Opinion: Europe’s misguided tax crusade
While the United States cuts taxes to spur growth, the European Union is blacklisting countries regarded as threats its fiscal system. The contrast speaks volumes about the economic priorities on both sides, and does not bode well for the long-term viability of Europe’s welfare states.
The EU’s tilt toward centralization
The European Commission has proposed creating a European Ministry of Economy and Finance, and transforming the European Stabilization Mechanism into the European Monetary Fund, controlled by Brussels. These steps toward economic centralization are dangerous for Europe’s competitiveness. What it needs is diversity and regional competition.
The UK is leaving the EU, not Europe
Brexit will offer the European Union and the United Kingdom the chance to put themselves back on track. The UK will no longer be seen as just one of 28 member states, while the EU can reestablish itself as a tool for collective action. However, this outcome will require flexibility from both sides. For now, a “hard Brexit” scenario is unlikely.
Self-destruction by arrogance and hypocrisy
Turkey-bashing remains a favorite sport in the European Union, as shown by the two latest resolutions approved by the European Parliament on July 6. For short-term gain, politicians are needlessly alienating the EU's most important strategic partner to the south and east.
Scenarios for Europe
Europe’s basic problem is a lack of leadership. In 2017 it is unlikely to solve the root problems at the heart of its malaise: excessive regulation, a lack of competition and innovation, weakening internal cohesion and an inability to address crises efficiently. A new generation of politicians may emerge that pushes for more market-driven solutions, but it will take several more years for them to be able to implement their vision, if at all.
Refugee crisis tarnishes EU’s ‘moral superpower’
European leaders have long known that the main danger posed by the refugee influx is political backlash. This threat was explicitly recognized by Guenther Oettinger, Germany’s representative to the European Commission, during a press conference on December 30, 2015. “The European Union has learned to overcome crises,” he said. “But the number of unstable or populis...
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, the situation has stabilized. Financial market...