As Europe Turns Left, a Call to “Show Me the Money”
We will die of fiscal consolidation alone,” Enrico Letta, Italy’s new prime minister, said in his maiden speech to parliament a few days ago. “Growth policies cannot wait any longer.” The anti-austerity argument in Europe has quickly achieved respectability. Letta…
Europe’s New Path: Austerity with a Human Face
It did not take long for those flying the flag of fiscal austerity in Europe to turn tail. A week ago in this space I asserted that it was the beginning of the end for the “austerians.” I was too…
European Austerity Does a 180 as Lagarde Weighs In
It will not be long before we look back on this year’s meetings of the International Monetary Fund and the World Bank, which conclude Monday, and see a turning point in the global economic crisis. Europeans, who have suffered the…
The Eurozone Deal Cyprus Could Not Refuse
At last there is a deal on the table to avert financial and economic collapse in Cyprus, a threat to the euro, and bank runs elsewhere in the European Union. At this writing, the terms Cypriot President Nicos Anastasiades negotiated…
The Post Austerity Way Forward for Europe
Italian voters delivered a hopelessly inconclusive election result last week. But the message they sent–to their political leaders, to Brussels, to Germany, to the global markets–is crystal clear: The austerity policies now in place to remedy Europe’s fiscal and economic…
How a Fake Currency War Panicked Global Economies
When Shinzo Abe was elected Japan’s prime minister in December, he immediate announced a $118 billion economic stimulus plan — despite a national debt equal to 200 percent of GDP, the world’s highest ratio. Then he went to the Bank…
The U.S.- Europe Trade Agreement That’s Going Nowhere
German Chancellor Angela Merkel wants it. So do British Prime Minister David Cameron and dozens of prominent business leaders. And Washington sources tell me President Obama will back the idea when he delivers his State of the Union speech on February…
Cameron Rolls the Dice on Britain’s EU Future
Let there be no question about Britain. After Prime Minister David Cameron’s speech last week, there is a strong chance that the UK will abandon the European Union. Indeed, if a vote were held tomorrow Britons would choose by a considerable…
The Global Fiscal and Political “Cliffs” of 2013
The U.S. “fiscal cliff” is one of many fiscal and political precipices to be faced globally in the New Year. Here’s a snapshot of how far the world will have to climb in 2013. SYRIA To begin with the hottest…
As Europe Slowly Recovers, the US Heads off the Cliff
What at a year for the European Union. Europe has now fought its way through the worst of its fiscal crisis, and the year ahead will end up being more about recovery than austerity. It may seem strange to hoist…
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