A top adviser at the European Court of Justice has said that the European Central Bank’s crisis-fighting Outright Monetary Transactions programme falls within policy makers’ mandate.

Q: That’s pretty much a green light for quantitative easing next week isn’t it?

 Read more

 Read more

Most euro area governments and investors are breathing a sigh of relief after Wednesday’s preliminary judgment from the EU’s highest court in favour of the European Central Bank’s sovereign bond-buying programme – the 2012 initiative that helped to bring the euro crisis under control.

But governments and investors, in and outside Europe, should keep in mind that the danger of a bitter, protracted struggle over EU constitutional law will now go up. This would pit Germany against other power centres in the EU. Read more

Within twenty years of the end of the second world war, the same European countries that had been sworn enemies during six years of bloody conflict committed themselves to a future of peace, prosperity and political and economic integration.

Some war crimes suspects slipped the net and avoided the Nuremberg trials, but their elusiveness did not interrupt or discredit the reconciliation process led by West Germany and France.

But two decades on from the wars that ripped apart the former Yugoslavia, it is impossible to make the case that reconciliation and integration are as advanced there as they were in western Europe by the mid-1960s.

The region’s societies, ethnicities and political leaderships remain bitterly at odds over how to assess the war crimes committed in Croatia and Bosnia-Herzegovina between 1991 and 1995.

 Read more

 

 Read more

By Gideon Rachman
A couple of days before the terrorist attacks in Paris, a book arrived at my office. I placed What’s Wrong with France? by Laurent Cohen-Tanugi on the shelves, alongside a line of similar titles: France on the Brink, France in Denial, France in Freefall and France’s Suicide.

 Read more

  • Even before yesterday’s shooting, French authorities had warned of a big terrorist attack for months, their concern fuelled by large numbers of French recruits to Islamist groups in the Middle East
  • Having ended a long civil war and presided over an economic boom, Mahinda Rajapaksa expected to coast to a third term as president of Sri Lanka in today’s election. Instead, he faces a resurgent opposition
  • A new antibiotic that could take several decades for bacteria to develop resistance to is being developed through a public-private collaboration, amid repeated warnings about the dangers of growing resistance
  • Charlie Hebdo: its history, humor, and controversies, explained (Vox)
  • 23 Heartbreaking Cartoons From Artists Responding To The Charlie Hebdo Shooting (Buzzfeed)

 Read more

Will the Greek election reignite the eurozone crisis?
Snap elections are being held in Greece later this month in which the radical left Syriza party is expected to come out on top. Gideon Rachman is joined by Kerin Hope, Athens correspondent, and Tony Barber, Europe Editor, to discuss the implications for Greek debt restructuring and the eurozone.

The halving of oil prices over the past six months has caught pretty much every economist by surprise and prompted a rush to explain the reasons behind this astounding drop and the consequences for the global economy.

On Wednesday, the World Bank has weighed in with a study included in one of the analytical chapters of its twice-yearly Global Economic Prospects. The Bank has good reasons to study the oil price drop: the sliding cost of crude will have profound implications for growth rates, inflation outlooks and the public finances of emerging markets, whether they are oil-producers or oil-importers. Read more

 Read more

 Read more

By Gideon Rachman
For the first half of my life, international politics was defined by the cold war. The fall of the Berlin Wall ended that era and began another one: the age of globalisation. Now, 25 years later, it feels like we are once again witnessing the close of an era.

 Read more

By Rachel Sanderson in Milan

In his ninth end of year address to Italians and the last before he retires this year, Italy’s president Giorgio Napolitano pulled no punches.

His voice hoarse and visibly tired, in a televised speech on Wednesday night, Mr Napolitano attacked the prevalence of organised crime in Italy describing it as a “subsoil of rot” running through Italian social and political life. Read more

Most people have something they do to mark the end of the year: make a resolution, go to a party, tidy the attic. My annual ritual is to make a list of the five most significant events of the past year in global politics. This year is an odd one, in that it seems to me that there are only two events that stand head-and-shoulders above the others. The first is the breakdown in relations between Russia and the west, caused by the Ukraine crisis. The second is America’s return to war in the Middle East. So let’s deal with those two first and then move on to the other contenders.

 Read more

By Gideon Rachman
The euro crisis is back. An election in Greece next month and the probable victory of Syriza, a far-left party, will frighten politicians and investors. Once again they will be engaged in a grim discussion of a connected series of possible horrors: debt-default, bank runs, bailouts, social unrest and the possible ejection of Greece from the eurozone.

After watching their fortunes nosedive over the past year on the back of Russia’s annexation of Crimea and adventures in eastern Ukraine, Russia’s oligarchs caught a break on Friday night: a free meal on Vladimir Putin. Read more

Consequences of the US-Cuba rapprochement
Following president Barack Obama’s announcement that the United States will begin normalising relations with Cuba, John Paul Rathbone, Latin America editor, joins Gideon Rachman to examine how quickly the island state’s Soviet-style economy is likely to change and the implications for the wider region.

The move by US President Barack Obama and his Cuban counterpart, Raul Castro, to announce the tentative resumption of diplomatic relations is already prompting talk that the world’s oldest trade embargo may be coming to an end.

Introduced in 1960, the US embargo of Cuba has hit the island economy of 11m people hard over the decades. In its annual report to the United Nations on the subject Cuba in September estimated it lost $3.9bn in foreign trade in 2013 alone because of the embargo. Havana’s running tally for the total economic damage: $116.8bn.

That figure is obviously worth taking with a pinch of salt, as should be any idea that the embargo is going to be lifted soon.

But there is no doubt that a change in US policy would represent a huge economic opportunity for Cuba or that the potential looks alluring to plenty of businesses in the US. Here are some points to keep in mind and some charts worth pondering: Read more