The Firewall
In a recent speech, International Monetary Fund Managing Director Christine Lagarde once again reminded Germany of the consequences of not acting on the current crisis. According to Alexander Privitera, while German officials were quick to shrug off the latest comments, Berlin may be more flexible in its options to help the euro than many believe.
“A Small but Fine Piece” – More Small than Fine
Prof. Dr. Andreas Freytag takes a look at the outcome of this week’s EU summit in Brussels. According to Prof. Dr. Freytag, while the agreement of a fiscal pact by 25 of the 27 EU member states was good news, European leaders once again failed to address several key issues of the crisis.
Merkel’s Summit
Rarely has one of the recent European crisis summits had as little impact on the public mood as the one just concluded in Brussels on Monday of this week. Reactions …
Ten Years of WTO Doha Negotiations: New Impetus Required
In this report, Oliver Wieck proposes a new impetus to overcome the ongoing deadlock in the WTO Doha negotiations. German industry has a huge interest in a strong multilateral trading system with bilateral free trade agreements offering additional market opening. The recent initiative between the EU and the USA to intensify the economic ties could not only boost genuine transatlantic market opening but should also set a clear signal to the new economic powers like China, Brasil and India to join the “Club of Free Traders”.
Splendid Isolation
In his analysis entitled Splendid Isolation, Alexander Privitera explains how Germany is becoming increasingly isolated from the rest of Europe in the fight to fix the euro. With recent bond auctions in Italy and Spain providing some optimism for the euro zone, Germany may be quick to herald the success of German-style austerity in Europe. However, according to Mr. Privitera, the plan to save the euro is actually becoming less German.
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Support Our WorkDowngrades and Default
In his essay Downgrades and Default, Alexander Privitera explains that while last week’s European downgrades may not have roiled markets, they have some European leaders fuming. Though some European politicians have begun pointing fingers across the Atlantic for the recent rating cuts, according to Mr. Privitera, the problem lies within Europe itself. Until an effective plan for dealing with Greece is put forth, the euro zone crisis will continue.
Is Germany Losing its Allies?
Following a recent statement by Dutch central banker Klaas Knot, argues Alexander Privitera, it appears that Angela Merkel is beginning to lose her ally in the Netherlands when it comes to fighting Europe’s debt problems. According to Mr. Privitera, Germany’s seemingly slow approach to the Euro crisis could place them on the outside of future negotiations.
The Ratings Race
In this At Issue, Executive Director Jack Janes analyzes the aftermath of last week’s string of European downgrades by Standard and Poor’s. Like their American counterparts in last August’s U.S. downgrade, European leaders seemed quick to point fingers at those they felt were responsible for the rating cuts. However, the message from Standard and Poor’s made one thing very clear: the efforts to fix the Euro crisis are still inadequate. According to Dr. Janes, the lack of political will in Europe to realize the true core of the problem is limiting the ability to reach a consensus on how to solve it.
Same Economic Nightmares, Different Solutions: Transatlantic Approaches to International Macroeconomic Policymaking in the Face of the Crisis
Policy Report 48 Policy Report 48 argues that, in a climate of economic crisis and distress, transatlantic cooperation is still essential and must be expanded, despite current differences in policy. …
The End of the Years of Plenty? American and German Responses to the Economic Crisis
Policy Report 49 Policy Report 49 analyzes the policy responses of Germany and the United States to the continued economic and financial unrest. The authors examine the origins of Germany’s …
The Euro: How to Know When We’re There
Unfortunately for the euro zone crisis, last week’s EU summit appears to have produced yet another underwhelming plan. According to Dr. Stephen Silvia, Associate Professor at the School of International Service at American University, Europe’s leaders once again failed to address any of the major problems that still ail the euro zone economies. At the core of any plan, argues Dr. Silvia, should be an attempt to make the euro zone an “optimal currency area.”
2012: Between Doom and Hope
Alexander Privitera looks ahead to what we might expect for the continuation of the euro zone crisis in 2012. According to Mr. Privitera, while we may not witness a great start to the New Year, there is reason to believe things could change for the better.
