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." (31/01/2012)

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Who's saying what » Ways out of the debt crisis

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." (31/01/2012)

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All available articles from » Franco Bruni
Who's saying what » Ways out of the debt crisis

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)." (31/01/2012)

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Who's saying what » Ways out of the debt crisis

In addition to the UK the Czech Republic has also said no to the EU's fiscal compact. Prime Minister Petr Nečas showed courage by stepping out of line, writes the conservative daily Lidové noviny, but he hid behind false arguments: "Nečas based his stance on the argument that the countries that signed the pact and that still don't have the euro can't be sure they will also be invited to all the euro summits. But that missed the point of the meeting in Brussels. It was about introducing central supervision of national budgets, and was only the first in a series of summits leading to a political union, as Merkel explained. ... Nečas has been gathering arguments against the fiscal pact for months. If he had supported the plan it would have been tantamount to a capitulation. ... Now he must have the courage to stick to his stance without hiding behind lame excuses." (31/01/2012)

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All available articles from » Daniel Kaiser

Even if Poland goes along with the new fiscal pact, Prime Minister Donald Tusk should remain wary of the euro, writes the conservative daily Rzeczpospolita: "The euro club may be one of the most interesting economic experiments in the world. ... But as long as it is not based on solid financial foundations and unified principles it should be avoided. It is enough to make one fear that the prime minister will announce our accession to the euro when we see him demanding participation in talks about changes in the Eurozone. ... The problem is that the prime minister has said different things on the euro issue in the past. We should bear in mind that in 2008 he said that the euro should be introduced in 2011." (31/01/2012)

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All available articles from » Paweł Jabłoński

The German Finance Ministry stated on Monday that it will not go along with the stock market tax announced by French President Nicolas Sarkozy on Sunday night. And it's a good thing, too, writes the left-liberal daily Süddeutsche Zeitung, describing the stock market tax as a typical, botched product of Sarkozy's madhouse because rather than imposing taxes on all financial transactions it will only tax purchases of stock: "No wonder Sarkozy has been loudly applauded by the German [liberal] FDP, which opposes any form of taming financial markets with a transaction tax. ... Until now Nicolas Sarkozy wanted to cast himself as the champion of a transaction tax. But with his stock market tax he takes on the role of the electioneer who drops his original goal without a second thought. Because in imitating the British model of a stock market tax, France removes the pressure on Britain to go along with the other EU states and introduce a comprehensive transaction tax. Until now the British were alone in Europe, something they felt less happy about than they let on. Now Sarkozy has copied them and in so doing stabbed Chancellor Merkel in the back, who had been fighting at his side until now for a comprehensive tax." (31/01/2012)

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All available articles from » Alexander Hagelüken

A general strike staged by the trade unions in protest at the government's austerity programme brought public life in Belgium to a virtual standstill on Monday. But the trade unions sent the wrong message, writes the liberal daily De Standaard: "The strike was one of the best PR campaigns for working from home. Countless employees and entrepreneurs learned how to do this. ... The trade unions shouldn't have sent the message that it's wrong to economise and to work longer hours but that the cutbacks should be combined with measures for stimulating growth and creating more jobs. ... This was what the EU summit in Brussels was partly about. ... Europe is allocating 20 billion euros in expenditures to creating more jobs for youths and small and medium-sized businesses. Belgium, its regions and the social partners should focus on such matters and reach a consensus. ... We should work for more work instead of going on strike!" (31/01/2012)

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All available articles from » Guy Tegenbos

