and the yen. But if the indebted euro countries sought to keep their currency weak it would help them regain their lost competitiveness."

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All available articles from » Grzegorz Siemionczyk

Público - Portugal | Tuesday, 11. January 2011

Portugal is dam against the euro crisis

The German government has refuted media reports according to which it wants to force Portugal to accept a euro bailout package and help from the IMF. The Spanish Finance Minister has also said that Portugal does not require IMF aid. The two statements should be interpreted independently of each other, writes the daily Público: » more

The German government has refuted media reports according to which it wants to force Portugal to accept a euro bailout package and help from the IMF. The Spanish Finance Minister has also said that Portugal does not require IMF aid. The two statements should be interpreted independently of each other, writes the daily Público: "As far as Germany is concerned the statements should be taken with a pinch of salt: while the envoys of the German government were already discussing the details of Ireland's bailout Merkel's press spokespersons were still denying that Ireland was under pressure. The Spaniard's systematic approach of trying to distance Portugal from the IMF scenario is more interesting. For it tallies with the thesis of MEP Elisa Ferreira according to which 'Portugal is the little stone holding the dam in the eurocrisis'. For some, starting with the Germans, the request for external help is a temporary means of remedying the problem. For others, as the Spanish line of argumentation suggests, this strategy would simply allow the euro crisis to grow worse."

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Il Sole 24 Ore - Italy | Wednesday, 12. January 2011

Poland too strong for euro club

In the third quarter of 2010 the Polish economy grew 4.2 percent in comparison with the same period last year, making Poland the most healthy economy in Eastern Europe. The flexible exchange rate of the Polish currency has contributed to this growth, which is why Warsaw is rejecting the idea of converting to the euro at present, the business paper Il Sole 24 Ore writes: » more

In the third quarter of 2010 the Polish economy grew 4.2 percent in comparison with the same period last year, making Poland the most healthy economy in Eastern Europe. The flexible exchange rate of the Polish currency has contributed to this growth, which is why Warsaw is rejecting the idea of converting to the euro at present, the business paper Il Sole 24 Ore writes: "Poland is in no hurry. With undisguised satisfaction Warsaw points out that only two years ago the Western Europeans were telling Poland, which they saw as a needy relative, to be patient. … The devaluation of the zloty helped to boost growth. … The stability of the economy is underpinned by strict norms, while the high efficiency of the work force and low production costs have enabled the country to weather the crisis better than other countries. … Yet on 26 May 2005 the French rejected the European constitution for fear of an invasion by the dreaded 'Polish plumbers', with the Dutch following suit a week later. Who would have thought that only five years later Eastern Europe would be giving the euro club the cold shoulder?"

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All available articles from » Vittorio Da Rold

Blog Del alfiler al elefante - Spain | Tuesday, 11. January 2011

Lluís Bassets on Europeans cutting themselves into little pieces

China's Vice-Premier Li Keqiang has negotiated bilateral agreements between his country and Spain, Germany and the UK respectively in the course of his visit to Europe. However Europe could achieve much more if it were united, Lluís Bassets contends in his blog Del Alfiler al Elefante: » more

China's Vice-Premier Li Keqiang has negotiated bilateral agreements between his country and Spain, Germany and the UK respectively in the course of his visit to Europe. However Europe could achieve much more if it were united, Lluís Bassets contends in his blog Del Alfiler al Elefante: "China wants to exploit its role as an indispensable economic superpower to maximise its political leeway in international relations. Mr Li has therefore embarked on a tour of seduction to ingratiate himself with Europe's leaders and improve the standing of his country on the international political stage. In Europe we're having trouble finding our bearings on the new geopolitical map. There's no need for a divide and conquer policy with the European Union: We Europeans obediently divide ourselves up, establish our bilateral relations with the great and offer ourselves as bite-sized snacks to the appetites of others, be it Washington, Beijing or Moscow."

