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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 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 21, 2011 | Only a Federal Europe Can Be an Influence in Asia

Benjamin Newton Brower: How Europe solves its current crisis will reverberate beyond its immediate future; it will dictate whether the Pacific Century is one of prosperity or one where Europe is usurped and exploited by rising powers. The choice is clear: only further centralization can ensure the EU will remain a strong player in international politics and have a presence in Asia.

November 14, 2011 | EU-Asia Must Be About More Than Trade

Shada Islam: For the EU to make an impact in Asia, its engagements must go beyond merely trade ties and superficial meetings. It must take key Asian meetings seriously and develop a policy on important regional security issues. The EU must also make more and stronger connections with non-state actors in the region like think tanks and business leaders.

November 8, 2011 | Solidarity: The Emptiest Word in Eurospeak

Julian Steven Lindley-French: France and Germany’s past actions expose their current plea for “solidarity” as empty rhetoric. What they really want is more money from the British taxpayer. It will be gladly handed over, but only after they emerge from their Euro fantasy land and take real steps to solve the crisis. (Start with booting Greece.)

May 11, 2012 | Spain Needs Audacity, Not Half-Measures

Spain must be bold in order to reestablish confidence in it banks. ++ Without healthy banks, the Spanish economy will continue downhill. ++ Current measures have been too little, too late. ++ Policymakers have been indecisive and instead of offering solutions are blaming others for unfairly targeting Spain. ++ In reality, the banks need fresh money. ++ Spain has not addressed its problems

December 19, 2011 | 2012: An Economic Apocalypse?

The economic outlook for 2012 is clear: everyone is in trouble. ++ The Eurozone is certain to recede further, which will also put pressure on the economic downturn in the US; the UK is majorly exposed. ++ China’s model is stalling, and its refusal to let the Yuan appreciate could trigger one of several trade wars. ++ Weak governments and popular unrest have made it difficult for countries

December 13, 2011 | More Union, More Democracy for Europe

It is not the premise of the EU that is flawed; the current crisis is a political one. ++ Even in sovereign states, resentment builds towards “weaker” regions perceived to be getting a free ride, but institutions are strong enough to combat it. ++ In the absence of those institutions, national leaders “moralize” and play countries against one another, stoking up old

December 8, 2011 | The Road to a United States of Europe

A fiscal union of Eurozone countries must have strict budget regulations to be accepted by the German electorate. ++ While Germany’s vision of political union was once thwarted, now circumstances compel it to be back on the agenda. ++ Poland joining the Euro could provide stability to the currency union and smooth over differences with non-Euro EU members. ++ National parliaments must

December 2, 2011 | European Foreign Policy and the Economic Crisis

A fascinating look at how the Euro crisis will impact EU foreign policy from Richard Youngs, the director of FRIDE in Madrid. Youngs looks at how a “two-speed” Europe could still function with united external relations, and outlines four guiding principles for a stable and successful policy. From the abstract:

The euro crisis increasingly threatens not just the European Union’s (EU)

November 30, 2011 | And Another Turns to Germany...

After the latest bond auctions and as French influence wanes, there can no longer be any doubt of what many have long suspected: Germany is the undisputed leader of Europe. ++ Germany should use this strength to guarantee the public debts of other Eurozone members, in exchange for debt limits and a new budgetary review. ++ In the 1980s, a strong German economic position was parlayed into what

November 23, 2011 | Trench Warfare Rages in US Congress

The failure of the US congressional “super-committee” to agree on a comparatively small amount of budget cuts is both embarrassing and dangerous. ++ As parties now gear up for election campaigns, the public disgust with the battle line of Congress risks turning “poisonous.” ++ Both parties know that a balance of cuts and tax increases is the answer, but they are too

November 17, 2011 | "Let Europeans Speak Their Own Tongues"

Germany’s push for a more integrated Europe must still include all nations as equals, not as inferiors to be led. ++ Germany benefits from Europe specifically because, as an exporting nation, it is unlike its fellow members. ++ Forcing countries out of the Eurozone will only benefit rich speculators who hold the European project in contempt. ++ Europe’s value comes from its uniqueness

November 8, 2011 | "Credibility" Gap in Merkozy's Eurozone Strategy

Merkel and Sarkozy’s shifting strategy on the Euro crisis is undermining the credibility of the EU and hurting investment. ++ Suddenly introducing foreign exchange risk to the Eurozone has frightened the very market forces needed to rescue debt-ridden Greece and Italy. ++ This has created a vicious circle of political instability which further harms investment. ++ If it is to survive, the

October 6, 2011 | Ambiguity is Deadly in Eurozone Crisis

The European Union must concretely answer the question of whether member states are jointly responsible for each other’s debts. ++ ‘Kissinger-style’ ambiguity is useful in diplomacy, but dangerous in the market. ++  Politicians must understand that market forces will always test ambiguous economic policies. ++ Fannie Mae and Freddie Mac were backed by similar ambiguous policy in the

July 18, 2011 | Merkel a "First-Class Passenger on the Titanic"

EU politicians, led by Germany’s Angela Merkel, have been too slow to realize that the eurozone crisis is the fault not of any single state, but of “a monetary union that refuses to be a fiscal union.” ++ Now, market attention shifts to indebted Italy, whose economy is buckling under high interest rates. ++ EU leaders must respond to this crisis by introducing a eurozone bond to

November 18, 2010 | The Price of German Leadership

The euro, the European Union’s boldest and most ambitious project, is under threat. ++ This has has damaged the EU’s reputation around the world. ++ However, the crisis has seen the emergence of a genuine EU leader in Angela Merkel. ++ This is not surprizing considering Germany’s current economic strength and recent trend of assertive diplomacy. ++ However, concerns have been expressed that