Romania's former prime minister Adrian Năstase (2000 - 2004) was sentenced by the supreme court in Bucharest to two years in prison for illegal party financing on Monday. According to the verdict he embezzled around 1.6 million euros from companies and entrepreneurs, which he put toward his 2004 presidential campaign. The daily România Liberă suspects that his party, the social-democratic PSD, could collapse as a result: "The sentencing of a politician of Adrian Năstase's calibre will open a Pandora's box in his own party which will cause extreme difficulties for party leader Victor Ponta. ... On the one hand the prison sentence will tarnish the party's image, on the other hand the party could split up into opposing camps - the supporters of Năstase and those who distance themselves from him (whether out of principle or fear). Party leader Victor Ponta has already explained to Năstase that the party will not try to protect him in the event of a conviction, especially since other cases against him are still pending. ... Consequently it will be difficult to calm the PSD, where the interest groups and relations are more intertwined than in any other Romanian party." (31/01/2012)

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All available articles from » Laurentiu Mihu

Hungary's Green party (LMP) decided at its party conference on the weekend not to cooperate with any of the other left-wing opposition parties in parliament, and has declared its intention to "open up to civil society" instead. Writing on the left-liberal opinion portal Galamus journalist Vera Lánczos says she detects a democratic deficit among the eco-activists: "The political system that was unilaterally created by the [ruling party] Fidesz is unacceptable for the LMP, as is the election law, which was likewise unilaterally changed by Fidesz. ... Because of this election law the opposition only has a chance of winning against Fidesz if it forms an alliance. ... The LMP obviously has an identity problem. ... It is perpetuating a bad and anti-democratic tradition - the rejection of rational discourse - that was created by Fidesz. ... Democratic parties should establish their identities with solid programmes and consistent policies. Rejecting dialogue with other democratic parties is the wrong approach. ... With its attitude the LMP is blocking the restoration of democratic order in Hungary." (31/01/2012)

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All available articles from » Vera Lánczos

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." (31/01/2012)

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Who's saying what » Ways out of the debt crisis

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." (31/01/2012)

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Who's saying what » Ways out of the debt crisis

Despite criticism from animal rights activists the Finnish fur sector is stronger than ever, writes the daily Maaseudun Tulevaisuus: "The fur industry is an example of natural production of the sort we need more of in today's world. Fur is a warm, natural and sustainable material. ... Even Green Party critics have to admit that it's far better to wear natural furs than synthetic clothes made from petroleum products. Of course investors must be aware that competition is expected to grow in the sector. The high demand is also encouraging greater production in other large fur-producing countries. Nevertheless Finnish furs have maintained a strong market profile despite the stiffer competition. The brands that have developed over the years are highly popular because furs produced in Finland are known for their quality. Quality is the key to future success." (31/01/2012)

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The Swedish Occupy movement "Allt åt alla" (Everything for Everyone) invited people to take part in a bus safari through the exclusive Stockholm suburb Saltsjöbaden on Sunday to take a look at the millionaire's villas there and "foment class hatred". Such rhetoric won't help solve the social problems at all, writes the conservative daily Svenska Dagbladet: "As a students' prank this expedition has a slightly humorous aspect to it. If it wasn't for the dark exhortation to 'foment class hatred' it would have even been a success. ... The network is of course right when it says that there are class differences in Sweden today. But the activists don't make the distinction between the economic and the socio-cultural gap and are therefore not helping to overcome it. They content themselves with inciting political hatred against the villa district instead of reflecting on how everyone can perhaps not have everything, but at least have a little more." (31/01/2012)

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Who's saying what » The world protests

Participants in an annual neo-Nazi march in Athens on Saturday attacked several immigrants, leaving two people injured. The left-liberal daily Ta Nea warns against extremist tendencies in the debt crisis: "The neo-Nazi attacks confirm a widespread fear: ... In the midst of the crisis Athens is vulnerable to the activities of criminal gangs. And the general sense of insecurity makes these gangs feel stronger. The state's tolerant attitude towards extreme behaviour makes such sinister deeds all the worse. ... The calls for racial purity, the feelings of hatred towards fellow human beings as well as a civil-war-like nationalism in combination with hooligan violence threaten the already disrupted social peace. ... The democratic state is duty-bound to protect society from its enemies." (30/01/2012)

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Who's saying what » Greece in dire straits