While Macro Man opted to present a po(p)etic styling on the ongoing hardship in Greece (or was that Grease?) today came with a couple of notable developments in the story and would seem to be honourable and real efforts to calm down markets. Obviously, it is difficult to tell whether this is a true attempt to save Greece from what increasingly looks inevitable or whether it is an attempt to make sure the debacle does not turn out to be a Eurzone rout. In any case, action it seems is entering the stage on the cost of fiddling. Continue reading
Monthly Archives: May 2010
Spain’s Unemployment Problem
Well, according to a popular urban legend, Spain’s unemployment rate – which is the second highest in the EU after Latvia – is currently running at something just a touch over 20%. Or is it? The unemployment problem I wish to address here is not the one of how to get to grips with actually putting all these people back to work, rather it is that of untangling what exactly Spain’s real EU harmonised unemplyment might be, since, to say the least of it, some strange things have been happening in recent months. Continue reading
Only drinks water from the source of the Cherwell
I’m still busy not following the election, but I couldn’t help noticing that the Daily Telegraph agrees with my analysis of how things work in British public life. The difference is that having a leadership caste is AOK in their book, hence their careful observance of all the appropriate hagiographic tropes. Read it here: ‘David Cameron: born to be prime minister’.
Update: Gordon unblocked. If only you’d started like this.
Orange sunset?
So, President Yanukovych. I don’t always agree with the folks at Foreign Policy, but I think they nail this one:
Ukrainians were absolutely correct to stand up and defend their democratic rights back in 2004. Yanukovych and his party were guilty of egregious election fraud. Moscow supported Yanukovych so openly, and so brutishly, that some Ukrainians presumably ended up voting for his opponent out of sheer spite.
But let’s face it. The record since then hasn’t exactly been an exercise in the glories of Ukrainian democracy. No sooner had Yushchenko and Tymoshenko achieved power (as president and prime minister, respectively) than they began to indulge in a feud that essentially paralyzed Ukrainian politics for the rest of Yushchenko’s term. The result was a long list of non-accomplishments. Kiev-based commentator Mykola Riabchuk, an ex-supporter, ticks off the list: “He failed to bring Ukraine closer to Europe,” thus frustrating one of the central demands of the Orange demonstrators. “He failed to separate business and politics” — another key disappointment for a country where a tiny group of business tycoons wields power constrained only by their competition among themselves. No sooner was the new president elected, Riabchuk notes, than he appointed several of his oligarch supporters to ministerial positions.
Small wonder, then, that Yushchenko didn’t make much headway against Ukraine’s fantastically stubborn culture of corruption. Last year global corruption watchdog Transparency International gave Ukraine a ranking of 146 on the group’s notorious “Corruption Perceptions Index.” To offer some context, that was the same rating achieved by Zimbabwe, Sierra Leone, East Timor — and, oh yes, Russia. In 2004, when Yushchenko scored his great victory, Ukraine’s ranking was 122. “I don’t think that’s changed, and no one’s tried to change it,” says David Marples, a Ukraine-watching history professor at the University of Alberta. “In Ukraine the corruption goes right down to the village level.”
Yushchenko turned out to be a pretty big disappointment all around: stubborn, clumsy, tone-deaf, and obsessed with internal rivalries. He got eliminated in the first round this time. The runoff election was between Yanukovych — a former petty criminal who seems unable to string three coherent sentences together — and the equally horrible Julia Tymoshenko. Under the circumstances, it’s hard to blame the Ukrainians for choosing Yanukovych. (N.B., while the 2004 elections were marred by gross fraud, this year’s elections seem to have been pretty clean.)
So far, Yanukovych’s young administration is interesting for two things: what he’s done, and what he hasn’t.
What he’s done: Yanukovych has swerved Ukraine sharply closer to Russia. Continue reading
What A Difference A Day Made!
According to a once famous statement by the British Prime Minister Harold Wilson, a week is often a long time in politics. But when it comes to financial market crises we seem to follow a pattern more reminiscent of a line from the Dinah Washington version of an old MarÃa Méndez Grever song: “What a difference a day made”. The day in this case was last Wednesday, at least for those of us here in Spain, since it was on Wednesday that the ratings agency Standard & Poor’s downgraded Spanish Sovereign debt to AA from AA+. As a result the cost of insuring such debt using credit default swaps (CDS) surged at one point to a record 211 basis points according to CMA DataVision prices. Contracts on Greece and Portugal also rose sharply, with Greece climbing 42 basis points to hit 865.5, while Portugal jumped 20 to 406. Continue reading