In her government statement on the G20 summit on Monday and Tuesday in Mexico, German Chancellor Angela Merkel warned against overburdening Germany in the crisis. But nothing would strain the country more than the collapse of the Monetary Union, writes the left-liberal daily Frankfurter Rundschau: "When trust in the European financial system is destroyed, the monetary cycle collapses, banks and insurance companies have to write off their foreign debts and German industry takes a nosedive - all because the new currency would appreciate massively after the end of the euro - then at the very latest it will be clear how narrow-mindedly Merkel acted when the evil could still have been averted. … She refuses to fork out more German tax money for Europe. That is certain to boost her popularity ratings at home and gain her the support of her coalition's parliamentary groups. … Of course it's unfortunate that the customers of Berlin's Sparkasse and the taxpayers in Bochum have to pay for Spanish bank accounts and Italian deficits. But the alternative of letting the euro run aground would be much more costly." (15/06/2012)

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More from the press review on the subject » Fiscal Policy, » Germany, » Europe
All available articles from » Markus Sievers
Who's saying what » Ways out of the debt crisis

People must try to see things from Germany's point of view, writes the Spanish journalist Ignacio Escolar in his blog, defending Angela Merkel: "Why won't Germany give up its resistance and help little Greece? Why is it still playing Russian roulette when the stakes are so high? We must put ourselves in Germany's position. If Germany pays, Germany wants to make the decisions. The way Germany sees it - and not entirely without reason - the Mediterranean countries have wasted their money, cooked their books, managed their economies irresponsibly and failed to tackle their problems when they still had the chance. Angela Merkel has a strategy: to take advantage of the pressure of rising borrowing costs to tighten the thumbscrews and bring her partners in line with her economic model. She will continue to crank up the pressure without bringing it to breaking point (or at least that's what we hope)." (15/06/2012)

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More from the press review on the subject » Fiscal Policy, » Germany, » Europe
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Who's saying what » Ways out of the debt crisis

Germany will have to confront the unpleasant reality of the situation, writes the liberal-conservative daily Die Presse. Chancellor Merkel should finally get used to the idea of a debt repayment fund through which the Eurozone countries finance the debts of struggling partners via common bonds, the paper writes: "No euro bonds and no debt redemption fund without a fiscal union; this is Merkel's creed. But the chancellor's opposition is gradually crumbling under the pressure. She knows: as the economic motor of a stalling European Union Germany will have to bite the bullet in the end anyway - but the longer Merkel waits, the more expensive it will be. Stop-gap measures for fighting the crisis have already fallen flat in the past. But now the chancellor's policy has a chance: The debt redemption fund could finance austerity measures in the debtor countries. She shouldn't wait until the fiscal union is a reality because by then it may already be too late for the Monetary Union." (15/06/2012)

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

Chancellor Merkel's government statement is an oracle that allows for a positive outcome, writes the liberal-conservative business paper Il Sole 24 Ore: "Europe is hanging on Angela Merkel's every word as if she was a sibyl. Her oracle continues to be bleak and contains the umpteenth rejection of further integration. Yet it also points to the possibility of setting up a European bank supervision authority. … The call for a stronger role for the European Central Bank (ECB) offers not just a glimmer of hope but also implies the key admission that the major problem was swept under the carpet when the euro was born: it is a contradiction that the ECB, which plays the role of lender of last resort for banks encountering financial difficulties, lacks the powers and information needed to differentiate between those institutions that are worth saving and those that are beyond recovery. … The challenge now is to draw Merkel out of her shell on this. It may be the last chance." (15/06/2012)

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More from the press review on the subject » Fiscal Policy, » Germany, » Europe
All available articles from » Marco Onado
Who's saying what » Ways out of the debt crisis

Europe is awaiting the parliamentary election in Greece on Sunday, which is widely perceived as vote on whether the country should stay in the Eurozone, with bated breath. But instead of putting together a clear crisis strategy the EU is drifting into a state of total disorientation, the daily Diário de Notícias criticises: "Europe is like an overexcited anthill ahead of an important event. There's no end of demands, statements and coded messages but yet again there's no sign of a clear and integrated approach. … Europe just can't seem to calm down on the financial front. Why not? For the simple reason that no one knows which direction it is moving in. Germany and France are toying with the idea of a banking union. … From Merkel we also hear calls to strengthen the political union, but this idea remains vague. So with such a state of affairs no one can believe in Europe." (15/06/2012)

