EU – Page 72 – Slugger O'Toole

Euro crisis: “If fiscal union is not on the cards, the only other option is eurozone breakup”

Pete Baker on June 13, 2011, 3:35 pm

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In the Irish Times, Dan O’Brien provides a bleak assessment of the Greek problem at the heart of the current euro crisis. From the Irish Times article The chances of things getting worse are high. Societal strains and rampant corruption do not in themselves cause economic weakness – just look at China and India – but they don’t help. Alas for Greece, even if both problems were to disappear tomorrow there is little reason to believe its economic rot would stop. …

Euro crisis: “it is the fear of the unknown that is holding sway”

Pete Baker on June 8, 2011, 4:46 pm

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Frau Bundeskanzerlin has been to Washington, to pick up her Presidential Medal of Freedom. And to smooth over the ruffled feathers of that transatlantic relationship. As he handed over the medal, US President Barack Obama warned of the danger of the Euro debt crisis impacting the global economy, and in particular, the US economy. He might be looking for a handy scapegoat in the months ahead… But as, still everyone’s hero, Robert Peston points out “America’s banks would seem to have a good …

Euro crisis: “the right to veto some national economic policy decisions”

Pete Baker on June 3, 2011, 3:19 pm

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Further signs of dissent in Greece at the proposed terms of a new improved bail-out, and the accompanying “humiliating erosion of sovereignty”. And so far, where Greece has been led, others have followed… But, for some, every cloud has a silver lining. “Would it go too far if we envisaged . . . giving euro area authorities a much deeper and authoritative, say in the formation of the country’s economic policies if these go harmfully astray?” asked [European Central Bank president, Jean-Claude …

Euro crisis: “For all concerned, the stakes are rising rapidly”

Pete Baker on May 31, 2011, 5:21 pm

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The markets may be optimistic about reports of agreement between Greece and the EU, IMF and ECB inspectors but, as Arthur Beesley notes in the Irish Times, the cost will be “a humiliating erosion of sovereignty”. And, as he also notes in a separate report, the future remains uncertain for Greece. In view of Greece’s uncertain financing outlook over the next 12 months, the IMF is known to be threatening to refuse to release its €3 billion portion of the €12 …

Euro crisis: “categorically there will be absolutely no bailout next year in Ireland”

Pete Baker on May 30, 2011, 4:44 pm

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A series of Irish government ministers have been clarifying their position after the Minister for Transport, Leo Varadkar, appeared to suggest that a second bail-out could be required for Ireland next year. Minister for Finance Michael Noonan “The programme is due to run until the end of 2013 and the start of 2014 and there is sufficient money in the programme to meet all eventualities so categorically there will be absolutely no bailout next year in Ireland,” Mr Noonan stated. “The …

Euro crisis: “Politicians have become sheep, not leaders”

Pete Baker on May 28, 2011, 5:05 pm

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In today’s Irish Times Paul Gillespie returns to the topic of the political dynamics in play at European and national levels during this euro crisis. From the Irish Times article Ireland is doubly unlucky. Not only is France prepared to play hardball, but there is also no good reason for it to calculate its interests are being damaged by Ireland’s corporation tax rate to any real extent. It is impossible to get a good explanation from any French person as …

Tweet of the Day (ah, well, yesterday)…

Mick Fealty on May 27, 2011, 11:04 am

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From my old mucker from Queens, Ciaran O’Kelly (in response to a question I asked on Slugger’s Facebook page): Dear @SluggerOToole: Ireland is NOT A PLC. (it is a wholly owned subsidiary of its past). You can follow Ciaran on @ctokelly…. Mick FealtyMick is founding editor of Slugger. He has written papers on the impacts of the Internet on politics and the wider media and is a regular guest and speaking events across Ireland, the UK and Europe. Twitter: @MickFealty

Euro crisis: “everyone thought everyone else would back down at the last minute…”

Pete Baker on May 25, 2011, 7:30 pm

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Writing in the Guardian, Paul Mason covers similar territory to my post last night [But in a more coherent manner? – Ed]. You might very well think that… ANYhoo… He opens with this In the summer of 1914 the Austrian novelist Stefan Zweig was on holiday in Ostend with fellow writers and artists. One afternoon, noticing the sudden appearance of uniformed soldiers on the promenade, they buttonholed an officer: “Why all this stupid marching around?” It was 3 August: war was …

Euro crisis: “Europe has been producing its usual cacophony of voices in the past few days”

Pete Baker on May 24, 2011, 9:20 pm

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BBC Europe editor, Gavin Hewitt, has been looking at Spain in the aftermath of defeat for the prime minister José Luis Rodríguez Zapatero’s ruling socialist party in municipal and regional elections. From Gavin Hewitt But nerves are back. In weekend elections the governing Socialist party took a thrashing. Even in strongholds like Seville and Castilla-La Mancha it was defeated. There is a pattern emerging in Europe. Given a chance, the people turn on the incumbents. In Spain national elections do not …

“Hungover people do not go out and riot.”

Pete Baker on May 22, 2011, 4:31 pm

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Writing in The Observer David Sharrock has been wondering “why are there no barricades on the streets of Dublin?” For his part, Tóibín thinks that all economists are mad. But he can agree with Philip Lane, professor of international macroeconomics at Trinity College Dublin. The two certainly share an explanation of the public mood, this sense of confusion and despair that is not being converted into street protests. According to Lane, shame is at the root of the Irish reaction. …

“Now there’s the healthy option of simply getting on with the neighbours.”

