Eurozone

Tony Barber

As the televised brawls between Nick Clegg, the Liberal Democrat leader and deputy prime minister, and Nigel Farage, leader of the anti-EU Ukip party have recently shown, the quality of political discussion in Britain is rarely so low as when the topic in question is the European Union.

All the same, sanity and thoughtfulness on the EU issue can still be found in British public life. For this we should thank, among others, the House of Lords, the much misunderstood but invaluable upper house of parliament. Read more

♦ Farhan Bokhari speaks to those on the front line as the Taliban tightens its grip on Pakistan society.

♦ After annexing Crimea, Russia moves to carve up the spoils. Guy Chazan reports from Simferopol.

♦ Russia’s revanchism has to be stopped, even for Russia’s own sake, argues Martin Wolf.

♦ Putin’s well-trained, stealthy army is not like the feeble one that invaded Afghanistan, warns David Ignatius in The Washington Post.

Reuters’ Breaking Views asks whether the eurozone should heed Japan’s deflation lessonsRead more

Ferdinando Giugliano

About twelve months ago, as I was travelling across the Northeast of Italy during the electoral campaign, I went hunting for evidence of mounting euroscepticism across voters. Overall, my search was rather unsuccessful. Italy’s long love-story with the euro and the EU more generally was certainly under strain, but its end did not look in sight. By and large, the people I spoke to continued to consider Brussels a source of economic stability and peace.

 Read more

 Read more

  • Ivan Krastev in Foreign Affairs looks at why Putin threw caution to the wind: “to bring about a constitutional crisis that will remake Ukraine into a confederate state with a very weak centre”.
  • Neil Buckley critiques Putin’s classic performance as he broke his silence on Ukraine.
  • Money flows from power in China: the richest members of China’s parliament saw their average wealth increase more than four times over the past eight years, compared with an increase of under three times for the 1,000 wealthiest people identified in the country. Those who wanted to leave the country however, were less lucky – a group of wealthy Chinese are threatening to sue over Ottawa’s abrupt cancellation of its Immigrant Investor Scheme.
  • “Mandarinisation” is making people in Hong Kong indignant.
  • As the European Central Bank prepares to conduct stress tests and asset quality reviews of hundreds of banks across the eurozone, there is particular worry among some European regulators about Italy’s banks.

 Read more

Tony Barber

GEORGES GOBET/AFP/GettyImages

Here is a startling prediction from the European Commission. In the absence of comprehensive economic reforms, living standards in the eurozone, relative to the US, will be lower in 2023 than they were in the mid-1960s.

This forecast, contained in the Commission’s latest quarterly report on the euro area economy, deserves to be displayed prominently on the wall of every president and prime minister’s office in Europe.

It is a sobering prediction for two reasons. First, it contrasts starkly with the comforting tales of economic recovery and financial market stability on which Europe’s leaders are congratulating themselves in these early weeks of 2014. Second, it raises profound questions about Europe’s relative weight in the world and, in particular, about its military alliance and economic partnership with the US. Read more

Tony Barber

Critics of Germany’s actions in the eurozone debt and banking crisis often berate Angela Merkel, the Christian Democrat chancellor, for lacking a “vision” for Europe. Not me. I am with Helmut Schmidt, West Germany’s plain-spoken Social Democrat chancellor from 1974 to 1982, who once said that people who have visions should go and see a doctor.

What is the view of Mario Monti, the distinguished former European Union commissioner, who worked closely with Merkel during his 17-month spell as Italy’s prime minister from November 2011 until last April? Monti now chairs a committee on promoting a united Europe at the Berggruen Institute on Governance, a non-partisan think-tank headquartered in California. I contacted him earlier this week in Milan, and as usual his thoughts were perceptive and full of common sense (and quite long sentences). Read more

Tony Barber

Judges of the German Constitutional Court (Matthias Hangst/Getty Images)

In the beginning, the eurozone crisis was a banking sector, private debt and government bond market emergency. Then economic recession, unemployment and welfare expenditure cuts took hold, propelling the growth of anti-EU, anti-establishment and anti-immigrant political movements. Now the eurozone crisis is acquiring a third dimension: one in which national constitutional courts are moving to centre stage.

True, the judges sitting on Germany’s constitutional court have been going in this direction since 2009, when they issued a judgement on the EU’s Lisbon treaty. But before the eurozone crisis erupted in full force, such rulings were fairly uncontroversial. The judges could reasonably argue in 2009 that they were simply testing if the new EU fundamental treaty was compatible with the democratic principles of Germany’s 1949 constitution, known as the Basic Law.

Now that the eurozone crisis has pushed the German government and the European Central Bank into once unimaginable measures to rescue the 17-nation currency bloc, the constitutional court has parked itself on wholly different territory. The judges would indignantly contest this, but when the court opened hearings in June into the legality of the ECB’s actions to protect the eurozone, it looked from the outside very much as if the judges had appointed themselves the supreme law lords of European integration – to the exclusion of any other EU or national legal authority. Read more

By Gideon Rachman
When pundits analyse Angela Merkel’s political success, they tend to fall back on a few well-worn ideas. The German chancellor is said to be a cautious pragmatist, a scientist who proceeds through trial-and-error, a reassuring mother-figure, a natural politician with an instinctive rapport with voters. All these things are true. But they miss out one vital element. Ms Merkel is also a political visionary. In the midst of a sometimes terrifying currency crisis, she has redefined Germany’s relationship with the EU – on a new and more sustainable basis.

Michael Steen

(Getty)

The first official German election results are in and Angela Merkel’s Christian Democrats enjoyed a huge swing in the polls, but remain five seats short of achieving the first absolute majority since 1957.

That fires the starting gun for coalition talks, raising some interesting questions, especially after the chancellor’s existing coalition partner, the liberal Free Democratic Party, has crashed from its best-ever election result in 2009 to parliamentary annihilation, failing to reach the five per cent threshold. Read more