Senior Fellow Alexander Privitera examines yet another delay in the decision to boost the financial firewall in Europe following the latest meeting of European finance ministers.
Facing increasing headwinds within her coalition, Merkel has decided to ask for a constitutional majority of two thirds of lawmakers to endorse the European fiscal pact, arguably her main personal achievement since the beginning of the crisis. It was a bold tactical move that could have far reaching consequences.
In spite of some cautionary words from Chairman of the Federal Reserve Ben Bernanke on the economic recovery, this past week was a relatively good one for the financial markets. However, according to AICGS Senior Fellow Alexander Privitera, the mood could soon be changing.
European leaders have finally agreed to a deal that will send the next tranche of financial aid to embattled Greece in exchange for further austerity measures in Athens. According to Senior Fellow Alexander Privitera, while the deal will help Greece stay afloat in the short term, it increasingly signals that politicians in Europe may simply be buying time for an eventual Greek default.
In this weeks At issue, Executive Director Jack Janes looks at Chancellor Merkel’s struggle to sustain political support for the increasingly complicated agenda of the euro zone, as well as the interests and actors shaping the battle lines.
While promoting the work of his government to U.S. President Barack Obama, Italian Prime minister Mario Monti was suddenly asked by his host how he dealt with German Chancellor Angela Merkel. President Obama wanted to know, “How do you get through to her?” Three years into his presidency and after innumerable meetings… Read more >
In this At Issue, Executive Director Jack Janes reacts to the unexpected resignation of German President Christian Wulff, brought about by the decision to investigate his dealings while serving as Minister President of Lower Saxony. While his exit from office appears to have little effect on Chancellor Merkel’s current approval ratings, it has highlighted a bigger issue in Germany – namely the growing mistrust between politicians and the German population. With Joachim Gauck emerging as the favorite to become the next President, he must focus immediately on rebuilding the bridge between the governed and the governing.
Alexander Privitera examines Chancellor Merkel’s speech at the World Economic Forum, in which she strongly defended the euro and laid out a plan for further European integration. According to Mr. Privitera, her words will not be enough to solve the euro crisis in the near future. However, the speech should help assure financial markets of Germany’s continued commitment to the euro and the project of European integration.
Rarely has one of the recent European crisis summits had as little impact on the public mood as the one just concluded in Brussels on Monday of this week. Reactions to the decision on the tight fiscal pact were generally muted. Most commentators on both sides of the Atlantic described the results… Read more >
Following a recent statement by Dutch central banker Klaas Knot, argues Alexander Privitera, it appears that Angela Merkel is beginning to lose her ally in the Netherlands when it comes to fighting Europe’s debt problems. According to Mr. Privitera, Germany’s seemingly slow approach to the Euro crisis could place them on the outside of future negotiations.