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February 27, 2012 | Between Solidarity and Solidity: No Reason for Berlin to Boost the ESM

Hans F. Bellstedt: Increasing the European Stability Mechanism is matter of European solidarity and not financial common sense. Germany is being left to take the risk against its own interests and there is little evidence that this “Bazooka-strategy” will work.

January 25, 2012 | Which Topics Should atlantic-community.org Focus on in 2012?

Editorial Team: We want to know what issues you believe will be the most important this year. As well as an op-ed competition in the coming months, we will also be launching theme weeks on a number of key developing issues. So please take a look at the following briefs and express your views by voting and sharing your thoughts in the comments box below.

January 13, 2012 | A Multi-Speed EU Will Weaken Europe

David Grodzki: A greater union of the Eurozone countries may have a dangerous effect on the overall unity of the European Union. A growing divide between a “Core Europe” and a periphery based on the Euro threatens to undermine the European integration process and reduce Europe’s status in the world.

November 23, 2011 | Remember the Real Values of the European Project

Mikel Kotonika: With the Eurozone at the center of the global financial crisis, EU leaders are desperately trying to find a workable solution to preserve it. But if they use the imposition of a two-tier system, or other drastic measures, they will save the Eurozone at the expense of the European project as a whole.

October 20, 2011 | Government Bonds Will Be the Next Economic Blow

Andreas Kern: The initial steps taken to deal with the debt crises have created a new kind of toxic asset: government bonds. If the Eurozone and G-20 members do not take adequate action to coordinate their financial regulation, a government bond credit crunch will be the next shock to strike the faltering global financial system.

September 26, 2011 | Six Reasons to Save the Euro at All Costs

Soeren Keil: To understand why the members of the Eurozone need to “save” Greece from bankruptcy, it is important to think about the consequences of a possible Greek default. This would not only have an effect on Greece and the Eurozone, but put the entire EU in jeopardy. Saving Greece means saving the Euro and the European Union.

April 26, 2010 | EU Should Have Veto Power in Athens

Hans F. Bellstedt: A high EU official should be installed in Athens as a state commissioner with the power to veto spending plans that do not comply with EU and IMF standards. Greece should enjoy a set of austere rules, similar to those having been imposed by the IMF on Argentina or Turkey when they were in financial trouble.

February 17, 2010 | The Euro's Final Countdown?

Sylvester Eijffinger and Edin Mujagic: The euro is currently dividing the euro zone more than uniting it. The “One size fits all” policy increased tensions both internally with inflation and externally as a rebuffed currency. The 10 year-old euro is far from holding its promises.

February 12, 2010 | Is Greece the New Lehman Brothers?

Joerg Wolf: How should the euro zone members deal with the PIIGS? Portugal, Ireland, Italy, Greece and Spain have big budget deficits and other economic problems that lead to speculation against the euro. How serious is it? What should be done?

May 7, 2012 | The Failure of Today's Monetary System

The current global monetary system is insufficient to deal with today’s challenges. ++ Since the collapse of Bretton Woods, there has been a US dollar-led system, which in turns allows for less than optimal US financial policies. ++ Western plans like quantitative easing (QE) have produced excess liquidity. ++ Such schemes produce inflationary pressures and could reduce the national wealth of

March 5, 2012 | America and the Next Phase of the Eurozone Crisis

The common denominator in the Eurozone crisis today is a lack of individual economic statesmanship and not simply the embeddedness of banking institutions. ++ Contrary to popular belief, America could afford to both pivot towards Asia and intervene in Europe. ++ It is likely that the US believes that these are problems pertaining to democracy, governance and sovereignty, and must be solved

February 28, 2012 | Germany is Now the America of Europe: Hated

Why not exclude ethnic origins from reporting on the Eurocrisis? ++ Hardly a day goes by in Greece without Chancellor Angela Merkel being depicted in a Nazi uniform. ++ Germany will not see a good deal of the €130 billion it will give to the bailout fund again but is being treated like it is invading Europe again. ++ Germany is now the America of Europe, hated “because it is too successful,

December 12, 2011 | Europe is Angry Because We're Right about the Euro

David Cameron’s “veto” is nothing so new in EU negotiations; the real problem is it exposes the contradictions of the Euro. ++ Euro nations face an unworkable problem; a single currency needs greater political union but such a union cannot be built democratically. ++ Instead of engineering a complex fiscal union, EU leaders should focus on removing the real trade barriers that

October 4, 2011 | Why Europe Shouldn't Listen to Obama

Obama’s recommendation for Europe to increase spending as part of a wider-reaching economic stimulus is ill-advised. ++ Cheap credits and low interest rates have been at the heart of a failed US economic strategy. ++ Instead of promoting sustainable growth, the US government has been encouraging economic bubbles to form over the past several decades. ++ The US must bring competitive