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Süddeutsche Zeitung - Germany | Tuesday, 11. January 2011

EU defends itself against markets

Portugal plans to issue more government bonds on Wednesday in a bid to stabilise its budget. Instead of allowing itself to be driven by the markets Europe should develop a joint economic policy before Spain and Italy are also forced to take refuge in the EU bailout programme, the left-liberal daily Süddeutsche Zeitung warns: » more

Portugal plans to issue more government bonds on Wednesday in a bid to stabilise its budget. Instead of allowing itself to be driven by the markets Europe should develop a joint economic policy before Spain and Italy are also forced to take refuge in the EU bailout programme, the left-liberal daily Süddeutsche Zeitung warns: "Bailout packages for Madrid and Rome would by far exceed the financial capacity of the current fund - and would also be a fatal sign of political helplessness. … At Europe's government headquarters they are aware of the impending disaster. … The ideas basically amount to giving the euro double protection in future. The current custodian of the currency, the European Central Bank, will be joined by a second, largely independent institution. A European currency and investment fund is being set up to put together financial aid packages, but also and above all to closely coordinate and monitor the national economies of the 27 member countries. … There is no alternative to this new and intelligent body of rules and regulations."

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Dienas Bizness - Latvia | Monday, 10. January 2011

Euro bonds are already a reality

Resistance from Germany in particular has so far prevented the Eurozone countries from issuing joint bonds. But the business paper Dienas Bizness believes Germany's stance won't last long: » more

Resistance from Germany in particular has so far prevented the Eurozone countries from issuing joint bonds. But the business paper Dienas Bizness believes Germany's stance won't last long: "Such common bonds are one of the most important steps towards calming the markets. Despite Germany's negative stance, a bond was already issued on January 5 within the framework of the EFSM (European Financial Stability Mechanism) which can practically be regarded as a prototype. Demand reached 20 billion euros, although the offer was for just 5 billion euros. This is a positive signal for the markets. The interest rate is at 2.6 percent and the money gained through the bond will also be used to help Ireland, albeit at an interest rate of 5.5 percent. This means that such bonds won't be so expensive for the better-off states, while the difference will remain within the Eurozone and won't fall into the hands of speculators."

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All available articles from » Leonīds Aļšanskis

Diário Económico - Portugal | Monday, 10. January 2011

Portugal the new Greece

In a few days it looks like the IMF will be standing at Portugal's door. But the Portuguese have learned of this only through foreign media, Pedro Sousa Carvalho complains in the business paper Diário Económico: » more

In a few days it looks like the IMF will be standing at Portugal's door. But the Portuguese have learned of this only through foreign media, Pedro Sousa Carvalho complains in the business paper Diário Económico: "This weekend the international press … has said that the arrival of the IMF in Portugal can no longer be avoided. [The German news magazine] Der Spiegel even confirmed that [Prime Minister] Sócrates was coming under pressure from Merkel and Sarkozy to follow the example of Greece and Ireland to prevent [the crisis] from spreading to other euro countries. We are being treated like the lepers of the European financial system. … José Sócrates still denies this. Brian Cowen and George Papandreou were still lying through their teeth a week before they were forced to take advantage of the European bailout fund. … And what can Portugal do to avoid this? Nothing! As ex-finance minister and ex-head of the Banco de Portugal Jacinto Nunos said: nothing more can be done now. The time has come for us to call on 'Our dear Lady of Fátima' for a miracle."

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All available articles from » Pedro Sousa Carvalho

Il Sole 24 Ore - Italy | Friday, 7. January 2011

Europe's saviour out of self-interest

China's vice premier is continuing with the diplomatic offensive launched by Premier Wen Jiabao in Europe in December, writes the business paper Il Sole 24 Ore, adding that he expects a few favours in return: » more

China's vice premier is continuing with the diplomatic offensive launched by Premier Wen Jiabao in Europe in December, writes the business paper Il Sole 24 Ore, adding that he expects a few favours in return: "Now it's Beijing's second-in-command's turn to run this operation around the world. In the first stage the future premier, who will take over from Wen Jiabao in October 2012, has confirmed China's position. … Beijing is willing to help the European Community out of the debt crisis. Li Keqiang will call on Germany and the UK to ensure that in return by recognising China as a free market economy and lifting the weapons embargo that has been in effect against the Asian superpower since 1989, two important issues for Beijing are resolved. Today Li Keqiang meets German Chancellor Angela Merkel as well as the bosses of Daimler and Volkswagen, with whom he will sign contracts worth five billion euros."

