There is a very interesting article in todays Financial Times. For the first time an executive board member of the ECB – Lucas Papademos – has spoken openly about the difficulties presented by having a single monetary policy for such a diverse set of economies. In fact these comments take on more significance in the light of the fact that Papademos is vice President of the ECB, and widely tipped to replace Otmar Issing as Chief Economist when Issing retires.
Continue reading
Tag Archives: member
‘Gloom’ After French Vote
The Washington Times (of all places) carries a UPI text about a Deutsch Bank research note on the economic consequences of the French ‘no’:
“France’s rejection of the European Union constitutional treaty by a majority of 54.9 percent is a severe blow to European integration and threatens to depress European economy back into eurosclerosis as in the 1980s, warns Deutsche Bank in a research analysis published Monday.”
Continue reading
No Fire Without Smoke
First a bit of ‘breaking news’ for German readers: the main factor which has lead to the massive round of cost cutting and staff reductions in Germany has not been the activity of a small group of hedge funds, the main culprit, let’s get it out of the cupboard, has been the high euro.
Whilst the contents of G7 meetings are never formally disclosed, it has been a more or less open secret that for some time now that the focus of recent meetings has been on how to overcome perceived imbalances in the global economy, and in particular how to force through ‘structural reforms’ in countries like Germany and Japan where such reforms are enormously politically unpopular. So the structural reforms have been pushed via the indirect route: making them virually inevitable due to cost pressures in export dependent economies.
Continue reading
ECB: Plus ?a Change?
The ECB met earlier today to conduct the monthly review of interest rate policy. It came as a surprise to noone that the outcome was to leave everything just as it is. Surprisingly though the decision this month is surrounded by a little more controversy than has been the case of late since Italy’s Berlusconi and economic opinion in Germany have been suggesting that some reduction of rates might be no bad thing, whilst Spain’s economy minister (and former EU commisioner) Pedro Solbes is reported to have been pushing for an increase. Why the difference?
Continue reading
We don’t have a Plan B.
Because no one has one. Well, no one has a public plan about how to handle one or more rejections of the European consitution in upcoming national referenda. But as the French referendum is approaching and the numbers do not look too good for the “yes” camp, unofficial Plan Bs are suddenly everywhere, if only to scare the naysaying Gauls into becoming responsible citizens. I know it’s common knowledge by now, but let me repeat it once more – a French “non” would be the worst case, and have possibly nuclear consequences for the EU as we know it. So scaring the voters a little seems like a reasonable approach to me.
In this vein, Bettina Thalmeyer of the Munich based Center for Applied Policy Research has put together a list of possibilities for the day after (and has published a paper about it (in German)) – hoping that it will not be May 30 (the translation and slight modifications are mine, table in the extended).
The Adams Family
I’m crossposting something I originally wrote for my own blog because I realized it’s probably of far more interest to Fistful readers than to my own.
In March I wrote in Slate about Gerry Adams and the IRA, and the theory advanced by Ed Moloney (author of the excellent A Secret History of the IRA) that the Northern Bank bank robbery in December was part of Adams’ covert strategy to force the IRA to accept peace. If that theory is true, and I’m convinced by it more and more every day, then we’re now seeing the plan unfold.
Continue reading
Agenda 2020.
New Europe?Late Thursday night, the European Council approved, as widely expected, the Commission’s recommendation to open membership negotiations with Turkey, largely without imposing additional conditions to be met prior to the beginning of the talks on October 3, 2005. “The time to start negotiations with Turkey has come,” Commission President Jos? Manuel Barroso said. Council President, Dutch Prime Minister Jan Peter Balkenende, will discuss the EU proposals Recep Tayyip Erdogan, the Turkish Prime Minister, over breakfast on Friday.
Continue reading
Ever Closer Union.
Over on Crooked Timber, Henry Farrell comments on the istitutional implications of the Buttiglione affair. While we are shocked to learn that The Economist does not like the recent self-confident behavior of the European Parliament with respect to the Commission hearings, Kieran Healy – duly apologetic – makes a fair point in the comments thread – “sorry to lower the tone of the discussion, but if he doesn?t get the job he should move to the San Fernando Valley: ?Rocco Buttiglione? is a Porn-Star Name, par execellence.” The producers of “Oral Office” will probably read this with pleasure…
Continue reading
In Search of A Lost Time
I don’t know if one day when historians come to examine what exactly happened (or should I say what went wrong) with the EU they will be able to identify that defining moment, the decisive hour, when everything went sailing down the river. If they are so able I wouldn’t mind a quick bet that it might be sometime about now. The ideal of the EU, it seems to me, is being blown away before our very eyes. Maybe the fault is with the politicians, maybe it is with the institutions, maybe it is with all of us: but this cannot be like this. Failure to advance a consensus on reform and the constitution cannot (or at least should not) let us fall back into our old ways of cynical cutting up the cake, power politics and triple alliances. We have, as I have been trying to suggest, a Euro which is about to fall apart between the competing pressures of Northern stringency (the Netherlands) and Southern laxity (Italy), while what is being proposed here will do nothing to help whatsoever.
Continue reading
Living in Denial
No this is not (yet) the title of one of my new pages (although we were looking into living in sin, but unfortunately it’s already taken). No the denial I am referring to is much nearer home for most of us, since it is up there in Brussels. “European Union nations are dragging their heels in their ambitious drive to become the world’s most competitive economy by the end of the decade” or so we are lead to believe from the EU annual survey published by the Commission on Wednesday.
This foolish piece of what the Spanish would call ‘chuleria’ (no easy translation but I suppose you could try vain self-important show-off bragging) – the pledge to overtake the US by 2010 – was adopted at the Lisbon 2000 summit. It was madness in its moment, now it looks just plain ridiculous.
Continue reading