The negative outlook for Germany, the Netherlands and Luxembourg is the product of a faulty analysis by the rating agency, writes Georges Ugeux in his blog Démystifier la finance with the daily Le Monde: "The analysis is completely wrong. Despite the claims of the moody rating agency, a Greek exit … would not affect European banks - for a very simple reason: the private sector held [Greek] risk bonds amounting to 100 billion euros and accepted an exchange that reduced the debt by 80 percent. This leaves the private finance sector with an outstanding sum of 20 billion euros, which will very probably be repaid. Spread among 400 creditors that leaves each with an average of 50 million. There are certainly a few European banks that bought into Greek banks, but not ones in Germany and the Netherlands, and certainly not ones in Luxembourg. Two of them, however, are in France." (23/07/2012)

» full article (external link, French)
More from the press review on the subject » Fiscal Policy, » Financial Markets, » Banks, » Germany, » Greece, » Netherlands
All available articles from » Georges Ugeux
Who's saying what » Ways out of the debt crisis

What Moody's is really saying is that Germany will be footing the bill for the Eurozone problems, no matter what it does, explains the liberal-conservative Neue Zürcher Zeitung: "If the euro partners don't help countries like Greece, Spain and Italy it will be expensive for Germany, because a new wave of financial crises could break over Europe. If they do help, it will still be costly, because Germany and the other Northern European countries will have to shoulder the lion's share of the burden. The very Anglo-Saxon-sounding message from Moody's that the mess stems from the failure of the politicians to act quickly and that everything would be ok if everyone would just throw some real cash at the problem, is misguided. If Germany were to assume wide-scale liability for other EU states, then fears really would escalate about over-stretching German state finances. The trust in bond markets could dissipate at a worrying speed. None of this looks good for Germany. Whatever it does the German state and its citizens are going to have to pay to correct the errors and negligences committed in the Eurozone. This is the painful message from Moody's." (25/07/2012)

» more information (external link, German)
More from the press review on the subject » EU Policy, » Fiscal Policy, » Economy, » Germany, » Europe
All available articles from » Matthias Benz
Who's saying what » The row over debt mutualisation

Germany needn't worry too much about Moody's warning because it is strong enough to handle Greece and Spain going bankrupt, the liberal business paper Handelsblatt says, arguing that the rating agency's assessments are influenced by politics: "We can take it for granted that the agencies don't issue any ratings that would meet with Washington's disapproval. If you want to interpret the rating warning to Germany politically, what would the message be? It weakens the position of the Bundesbank, with which the US government is increasingly unhappy. The Frankfurt-based bank is insisting that fresh cash from the central banks should contribute as little as possible and the governments as much as possible to resolving the crisis. At the same time each country should remain responsible for its own finances for as long as Europe is not a federation. The result is that the risk of bankruptcy for crisis-hit countries and the risk of default denounced by Moody's remain high for lenders. And the message from Moody's is that this strategy is also threatening Germany's rating. This weakens one argument against debt mutualisation through euro bonds. Because here in Germany the view is that they would drag Germany's creditworthiness down to the European average."  (25/07/2012)

» more information (external link, German)
More from the press review on the subject » EU Policy, » Fiscal Policy, » Economy, » Germany, » U.S.
All available articles from » Norbert Häring

The warning from rating agency Moody's that Germany, Luxembourg and the Netherlands could face a credit status downgrade must be taken seriously, the liberal daily NRC Handelsblad argues: "The Netherlands is lagging behind in economic growth, also in comparison with the European Union average. But above all it is battling excessive private sector debt, and Moody's is not the first to warn about this. The Dutch politicians are playing deaf for fear of being forced to introduce unpopular measures. The problem of mortgage interest payments being fully tax deductible and mortgages being financed free of transfer fees is being tackled on a minor scale only. So it's too little, too late when it comes to combating the major cause of private debt. The message the politicians must convey now in the election campaign [ahead of the parliamentary elections on September 12] is that the crisis affects everyone, citizens and state alike. Otherwise Moody's will teach us this more harshly." (25/07/2012)

» more information (external link, Dutch)
More from the press review on the subject » Fiscal Policy, » Economy, » Germany, » Luxembourg, » Netherlands
Who's saying what » Ways out of the debt crisis

Despite the efforts of the Spanish government the ECB so far has not intervened to lower the rising yields on Spanish bonds. An economist using the pseudonym S. Horse warns in the Zona Crítica blog published by new online newspaper eldiario.es of the dangers of applying for a bailout prematurely: "Because the ECB is not intervening, Spain no longer has many options. And the ones it has are all complicated. One option would be to apply for a 'total bailout', as Portugal, Ireland and Greece have done. Another would be to exit the euro. … If we asked the people which of these two approaches represented the lesser evil, they would choose the former. In principle I agree, however, with one reservation: even if we applied for the bailout today, we may still be forced to leave the Eurozone in the near future. And that would be the worst option. … We would have to take out all our loans in euros. And we would have to pay them back in euros, too - no matter which currency we ended up with." (25/07/2012)

