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The Euro keeps on climbing

The Euro keeps on climbing

 

The euro reached a record high exchange against the dollar on Thursday, July 12th, at $1.3798, after having already set a record last Tuesday. The European press sees no danger in this rapid appreciation and continues to endorse the independence of the European Central Bank (ECB) to set the course of interest rates. » more

With articles from the following publications:
Cinco Días - Spain, Le Figaro - France, Jyllands-Posten - Denmark, The Economist - United Kingdom

Cinco Días - Spain

"The euro is the European project's biggest success of the last decade", writes Miguel Ángel Aguilar. "Today, the euro has attained a record exchange with the dollar, it has been adopted for all sorts of international transactions, and the list of countries who want to replace the dollar with the euro is growing. Nothing is left of the arguments of those who opposed the common currency. ... Little by little, the euro has attained parity with the dollar, and has continued to progress, with some natural variations, right up to the current level of $1.37, which marks a new record. But even this evolution, which contradicts all the previous dark predictions, doesn't discourage those who forebode dark times ahead, who see nothing but the disadvantages of the appreciation of the European currency." (13/07/2007)

Le Figaro - France

Stéphane Marchand takes issue with Nicolas Sarkozy's attitude towards the supercharged euro. "The euro is too strong in relation to other currencies, exports have plateaued, growth is stifled and the European Central Bank [ECB] would be well advised to reduce interest rates to open up some breathing room. ... This is the substance of what Nicolas Sarkozy says, and its what public opinion in France likes to hear. The head of state is very alone in his analysis and the other leaders of the eurozone, led by Angela Merkel, are perplexed, even agitated: why does the French president persist in portraying the economic situation in such a different way? ... Since the launch of the euro, a zone has formed that has more than 12 million employees - 3 million more than the United States. ... At a time when France has come back to the European stage, thanks to a simplified treaty, the anti-ECB charge risks to turn it back in on itself." (12/07/2007)

Jyllands-Posten - Denmark

The newspaper warns of the European Central Bank's (ECB) plans to raise interest rates. "The European Central Bank is a relatively young institution, and as such it unsurprisingly has both the desire and the duty to prove that it's more than just the extended arm of Europe's politicians. But when ECB President Jean Claude Trichet indirectly threatens to raise interest rates just because the new French president has announced he doesn't want to stick to the EU's economic regulations, one has to ask whether perhaps the bank's independence complex is not gaining the upper hand against common sense... A stronger euro, which would be the direct consequence of a further increase in interest rates, would be a terrible blow to Europe's competitiveness. For this reason the ECB should suppress its desire to demonstrate its independence by increasing interest rates." (12/07/2007)

The Economist - United Kingdom

"Mr Sarkozy's calls for a 'European economic government'. This remains a mushy concept. ... As far as the Eurocrats can make out, economic government means giving elected national politicians the last word over broad swathes of EU economic policy, including the exchange rate and budget discipline, while not actually scrapping such totems as the independence of the European Central Bank (ECB)”, writes the weekly. "Mr Sarkozy will face resistance if he seriously pushes for greater political oversight of economic policy, starting with the ECB's mandate to concentrate on price stability. In the words of one senior Eurocrat: 'Putting exchange rates at the service of growth comes very naturally to the French, … but it sends a shudder down German spines, because it makes them think of runaway inflation.' In German memories, inflation helped to pave the way for Nazism, meaning that price instability can be a threat to democracy itself.” (12/07/2007)

REFLECTIONS

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Süddeutsche Zeitung - Germany

Tobias Moorstedt on listening to the radio in the future

Tobias Moorstedt reflects on how the way people listen to music is changing owing to "learning" radio websites like Last.FM. With this social platform the user can "train the radio like a pet by either praising or banning the songs played, using heart or stop-sign icons, thus teaching the computer about his taste in music." But Moorstedt also points out that the likelihood of making an unexpected discovery dwindles. "Even a programme that 'thinks' needs an intelligent user. The complex nature of human tastes can only be poorly simulated by yes-and-no hits and comparative indicators. This means the user has to work hard even with Last.FM. He has to take note of things, listen, and ponder each decision, because once you ban a jazz song you won't hear anything similar for a long time. The electronic sorting machine can define your selection too narrowly. Although the computer gives us access to all the sounds in the world, at the same time it is the barrier that protects us from all this diversity; a data filter with a high protection factor." (13/07/2007)