September 20, 2011 | Restoring European Growth

Advanced economies are feeling the strain of a growing economic recession. ++ The economic crisis has spread from the private sector over to sovereign states. ++ Unlike smaller struggling eurozone countries, the world’s most powerful economies should hold off on austerity measures and stimulate their own economies. ++ Reverting back to the national currency is the only way to restore growth and

September 14, 2011 | Britain Rejects EU Defense Proposal

An EU plan to create a defense-planning headquarters in Brussels has been met with harsh opposition in Britain. ++ As European countries struggle to balance budgets, British politicians see the proposed European project as costly and unnecessary. ++ While the UK is willing to play a central role in NATO’s foreign and defense policy, it is increasingly distancing itself from European

September 2, 2011 | Eurozone Success is Up to Germany

Germany faces a choice in the eurozone crisis: allow the creation of a full-blown debt union, or let the euro fail. ++ Berlin has benefitted hugely from the currency union, with the economic surge of the last decade attributable largely to exports to other eurozone countries. But there is also much skepticism about the “morality” of bailing out Southern European countries. ++ The

August 8, 2011 | Doomed to an Economic Double-Dip?

The world economy risks a double-dip, a second severe recession, thanks to an EU debt crisis, fiscal instability in the US, and slow manufacturing seemingly everywhere else. Policy makers are quickly running out of options to trigger recovery. ++ Now, economies that still have market access should “introduce new short-term fiscal stimulus while committing to medium-term fiscal

July 22, 2011 | Europe Must Share the Debt Burden

Thursday’s emergency EU summit created an immediate rescue package for Greece and a sliver of hope for Italy and Spain, but the euro’s stability in the long run depends on the taxpayers. ++ The heavily devalued national bonds of indebted states should be replaced by collective eurobonds, backed by all eurozone governments, to stabilize and attract investment. ++ This is unpopular

June 30, 2011 | Greek Austerity Drama

It is still far from clear how the Greek saga will conclude. ++ The adoption of the austerity package sparked riots and sharpened the question of whether “the increasingly rebellious Greek public” is ready to meet the severe cuts. ++ In case of a default the country is likely to be excluded from the eurozone and markets’ attention would switch to the next “weakest

November 29, 2010 | Europe is Edging Towards the Unthinkable

“It is easy to criticise eurozone governments, but how about some constructive advice?” ++ The EU chose not to establish a contingency plan for the Euro during the past decade of prosperity. ++ Now, the longer you wait the more radical the solution needs to be. ++ National debt should be separated from financial debt and a common European treasury bond should be created but there is no political

November 26, 2010 | Only Germany Can Save the Eurozone

The current threat to the eurozone is the greatest challenge to German statecraft since the country was peacefully united 20 years ago, but at the moment they are not rising to the challenge. ++ Following Greece and Ireland, the next countries which could require bailouts are Portugal, and Spain. ++ If this occurs, there would be only two ways forward. ++ The first would be for the eurozone to

June 1, 2010 | Red Herrings in Eurozone Recovery Efforts

The economic crisis continues to grip the continent, yet instead of pursuing “a strategy based on growth and a credible fiscal adjustment plan,” eurozone governments have chosen to blame speculators and promote unreasonable austerity packages. ++ A better strategy is to “encourage domestic demand in northern Europe” and create a “new functional system of economic

May 25, 2010 | Taming the European Monster

“There is only one way out of the euro crisis: The euro-zone countries must regain the confidence of the financial markets. But that is only possible if they clean up their budgets.” ++ Unregulated financial markets pose the single greatest threat to the economy. ++ By failing to create a strong foundation for a monetary union, the euro-zone governments themselves are responsible for

May 19, 2010 | The European Dream is at its End

The crisis in Europe represents not just a threat to continent’s economic union, but also could signal the downfall of the European “Idea” which includes international cooperation and an international legal order. ++ “If the European experiment begins to unravel – after more than 60 years of painstaking advances – then the ideas that Europe represents will

May 12, 2010 | Large Oversights in European Bailout

There was an important oversight in the €1 Trillion bailout designed to rescue the European economy and end speculation against the euro, namely the failure to hold creditors responsible. ++ “ The fact that the creditors to Greece and other problem countries are not being made to take part in cleaning up the budget problems is the central failure in this rescue package.” ++

May 10, 2010 | What Will it Take to Hold the Eurozone Together

EU leaders must do whatever it takes to save the eurozone because the newly founded European Stability Fund may fall short. ++ “The reforms, desirable as they may be, are probably too late.”++ And what is taking so long? ++ Instead of reforming the system, politicians are fighting a PR war as populism spins “out of control.” ++ Angela Merkel has been forced to pander to

April 20, 2010 | Germany Won't Let Greece Be the Next Lehman Bros

The collapse of Greece’s financial system would be as detrimental as that of a major bank. ++ Germany ultimately benefits from a stable euro-zone. ++ Germany has said that it supports assistance to Greece as a last resort. ++ The German government is now prepared to join the bailout effort as Greece has now made necessary concessions. ++ “Having an effective Europe, both