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All available articles from » Luca Vinciguerra

Der Standard - Austria | Monday, 3. January 2011

The euro lives on

The accession of Estonia to the Eurozone and the political reactions to the euro crisis have strengthened the euro as a currency, writes the left-liberal daily Der Standard: » more

The accession of Estonia to the Eurozone and the political reactions to the euro crisis have strengthened the euro as a currency, writes the left-liberal daily Der Standard: "In the space of just a few months the fatal head-in-the-sand policy of the past decade - with each euro country having its own economic policy and no one calling for mutual solidarity - has been ended and replaced by a search for political compromises which makes Europe look helpless even when it takes resolute steps. The euro may still be a crisis currency for many but appearances are deceptive: the worst is over. Estonia's accession is ... a promising sign that the euro is still attractive for new EU members. ... During the EMS crisis of 1992/93 the project of the monetary union seemed already to have failed. Once the turbulences were over no one doubted that it could succeed. This crisis could similarly put paid to all the talk of the imminent death of the euro once and for all - and make Europe as a whole stronger."

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All available articles from » Eric Frey

Die Welt - Germany | Wednesday, 29. December 2010

Germany's self-assertiveness good for Europe

The Germans have been more assertive in the EU in the past year yet their reputation has not suffered as a result, writes the conservative daily Die Welt: » more

The Germans have been more assertive in the EU in the past year yet their reputation has not suffered as a result, writes the conservative daily Die Welt: "Even when at the height of the crisis Angela Merkel talked of making private lenders participate in bailouts, driving the interest rates for the government bonds of bankrupt states even higher, the criticism remained comparatively mild. No 'great' voice could be heard rising in defence of the Greeks and the Irish. Over the past months the chancellor has not left Europeans with the impression that Germany is marching on with the flag of unconditional solidarity as it has done in the past. However that wasn't her goal, either. And more importantly, no one who could bring themselves to express an honest opinion on Germany's crisis management expected that any longer. Because this 'entirely normal EU member' has signalled nothing that the other 15 euro states didn't already know: that we're all sitting in the same boat, and if it sinks things will end badly for all of us."

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Cinco Días - Spain | Tuesday, 21. December 2010

Germany wants to keep the euro

Some euro countries fear that Germany is more worried about maintaining its export economy than ensuring the stability of the common currency. The business paper Cinco Días doubts this: » more

Some euro countries fear that Germany is more worried about maintaining its export economy than ensuring the stability of the common currency. The business paper Cinco Días doubts this: "Is Germany still interested in Europe or is it tempted to go it alone now? Is preserving the fortress of the euro in the long term a cherished goal or is the country primarily concerned about keeping its export machinery going? ... Germany has more than one reason to stay in the Eurozone, beyond the fact that the latter is the main market for its exports. The challenge for its partners is to be more responsible with their finances, while the challenge for Berlin is to accept that not everyone can or should be like Germany."

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All available articles from » Pierre Briançon

Hospodářské noviny - Czech Republic | Monday, 20. December 2010

Europe moving at a snail's pace

The EU summit on rescuing the euro which took place last week in Brussels has shown once again how divided the Union is, according the business paper Hospodářské noviny: » more

The EU summit on rescuing the euro which took place last week in Brussels has shown once again how divided the Union is, according the business paper Hospodářské noviny: "It was no doubt right that the heads of government of the 27 countries decided to keep a common bailout mechanism in place. On the other hand it's not clear who is going to pay for all this. ... British Prime Minister David Cameron suggested freezing the European budget, which would basically boil down to new members receiving less money than previously. It's hardly surprising that the Germans and French backed the proposal while the Czechs were firmly against it. ... The summit which was supposed to demonstrate the EU's unity and solidarity therefore only confirmed that the Union is not a union but rather a group of bickering states. To equip all these different states with a single currency is not just problematic but also expensive. Merkel called for a common monetary policy but that can only happen gradually. Indeed, fast progress can't be expected in Europe."

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All available articles from » Julie Hrstková

El País - Spain | Friday, 17. December 2010

ECB sets example by boosting capital

The European Central Bank (ECB) has decided to increase its basic capital by five billion euros, almost doubling it. The left-liberal daily El País praises the bank's crisis management strategy: » more

The European Central Bank (ECB) has decided to increase its basic capital by five billion euros, almost doubling it. The left-liberal daily El País praises the bank's crisis management strategy: "The ECB's decision endorses the principle according to which if you want to be credible you have to set a good example. If the Basel III agreement aims for private banks to be endowed with more and better capital to face future crises, the emitting bank has to set the example. ... The ECB has been the most effective instrument in the battle against the turbulences on the debt market which have threatened the stability of the euro and even the future of the EU since the beginning of the year. It has achieved this by providing direct liquidity to the banks and cautiously purchasing state bonds on the secondary markets. This strategy has prevented the Europeans from sliding from a great recession into a Great Depression."