La Stampa - Italy

Gianni Oliva thinks Italy should come to grips with its past

Writer Gianni Oliva reflects on the role of Americans in Italian history. Does the landing in Sicily toward the end of the Second World War make them "invaders or liberators? Allies or enemies? After the war, our national memory celebrated the anti-fascist Italy, the resistance, the country that won alongside the Americans. We are stuck in this interpretation, in which the Americans are the allies of the antifascists and the resistance, who were, in reality, only a minority. Our country thus felt exempt from a real reflection on its past. ... There are very few studies of this period of our history and on the landings. The period that runs from the first American landing in 1943 up to the end of the war in 1945 is still the subject of national debate today. ... Maybe we still haven't confronted it correctly, not from the perspective of a victorious country, but as a defeated one." (13/07/2007)

POLITICS

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The Guardian - United Kingdom

The Pope beats his chest 'like King Kong'

Simon Jenkins humorously reacts to "this week's declaration by the Pope that the Church of England and other denominations are 'not proper churches'. ... Who is this joker in Rome claiming supremacy via the greatest con in Europe's intellectual history, the 1870 Vatican council's invention of papal infallibility. Listen, Pope, I am inclined to say, two can play at infallibility. ... There is no textual justification for Benedict's exclusivity. It recalls the megalomania of [Pope] Boniface VIII [who reigned from 1294 to 1303], who made such outrageous claims of supremacy that monarchs and even cardinals stopped listening, culminating in the schism of 1378 and eventually the Reformation. In saying that only Roman Catholicism is a 'church', the Pope is merely redefining the word to suit his position. He is climbing to the top of Michelangelo's dome and beating his chest like King Kong." (13/07/2007)

Magyar Narancs - Hungary

Gábor Szetey on homophobia in Hungary

Hungarian Secretary of State Gábor Szetey has become the first Hungarian politician to publicly announce his homosexuality - in a speech delivered at the Gay Festival in Budapest. The press is calling Szetey (39) a hero. However, the festival came to a violent end. Right-wing extremists attacked demonstrators at the gay parade. In an interview with Szilvia Szilágyi, Szetey comments. "There is a small but vocal group of right-wing extremists which is intent on offending everyone... According to a survey, 51 percent of the respondents thought my speech was courageous and that it would improve the situation for homosexuals. It's strange that the Conservatives, who attach such great importance to neighbouring states giving their Hungarian minorities equal rights, couldn't care less about equal rights in their own country." (13/07/2007)

Le Monde - France

Sarkozy and Brown, the new power couple

Writer Thomas Ferenczi reflects on the couple formed by the new leaders of Britain and France. "Gordon Brown, Tony Blair's successor, was born in 1951, and Nicolas Sarkozy, who took over from Jacques Chirac, in 1955. They are part of the same generation, born after the war, that isn't burdened by the weight of the old ideologies. ... Today, their time has come. They stand ready to face the future. The future of Europe depends, in part, on their collaboration. ... Will they be capable of establishing a confidence that overcomes the battles of the past? Nothing is less sure. Each one is a 'nationalist'. ... Both promote the idea of 'national identity' defined by values and not by ethnic affinity. This shared conviction doesn't predispose them to sympathise with the European spirit. It has to be said that they don't have the same idea of Europe, nor of how it should face globalisation." (13/07/2007)

ECONOMY

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Népszabadság - Hungary

Protectionism in Europe's energy sector

The Hungarian oil and gas company MOL is trying to fend off a potential takeover by Austrian state-owned giant OMV. The Hungarian government is helping MOL to buy back its own shares. László Varró writes that in this particular case protectionism is justified. "The takeover of MOL by OMV would be anti-liberal because a state-owned company would be taking over a private company. A market structure based on free competition would thus be monopolised. Hungary's modernisation and energy security would suffer as a result. In Hungary we often hear that it's against European practice for politics to prevent a takeover, but even Margaret Thatcher, the figurehead for conservative fans of the free market, used her veto power to prevent BP being taken over by a state-owned company from Kuwait." (12/07/2007)

CULTURE

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La Libre Belgique - Belgium

Is Tintin a racist?