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Elections, » Portugal
Who's saying what » Greece puts the Eurozone to the test

Cyprus, which like Spain is battling a crisis in its banking sector, will take over the rotating presidency of the EU Council on July 1. On Thursday Russian media reported that Russia will give the country a new loan of up to five billion euros. The liberal daily Politis can't understand why Nikosia is turning to Russia for a loan: "How much money will our Russian and Chinese friends give us? And if we need more will we borrow from them again? Is this what the responsible economic policy of a European state looks like? No one wants bailout mechanisms and austerity packages. But they are the appropriate path for a country that feels it is part of the EU. … We can't take over the EU Council presidency in 15 days' time while knocking at the doors of one non-EU country after another asking for credit. This would be a display of political and ideological short-sightedness." (14/06/2012)

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

The police and judiciary cracked down on radical Islamic Salafists in Germany on Thursday with nationwide raids. In a further measure Interior Minister Hans-Peter Friedrich banned a leading Salafist group, Millatu Ibrahim. But this won't solve the problem, writes the liberal Financial Times Deutschland: "Certainly, they're making it harder for these people to get together and organise themselves. On the other hand, the causes of the radicalisation are not being combated, which is why above all disoriented young men are seduced by the simple messages of the Salafist preachers. Small groups and associations often approach these young men over the Internet. It will not be possible to prevent this entirely with conventional assembly legislation measures. The Salafism problem in many ways resembles that of right-wing extremism. There it's become clear that the banning of associations - like the ban on the neo-Nazi FAP party in 1995 - makes sense. But only if it is combined with measures to prevent young people from being attracted by primitive messages in the first place." (15/06/2012)

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Egypt's constitutional court on Thursday declared the results of last winter's parliamentary elections partially invalid owing to irregularities, while giving the green light for Ahmed Shafik, ex-head of government under Hosni Mubarak, to run as a candidate in this weekend's runoff vote for the office of president. The military's quest for power is endangering the entire Arab Spring, the conservative daily Le Figaro fears: "A long time ago the military, which has been in power in Cairo since 1952, came to terms with the rise of the Islamists. Since the times of Mubarak's rule it had tacitly agreed to a pact: the army maintained the political and economic power while the social and religious areas were left to the Muslim Brothers. But the military, which abandoned Mubarak and gave in to the revolutionary pressure, has used this opportunity to tighten its grip on power. It never had any intention of leaving the country to the Islamists. … Given the key role Egypt plays in the Middle East, the next few days will decide the fate of all the Arab revolutions." (14/06/2012)

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Who's saying what » Arabs fight for freedom

The Eurozone has a serious birth defect, writes economist Péter Felcsúti in the online edition of the left-liberal weekly paper Magyar Narancs, in view of the ongoing crisis in the monetary union: "Everything seemed so easy at first. The introduction of the common currency, an end to the risk of exchange rate fluctuations and the associated costs. In short: the stable and cheap currency raised confidence from both an economic and a psychological perspective. This was an enormous boost not only to economic growth but also to cooperation between the members of the Eurozone. ... But the euro had a birth defect: the Monetary Union was not flanked by a fiscal union. Certainly, there were the Maastricht criteria stipulating low budget deficits. However whether countries kept to these criteria or not was only subject to half-hearted checks. ... As the global financial and economic crisis broke out in 2008, the 'hereditary sin' of the common currency quickly came to light. While some countries with disciplined economic and budgetary policy could withstand the crisis, others were incapable of following suit." (15/06/2012)

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

Ahead of the elections in Greece the Swiss National Bank (SNB) stated on Wednesday that it would continue to maintain the exchange rate for one euro at 1.20 Swiss francs. This is the only viable course right now, writes the liberal-conservative daily Neue Zürcher Zeitung: "If the usual political suspects and bankers now feel obliged to start saying aloud that politicians can't guarantee a lower limit to the exchange rate indefinitely, this is simply irresponsible. The SNB introduced the lower limit to protect the Swiss economy in an extraordinary situation. It chose to peg the franc to the euro significantly under the real equilibrium rate. If the situation on the financial markets calms down once more, the euro rate should settle somewhere above 1.20 francs. Then the time will come to say goodbye to the fixed exchange rate and return to normal monetary policy. But the rougher the sea is now, the more necessary it will be to defend the lower limit on the exchange rate." (15/06/2012)

