German voters must break the Merkel mindset that got them into this
If Germany cannot pull itself together to keep Spain in the euro, then the markets can no longer ignore the fact that the lack of leadership and governance is a fatal flaw in the system.
What accounts for this? I would argue that the heart of the problem lies in the political culture of Germany and the mindset of its political and economic elites, which have never been willing to admit to their own voters the sacrifices that must be undertaken in order to be the leader of Europe. Instead, they have led Germans to believe that they can have it both ways: enjoying the fruits of the eurozone while times were good, and lobbing the burden of adjustment onto others when times got bad.
Greek Chaos Threatens World Economy—And Obama
The whole episode underscores the need for a European growth strategy to supplement budget cuts and structural reforms. With the Germans blocking any idea of a fiscal stimulus—a stance they are unlikely to alter anytime soon, despite the election of François Hollande in France—the obvious way out is for the European Central Bank to engineer a large-scale monetary expansion and a devaluation of the euro, which would give a boost to European exporters. At $1.30, the euro is still grossly overvalued given the continent’s chronic problems.
It’s not really their Germanic features and grooming that interest the chancellor, of course, but rather their sober, Germanic approach to global crisis: If in doubt, stick to the rules.
2021: The New Europe
Niall Ferguson peers into Europe’s future and sees Greek gardeners, German sunbathers—and a new fiscal union. Welcome to the other United States.
NYT: Norway Attacks Put Spotlight on Rise of Right-Wing Sentiment in Europe
The attacks in Oslo on Friday have riveted new attention on right-wing extremists not just in Norway but across Europe, where opposition to Muslim immigrants, globalization, the power of the European Union and the drive toward multiculturalism has proven a potent political force and, in a few cases, a spur to violence.
As Nationalism Surges in Europe, Poland Begins Bloc Presidency
Poland takes over at a challenging time, with Europe confronting a debt crisis in Greece, threats to its passport-free travel zone and the rise of populist political parties in many member nations.
While American cities are synchronizing green lights to improve traffic flow and offering apps to help drivers find parking, many European cities are doing the opposite: creating environments openly hostile to cars. The methods vary, but the mission is clear — to make car use expensive and just plain miserable enough to tilt drivers toward more environmentally friendly modes of transportation.
The future isn’t the car.
theeconomist: The Berlusconi era will haunt Italy for years to come.
Tragically True But Hilarious: Mapping European Stereotypes