» full article (external link, Spanish)
More from the press review on the subject » Fiscal Policy, » Financial Markets, » Banks, » Spain, » Europe
All available articles from » S. Horse
Who's saying what » Spain in the banking crisis

The euro crisis has long been shaking the foundations of the entire project of the EU, according to the right-liberal daily Berlingske, which calls for non-euro countries like Britain, Denmark and Sweden to shoulder part of the responsibility: "It would be nice if they would all show some commitment to working together for the future of the euro. It would be even better if those same countries would offer genuine help, so that Germany and others were not forced to bear unnecessary burdens. This could be in the form of concrete financial aid, but also a political effort to shore up the project's survival. ... Everything else would be very bad indeed. And the total collapse of the Eurozone and the EU would be an evil borne by generations to come - whether they were members of the monetary union or not. The will to work together best manifests itself in times of crisis. So Denmark and others should get thinking about what they can do to help." (25/07/2012)

» full article (external link, Danish)
More from the press review on the subject » EU Policy, » Fiscal Policy, » United Kingdom, » Denmark, » Sweden, » Europe
Who's saying what » Ways out of the debt crisis

The Romanians will decide in a referendum on Sunday whether Traian Băsescu is to remain head of state. On his blog with the online edition of the weekly paper Magyar Narancs, Attila Ara-Kovács predicts that Băsescu will stay in office: "On July 19, at the prompting of Prime Minister Ponta, the Romanian parliament modified the referendum law, which will certainly work to Băsescu's advantage. In the spring, when Băsescu and the conservative PDL that backs him were still in power, the law was changed per emergency decree to prevent the possibility of the head of state being dismissed. … After the new coalition government led by Ponta took the helm it went to straight to work to reactivate the old law. But because Brussels took issue with this, the government was eventually forced to back peddle. According to the 'new-old' law a referendum is only valid if more than half of those eligible to vote take part; that is more than nine million people. In the middle of the summer it's impossible to get that many voters to the polls." (24/07/2012)

» full article (external link, Hungarian)
More from the press review on the subject » Domestic Policy, » Romania
All available articles from » Attila Ara-Kovács
Who's saying what » Power struggle in Romania

The new Serbian premier Ivica Dačič recently signalled to the EU that KFOR troops would be allowed into the North of Kosovo in the future. Until now Belgrade had prevented this on the grounds that North Kosovo was part of Serbia. Slovakia should join in this growing realism, according to the liberal daily Sme, and at last recognise Kosovo's independence: "With a measure of good will, we can interpret Dačič's words as an admission that Belgrade has surrendered its hold on Kosovo. Of course we should not forget that President Tomislav Nikolič said in June that Belgrade would always vote for Kosovo if given the choice between it and the EU. So it may take a while before Serbian politicians return to reality. Slovakia should show support for the positive development by finally recognising Kosovo and should stop helping to keep the national myths of Nikolič and cohorts alive." (25/07/2012)

» more information (external link, Slovak)
More from the press review on the subject » International Relations, » EU Policy, » Domestic Policy, » Slovakia, » Serbia, » Kosovo
All available articles from » Peter Morvay

There is also a positive aspect to the euro crisis, according to historian Ernesto Galli della Loggia. In the liberal-conservative daily Corriere della Sera he explains that it is finally exposing the ideological facade of the EU that has allowed it to ignore the differences between the countries of Europe for so long. "The concept of Europe on which the Treaty of Rome was based has in effect overlooked two essential aspects: the existence of a Mediterranean Europe on the one hand and a German Europe on the other. These are two different Europes that have been united by shared values for centuries, but have also been separated by profound conflicts. However the common values were almost exclusively the preserve of an elite, while the conflicts reach deep into society. First the EEC and later the EU managed for years to conceal the divide between these two Europes. They did this with the help of the purportedly unifying ideology of the West on the one hand and the allegedly solid prospects of growth based on capitalism on the other. But this thin veil only covered the divide rather than bridging it. … Geography, politics, and along with them history have now regained the upper hand. The true capitals of the continent - Berlin, Paris, Madrid and Rome - have once again taken the place of the artificial capital, Brussels." (25/07/2012)

» more information (external link, Italian)
More from the press review on the subject » EU Policy, » History, » Europe
All available articles from » Ernesto Galli della Loggia
Who's saying what » Ways out of the debt crisis

With an eye on the crisis-ridden economies of Spain and Greece, Martin Feldstein, professor of economics at Harvard University, explains in a guest column for the liberal daily Financial Times that the solution could lie in devaluing the single currency: "A lower value of the euro would reduce the prices of eurozone exports and raise the cost of imports, reducing or eliminating the current account deficits of the peripheral European countries, since about half of their trade is with countries outside the eurozone. The weaker euro would also boost Germany's net exports, raise German wages and prices and reduce the trade imbalance within the eurozone. The increase in peripheral country net exports would also raise their gross domestic product and so reverse their recessions that were caused by higher taxes and cuts in government spending. That would make it politically easier to achieve the needed fiscal consolidations. And shifting from recession to growth would raise business incomes and employment, reducing the volume of bad loans and mortgage defaults now hurting the banks." (24/07/2012)

