Sarkozy: “Without the euro there is no Europe…”

That was the exaggarated claim of French President Nicolas Sarkozy as Frau Bundeskanzerlin blinked over her demand that private bondholders be made to share the burden of a ‘Greek miracle’ second Greek bail-out.  Although where that leaves the Bundestag is another matter… And now that the French and German leaders are in agreement it’s down to the Greek Prime Minister George Papandreou to forge a domestic political consensus.  Or not. A new political contract is essential for Greece to survive the current crisis. For this contract …

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

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 …

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

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 …

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Euro crisis: “The “European project” won’t go quietly into the night…”

Whilst the Irish Government waits for “the right time” to play whatever cards they think they have, Greece is still in the vanguard of the PIGS. As the BBC Europe editor, Gavin Hewitt, points out To the issue that caused a tremor in the markets on Friday: that Greece may opt to leave the euro. It has been met with fierce denials. For the moment it seems a highly unlikely option. And yet in German circles it is being discussed. In …

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“border control and Schengen governance need to be strengthened to prevent irregular migration”

In the Irish Times Arthur Beesley reports on the European Commission’s recommendations following France and Italy’s call for reform of the Schengen Agreement.  From the Irish Times Formal legislative proposals to revise the Schengen system are likely within the next two months, according a communique on migration [Home Affairs Commissioner Cecilia Malmström] issued yesterday. Her paper also calls for the relaxation in emergency situations of the rules under which applications for asylum must be processed in the EU country of first …

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“Civilised Europeans could indeed transcend boundaries – but the ‘barbarians’ would be kept resolutely beyond them.”

In the Irish Times Arthur Beesley suggests that the outcome of any review of the Schengen Agreement, as recently called for by France and Italy, will lead to tighter controls of external EU borders – at a time when non-EU countries, particularly in northern Africa,  face increasing civil unrest.  From the Irish Times report …temporary [internal EU] border controls can already be introduced under the existing regime. All that is required to waive the rules for 30 days is the declaration of a “serious threat” …

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Euro crisis: “the EU is setting itself up for failure”

In a lengthy article posted at Crooked Timber, John Quiggin and Henry Farrell argue that By concentrating on its economic problems but ignoring their political consequences, the EU is setting itself up for failure. The case for austerity does not make sense. And if the EU fails to deal with the political fallout of its own institutional weaknesses, it is going to collapse. No political body can force voters to repeatedly shoulder the costs of adjustment on their own and expect …

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Euro crisis: “The Government is due to consider a potential programme of asset disposals…”

Greece were the first of the PIGS to request a EU-IMF bail-out – with the threat of contagion, as Mack’s timeline records, leading to the construction of a wider mechanism which Ireland, eventually, availed of.  The result, according to ECB executive Lorenzo Bini Smaghi, of the “choice of economic model” by “successive governments, and their voters”. As Tim Garton Ash commented at the time, “The crisis of the eurozone has only just begun.” A year on and, as BBC Europe editor Gavin Hewitt noted …

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“What is clear is that Dublin’s perspective will not be the defining one.”

In his Irish Times European Diary Arthur Beesley sketches out the domestic political pressures elsewhere which may hinder the Irish Government’s attempt to renegotiate the terms of their bail-out. From the Irish Times article In Portugal, fellow socialist Jose Socrates talked himself into an early election a few weeks ago by failing to win support for a new austerity drive. The country is said to be in a funk of despair over the prospects of a bailout. Look northwards from Spain …

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“The net point is that Ireland’s lenders retain all the power…”

With tensions rising across Europe, in the Irish Times Arthur Beesley maps out the territory as the Irish Government prepares to attempt to tentatively restart the debate on reducing Ireland’s bail-out interest rate. As noted previously, Arthur Beesley has highlighted some of this territory before The Government’s position is not at all strong, so repeated claims that the situation is now so grave as to merit pursuing senior bonds serves to emphasise the requirement for something else to ease the pain. Important …

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Euro crisis: “If Portugal asks, we will be ready to intervene…”

To the apparent outrage of some, last night Taoiseach Enda Kenny agreed to defer seeking a conclusion to talks on reducing Ireland’s bail-out interest rate at the two-day EU summit in Brussels.  At the IIEA blog, Karl Whelan argued After a lot of fighting talk about renegotiation during the recent election campaign, the new Irish leader Enda Kenny probably feels a certain amount of pressure to come home from this summit with a deal on the interest rate. My advice, for what …