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

Finland's struggling mobile telephone producer Nokia announced on Thursday that it plans to axe a further 10,000 jobs worldwide. The company's future looks bleak for some time to come, the liberal daily Helsingen Sanomat fears: "Nokia expects losses between April and June to continue to rise. And by the looks of it the downward spiral won't end in the third quarter either. When a publicly listed company announces huge personnel cuts, its share price normally rises. But Nokia shares dropped by more than 18 percent on the Helsinki Stock Exchange to 1.80 euros on Thursday. That shows that shareholders have no faith in the company's future. ... The big problems are the result of a series of misjudgements on the part of the board of directors and corporate management since 2005.  The company lost its competitive edge above all by sticking to the outdated operating system Symbian OS for far too long." (15/06/2012)

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The Baltic states on Thursday commemorated the victims of the Soviet mass deportations that began on 14 June 1941. Many aspects of these terrible crimes remain unclear, writes web portal Delfi: "In a brief moment the lives of thousands of families were ruined. People were given two hours to say goodbye to everything they had worked so hard for. … An operation of this scale, in which more than 300,000 people [the total number of victims under Soviet rule in Lituania] were arrested and driven out of the country, could not have been carried out without the help of tens of thousands of perpetrators and accomplices. … Yet our politicians and judicial authorities remain silent. They call vociferously for compensation from Russia, but the political will to make a frank assessment of the crimes against humanity and international law committed by the collaborators among us is lacking." (14/06/2012)

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All available articles from » Vidmantas Valiušaitis

The sale of Freetown Christiania, a former military area, to the residents of the neighbourhood which has been inhabited by Hippies since 1971 will be completed by July 1. The liberal daily Jyllands-Posten describes Christiania as a stain on Copenhagen's reputation where lawlessness and drug trafficking rule the day: "The history of Christiania is marked by countless scandals and political paralysis. The area has increasingly taken on the status of a place where laws don't apply. … If the supposedly law-abiding residents were really serious about their hippie drivel, they would rise up in protest and rid the area of all the criminals. But either they don't want to or the criminals have created such a regime of terror that they simply don't dare. And the politicians have given up." (15/06/2012)

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To mark the birthday of Prime Minister Boyko Borisov on June 13, the Bulgarian media reported in detail on the presents and good wishes he received from his ministers and party comrades. The government-critical online portal e-vestnik finds this deeply embarassing: "The media obsequiously reported every detail of how a throng of ministers, parliamentarians, party officials and other lickspittles from Borisov's entourage lined up in front of his office to congratulate him on the big day. It was all slightly reminiscent of North Korea, where the beloved leader's birthday is a national holiday. The television and newspapers gave in-depth coverage on the presents he received. ... And that went on the whole day, sometimes as open public praise, sometimes with a hidden note of irony. Then when all the presents were counted it was enough to make you sick. ... But any way you look at it, June 13th was a shameful day for Bulgarian democracy." (14/06/2012)

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Polish courts on Thursday sentenced 23 hooligans for rioting before and after Tuesday's game between Poland and Russia. The underlying reason for the riot was fear of Russia, writes the conservative daily Rzeczpospolita: "One important piece of information was missing from the numerous commentaries on the Polish-Russian riots before and after the match: namely that this is the climax of a war of nerves between Russia and Poland that has been brewing for several weeks. Similar wars of nerves are all too familiar to other neighbours of Russia, like the Estonians and the Latvians. ... When the authorities in Tallinn took down a monument to the Red Army the Estonian servers were subject to hacking attacks. The Estonians assumed that Russian computer specialists, the army or even the secret service were behind the attack, even if they had no evidence to back up their claim. The Latvians also have many stories to tell about how relations between their states suddenly worsen when the Russian minority in the country is involved." (15/06/2012)

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All available articles from » Piotr Semka
Who's saying what » Kick-off in Eastern Europe