March 22, 2010 | Germany also to Blame for Eurozone Crisis

Germany is not completely blameless for the current economic crisis affecting Europe, and the austerity policies it proposes for the weak economies on the periphery of the eurozone are unsustainable. ++ “A fundamental problem of the policy of austerity for the periphery is that it does not deal with the structural imbalance within the monetary union.” ++ Two solutions are proposed to rectify

February 18, 2010 | Why Bailing Out Greece is Not Debatable

Unlike the US, the EU is not a federal union and therefore cannot afford to bail out one of its members. ++ Comming to the aid of individual members of the currency union is simply forbidden. ++ The ongoing debate about the possible Greek bail out plan is not relevant. ++ From the starting point, the eurozone was neither economically efficient for all members nor sustainable in the long run when

February 15, 2010 | Eurozone: One Size Does Not Fit All

Spanish and Greek deficits are a godsend for advocators of fiscal discipline. ++ This is just one aspect of the problem. ++ European elites are being blamed for ignoring signs that proved Europe was not ready for one currency. ++ The inflexibility of the Euro is preventing the Spanish economy for instance,  from recovering. ++ The breakup of the Euro is neither likely nor feasible. ++ The

February 1, 2010 | 3 Step Survival Kit for the Eurozone

The EU will bail out one of its fellow members for the first time in its 11 year-long honeymoon with the euro. ++ After Greece and Portugal, Spain is likely to ask for support as well. ++ What should be done in order to prevent the eurozone from faltering?++ First, a transparent crisis-management system to impose string-attached bail-out plans; second, a strong political leadership from the

February 23, 2009 | The "Euroization" of Eastern Europe

The financial crisis is bad, but eurozone members still have some hope given the bail out guarantees. ++ It’s in Central and Eastern Europe that the catastrophe scenario seems too real to escape; the provision of mortgages in foreign currencies and the reluctance to adopt policy to prepare countries for their future transition to the euro combined to create a financial disaster. ++ The

January 27, 2009 | Southern Europe Out of the Eurozone

The economic and political divisions between a “hard core” Northern Europe and a crumbling South are re-emerging in the midst of the economic crisis. ++ Euroskeptics argue that this will eventually lead to a departure of the “South” from the Eurozone, whilst europhiles predict that it will produce an even “wider euro area assuming the debts of the weaker nations.” ++ The

January 12, 2009 | 2009 Will Test EMU and Franco-German Relations

2009 will be a challenging year for EMU and Franco-German relations regarding which economic policies to adopt. ++ The two countries traditionally differ on their stance vis à vis the role of the ECB, namely its degree of independence. ++ The French have often accused their neighbor of gleaning “unfair economic advantage from the EU.” ++ Criticism has risen under Sarkozy and culminated

December 17, 2008 | Let Eastern Europe Join the Euro

The criteria for joining the euro “make little economic sense for euro-zone candidate countries in Central and Eastern Europe.” ++ Inflation targets are “flawed” and keep Poland and the Czech Republic from joining quickly. ++ “Accession for all new EU member states would not complicate euro-zone monetary policy” since they would make up less than 10% of GDP. ++ If compared with the dollar, the

October 27, 2008 | Sarkozy's EU Coup d'état

Nicolas Sarkozy wishes to remain “president of the eurozone” for another year. ++ Chances are this coup will work, given the current situation. ++ The financial turmoil will likely require another eurozone summit meeting to address lingering problems; existing bank recapitalization plans need revision on a European level; Germany’s push for minimal eurozone intervention is not nearly as popular

September 22, 2008 | Hard Landing for Eurozone

The demise of the shadow banking system began last week. ++ This is the financial crisis of the century. ++ Shadow banks are not protected from bank runs, as commercial banks are. ++ A run on hedge funds is highly probable. ++ If these institutions are to be government-insured, they will need regulation in order to avoid any moral dilemma implications. ++ A “severe” US recession is

April 9, 2008 | The Eurozone Should Assume Global Leadership

The IMF’s need for governance reform points to the EU’s lack of management of its external monetary policy. ++ Consolidating the representation of Eurozone members on the board - currently 15 members are awkwardly split among 8 chairs - would increase effectiveness, give the EU a voting power that truly reflects the euro’s strength on bond and currency markets, and strengthen the voice of

March 11, 2008 | Global Capital Markets: The USA Stands its Ground

The world financial
markets’ present bout of turbulences should not hide the long-term and often brighter
trends:

Despite
occasional crises, global financial assets have expanded continuously over the
last decades. In 2006 alone, global assets increased by 17% to 167 trillion
USD.
The
growing importance of emerging countries’ financial markets and their
increasing integration in