The ECB's bringing the base interest rate down to a record low of 0.75 percent on Thursday won't be effective because in the present situation it will boost neither investment nor consumption, the left-liberal daily Der Standard contends: "Lowering the interest rate is like drinking beer. The first pint may tickle the palate, the second lift your mood. But the fifth or sixth, at most, is too much of a good thing. Lowering the interest rate to 0.75 percent will convince few businesses to invest in projects. And if it does, the quality of the investment must be extremely dubious if it's only profitable at an interest rate of under one percent. For that reason the ECB's decision to cut the interest rate will not usher in a new trend in the Eurozone. Economic recovery is not being smothered by high short-term financing costs, but because the future of the Monetary Union is being put in question and political insecurity is dampening investments and consumption." (06/07/2012)

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

Mario Monti's No to the purchase of Spanish and Italian bonds is a dangerous stance, the liberal daily La Vanguardia warns after the ECB chief's statements on Thursday: "A good measure but a disappointing speech. This is how the meeting of the European Central Bank could be summed up, which yesterday cut the base interest rate from one percent to a historically low 0.75 percent in a bid to reactivate the economy. … If from a technical point of view these measures are good, why did the market react so aggressively? Basically because in the press conference that followed ECB president Mario Draghi refused to budge regarding the supportive purchase of Spanish and Italian debts. This is nothing new in the ECB's policy, but given the difficult situation in Southern Europe it seems lacking in solidarity and dangerous of Draghi to take a distanced stance regarding the public debt of problem states. … Draghi has caused a considerable increase in the yields and a marked decline in share prices on the increasingly jittery financial markets." (06/07/2012)

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

After the cut in the base interest rate ECB President Mario Draghi announced on Thursday that the bank does not plan to take further measures to solve the euro crisis, such as purchasing the government bonds of crisis countries. This brings the Eurozone down to earth with a bump, the business paper De Tijd comments: "Draghi swept away all the optimism of last week's euro summit with his speech. The ECB is obviously of the opinion that it has done enough and that now it's up to the politicians to tackle the Eurozone's problems. … From the orthodox financial perspective this view is understandable. But the consequence will be that when the next fire flares up in the Eurozone the fire brigade won't be at the ready. And the permanent ESM bailout fund is not yet fully in place. This is the dangerous situation that is making the markets so nervous and causing the decline of the euro. The mill will keep on grinding until a plausible plan with concrete steps is on the table. The euro crisis will continue as long as the European leaders fail to come up with such a plan." (06/07/2012)

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

The ECB as well as the central banks of China and the UK introduced additional support measures on Thursday, but market reactions have been negative on the whole. That shows that too much is being expected of the central banks, writes the liberal daily Le Temps: "The disappointment is enormous because the expectations were too high, not only on the part of the financial community, which is always on the lookout for credit facilities that can support the stock markets for a while. The pressure, calls for assistance and other exhortations also came from the public and political spheres. … This is a rare, even unique, situation and additional proof that the role of the ECB has changed. Even though its president Mario Draghi denies it, he has largely overstepped his key mandate of guaranteeing price stability. … Will the roles that the central banks are being given today be revoked once Europe and the rest of the world are definitively out of this crisis? Nothing is less sure. In the meantime, these banks have never been more deserving of their names." (06/07/2012)

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More from the press review on the subject » Fiscal Policy, » Financial Markets, » Banks, » Europe, » Global
All available articles from » Servan Peca
Who's saying what » Ways out of the debt crisis

After dismissing the president of the Senate and the speaker of the Chamber of Deputies on Tuesday, the Romanian parliament today plans to commence impeachment proceedings against President Traian Băsescu for alleged violations of the constitution. Romania is a failed democracy and Europe must take it under its wing, writes the left-liberal Süddeutsche Zeitung: "A whole new generation has grown up there since the death of the communist dictator Nicolae Ceaușescu, but until today the transformation to a democratic community and a prosperous market economy cannot be called successful. The judiciary is still anything but independent, corruption is as widespread as ever and economic development is being hindered. ... But the EU cannot tolerate such failed democracies in its ranks or it will undermine its own foundations. For that reason support must be given in these countries to the civic organisations and honest politicians who want to overcome the current party system and introduce true democratic conditions." (06/07/2012)

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More from the press review on the subject » EU Policy, » Domestic Policy, » Europe, » Central Asia
All available articles from » Klaus Brill

