Category: Euro Crisis 2012

by Daniela Schwarzer Since 2010, the EU has undergone two closely intertwined developments: firstly, the day-to-day management of the sovereign debt crisis with many steps taken ‘overnight’ as a matter of urgency and, secondly, governance reforms which have already changed the functioning of the EMU. This latter debate has developed considerably during these last three…

by Daniela Schwarzer The euro area is going through a moment of relief. After the ECB’s announcement of its new bond-purchasing programme (the OMT) and the German Constitutional court’s green light for the European Stability Mechanism (ESM), the bond and stock markets have recovered. Yet, the crisis probably only pauses – it has by far…

by Ferdi De Ville Slowly but surely everyone is returning from the summer holidays and getting back to business. For politicians and observers involved in the euro crisis, the long vacation was more tranquil than expected. The open-return flight tickets of politicians did not have to be used preliminary and observers could feel increasingly relaxed…

by Carsten Brzeski At its meeting on 6 September, the ECB kept interest rates on hold and presented details of its new bond buying programme. Mario Draghi truly presented his “believe me it is enough”. Now the ball is back in the eurozone governments’ court. The ECB’s macro-economic assessment was clearly not a top priority…

by Ferdi De Ville Since long, discerning observers have argued that Spain, not Greece (or Ireland or Portugal for that matter), would be the real test for the euro. Now, this moment has arrived. The question is whether decision makers will again argue that the troubles in Spain are a Spanish problem that it has…

by Carsten Brzeski The German Constitutional Court will present its verdict on the European Stabilty Mechanism and the fiscal compact on 12 September. A reversal of the ESM looks unlikely, but more powers and control to the German parliament would limit the often called for flexibility of the ESM already from the start. At least…

by Daniela Schwarzer If a bottom-up approach, which I suggested in my earlier blog, is a promising way to promote reforms in Greece, one should discuss criteria for a successful strategy. A first criterion is to have the strategy formulated within Greece, given the limited success of outside influence (the Troika). A second would be…

By Daniela Schwarzer The election results of June 17th and a possible renegotiation (most probably of the time line) of the conditionality imposed on Greece in exchange for the rescue package may give the country some breathing space. The new growth strategy agreed at the June European summit may also stimulate the Greek economy which…

By Rainer Emschermann  As market reforms and budget consolidation are meeting increasing political constraints, it is perhaps not surprising that the call for ‘more Europe’ has become louder. While such eagerness for the European project should be welcomed, it is not genuine but motivated by short-term interests of the political classes. Rising doubts about the…

By Ferdi De Ville The Dutch were most clamorous, even a little arrogant, but eventually played no role and had to slink off. The English played defensive, achieved a minor success but were other than that largely ignored. Super Mario defeated Germany. Spain was the winner in the end. For a euro-outsider, it must have…