Doha Adieu?

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Steve Clemons, who’s quite adept at reading the Washington tea leaves, writes that the Doha round of trade negotiations is effectively over.

Why? For most of the present US administration, Bob Zoellick had been the US Trade Representative. Zoellick was an old hand, wise in the ways of both trade and Washington. But when Condelezza Rice was appointed Secretary of State, Zoellick went over to become her deputy. His successor, Rob Portman, was a Congressman from Ohio who had been involved with the nuts and bolts of trade legislation for many years. He was serious and experienced, with friends on Capitol Hill. Now Portman has resigned as Trade Representative to head the Office of Management and Budget; a bigger responsibility, but not connected to trade.

The upshot is that the USTR position will now be empty for some time, the current president’s authority to negotiate agreements that the Congress cannot amend is expiring soon, and the administration sees little hope of progress in the Doha round before it leaves office. Looks like it could be the end of the line for Doha.

Irritations Over Holocaust Records

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By Craig Whitlock, of the Washington Post

Boxed away in a former Nazi SS barracks in this central German town is the core of one of the largest collections of historical documents from World War II. All told, the archive contains 50 million records that list the names of 17.5 million people, including concentration camp prisoners, forced laborers and other victims of the Third Reich.

For 60 years, the International Committee of the Red Cross has used the documents to trace the missing and the dead, especially those of the Holocaust. But the archive has remained off-limits to historians and the public, fueling an increasingly bitter dispute among Holocaust researchers, Jewish groups and the 11 nations that oversee the collection.

Premature Evaluation, pt. 4 (The Hungarians)

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I suppose I should be happy that there is a recent, one-volume general history of the Hungarians. Their history is not exactly the stuff of bestsellers, even if Hungarians were crucial in everything from computers to the atomic bomb to Hollywood studios. Ten million people, give or take, speaking a non-Indo-European language in and around the Carpathian basin. Their exact origins unknown, their polity long divided, their armies prone to getting wiped out.
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Easter Monday in Berkeley.

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While most of Europe is still busy eating the chocolate eggs we managed to find yesterday, Brad Delong is back in his office, demonstrating on video that it takes a really, really huge mug of coffee to get through the day of a Berkeley research professor. In addition, he also shares some thoughts about his lunch plans and the equity premium puzzle…

Euro in trouble?

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English weblog England Expects has an intriguing post on the vitality of the euro. More precisely, about its lack of vitality:

For the first time, an official French report has criticised the Euro. Indeed, the latest report of the Council for Economic Analysis (CAE) given to the French government on 23 March, “Economic policy and Growth in Europe” and written by Philippe Aghion, Élie Cohen and Jean Pisani-Ferry, draws up for the first time a really tough assessment on the single currency and the actions of the Euro zone.

I have no time to comment, as usual, but the report is definitely worth a read (308 pages). Teaser:

“Economic integration has stagnated and no longer promotes growth. The euro’s creation has not produced the knock-on benefits expected. The increase in trade has been relatively modest and financial and credit markets remain segmented. The single currency even seems to have had a “numbing” effect on the EU members, which no longer need to protect against a foreign-exchange crisis and have become complacent in their efforts to control spending and make structural reforms. Moreover, the euro area’s macroeconomic framework has become obsolete. Furthermore, the Lisbon strategy has become bogged down in procedures and has degenerated into rhetoric. This is because it doesn’t have the means to achieve its objectives, since EU-members remain responsible for supply-side policies and the political economy of reform is still mostly national.”

You can find the report here (pdf).

Putin’s Price

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Without support from Russia, Belarus’ authoritarian leader, Alexander Lukashenko, would have a much more difficult time staying in power. A substantial share of recent economic growth in Belarus has come from the difference between the below-market prices it pays for oil and natural gas from Russia and the world-market prices it receives for refined products and for oil and gas transported to Western markets. But now the bill for Putin’s backing is starting to come due.

According to reports in the Russian newspaper Kommersant, Russia is demanding a share of the revenue that Belarus receives for the gasoline it exports; this gasoline is refined from Russian oil that is imported at subsidized rates. The Russian demand is estimated at roughly EUR 900 million, a not insignificant sum for a poor-ish country like Belarus. Furthermore, Gazprom, Russia’s state-owned natural gas monopoly, is tripling what it charges Belarus for gas beginning in 2007. Gazprom also wants control over the Belarusian company that transports gas through the country to Western Europe. Negotiations on these last two items are set to start in early May, but it’s hard to see what cards Belarus holds. Lukashenko will pay the price for Russian support.

Italian Elections, Now The Serious Part Starts

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At the time of writing Berlusconi is still filibustering, but it seems to be simply that, rather than any serious attempt to derail the outcome of the electoral process. Meantime the financial markets are adapting themselves to the new reality.

I too am gearing myself up for what looks like being a very bumpy ride ahead. I have dusted off some of the rust from an old weblog I used to maintain – Italian Economy Watch. Many of the posts I have been putting up are simply recycled versions of material which has appeared here at Afoe, but it does at least serve the useful purpose of keeping all the posts tidily in one place. Recent posts include The Future Of Italy’s Young, Addio, Dolce Vita, Or Twilight of the Idols?, Italy Had Zero GDP Growth In 2005, Les Jeux Sont Faits, and The Italian Government Has A New Crisis.

But talking of new crisises, I fear Italy has a pretty old one (puns intended), and the ratings agencies are only just starting to get their minds round the problem.
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Senate: 158-156 Prodi

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Corriere della Sera is now reporting that the Italian Senate is breaking 158-156 to the Left, with the lower house going 340-277. The controversial six seats for Italians abroad, introduced by neo-well actually quite-fascist minister (a former member of the Salo Republic’s army) Mirko Tremaglia, seem to have backfired badly on their inventor, with 4 out of 6 going to the Left (German link) and pushing them over the hump.

The Italian right was so keen on those seats that Forza Italia appeared on the overseas ballot as “Italians Abroad with Tremaglia”, which sounds to me at least worryingly like a support group for sufferers of some sort of embarrassing disease. Still, all’s well that ends well, which is probably not what the mafia boss of bosses Bernardo Provenzano is saying right now, having been busted after 40 years on the run. Not that I’m saying there was any connection..

It still might not end well, though, as Berlusconi is babbling about a government of technocrats (German), presumably as a way to stay in office and out of jail a while longer. That could happen either on the basis of a grand coalition (which the Communists are pledged to reject) or alternatively, by somehow dodging the election results.

Market Watch: The MIBTEL has given up some of yesterday’s gains, down 0.67% at 1430 local time..