Even after the failure of the anti-piracy agreement Acta the world still needs an international regulation against product piracy, the liberal daily Kaleva contends: "One may well ask whether the European Parliament did not succumb to populist sentiment and pander to the interests of those who swear by the unlimited freedom of the Internet. The rejection of Acta doesn't mean that such an agreement is unnecessary. On the contrary. The US has not ratified the agreement and the bills on strengthening copyrights are stuck in Congress. Neither China, the number one product counterfeiter, nor Russia were even part of the Acta negotiations. The media and film industries, for example, badly need international rules against illegal Internet downloads. ... Even after the Acta a new Acta will be needed. It must be worked out in an open process with the participation of NGOs, and it must be internationally applicable." (06/07/2012)

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More from the press review on the subject » Online media, » Europe, » Global

Nine months after the death of the dictator Muammar al-Gaddafi Libya will elect a new parliament on Saturday. The liberal daily Dagens Nyheter hopes the elections will produce a positive outcome towards democracy: "After the elections in Tunisia and Egypt, further victories for the Islamists would be worrying. But there are many indications that the Libyans are sceptical about extremist adventures. Moreover they are grateful to the Western powers that helped them to topple Gaddafi. Democracy is a fragile experiment. Under Gaddafi all parties were forbidden and the only political organisation was Gaddafi himself. But if the elections are approached correctly and the opponents respect the result there is genuine hope for Libya." (06/07/2012)

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All available articles from » Gunnar Jonsson
Who's saying what » Arabs fight for freedom

Latvia's new Justice Minister Jānis Bordāns was sworn into office on Thursday. His predecessor Gaidis Bērziņš resigned two weeks ago without giving any reason for his decision. Bordāns must now take on the challenge of reforming the judicial system, the business paper Dienas Bizness writes: "The concrete issue at hand is that the Senate of the Supreme Court has delivered extremely diverging sentences in cases that were in fact very similar. This effectively means that a lawyer need only reach a certain level in his career to be able to interpret any law however he pleases. It's clear that judges have the job of pronouncing judgement. But entrepreneurs, for instance, should be able to rely on a law, and not just the judge's ideas about that law. Naturally the minister can't reform the entire judicial system on his own if the judges aren't willing to cooperate. They must all tackle this task together. But the minister can at least make the problem a top priority." (06/07/2012)

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Ireland made a comeback on Europe's financial markets on Thursday. Two years after its banks plunged the country into a crisis it sold government bonds to the tune of 500 million euros. If it demonstrates the necessary willingness for reform, Irish society will get its ailing economy back on track, the conservative daily Irish Independent writes: "On balance, the economy appears to be stabilising although the consequences of the recession will be felt for a long time to come. Ireland is now in a phase of transition and restructuring. In rebuilding our economy, we are also rebuilding our international reputation and it is important to remember that despite the challenges, Ireland remains open for business and indeed, offers an attractive location for investment and trading. Change is good, and while transition is often difficult, ultimately our ability and willingness to deliver reform will determine the pace and scale of Ireland's recovery." (05/07/2012)

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More from the press review on the subject » Economy, » Ireland
Who's saying what » Ways out of the debt crisis

Miguel Frasquilho, an MP of the ruling centre-right coalition in Portugal, on Thursday became the first politician to officially admit that the country will have difficulties meeting the agreed deficit target for 2012. The daily Diário de Notícias pokes fun at this "news": "Who would have believed it? Miguel Frasquilho has officially confirmed that owing to plunging tax revenues it will hardly be possible to reduce the deficit to 4.5 percent, as planned. And that it will perhaps take another two years to reach the three percent target. … Up to now all the demands (for more money, lower interest rates or more time) in reaction to this fact had been denounced as an outrage and were a thorn in the side of [Prime Minister] Passos Coelho and Finance Minister Vitor Gaspar. That's only logical when officially everything was going according to plan. But now it turns out that the dose of medicine prescribed [the austerity package] has considerably weakened the patient." (06/07/2012)

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

After a series of suicides at France Télécom more than three years ago, the former CEO Didier Lombard has now been placed under judicial investigation, his lawyers confirmed on Wednesday. That brings the human obligations of top managers into the spotlight, writes the journalist Stéphane Lauer in his blog with the left-liberal daily Le Monde: "For years, suicide at the workplace has met with a wall of silence. On the part of management, but also of unions and employees. The dramas that have unfolded at Renault, PSA, La Poste and France Télécom have allowed people to speak their minds and the problem to be addressed. There have already been civil convictions, but this criminal investigation of a former CEO is unprecedented. It means that the focus of debate is no longer on the interpersonal level between a superior and his subordinate. Business organisation is not limited to a cold and rational allocation of tasks that can be evaluated at any time. A boss is also responsible for the human aspects of his strategy." (06/07/2012)

