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25 years after Maastricht, the euro is worth rescuing
It was Brussels’ misguided political agenda of an “ever-closer union” and economic “harmonization” that brought the euro into its current trouble. The common currency is worth salvaging. It can work fine and be of great benefit to the European community if put on sound macroeconomic and institutional footing.
Europe weighs its options to deal with troubled banks
European banks are in bad shape, and shareholders and bondholders are feeling the heat. With governments and regulators still groping for a solution, various options have bubbled to the surface. Summary <i>Three main responses have been proposed to Europe’s banking crisis: 1) more stringent regulation and ...
Global trends: Europe’s weak spots ready to become new crises
Europe’s leaders have failed to solve the structural problems revealed by the crisis of 2008. Nor have they grappled with issues that have emerged in recent years. Examples include high public debt, the stock market bubble and distorted risk perceptions caused by the eurozone’s artificially low interest rates. For now, ...
Zero interest rates put savings, political reform at risk
The United States Federal Reserve made news last week by raising its benchmark interest rate. However, even if the Fed continues with modest hikes, globally, rates close to and even below zero are here to stay, especially in the eurozone. Some observers explain this unusual state of affairs by citing ...
Proposed fiscal board may widen political rifts in EU
The European Commission announced in October that it is creating a new agency tasked with helping member governments draft and manage their budgetary policies. At the same time, it asked a study group to examine the possibility of introducing a European guarantee on bank deposits in the eurozone. Summary <i&g...
