Opinion: Britain and Germany – should we expect a Brexit war?
As Europe gears up for Brexit negotiations, the lines in the sand are already being drawn. Germany is bent on making Britain pay a heavy price for leaving the European Union, while the United Kingdom is hoping for a soft divorce. While the German position looks strong on paper, too much hostility could backfire. Tensions between Berlin and London are likely to be short-lived. A compromise will probably be reached after the German elections this year.
The future of euroskepticism
While Europe’s populist parties identify the euro as the root of most evils, exiting the common currency won’t solve their country’s economic woes – in fact, the solutions they propose will probably make them worse. Voters have recognized this. But anti-immigration sentiment remains a powerful weapon in their arsenal, and Brussels seems unwilling to take the necessary measures to address it.
GIS Dossier: The strangely resilient euro
The euro has been remarkably stable during its 15-year existence as a major currency. That has not always been a good thing for the European economy. But the real concerns for the single currency hinge on politics and survival.
Frailty, thy name is Europe
The EU is in profound crisis, caused by years of shallow leadership. Only a radical change in its leaders’ performance can salvage the European project now. Managing structural problems instead of resolving them, trying to shame the rebellious public into accepting business as usual and blaming the United States for Europe’s dangerously weak security position is a road to self-destruction.
The twilight of a European dream
As Washington threatens to slap economic sanctions on the countries that it believes weaken their currencies, reaping unfair advantages in trade with the United States, eurozone exporters, especially Germany, may find themselves in trouble. The root cause of the dilemma, though, is the fact that from its inception the common currency has been misused by politicians.
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.
EU’s Schengen area under threat
The future of the Schengen area, one of the crowning achievements of European integration, is increasingly clouded as European Union member states are imposing temporary border restrictions to stave off perceived security threats from migrants and terrorists. The economic cost of dropping Schengen could be debilitating, but the path to a full return of the control-free zone is strewn with formidable obstacles.
Loose monetary policy could be on its way out
In March, the United States Federal Reserve kept its main interest rate on hold, while the European Central Bank cut its main interest rate to zero. The moves confirmed what investors already knew: the American and European economies still have plenty of weaknesses. But despite appearances, the Fed and the ECB are on track to end their expansionary monetary policie...
Euro crisis: time for a rerun?
After Greece obtained its third bailout last summer, Europe turned its attention to other crises. But it would be naive to conclude that the sovereign debt crisis is over. The Greek drama is still far from a happy ending; in Portugal and Spain, fragile left-wing governments may want to abandon austerity and roll back reforms; France has declared a state of economic...