With 97.94% of votes cast in her favor, the German Chancellor and head of the Christian Democratic Party (CDU) Angela Merkel could not be happier. At their party convention in Hannover this week, the delegates of the CDU have confirmed that Merkel is the party. She has gotten exactly what she needed… Read more >
Despite a flurry of Anglophone media reports suggesting that the results of the latest regional election in the Spanish region of Catalunya has increased the likelihood of a vote on secession, public opinion in Spain itself seems to be unfazed by the electoral outcome. In fact, the hurdles for a referendum are… Read more >
The last week of August has opened with the usual salvo of news about the debt crisis in Europe. Of course, American public opinion will turn its attention towards the Republican National Convention, a much anticipated speech by the Chairman of the Federal Reserve Ben Bernanke, and a strengthening storm off the… Read more >
The euro crisis has come to a preliminary halt following the two massive liquidity injections by the European Central Bank (ECB) in December 2011 and February 2012. However, these ECB interventions and the double haircut for private bondholders of Greek debt have not brought sustained stability. Moreover, the new Fiscal Compact adopted in December 2011 by twenty-five European Union (EU) countries is not a convincing remedy for the problems of the euro area. Indeed, the euro summit diplomacy of 2011-2012 has largely been inconsistent and the institutional limbo of the Economic and Monetary Union calls for broader reforms.
Judging from what the media have made of the latest gathering of European leaders in Brussels, it came close to a disaster. No decision about Eurobonds or growth was taken. The big elephant in the room – Greece − was barely mentioned. Chancellor Angela Merkel and the new French President Francois Hollande… Read more >
AICGS Senior Fellow Alexander Privitera sits down with Lothar Binding, member of the Bundestag’s Finance Committee for the SPD, to discuss the current state of the euro zone crisis and what the next steps must be to help contain the recent surge in uncertainty. Furthermore, Mr. Binding provides his take on the… Read more >
Once again the uncertainty surrounding Greece has plunged Europe into crisis mode. The euro zone is fighting on three fronts: it is trying to keep Greece on course, save Spain from its banks, and define a middle-term strategy for growth. The crisis really is back with a vengeance.
There is much to digest after elections in a number of European countries this past weekend. Much has been written about the potential impact of the French vote on the current European austerity programs, Germany’s predominance on the continent and the future of the euro. Over the next few weeks, we will… Read more >
The idea that the euro crisis is over is hopeful at best, naïve at worst. It is far from over. We are actually at the beginning of a dangerous new phase of political uncertainty across the eurozone that could massively impact its financial markets. On the other side of the Atlantic, continuing… Read more >
The Greek financial crisis seems finally to have been overcome, thanks to emergency European Union (EU) and International Monetary Fund (IMF) lending to the Greek government. Bondholders will have been punished, too, losing 75 percent of their capital in the transaction, and Greece itself will continue to be yoked to austerity budgets… Read more >