Europe/Middle East

  • Why Europe Needs Smarter Energy Taxes: Hans Eichel & Yannis Palaiokrassas

    Why Europe Needs Smarter Energy Taxes: Hans Eichel & Yannis Palaiokrassas

    As the economic-policy debate in Europe and around the world shifts from fiscal austerity towards measures aimed at stimulating growth, smarter taxation will be essential to getting the balance right. That means focusing on energy and carbon taxes, which have a much less negative impact on economic activity.

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  • The Bane Of Spain: How The Property Market ‘Broke’ The Economy

    The Bane Of Spain: How The Property Market ‘Broke’ The Economy

    The crisis growing within Spanish banks at the moment appear to have its roots in the country’s property market. Some 80 billion euros worth of loans by Spanish banks to the country's broken construction and real estate sectors are now considered near worthless – being at serious risk of default – while  the drying up of credit also means that fewer people are able to afford homes.

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  • Spain in Pain: Why Leaving the Euro Is The Lesser of Two Evils: Michael Pettis

    Spain in Pain: Why Leaving the Euro Is The Lesser of Two Evils: Michael Pettis

    As recently as six months ago, one didn’t discuss in polite company in Madrid the possibility that Spain would leave the euro and restructure its debt.  The prospect was unthinkable and like many unthinkable things it could not be discussed. But perhaps things have changed.  If responsible policymakers, advisors, the press, and public intellectuals are indeed discussing and debating the future of the euro now, a real and open debate about Spain’s prospects will quickly move the consensus towards abandoning the euro.

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  • Greece Must End Its Doomed Marriage With The Eurozone: Nouriel Roubini

    Greece’s exit from the eurozone appears to be inevitable. Still, like a doomed marriage, it is better to have rules for the impending divorce so as to make separation less costly to both sides.

    NEW YORK – The Greek euro tragedy is reaching its final act: it is clear that either this year or next, Greece is highly likely to default on its debt and exit the eurozone.

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  • Can Hollande Change the Balance of Power in Europe? : Zaki Laidi

    Can Hollande Change the Balance of Power in Europe? : Zaki Laidi

    With François Hollande’s defeat of Nicolas Sarkozy, Merkel has virtually no support left in the eurozone. As the world looks for signs that Europe’s new power duo can overcome political difference and work together to save the euro, almost all European governments are counting on Hollande to change the balance of power. Will he succeed?

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  • Silver Lining In The Greek Tragedy

    Silver Lining In The Greek Tragedy

    Greece may not be the basket case that the rest of Europe seems to believe it is. Against the bleak picture commonly propagated by the media, the Greek state actually possesses numerous positive factors in its economy, including: a massive amount of real estate, and huge savings that can be generated simply by shrinking its public sector.

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  • Europe’s Man-Made Disaster – An Austerity Tragedy: Joseph Stiglitz

    Europe’s Man-Made Disaster – An Austerity Tragedy: Joseph Stiglitz

    Europe’s single-minded focus on austerity is a result of a misdiagnosis of its problems; and the fact that so many economies are vulnerable to natural disasters only makes the man-made disaster of austerity all the more tragic. Accordingly, the pain that Europe, especially its poor and young, is suffering as a result of its leaders’ willful ignorance of the lessons of the past is entirely unnecessary.

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  • Europe Must Seize Its Opportunity With Hollande: Martin Schulz

    Europe Must Seize Its Opportunity With Hollande: Martin Schulz

    François Hollande’s victory in the French presidential election is a fresh chance for Europe. It should spell the end of a policy oriented exclusively towards austerity, which has paralyzed our economies and divided the EU, and should not scare anyone – certainly not the financial markets.

    BRUSSELS – Rarely has an election resonated so widely across the European Union as the French presidential ballot has done. Rarely has a leadership change in one EU member state created expectations of a real policy shift.

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  • Spain’s Pain: Will The Spanish Banking System Collapse?

    Spain’s Pain: Will The Spanish Banking System Collapse?

    Spain’s banking system is in a fragile state. Already, bad property loans are threatening to bring the system down like a house of cards, while international pressure means that the government has little manoeuvrability to support the system if further disruptions occur. Needless to say, the Spanish government is desperate to have the banking sector solve its own problems without a bailout from either the state or the EU. But will this be possible?

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