In a recent article for the Financial Times, Germany’s Finance Minister Wolfgang Schaeuble finally explained to an international audience why he thinks treaty changes are necessary in order to provide “a safe legal base for a European resolution authority,” arguably the most controversial part of the banking union that euro area countries… Read more >
Please join AICGS on Tuesday, Nov. 13 for a conversation with Almut Möller, Director of the Alfred von Oppenheim Center for European Policy Studies at the German Council on Foreign Relations. Ms. Möller will discuss “The Politics of the Euro Crisis from a German Perspective.” Almut Möller is a political analyst on European integration and European foreign and security policy and the Director of the Alfred von Oppenheim Center for European Policy Studies at the German Council on Foreign Relations (DGAP) in Berlin. Prior to joining DGAP in 2010, Ms. Möller lived as an independent analyst in London, where among other activities she co-edited “Bound to Cooperate: Europe and the Middle East” (2008).
This report entitled Completing the Euro: A road map towards fiscal union in Europe, originally published by Notre Europe, explores the steps that lie ahead for Europe, specifically the euro zone area, to help get their fiscal house in order. From the introduction of a banking union to implementing the necessary measures for… Read more >
Joining the growing number of high profile warnings on the future of the European and world economies, World Bank researchers gravely take note of the euro zone’s eroding gross domestic product, which is expected to decline 8.5 percent in the coming year. Given this path, they are asking themselves “what will happen,… Read more >
Von Wirtschaftdiesnt 01/2012, ZBW – Leibniz-Informationszentrum Wirtschaft. Dr. Berend Diekmann ist Referatsleiter “Außenwirtschaftspolitik, Nordamerika, G8/G20, OECD” beim Bundesministerium für Wirtschaft und Technologie in Berlin. Christoph Menzel, Dipl.Volkswirt, und Tobias Thomae, Dipl.-Volkswirt, sind dort Mitarbeiter. Auszug: “Die aktuelle Krise lässt vermuten, dass die Eurozone noch lange nicht die theoretischen Voraussetzungen für einen optimalen… Read more >
What has the latest round of market turbulence told us about the Euro crisis?
First, that nobody in the Eurozone is safe from contagion.
Second, the politicians are finally realizing that things can get much worse much faster than they ever thought possible.
And finally, that Angela Merkel may yet achieve her goal of closer European integration – with the help of the financial markets.
Chancellor Merkel has long been distrustful of the markets − and the feeling is mutual. Both have blamed the other for an ever-deepening crisis across Europe. More recently, though, both sides might have woken up to the fact that becoming allies would not be that outlandish.
With the euro-zone fully entrenched in economic crisis, Europe’s leaders are scrambling to avoid contagion reaching some of the area’s largest economies, notably France and Italy. With the measures taken thus far having failed to calm market nerves, the focus will be shifting to Germany and its Chancellor, Angela Merkel, to lead the euro-zone back to greener pastures, according to AICGS Non-Resident Fellows Dr. Norbert Walter, Dr. Paul J.J. Welfens, and Dr. Klaus Deutsch, as well as frequent AICGS contributor Alexander Privitera.
As euro zone governments quietly work on a proposal to relieve Greek bond debt, a much louder debate over the future of the euro zone has come about across Europe. The following several articles focus on the debate and show the range of opinions regarding the future of the euro zone.
Germany has become the object of Europe’s resentment, writes Stefan Theil, Newsweek correspondent and a regular contributor to the Advisor, mostly because the weak euro has meant a strong German. But at the same time, Theil argues, Germans are starting to feel some disillusionment with supporting some fellow euro zone members, a growing attitude that will eventually force action – action that Germany will likely lead. This essay originally appeared in the January 23, 2011, edition of Newsweek.
Jochen Bittner, a regular contributor to the Advisor, argues that behind all of the euro zone debate lies a simple but unpleasant truth: The monetary union came too soon. Certainly it is difficult to shift strategies in the middle of a crisis, but Bittner contends that nothing less than a ‘reset’ will help the euro zone out of this mess, something the German government is eager to tackle, even if it won’t admit so publicly. This essay originally appeared in the January 18, 2011, edition of Die Zeit and is available in German only.
As Portugal, Spain, and others have to pay exorbitant interest rates on their government debt, all of Europe is threatened with an increasingly worse economic crisis, writes Senior Non-Resident Fellow Dr. Sebastian Dullien. Germany could help, Dr. Dullien argues, but instead a ‘stingy’ Chancellor Merkel is endangering the euro zone with her government’s mindset of demanding punishment for countries in crisis. This essay originally appeared in the January 17, 2011, online edition of Der Spiegel and is available in German only.