» full article (external link, English)
More from the press review on the subject » Fiscal Policy, » Financial Markets, » Europe
All available articles from » Martin Feldstein
Who's saying what » Ways out of the debt crisis, » Greece puts the Eurozone to the test, » Spain in the banking crisis

The web portal tvxs believes that Greece's European dream is about to end and that the only thing left is for Greece to brace itself for the fall: "Despite their election promises, the political forces that won in the last elections have chosen not to broach the issue of Greece's problems in Europe and not to fight for a fundamental change in the IMF's catastrophic treatment of Greece since 2010. As a result they have wasted their last chance - but also Greece's last chance. It is only a matter of time before Greece is thrown out of the Eurozone. ... In view of international developments the government needs to get serious and prepare the country to make the exit from the Eurozone as painless as possible. Owing to its own mistakes and those of Europe, Greece's European dream has failed to come true again. Greece should lick its wounds, learn from its mistakes and embark on a new political course." (24/07/2012)

» full article (external link, Greek)
More from the press review on the subject » EU Policy, » Domestic Policy, » Fiscal Policy, » Greece
All available articles from » Kouloglou Stelios
Who's saying what » Greece puts the Eurozone to the test

Sweden's healthy state finances mean it is currently paying almost no interest on government loans. The liberal daily Dagens Nyheter sees this as a huge chance for the government to boost the economy through sound investments:  "In a situation in which already high levels of unemployment are rising further and in which the euro crisis seems to be getting worse, the state needs to invest in the future. Due to the low cost of borrowing this would be inexpensive and would boost business activity and gear up the economy for the future. More expansive policies would also have a positive influence on other EU countries. It is only fitting that states that have this opportunity should boost their economies in bad times. We should therefore get the ball rolling on economically sound infrastructural projects, whether this means extending the Swedish power grid, improving rail transport or building a new underground system." (25/07/2012)

» full article (external link, Swedish)
More from the press review on the subject » Fiscal Policy, » Economy, » Sweden
Who's saying what » Ways out of the debt crisis

Following the ruling by a court in Cologne, Germany, to ban circumcision for religious reasons, Markus Wallner, a member of the conservative Austrian People's Party and head of government in the Austrian state of Vorarlberg, has spoken out in favour of also banning circumcision in Austrian hospitals. This is not only a symptom of his party's cooperation with the right-wing populist Austrian Freedom Party, but of the conservative mainstream, the left-liberal daily Der Standard contends: "The question of whether removing the foreskin of minors constitutes bodily harm is certainly debatable. The line Austrian hospitals take on this varies, and the Ministry of Justice is unwilling to give an assessment. ... But the problem in Vorarlberg goes deeper. The Austrian People's Party and the Austrian Freedom Party obtained a three-quarter majority in the local parliamentary election of 2009 - and are using it to resolutely impose their conservative views. It's not just minarets and circumcision that are at issue here; not a single hospital in the entire state carries out abortions, forcing women to make long journeys - or resort to backstreet abortionists." (25/07/2012)

» full article (external link, German)
More from the press review on the subject » Domestic Policy, » Religion, » Minorities, » Germany, » Austria
All available articles from » Michael Möseneder

Young people in Lithuania face the same problem every summer: holiday jobs are thin on the ground. The problem lies in the government's absurd over-regulation, complains Rūta Vainienė, an expert with the Lithuanian Institute for Free Market Economy, on the online portal of Lithuanian broadcasters LRT: "Young people aged 14 to 16 are only allowed to do the 33 types of light work stipulated by the government. This includes collecting fir cones that have fallen to the ground, but not washing cars. They are allowed to clean rooms but only in child care facilities. Why young people are not allowed to clean offices or toilets remains a mystery. They are allowed to sort clean washing in laundry services but not to touch dirty washing. They can herd cattle, but not breeding cattle. And so the list goes on. And employers have to comply with countless requirements in order to employ young people. Yet these are the sort of things you would expect when it comes to putting a child into kindergarten, not employing a young adult." (24/07/2012)

» full article (external link, Lithunian)
More from the press review on the subject » Labour, » Economy, » Lithuania
All available articles from » Rūta Vainienė

The Summer Olympics begin in London on Friday. The left-liberal daily El País highlights the fact that for the first time, all national delegations include women: "The adjective 'historical' has been used so often in connection with sport that it has lost all meaning. And yet this time one can say even before the event begins that the London Olympic Games will go down in history, because for the first time there are women in all delegations. It was an uphill struggle but international pressure forced four previously reluctant countries to accept female athletes in their delegations: Kuwait, Qatar, Brunei and Saudi Arabia. … However it remains a tragic fact that after the games these women will return to their countries to battle with the same difficulties they have always faced in their everyday lives." (25/07/2012)

» full article (external link, Spanish)
More from the press review on the subject » Sport, » Gender equality, » Olympics, » United Kingdom, » Global, » Middle East