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Kurier - Austria | Thursday, 16. December 2010

Juncker is right

The heads of state and government at the EU summit in Brussels have agreed on setting up a permanent debt-crisis mechanism for the Eurozone. But this is not the end of the EU's troubles, the daily Kurier writes: » more

The heads of state and government at the EU summit in Brussels have agreed on setting up a permanent debt-crisis mechanism for the Eurozone. But this is not the end of the EU's troubles, the daily Kurier writes: "After all the fuss made by the state leaders and their faint-heartedness the summit will produce a compromise on the EU's crisis mechanism. Whether this will stabilise the euro and the monetary union in the long term remains uncertain - not just because the markets continue to speculate against the euro but because the question of the EU's survival hasn't been resolved yet. ... It's amazing that it hasn't been the big fish in the EU who have responded to this question so far but the head of government of a small country: Luxembourg's Jean-Claude Juncker, a Christian Democrat. The Eurozone crisis is not the consequence of too much but too little integration and coordination in the EU, he says, and openly accuses his counterparts of 'mismanaging the euro crisis' and 'being too focused on their domestic political agendas - or in other words, populism. Juncker is right and his calls for more Europe will have to be heard, at latest when the next crisis arrives."

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Wprost Online - Poland | Friday, 17. December 2010

EU curbs sovereignty of its members

The decisions taken at the EU summit deprive the member states of their sovereignty, Sebastian Stodolak writes disapprovingly in the online edition of news magazine Wprost: » more

The decisions taken at the EU summit deprive the member states of their sovereignty, Sebastian Stodolak writes disapprovingly in the online edition of news magazine Wprost: "Now it's easier to understand what economics Nobel laureate Professor Vernon Smith meant when he said: "I don't know why a country that wants freedom and independence should join the Eurozone' These reservations apply not just to Poland, by the way, but also to Estonia for example, which on January 1 will have the dubious honour of joining the club of the bankrupt called the 'Eurozone'. I don't know whether those who describe the European Union as a quasi socialist entity are right. One must bear in mind that the means of production are not in the hands of the EU. But I do know for sure that it is an organisation of the politically doomed who - perhaps even with the good intention of saving noble ideas - are capable of sacrificing many rights of the member states at the alter of the Union."

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Corriere della Sera - Italy | Friday, 17. December 2010

An ineffective tranquiliser

The new, permanent crisis mechanism has grave shortcomings, writes the liberal-conservative daily Corriere della Sera: » more

The new, permanent crisis mechanism has grave shortcomings, writes the liberal-conservative daily Corriere della Sera: "The crisis mechanism needs to culminate in a systematic bailout plan for ailing states and paving the way for the issue of euro bonds. From this perspective the weaknesses of the mechanism become clear. It won't replace the current bailout fund until 2013. ... This delay stirs up doubts about its effective organisation and could prompt investors to get rid of problematic government bonds immediately. ... Moreover the rules according to which the insolvency of a state is determined will vary from case to case. ... This creates a worrying amount of latitude of judgement, above all when it is the product of a compromise between conflicting partners in different economic situations. In addition this latitude of judgement also prevents the defining of clear rules and systematic intervention."

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All available articles from » Marcello Messori

Delo - Slovenia | Thursday, 16. December 2010

Overcome divisions in EU

The burning question of how Europe can weather the debt crisis has divided the EU states ahead of the summit in Brussels. But the hardening of fronts will hardly improve the situation, the daily Delo writes and recommends a greater sense of community: » more

The burning question of how Europe can weather the debt crisis has divided the EU states ahead of the summit in Brussels. But the hardening of fronts will hardly improve the situation, the daily Delo writes and recommends a greater sense of community: "For the first time a block of 'euro solidarity' countries has formed against a block of countries which exhibit 'un-European behaviour', the two biggest EU states under the leadership of German Chancellor Angela Merkel. The two shouldn't be allowed to dictate a solution to the others. A solution to the challenge of protecting the single currency must yet be found, for Merkel and Sarkozy have no solution. Moreover when the money is in short supply it's impossible to preserve and above all rescue the single currency without a common monetary policy that applies to (and can be executed for) all states equally. And when the economy, the budget and development are all struggling and you're stuck in a crisis it could all be over quickly in the EU."

