European Economic Indicators Sharply Down

By: Monday July 2, 2012 6:55 am

  Everyone was supposed to go home happy after an EU summit that beat expectations. However, if you look at the crux of what Europe did at the summit, you would get the impression that Wolfgang M√ľnchau got, that they really just played around with a European bailout fund that has no additional cash in [...]

EU Summit Yields Surprisingly Tangible Results

By: Friday June 29, 2012 7:01 am

The 2-day EU summit may have produced some actual movement that at least gestures in the direction of better policy. After tough all-night bargaining, European leaders appeared to salvage what had seemed to be a summit teetering toward failure by agreeing early Friday to use the continent’s bailout fund to funnel money directly to struggling [...]

EU Fiscal Union Proposal Looks Right Terrible

By: Tuesday June 26, 2012 10:58 am

The EU has come up with a plan, to be discussed at this week’s summit, to dramatically consolidate fiscal policymaking power in a Eurozone leadership figure, without authorizing the kind of fiscal transfers that would smooth over imbalances and make the currency union a true “United States of Europe.” The EU would gain far-reaching powers [...]

European Leaders Propose Small Stimulus Package

By: Friday June 22, 2012 12:17 pm

I mentioned earlier that the “Big 4″ leaders – of Germany, France, Italy and Spain – were meeting today in advance of a big EU summit next week. That meeting has adjourned, and the leaders announced they would push for a stimulus package of 130 billion euros. But even the initial reports of this shows [...]

Dogpile Against Germany in New Stage of Euro Crisis

By: Thursday June 14, 2012 6:57 am

The hope of the election of Francois Hollande, aside from him holding to and expanding his views of solutions to the European crisis that don’t solely hinge on austerity, was that other nations would rally to his position, and that collective action would represent a counter-weight to Germany, which until now has really been dictating [...]

Germany Plots Their Own Grand Bargain on Fiscal and Financial Integration

By: Tuesday June 5, 2012 6:17 am

Out of Europe overnight we get one of the first signs that Angela Merkel might be willing to blink in her game of chicken with the peripheral sovereign nations. Germany has indicated that they would be open to what amounts to a one-off variation of “eurobonds,” the pooling of Eurozone debt into a common security. [...]

Just What Are Eurobonds?

By: Tuesday May 29, 2012 10:20 am

Let me take you “backstage” at FDL for a moment. After this post, Scarecrow and I had a discussion about the structure of eurobonds (I know, scintillating stuff). Scarecrow thought that sovereigns in the Eurozone could still float their own bonds, even if eurobonds were initiated, and take advantages of rates lower than on the [...]

France, Germany at Odds Over Eurozone Crisis

By: Thursday May 24, 2012 8:19 am

European leaders met in Brussels yesterday, and even going in it was clear that the countervailing forces, exemplified most by Germany and France, would not come to any agreements. And that’s just how it turned out: A major rift has opened up between Germany and France for the first time in 30 months of euro [...]

Germany Rules Out Eurobonds

By: Wednesday May 23, 2012 9:35 am

A European summit being held tonight in Brussels offers another opportunity for new French President Francois Hollande to offer a different manner of thinking on the euro crisis, away from austerity and toward integration through eurobonds, fiscal transfers and economic growth. On the first part, however, Germany has all but ruled out eurobonds, which would [...]

The Importance of Eurobonds

By: Tuesday May 22, 2012 7:02 am

The way the Eurozone crisis has gone is that a peripheral country will announce a growing budget deficit and debt. The markets, concerned about the risk of default and the lack of economic growth given the foolish solution of austerity imposed on those countries, then gradually raise borrowing costs. This makes it impossible for those [...]

Hollande Issues Challenge to Germany

By: Monday May 7, 2012 9:19 am

I’m focusing on politics in Europe these days, not just because I just returned from that part of the world, but because they are both more interesting and consequential than politics in the US. A case in point: newly-elected Francois Hollande just threw down the gauntlet with Germany, offering his ultimatum to Chancellor Angela Merkel [...]

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