The British Commission for Racial Equality (CRE), an official organisation that fights racism, called one of the celebrated Tintin comic books, 'Tintin in the Congo', "blatantly racist". The CRE recommended that British bookstores "reflect seriously before selling this comic book." Guy Duplat argues against this advice. "Ah! Classic Albion! Not only do they alienate us by driving on the left, playing better football than we do, and hosting the start of the Tour de France, but, voilà, they're now attacking the most important Belgian symbol: 'Tintin in the Congo'. A hundred years ago, London was criticising Leopold II's [King of Belgium from 1865 to 1909] colonial prowess and wouldn't stop (perhaps with good reason) maligning his African projects. The English prosecution has never stopped, right up to the recent publication of a very well written book accusing our Sovereign of genocide." (13/07/2007)

Dilema Veche - Romania

No more icons in Romanian classrooms?

Icons often feature prominently in Romanian classrooms, but they may soon disappear. A court has upheld a complaint submitted by a Romanian anti-discrimination authority according to which religious symbols have no place in classrooms. Mirel Banica comments on the icon crisis. "We are seeing that highly respected Romanian intellectuals have a problematic attitude towards orthodoxy: they are not afraid to directly criticise the Romanian Church and its shortcomings and defend at the same time the interests of the Church and its most important identifying symbols, such as the icons. In Romania there is no open criticism of the Church, as is generally the case in the West. Western sociologists are amazed at this; they capitulate in the face of the interpretation of orthodox religiosity. For them, the relations between civil society, the Church and the state in orthodox societies are a paradox." (13/07/2007)

Hospodářské noviny - Czech Republic

Barandov's sinking star

Up to now the Czech Republic, and in particular Prague's Barrandov film studios, have been well-known as a good shooting location among foreign filmmakers. But this could soon change, writes Irena Zemanova. "The country is becoming too expensive. Hollywood producers already are starting to go to other Central and Eastern European countries. Hungary, Romania, and even Germany, the Netherlands and Great Britain offer better tax incentives. In 2003, film companies invested more than five billion Czech crowns [176 million euros] in film productions in the Czech Republic. By 2006 that figure had sunk to just 1.3 billion crowns [45 million euros]." (13/07/2007)

LOCAL COLOURS

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ABC - Spain

Sunken treasure causes a diplomatic row between London and Madrid

The Spanish civil guard boarded a ship owned by the American treasure hunting company Odyssey off the coast of Gibraltar on Thursday, July 12. London, which controls Gibraltar, called the arrest illegal. Madrid wants information on a treasure of 500 000 silver pieces, found last May by Odyssey in the same waters. José Maria Lancho writes that Odyssey manipulates London and Madrid who dispute the waters around Gibraltar. "Odyssey is looking to put an end to the judicial and cultural wrangling and replace it with an international crisis. A few days ago, we confirmed that Odyssey hadn't fulfilled all its legal obligations to hunt for treasure. Today, we are witnessing an effort to return to the eternal political problem of Gibraltar. ... During all the talk about Gibraltar and territorial waters, the destruction wrought to the historical artefacts of mankind by those tasteless people is never brought up." (13/07/2007)

BRUSSELS SPROUTS

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Neue Zürcher Zeitung - Switzerland

How the EU helps people cross borders

Brussels correspondent René Höltschi reports on the EU's problem-solving network Solvit, to which EU citizens have been able to turn for five years now with complaints about the restrictions of the domestic market. "The Chinese wife of a British citizen was denied a visa so she could accompany her husband to Denmark, because she couldn't produce a Danish recommendation confirming the reason for her visit. Following Solvit's intervention, the Danes granted her a visa and promptly corrected their visa regulations... Such cases are less spectacular than the big battles being fought by the European Commission against the protectionist measures of individual member states - from Germany's attitude towards Volkswagen to Spain's relationship with its energy sector. But to achieve a genuine domestic market, such minor cases could turn out to be just as important in the long term. Because it's often the daily paperwork which - whether for protectionist reasons or as a result of bureaucratic thoughtlessness - makes a farce of the domestic market." (13/07/2007)

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