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All available articles from » Damijan Slabe

Gazeta Wyborcza - Poland | Thursday, 16. December 2010

Polish see no need for crisis euro

The crisis of the euro and the inability of politicians to react to it are making joining the Eurozone unattractive for Poland, writes Polish economist Ryszard Petru in the liberal daily Gazeta Wyborcza: » more

The crisis of the euro and the inability of politicians to react to it are making joining the Eurozone unattractive for Poland, writes Polish economist Ryszard Petru in the liberal daily Gazeta Wyborcza: "In my opinion Polish politicians have no interest in pushing ahead with the introduction of the common currency. People in Poland associate the euro with crisis and turbulence. Poland's situation with the Złoty is far more stable than that of Greece. That makes it all the worse that the Union has no plan B. It doesn't know what it should do if a country really proves insolvent. It introduces rescue plans to appease politicians, but that's not enough for the financial markets. As long as countries in the Eurozone can't agree on a punitive mechanism ... instead of saving individual countries the monetary union will not be an attractive option for prospective members."

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Imerisia - Greece | Wednesday, 15. December 2010

The South closes ranks

The countries of the South of Europe have once again joined forces to battle against the financial policy of the North. But relaxing EU monetary policy won't correct the deficiencies of the Greek economy, the business paper Imerisia contends: » more

The countries of the South of Europe have once again joined forces to battle against the financial policy of the North. But relaxing EU monetary policy won't correct the deficiencies of the Greek economy, the business paper Imerisia contends: "In 1983 the then prime ministers of Greece, Spain, Portugal and Italy jointly demanded financial support for their countries and received it. ... Now it is Greece, Italy and Portugal that want to apply for a more flexible monetary policy. ... In a certain sense the present battle is far more difficult than 27 years ago, for Germany is not willing to pay for the financial sins and extravagance of other countries. Regardless of the results of the summit, for Greece the only option is to stick closely to its agreement with the EU and the IMF if it wants to survive the crisis. Because even a more flexible EU monetary policy wouldn't solve the problems with the Greek economy, above all its lack of productivity and competitiveness."

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Il Sole 24 Ore - Italy | Thursday, 16. December 2010

Merkel fakes European spirit

German Chancellor Angela Merkel has said ahead of the EU summit that "the euro is our destiny". But she is only pretending to be committed to the single currency, the business paper Il Sole 24 Ore complains: » more

German Chancellor Angela Merkel has said ahead of the EU summit that "the euro is our destiny". But she is only pretending to be committed to the single currency, the business paper Il Sole 24 Ore complains: "Strong words, which however belong to the past when Europe was still a passion. They show that the euro crisis continues and that the domestic difficulties the German Chancellor faces in overcoming the crisis are just as great as the problems in her dialogue with her European partners. The latter are disappointed and annoyed at the arrogant, know-it-all yet inefficient German-French power axis. ... Frau Merkel's hope that the new crisis mechanism will mollify the financial markets and rid her of the problem is an illusion. For everyone, and not just the market, knows that 2013 is too far away. The problems must be solved today, they can't be postponed any longer. Merkel knows this, too, but ... simply because she is unsure of obtaining approval in her own country she rejects both the proposals to increase the euro rescue fund and to introduce joint euro bonds."

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All available articles from » Adriana Cerretelli

Hospodářské noviny - Czech Republic | Thursday, 16. December 2010

Euro crisis requires close cooperation

In the run-up to the EU summit German Chancellor Angela Merkel has once again spoken out against joint euro bonds, arguing for a sort of common economic government instead. The business paper Hospodářské noviny also calls for greater cooperation among EU states in face of the crisis: » more

In the run-up to the EU summit German Chancellor Angela Merkel has once again spoken out against joint euro bonds, arguing for a sort of common economic government instead. The business paper Hospodářské noviny also calls for greater cooperation among EU states in face of the crisis: "Angela