Eurozone

The Puzzle of the 2012 Greek Elections

May 8, 2012 by

With the Greek Parliamentary election behind us—likely the first of at least two such contests in this political season—we need to take stock of the situation and separate myth from fact. My objective is to make sense of the electoral results by describing and analyzing the Greek political system in both its historic and nascent forms. The particulars of the bailout have been widely discussed elsewhere in the press and policy circles, and I will refer to them only in the ways in which they inform the topic.

European’s Have Rejected Austerity Madness: Will the U.S. Get the Message?

May 7, 2012 by

So the voters of Europe have spoken, and surprise, surprise: they are not too keen on fiscal austerity. France’s president, Nicolas Sarkozy, became the first incumbent to lose since 1981. In Greece, the mainstream parties that have been happily participating in the country’s national suicide were soundly rejected by the electorate.

ILO Urges Worker-Friendly Recovery Policies

April 30, 2012 by

Although economic growth has resumed in much of the world since the 2008 financial crisis, the global unemployment situation remains alarming and could worsen, according to the International Labour Organisation (ILO). European governments, in particular, should adopt more worker- friendly approaches in dealing with fiscal austerity, according to the agency’s “World of Work Report 2012″ that was released here and at its headquarters in Geneva Sunday.

Spain is the New Greece

April 29, 2012 by

Nearly one Spaniard in four is unemployed, according to data released on Friday, as the country’s economic and financial predicament prompted a government minister to talk of a “crisis of enormous proportions”. The data from the National Statistics Institute showed 367,000 people lost their jobs in the first three months of the year. At this pace, Spanish job losses are equivalent to 1 million per month in the United States.

Income Inequality and the Rise of European Separatist Movements

April 19, 2012 by

Separatist movements typically flourish during times of economic or political distress. While in the recent past separatism has been associated most with emerging or failed states and linked with armed conflict and insurgencies, the west’s economic dislocation and the ‘rise of the rest’ has coincided with a surge in political movements and a desire for autonomy and independence – not only among violence-prone regions of the world, but among the strongest of emerging states, and the EU.

What’s Left?

April 15, 2012 by

The public suicide of 77-year-old pharmacist Demitris Christoulas a short distance from the parliament building in Athens and the outpouring of grief and anger reveal the trauma and desperation in Greek society in the midst of an economic crisis. In a handwritten note before he shot himself in the head, Christoulas complained that the government had made it impossible for him to survive on the pension he had paid into for 35 years.

Iceland’s Loonie Idea: Will Ditching the Krona Solve its Currency Quagmire?

March 27, 2012 by

After having gone through a dramatic financial meltdown and two years of recession in 2009 and 2010, Iceland started to recover in 2011 and IMF estimates now indicate that economic growth should average between 2.5% and 3% over the short-medium term. Yet the country is in a post-crisis transition and a number of systemic and structural issues still need to be addressed by the authorities in order to secure economic stability for the future.

A Need for Pan-Asian Institutions in Asia

March 20, 2012 by

For over a decade, many relevant academic journals have prophesized the 21st century as the Asian century. The argument is usually based on impressive economic growth, increased production, trade and booming foreign currency reserves. Undoubtedly, the fact that Asia holds nearly 1/3 of the total world population doesn’t hurt its chances from overtaking the United States and Europe in many areas.

Ireland’s Debt and the Heart of St. O’Toole

March 16, 2012 by

Someone has pinched the heart of St. Lawrence O’Toole, and thereby hangs a typical Irish tale filled with metaphors, parallels, and some pretty serious weirdness. Who done it? The suspects are many and varied. Could the heist from Dublin’s Christ Church Cathedral have been engineered by the infamous “troika” of the European Commission, the European Bank, and the International Monetary Fund?

Trouble in Euro Zone Paradise?

February 24, 2012 by

The Europeans evidently thrive on instability and the ongoing threat of systemic risk. There is nothing else to explain the renewed hardline stance adopted by both Mario Draghi of the ECB and the German government on fiscal policy, just as the markets appeared to be calming down again.

Europe Must Choose Between an Iranian Oil Embargo and Default

February 20, 2012 by

Experts say that if Iran stops its oil deliveries to the European Union, the EU will need several weeks to find alternative suppliers. Britain and France, to which Iran stopped deliveries on Saturday, February 19, are unlikely to be hit hard, but Greece, which is tottering under the weight of its economic problems and is the largest importer of Iranian oil, will most likely have to declare a default.

Greece: A Default is a Better Outcome Than the Deal on Offer

February 13, 2012 by

Pick your poison. In the words of Greek Finance Minister Evangelos Venizelos, the choice facing Greece today in the wake of its deal with the so-called “Troika” (the ECB, IMF, and EU) is “to choose between difficult decisions and decisions even more difficult. We unfortunately have to choose between sacrifice and even greater sacrifices in incomparably more dearly.” Of course, Venizelos implied that failure to accept the latest offer by the Troika is the lesser of two sacrifices.

Austerity in, Euro out – Is this Greece’s future?

February 13, 2012 by

As Greek politicians approved a tough austerity package amid fierce protests, one question dominates: is an orderly exit from the Eurozone available for Greece? And just what might be the consequences? Recently Citibank put the probability of such a Greek withdrawal in the next 18 months at 50%. Greece is seeking to finalise a deal with bank creditors on Greece’s private sector borrowings which would cancel €100 billion euros ($A125 billion) of its sovereign debt of over €350 billion.

Breaking Up is Hard to Do

February 10, 2012 by

Nobody likes getting dumped on an anniversary. January marks the ten-year anniversary of the euro, whose introduction was supposed to herald an era of not just economic prosperity, but closer integration across the continent. But as the financial crisis grips Europe, enthusiasm for the euro is waning quickly among the public in many member states, and nations that had once pledged to adopt the currency are getting cold feet.

The Elephant in the Room is Spain, Not Italy

February 6, 2012 by

Another day and the markets remain fixated on whether Greece comes to a “voluntary” arrangement with its creditors. The key word is “voluntary” because the myth of “voluntary compliance has to be sustained so that those deadly credit default swaps avoid being triggered. But let’s face it: Greece is a pimple. If the rest of the euro zone could cut it lose with a minimum of systemic risk, Athens would have long gone the way of Troy.

Page 1 of 41234