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More from the press review on the subject » Corporations, » Justice, » Society, » France
All available articles from » Stéphane Lauer

Eleven years after the brutal attacks by Italian police against anti-globalisation activists during the G8 summit in Genoa, Italy's cassation court in Rome upheld the convictions of senior officers who were in charge of the police operations in the final instance. But this ruling doesn't go far enough, writes judge Vladimiro Zagrebelsky in the liberal daily La Stampa: "The judgement doesn't punish the physical violence, even though it has been proven. At least some of the attacks would essentially fall under the international definition of torture. I refer here to the definition laid down in the UN Convention against Torture of 1984. Italy ratified the convention in 1988, but it has failed to include the crime of torture in its penal code. … Unfortunately this is not a purely unintentional omission. … Italy has explicitly refused to comply with the demands of the international community. This will have serious consequences for Italy's international reputation that will become even graver as soon as the European Court of Human Rights rules on the Italian government's responsibility for failing to subject torture to criminal prosecution. The corresponding complaints have already been filed with the Court." (06/07/2012)

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More from the press review on the subject » Crime, » Justice, » Italy
All available articles from » Vladimiro Zagrebelsky

In a letter sent to 50 US Members of the US Congress on Tuesday, Hungarian Prime Minister Viktor Orbán stressed how his country had fought for freedom and human dignity for decades. In doing so he was reacting to a letter in which the Members of Congress had called on the Hungarian leadership to take action against anti-Semitism in their country. The conservative daily Magyar Nemzet attempts to correct Hungary's tarnished image: "Ever since the fall of communism the Hungarian Right has unjustly been accused of anti-Semitism, xenophobia and irredentism. … The malicious opinions to be found in the international press, the calls for help of the Hungarian intellectuals these publications are so fond of quoting and the storm of attacks from left-wing liberal commentators and media are astonishingly reminiscent of the early 1990s. … Back then [the deceased right-wing extremist] István Csurka served as the excuse and [the first conservative prime minister after the fall of communism] József Antall served as a target. …. The letter sent by the Members of Congress to Viktor Orbán is, to put it mildly, unjust. … In the US it has apparently gone unnoticed that here in Hungary the Left, the moderate Right, the country's highest dignitaries and the Churches all condemn phenomena like anti-Semitism whenever necessary." (05/07/2012)

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More from the press review on the subject » Society, » Hungary, » U.S.
All available articles from » Szabolcs Szerető

According to a recent report by the Centre for Research into Addictive Substances at Aarhus University, one in twelve Danes between the age of 15 and 24 consumes drugs or alcohol in amounts that would warrant treatment for addiction. The conservative daily Berlingske sees the need for action: "The figures are shocking, even though we have long been aware that Danish youths begin drinking alcohol at an earlier age than in other countries. On top of that Denmark has a drinking culture which is not about enjoying alcoholic beverages but about drinking until you can no longer stand upright. It's scary that 55,000 young Danes consume so many drugs that they basically need urgent treatment. This should prompt us to reflect and take action. Not necessarily in the form of bans and restrictions. … But we should appeal to all those responsible - to the youths themselves, parents, schools, authorities, festival organisers and so on - not to simply confine themselves to accepting the situation and expressing regret that 'young Danes always get so crazily drunk'." (06/07/2012)

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More from the press review on the subject » Health and Medicine, » United Kingdom, » Denmark

The Swiss Federal Council has put out an extensive report on the repercussions of freedom of movement and immigration in Switzerland according to which Switzerland's population is growing by around 80,000 people per year. The German personal consultant Christoph Zeiss, who himself lives in Switzerland, asks the Swiss to view his compatriots with forbearance: "Deep in our hearts we love the Swiss. Sure, we also find them cute because they've got such a funny way of talking. But in fact we don't just love them, we respect them - in a very sincere way. ... Many Swiss believe the Germans don't like them, are arrogant, and treat them the way the supposedly stronger person treats the supposedly weaker. I think it's much simpler than that. The Germans love the Swiss. They'd like to be a bit like them - but can't. And because that frustrates them, they sometimes act in a way they don't really mean to. Complicated? Sure. Typically German? Also true. But above all: they really do love the Swiss." (06/07/2012)

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More from the press review on the subject » Public Culture, » Demographics, » Germany, » Switzerland
All available articles from » Christoph Zeiss