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Six Nations 2011 – Final Weekend

OK – Wales are 42 points behind England on goal difference with one game to go. So we need you to win by 41 and beat France in Paris to win the Championship. Stranger things have happened. But. Not. Often. So…Trimble and Sexton back. Zulus? Rorke’s Drift? – what’s Liam Toland on about? Come on Ireland, fix bayonets . . . “At one hundred yards! Volley fire, present! Aim! Fire!” Gatland loves George North (in for Shane). On the video: …

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“The result is a crisis in European democracy”

On the back of a survey of more than 5,000 people of working age in the UK, Germany, France, Poland and Spain, the Guardian editorialises on the future of the EU.  They’re promising a month long series of articles mapping out the social, political and economic terrain.  From the Guardian editorial The poll we publish today is taken from a sample of more than 5,000 people of working age in the five leading EU states – Britain, France, Germany, Spain and …

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Six Nations 2011 – weekend 4….

OK, it’s the big one and we have home advantage. Ireland, Just, Maybe.from the Irish Times. Gwyn thinks we’ll do it.From the Western Mail. Hooky pretty damn cool…from the BBC. At least Gatland isn’t making mischief – Nullify the ball carriers. Oh, and btw Bangladesh have beaten England. Laughed Out Loud! Update from the The Independent: Barry John could spot a gap the size of a mouse hole. So when he was sitting outside the Old Arcade pub in Cardiff’s …

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Six Nations 2011 – Week 2.

OK, we have: England v Italy and Scotland v Wales today. Tomorrow Ireland host France. Plenty on the BBC. The Guardian makes Scotland favourites. Murrayfield is not a nice place when confidence is low….some of us have nightmares about 1951 (from British Pathe – a nice site..). …7 joint leaders of our prediction contest btw. As to Ireland..it’s a moment of truth according to the Irish Times. Enjoy. DewiWelsh Nationalist. Rugby Fan. Know a bit about History and Railways…

“Yet another crucial moment in the debt drama is upon us.”

EU leaders are meeting in Brussels today, including caretaking Taoiseach Brian Cowen, and the Irish Times‘ Derek Scally has had sight of a draft paper on Frau Bundeskanzlerin’s “grand bargain”. From the Irish Times report The draft paper is low on detail but high on ambition: “to create a permanent connection between European competitiveness, growth and viable financial politics”. After presenting the broad brush strokes today, Dr Merkel wants EU leaders to discuss the detail and fill in the canvas by …

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Six Nations Prediction Contest 2011

I’ll get on to a preview later but this seemed to work quite well last year so let’s have another go. 1 point for a correct home win, 3 points for a correct away win, 7 points for a correct draw. Tie break is the total points scored in championship. Fixtures are: 1. Wales v England 2. France v Scotland 3. Italy v Ireland 4. England v Italy 5. Scotland v Wales 6. Ireland v France 7. England v France …

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Angela Merkel: “now we need more in common in our economic policies…”

EU leaders met in Brussels last week, for their last summit of 2010, and agreed the text of a “narrow revision” to the Lisbon Treaty – the conclusions of the European Council (16-17 December 2010) [pdf file]. In Taoiseach Brian Cowen’s view, “There isn’t a change of competence or a transfer of competence, so our strong view is that it is compatible with the Constitution.”  That would be without the need for a referendum.  And from the same Irish Times …

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Ireland can’t afford to bail out European banks

I think this point is worth highlighting more clearly. Below – Simon Johnson ex-CEO of the IMF – on who is owed money by the Irish banks German banks are owed $139 billion, which is 4.2 percent of German G.D.P. British banks are owed $131 billion, or about 5 percent of Britain’s G.D.P. French banks are owed $43.5 billion, which is approaching 2 percent of French G.D.P. But the eye-catching numbers are for Belgium, which is owed $29 billion – …

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German foreign minister: “German-French relations are absolutely stable.”

While frustration is taking hold in Europe over financial matters, there appears to be a [distracting?] diplomatic row brewing over France’s repatriation of Roma immigrants.  The BBC’s Gavin Hewitt noted a “fierce row” between the French President Nicolas Sarkozy and European Commission President, Jose Manuel Barroso, following condemnation of France’s actions by the EU Commission. The French President, Nicolas Sarkosy, then invoked the support of German Chancellor, Angela Merkel – only for that alleged support to be denied. But, as a BBC report noted The BBC’s …

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