Rarely has Europe seen such a sad May 1st. Close to 20% of people unemployed in Euroland, Spain and France hitting new lows. Germany alone has it better, daily ‘FAZ’ sees full employment coming up. But Germany is not in its own little paradise, its employment miracle could turn sour.
Brussels and Washington both put pressure on Berlin. EU commissioner Rehn and US secretary of treasury Lev think Germany should step up to stabilize the Euro. The German government currently ignores the pleas, but it will have to deliver after the elections for the Bundestag in September. Mehr
The Cyprus deal generated a lot of heat for the German government. As a first in European rescue deals, even long time ally Luxembourg does not hold back. Alas, the Germans don’t seem to even listen. The dominant power tunes out criticism and is expecting praise instead. Mehr
Cyprus and the euro group have finally agreed on a rescue package. But after this “rescue” Europe will not be the same. With a bail-in, compulsory levies, an ECB ultimatum and capital controls arbitrariness is drawn into the monetary union. And the German dominance is stronger than ever. Mehr
Zwei Tage nach der Wahl in Italien haben sich die Märkte beruhigt. Umso heftiger tobt die politische Debatte: Ist Italien unregierbar? War der Sparkurs ein Fehler (auch wenn Merkel dies bestreitet)? Oder hat die Wahl auch ihr Gutes? Dies meint J. Hopkin von der London School of Economics: Er hofft auf ein Ende der Austeritätspolitik. Mehr