Pete Baker on May 21, 2011, 11:12 pm

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In contrast to John’s northern cynicism, in the Irish Times Fintan O’Toole is optimism personified on the impact of the visit of Queen Elizabeth II to Ireland [Keep the noise down in the attic, please – Ed]. Indeed. From the Irish Times article The combination of all of these factors made the visit an oddly liberating occasion. No one would have thought that the British queen could free Ireland, but she did help to free us from the crippling insecurities of …

“I’m sure the Queen, who must feel a bit constrained in her day job, will understand the tug.”

Pete Baker on May 20, 2011, 3:19 pm

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The Guardian’s Michael White covers a lot of ground in his post at the Big G’s Politics blog – including the crisis in the eurozone. But here’s a, lengthy, excerpt to start with. If Gaelic had a word for chutzpah (perhaps it does?), the Sinn Féin president, now an Irish TD (MP), would win the chutzpah prize every time. He was on his best behaviour for the Queen’s trip – even he can see it has been a modest success. …

Euro crisis: “When it becomes serious, you have to lie.”?

Pete Baker on May 19, 2011, 3:55 pm

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Another article, to add to those noted by Mick, on the wider economic and political considerations being argued in the eurozone. At the Guardian, Nuno Monteiro and Eduardo Sousa warn While a growing number of analysts recognise the likelihood of sovereign-debt defaults across Europe’s periphery in the next few years, the continent’s political and financial elites continue to see restructuring as the third rail of financial options. Despite all signs that the euro may be set on an implosion course, the EU …

“You are a sinner state and you were punished by the markets, not Germany”

Mick Fealty on May 18, 2011, 3:38 pm

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Joe Stiglitz, David McWilliams and two other economists at the Google Zeitgeist European event, ably chaired by Stephanie Flanders… Really really good conversation. There’s a few good ideas flying around in there… Some classy needling between McWilliams and the German guy, out of which the title is just one memorable quote… Read also: – Larry Elliott in the Guardian… – Martin Wolf in the FT… – Joe Stiglit and Michael Cragg in the Irish Times… – And Pete on how …

Euro crisis: “It would raise incredible doubts about our credibility if we simply were to change the rules…”

Pete Baker on May 17, 2011, 3:45 pm

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With EU finance ministers pondering the future for Greece, and European officials publicly disagreeing on the possiblity of the rescheduling/restructuring of sovereign debt, Frau Bundeskanzerlin has decreed that there will be no sovereign default in the euro zone before 2013. As ministers prepared to tackle the increasingly precarious financial situation in Greece, Dr Merkel made clear her resistance to any debt restructuring by the country. Addressing students in Berlin, Dr Merkel said private sovereign creditors should not bear losses until …

Moldova was robbed!

Pete Baker on May 15, 2011, 6:15 pm

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In the end, Azerbaijan won Eurovision 2011. Jedward finished a creditable 8th and Blue managed 11th place. But how could anyone have failed to award the gloriously bizarre Moldovan entry, So Lucky by Zdob și Zdub, a well deserved douze points! Enjoy. Pete Baker

Euro crisis: “This requires a political as well as an economic understanding of the dynamics in play at European and national levels”

Pete Baker on May 14, 2011, 8:57 pm

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In identifying three alternative European solutions, rather than the “lethal injection” of unilateral action by Ireland, Paul Gillespie in the Irish Times highlights the wider issues in play. IRELAND BADLY needs a strategy to handle the euro zone crisis, rather than reacting defensively to all its latest twists and turns. This requires a political as well as an economic understanding of the dynamics in play at European and national levels. Most economists here are ill-equipped to provide this because they take …

EU crisis: “the question is whether all this can be kept under control.”

Pete Baker on May 13, 2011, 9:13 pm

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EU leaders will discuss the proposed revision of the Schengen agreement at a summit next month, as prompted by France and Italy – although the Guardian reported that, at a meeting of EU interior ministers, “15 of the 22 EU states which had signed up to Schengen supported the move, with only four resisting”. Meanwhile, the European Commission President, José Manuel Barroso, has written a strongly worded letter to the Danish prime minister, Lars Lokke Rasmussen, warning against the Danish Government’s proposals to unilaterally re-introduce …

“We can’t separate Denmark’s announcement from the wider context of what we’ve been seeing the past few weeks”

Pete Baker on May 11, 2011, 11:02 pm

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Another example of domestic political pressure potentially impinging on the “European project”. This time in Denmark, a member of the Schengen zone, where the government has announced the re-introduction of border guards and spot checks “designed to fight crime and illegal immigration”. From the Wall Street Journal report In Denmark, the issue of tighter border control has become a political bargaining chip. The governing center-right minority government, which consists of a coalition between the Conservatives and liberal-right party Venstre, wants to …

Robert Peston: “it will be squeaky bum time in government buildings all over Europe.”

Pete Baker on May 11, 2011, 2:54 pm

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The BBC’s business editor, and still everyone’s hero, Robert Peston, identifies the reasons why Europe continues to prescribe medication, rather than opting for untested, and risky, surgery. At least for now. From the Peston’s Picks blog There seem to be three reasons. First, in Germany, it is apparently politically more acceptable to provide rescue finance to Greece directly than to rescue German banks that foolishly and greedily bought Greek debt for its relatively high yield. Second, a Greek debt restructuring would …