New Year, Same Crisis
The measures introduced by the European Central Bank last December, especially the Long Term Refinancing Operation (LTRO), have relieved the liquidity problems of European banks, but have not cured the financing disadvantage of the highly indebted member states. Since high-risk premiums on government bonds endanger the capital adequacy of banks, half a solution is not enough. READ MORE
Minister of Foreign Affairs Guido Westerwelle in Washington: "Euro and the Future of Europe"
I am honoured to be the guest of the Brookings Institution today. And I am especially pleased to see so many friends of Europe in the audience.
The famous line from Mark Twain's memoirs about Wagner is also true for Europe: "The music is better than it sounds". And I say that as a great fan of both Richard Wagner and of European integration. READ MORE
Germany's top court throws out anti-euro bailout lawsuit
Germany's constitutional court has ruled that the country's contribution to the eurozone bailout fund was legal, but said parliament must have greater say in similar decisions in the future. Markets were up on the news. READ MORE
Sarkozy and Merkel meet to discuss Eurozone debt crisis
The markets are watching anxiously ahead of a meeting on Tuesday in Paris between French President Nicolas Sarkozy and German Chancellor Angela Merkel, to discuss ways to try to resolve the eurozone debt crisis. READ MORE
The Euro-American Debt Dilemma
Wealthy Europe and America, crown jewels of mixed capitalist democracies, are drowning in deficits and debt, owing to bloated welfare states that are now in place (Europe) or in the making (the United States). As Europe struggles to prevent financial contagion and America struggles to reduce its record deficits, their dangerous debt levels threaten future living standards and strain domestic and international political institutions. The ratings agencies are threatening additional downgrades; others envision an eventual breakup of the euro and/or demise of the dollar as the global reserve currency. READ MORE
Austrians doubt widespread corruption claims
Many Austrian businesspeople are questioning investigations indicating that bribery is rampant in the country, a new survey shows. READ MORE
The euro crisis shows starkly that power in the European Union has shifted from France to Germany
When the financial crisis erupted in September 2008 President Nicolas Sarkozy was quick to seize the European lead. He summoned Britain’s Gordon Brown to emergency talks in Paris. He urged Europeans to stimulate their economies. He taunted Germany’s Angela Merkel for hesitating over a stimulus plan, declaring that “France is working on it; Germany is thinking about it.” The French counted at least as much as the Germans—indeed, they were setting the pace (in part fortuitously, as France held the European Union presidency at the time). READ MORE
Europe’s Long-Term Growth Prospects
The Great Recession and subsequent debt crisis have left Europe with a deep and painful legacy. Output remains 7 percent below the pre-crisis trend; public debt levels continue to reach historic highs; banks remain fragile; and the Euro area is severely out of balance. To ensure that today’s downturn does not devolve into long-term slow growth and deflationary trends, European policy makers need to respond with far-reaching structural reforms. READ MORE
Europe’s Last Chance
The moment is ripe for Europe to redefine its narrative in order to better cope with future challenges, writes Giles Merritt, editor of Europe's World and head of Brussels-based think-tank Friends of Europe and the Security & Defence Agenda. READ MORE
The End of the Euro
How the crisis in Greece could lead to the demise of Europe's most ambitious project.
Crisis—from the Greek "krisis," for a turning point in a disease—is one of many English words we owe to the ancient Athenians. Now their modern descendants are reminding us what it really means. READ MORE
