Eurozone | AEIdeas

Sunday, May 26, 2013

Troika’s bail-in proposals shake depositors’ confidence

Emily Rapp | April 18, 2013, 2:40 pm

Today, the German lower house of parliament passed a €10 billion rescue deal for Cyprus, ushering in a possible resolution to this spring’s financial crisis. However, the Troika’s (EU Commission, IMF, and ECB) negotiation tactics have perhaps irrevocably damaged trust … read more >

Economics, International economy, Pethokoukis, Uncategorized

Forget Cyprus. This chart shows why the European Central Bank may be reigniting the Eurozone crisis

James Pethokoukis | March 28, 2013, 1:07 pm

Is the European Central Bank, that monetary institution so beloved by many center-right folks, stoking the Eurocrisis? Mike Darda of MKM Partners is worried about a drop in the money supply in the dysfunctional region: The Eurozone may be on … read more >

Economics, International economy

Cyprus bailout: Raising the stakes

John Makin | March 18, 2013, 9:34 am

The tax on deposits in Cyprus – especially the tax on “insured” deposits -sends very bad messages. 1. It telegraphs how tone deaf Merkel-Asmussen really are. Does it make any sense to to spook bank depositors-assurances to the contrary notwithwithstanding-in … read more >

Economics, International economy

The Italian election is another blow to its and the euro’s prospects

Desmond Lachman | February 26, 2013, 1:15 pm

Since late July 2011 when Mario Draghi, the president of the European Central Bank, vowed to do whatever it took to save the Euro, all has been relatively quiet on the Euro front. Sadly, yesterday’s highly disappointing Italian election results … read more >

Economics, International economy

Europe’s widening gap between rhetoric and economic reality

Desmond Lachman | January 14, 2013, 4:26 pm

Last week, in what appears to have become a six-monthly ritual, Jose Manuel Barrosso, the President of the European Commission, came out with yet another one of his periodic reassurances that the worst of the Euro crisis was behind us. … read more >

Image Credit: Yanni Koutsomitis (Flickr) (CC BY 2.0)

Economics, International economy, Pethokoukis

The coast is not clear: 3 big potential problems for the EU next year

James Pethokoukis | December 26, 2012, 9:48 am

For the EU, it was a year of recession and rising unemployment. But at least the whole magilla didn’t implode, thanks to a) ECB boss Maria Draghi’s commitment to buy Italian and Spanish bonds, and b) Angela Merkel’s clear commitment … read more >

Economics, International economy

2 European charts for US fiscal cliff negotiators

Desmond Lachman | November 19, 2012, 12:02 pm

A picture is said to be worth more than a thousand words. In that spirit, as serious negotiation gets underway on the fiscal cliff, US policymakers might want to ponder the two European charts below, which underline the seriousness of … read more >

Economics, International economy

Europe on the brink: How should the US engage?

Jordan McGillis | July 20, 2012, 12:55 pm

Thursday at AEI, an all-star cast of panelists assembled to deliver a seminar on Europe’s economic and political outlook–and what that outlook could mean for the United States. Moderated by Desmond Lachman, the discussion included Timothy Adams, managing director of … read more >

Pethokoukis

Greek election results: What they mean for Greece, the euro, the EU—and beyond

James Pethokoukis | June 17, 2012, 2:46 pm

Based on final exit polls, Greece’s New Democracy party will — narrowly — be the leading vote getter in today’s big elections in Greece, edging out left-wing coalition Syriza. Again, this means the Status Quo party (accept the bailout and … read more >

Foreign and Defense Policy, Europe and Russia

One scary chart about Europe’s economy

James Pethokoukis | March 1, 2012, 9:53 am

Theodore Dalrymple: In short, the incontinent spending of many European governments, which awarded whole populations unearned benefits at the expense of generations to come, has—along with a megalomaniacal currency union—produced a crisis not merely economic but social, political, and even … read more >