Monthly Archives: November 2012

Alan Beattie

Another late-night Brussels meeting, though this one less shambolic than last week’s. The eurogroup announced it had managed to add up some numbers on a spreadsheet that has been kicking around and agree a debt reduction deal for Greece.

The IMF, which had been digging its heels over the need for the other two troika members to fill Greece’s financing gap, professed itself satisfied, even though the Greek debt:GDP ratio was projected at 124% in 2020 rather than the 120% the Fund had apparently drawn as a line in the sand two weeks ago.

Actually, as we reported after last week’s inconclusive eurogroup meeting, the Fund had already backed away from the 120% target in return for sharper reductions in the years following. That suggests it probably wasn’t a good idea to make a fuss about the figure in the first place, as it now makes it appear that, for the nth time, the IMF gave its assent to a deal it wasn’t happy with. 

By Gideon Rachman

Anybody might think that Susan Rice is gearing up for a confirmation hearing. Last week, the US ambassador to the UN tweeted: “I condemn today’s cowardly terrorist attack targeting innocents on a Tel Aviv bus.” Yet trawling back through her Twitter feed over the previous week, there is no indication that innocents might be dying anywhere else in the Middle East. The word “Gaza” is noticeable by its absence – although the ambassador did find time to hail America’s Transgender Day of Remembrance.

Alan Beattie

Mark Carney (Getty)If anyone should understand the benefits of open markets, it is a central bank. The Canadian Mark Carney’s appointment as Bank of England governor (unexpected, mainly because he had said he wasn’t interested) is a significant step even for a country that has had German, Swedish and Italian national football coaches, a Zimbabwean national cricket coach and various Dutch and German heads of state.

But it is not unprecedented. The Bank of England (more accurately HM Treasury, which makes these appointments) has form in bringing in foreigners. 

Ceasefire agreed in Gaza but will the calm hold?
After a short and bloody conflict in which at least 152 Palestinians and 5 Israelis died, a ceasefire has been declared between Israel and Hamas. In this week’s podcast, Gideon Rachman is joined by Tobias Buck in Gaza City and Middle East editor Roula Khalaf to discuss the recent fighting and its implications for the wider region

Gideon Rachman

One of this morning’s reports from the EU summit is headlined – “David Cameron fails to cut EU bureaucrats pay and perks“. With the EU budget talks collapsing on Friday afternoon, it appears to be true, at least for now. And it’s a great shame. I know that sentiment will deeply irritate my friends in the EU bureaucracy – some of whom have been emailing me to point out that spending on administration is a mere €6bn a year, which is less than 6% of total EU spending. Even so, there is plenty of waste in the EU budget that could be easily sliced away.

What is true is that one element of Cameron’s approach – which is to suggest a 10% cut in the budget for pay – is potentially too crude. Not all EU operatives are overpaid. Some of the lawyers, for example, have relatively modest salaries by private-sector standards. Rather than an across-the-board cut in pay it would be much more productive to start eliminating entire agencies, functions and perks. This would cut the payroll and the budget, while preserving the bits of the EU that actually do something useful. Here are some candidates for the chop. 

Roula Khalaf

In Israel and the Gaza Strip, there might be no real winners from the week-long conflict that ended last night. But there is already a clear loser, writes Roula Khalaf – he is Mahmoud Abbas and he is the president of the Palestinian Authority. 

John Paul Rathbone

Buenos Aires is basking in the balmy mid-20s. But it’s not just because the southern hemisphere summer is on its way that the temperature is rising for President Cristina Fernández, says JP Rathbone. 

Chris Cook

Chris Cook, the FT’s education correspondent, on how the WISE conference in Qatar showcased alternative attitudes towards learning and knowledge.  

Anglo-French relations could hamper negotiations over UK nuclear power stations. Image by Getty

Another European summit, and another step in the progressive disengagement of the UK from the core of Europe. I wonder if the UK government appreciates the impact of what is happening on the real world of business? Let’s take just one example. Relations between Britain and France are at a very low ebb. No one is throwing plates but there is now a mood of mutual indifference, which, as anyone who has lived through a bad marriage will tell you, is worse.

I was in Paris this week visiting the Banque de France. The Banque’s senior management were as ever exquisitely polite, but the sense of distance from the UK was unmistakeable.

Anglo-French relations are always complicated but the current round of problems really began with Franςois Hollande’s visit to London at the end of February. Mr Hollande was at that time a candidate rather than Le Président de la République. He was clearly ahead in the polls and judged likely to win by the most experienced observers of the French scene. But Mr Cameron, usually a model of politeness when it comes to personal relations, refused to see him.