The UK's Future in Europe Looks Very Swiss
Despite what the sensational media coverage might suggest, EU-UK relations did not experience a watershed moment last week. The EU has indeed become a two-tier organization but the divide has not occurred between the UK and Europe but between the Northern “fiscal hawks” and the slump European …
What's Germany Thinking?
A friend involved in the Euro crisis writes this about the most recent German actions to rescue the Euro: This is a selfless act on Germany's part actually. A reversion to the drachma would lead to a massive devaluation & hurt the competitiveness of German exports (and it's tourism sector - …
Will Britain Pay to Save the Euro?
David Cameron also has a referendum problem. Britain’s current government uneasily combines euro-skeptics and euro-enthusiasts. Two weeks ago, 81 Conservative backbenchers broke with party leaders to vote in favor of a new referendum on Britain’s EU membership. Cameron had promised such a …
Greek Referendum Tempts Economic Disaster
It’s understandable why Greek Prime Minister George Papandreou wants to hold a referendum before implementing draconian financial restraints that will cause riots, clashes with police, car burnings, acts of vandalism, and anarchy. He knows what has to be done, but undoubtedly supposes that …
Don't Praise the Greek Debt Deal
Whether today’s announcement that holders of Greek sovereign debt have agreed in principle to a 50% haircut on the face value of the instruments raises some critical questions. On the surface, with the notion of first-loss guarantees of new debt taking shape, this addresses the problem of …
The Next Bailout?
It's possible that President Obama will soon face the toughest economic question since his original stimulus decision: join a global bailout of the European periphery countries or not? In 2008, President Bush moved to rescue US banks deemed too big to fail. The really scary possibility in a …