At any wedding celebration, the audience usually expects a loud and firm “Yes”. In European politics these days, Germany’s partners expect a loud and firm “Yes” to whatever proposal for …
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.
While the recent general outlook on the future of the European Union has been filled with excessive doom and gloom, it is largely misplaced, writes Non-Resident Fellow Almut Möller in a collection titled “What the EU Did Next.” There is still hope for the EU, but significant work needs to be done; turning the EU from a liability into a solution will be a difficult task yet one that needs to be tackled. This volume of essays from the German Council on Foreign Relations (DGAP) focuses on the EU’s undervalued strengths and how these strengths can be used to revitalize parts of the EU agenda in an effort to refocus the EU for success in the future.
In his essay entitled The Trojan Horse, Alexander Privitera, Washington based Special Correspondent for the German news channel N24 and frequent AICGS contributor, examines how the approach to fixing the European debt crisis has changed. The recent political developments in Greece, along with a growing concern over Italy, have led European leaders to realize they may now have to save the euro from member nations, not save member nations for the euro.
With so much resting on the euro for Germany, why does Chancellor Merkel continue to avoid taking full control of the reigns in Europe? In his essay Why Germany is Leading From Behind, which originally appeared in the Wall Street Journal on November 4, 2011, Josef Joffe, Editor of Die Zeit and AICGS trustee, argues that Germany has a lot to lose in the current euro zone crisis. While the markets most often look to Angela Merkel for answers, it seems that a case of history is holding her back from truly leading her European counterparts.
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Greece’s call for a referendum on the bail-out has been rescinded. The next tranche of funds for Greece from the IMF appears to be safe. According to his essay Europe’s New Message: My Way or the Drachma Highway, Dr. Jacob Funk Kirkegaard, Research Fellow at the Peterson Institute for International Economics and frequent AICGS contributor, argues this was the goal behind Greek Prime Minster George Papandreou’s call for a referendum. However, his potentially term ending move may have had another, more lasting effect: the threat of kicking member states out of the monetary union is now officially on the table.
In his essay entitled The Final Rescue – or Another Three Months Survived!, Prof. Dr. Andreas Freytag, Professor of Economics at the Friedrich-Schiller-Universität Jena and contributor to AICGS publications and events, examines the plan put forth by Europe’s leaders following the October 26th summit in Brussels. According to Prof. Dr. Freytag, while the plan may be a start to solving the euro crisis, not enough attention was paid to the problems at the core of the whole situation.
In his essay Saving the Euro, Alexander Privitera, Washington based Special Correspondent for the German news channel N24 and frequent AICGS contributor, explains how the recent plan announced by Europe’s leaders has signaled a major shift in their view of the crisis. By recognizing some of the major issues facing Europe, EU leaders have finally shown that they are actually willing to save the euro zone.
European leaders finally agreed to a more comprehensive plan to help bring the euro out of its current crisis. However, many experts agree that there is still much more that needs to be done to bring Europe, and the global economy as a whole, out of this mess. This week’s AICGS Advisor examines a few of the expert opinions on what still lies ahead:
Peter S. Rashish, Vice President for Europe & Eurasia, U.S Chamber of Commerce, gives his testimony before the House Financial Services subcommittee on International Monetary Policy and Trade on the U.S. implications of the euro zone crisis and what should be done to bolster trade between the two partners.
Ahead of November’s G-20 summit in Cannes, France, Dr. Matthias M. Matthijs and Neil K. Shenai, Johns Hopkins University’s School of Advanced International Studies in Washington, DC, assess the changes …
In his essay entitled The Banking Crisis, Alexander Privitera, Washington-based Special Correspondent for German news channel N24 and frequent AICGS contributor, explains how Europe’s fiscal problems are not just the result of a sovereign debt crisis, but also a banking crisis. Any solution for Europe must focus on the financial institutions across the continent just as much as the debt problems of a number of member states.
In his essay Buying Time, Dr. Tim Stuchtey, Managing Director of the Brandenburgisches Institut für Gesellschaft und Sicherheit (BIGS) and Director of the Business & Economics Program at AICGS, takes a look at the underlying issues of the current financial crisis in Europe and asks whether the current model in Germany can be repeated elsewhere within the euro zone.