Economy and Finance

ip journal

Waiting for the Other Shoe to Drop
Waiting for the Other Shoe to Drop

Without institutional reform the euro area is threatened with a lost decade

19/01/2015 | by Daniela Schwarzer | Europe, Economy and Currency

The euro area seems to have weathered the worst of the crises, but longer-term problems now threaten the currency union. Steps must be taken to avoid a decade of stagnant economic growth, even if none of the policymakers involved are eager to discuss them.

ip journal

“Hollande Has Nothing Left to Lose”
“Hollande Has Nothing Left to Lose”

Interview with Camille Grand, director of the Fondation pour la recherche stratégique in Paris

31/10/2014 | by Camille Grand | France, Economy and Finance

Bad figures for trade and unemployment and the worrying state of the public finances: France needs reforms to get out of the present economic crisis – and its beleaguered President François Hollande may end up succeeding against the odds, argues Camille Grand. At the same time, the country has to catch up on international markets and grasp the opportunities of globalization – for which France is better equipped than is often assumed.


Grasping at Goethe
What Faustian conclusions can and cannot explain about the euro crisis.
03/12/2012 | by Derek Scally
From Germany’s hard left to the ordoliberal right of the Bundesbank, Goethe offers something for everyone as Germany grapples to understand the euro crisis debate. But is the man himself a model of Germanic thrift or a warning of Greek profligacy? Could his texts be the key to understanding the tortured German euro crisis response?
Category Economy and Currency, European Union, Finance, Economy and Finance, Financial Crisis, Geographical areas of Europe, Germany
The Primacy of Economic Interests
Economic interests trump security and challenge Western unity
15/11/2012 | by Michael Rühle
As traditional security policy is superseded by economic and energy interests, we must begin to discuss the “economization of security policy” – the implications of which go far beyond the current global financial crisis and its effects on the security policy of the West. One voice inside NATO describes what needs to be done to ensure that this commercialization of security will still allow the friendly member countries of NATO and the EU to avoid 21st century conflicts and to continue to act collectively.
Category Financial Crisis, Finance, Economy and Finance, NATO, European Union, Regional Organizations, Law & Institutions, Military Capacity, Security, Resources and Energy, China, Russia, Worldwide
The End of Germany's Sonderweg
Compromising on ESM, Merkel leads Germany down a more European path
08/10/2012 | by Andreas Rinke
For decades, Germany has been able to afford unique military and fiscal-political restraint. But all that is changing: first, Germany started participating in international military missions, and now with the European Stability Mechanism and the ECB’s growing political role, the swan song is being sung for the old Bundesbank philosophy. Of all possible times, Berlin has chosen this moment of peak economic strength to abdicate its decades-long special position.
Category European Union, German Foreign Policy, Financial Crisis, Finance, Economy and Finance, Germany, Central Europe, Europe
China’s Economic Path Forward
How to facilitate Chinese efforts to promote its economic interests
21/09/2012 | by Youfa Liu
China has been fine-tuning its national economic structure to increase its competitiveness in the world economy and take advantage of the immense potential of global industrial production chains. The financial crisis has given China an additional boost: bestowing Beijing with more equal footing in economic governance institutions, offering favorable conditions for further national development, and facilitating China’s efforts to protect and promote its national interests.
Category Economy and Finance, China, East Asia, Asia
A Yarn That Won't Unravel
The Karlsruhe verdict does not change Germany's "poor us" posture
13/09/2012 | by Derek Scally
The Karlsruhe verdict was widely welcomed as a positive sign for the euro and Europe's future, but the doomsday reception of the judgement in Germany itself does not bode well.
Category European Union, Political Culture, Government and Society, Law & Institutions, Fiscal Policy, Economy and Finance, Germany, Central Europe, Europe
Thinking Swiss
What the Swiss model really says about the EU’s insiders and outsiders
18/07/2012 | by Roderick Parkes
With the eurozone in seemingly endless turmoil, some Euroskeptics wonder if the Swiss model of negotiating a series of bilateral treaties with the EU and its members could maximize economic gains while limiting exposure to crises. But for all its advantages, the Swiss model demands a lot of sacrifice. It may also be nearly impossible for any other country to feasibly replicate it.
Category Trade, Economy and Finance, Switzerland, Central Europe, Europe
More Money, More Problems
Germany’s foreign policy is increasingly driven by economic interests
31/10/2011 | by Hans Kundnani
Berlin remains unwilling to project military force, even alongside allies. But it has become less hesitant to flex its economic muscles, especially in Europe. Traditionally thought of as a “civilian power,” Germany’s foreign policy has become more assertive in pursuit of profits for its firms, even perhaps at the cost of its broader political interests.
Category Economy and Finance, Germany, Europe, Western Europe
America or Asia?
How an old hegemon can cooperate with the new super power China
31/10/2011 | by Maximilian Terhalle
How steady is the “liberal leviathan” United States? Will the “American world order” persist? And what distinguishes power and hegemony in the 21st century? Despite Asia’s continuing rise, three notable authors are certain that America will remain the essential world power.
Category Trade, Government and Society, Finance, Economy and Finance, United States of America, China, East Asia, Asia, North America
Honest Aid
If donors keep their word, new structures could boost E.U. development policy
01/01/2011 | by Toby Vogel
Placing development under the aegis of the new E.U. diplomatic corps could foreshadow an upgrading of E.U. development policy. Yet critics warn that some countries may be rewarded for the right positions on E.U. security concerns while others, more deserving, may end up with less aid. The economic crisis is causing donors to backslide on commitments.
Category Development Policy, Economy and Finance, European Union, Europe, Worldwide, Africa South Of Sahara
“Pure aid creates dependency”
An interview with German development minister Dirk Niebel
There have been a lot of changes in the Federal Ministry for Economic Cooperation and Development since FDP politician Dirk Niebel took over. Criticized by some for a lack of experience and loyalty to party members, Niebel has also instituted reforms that his predecessor failed to achieve. Niebel talks about Germany’s role in international development.
Category Development Policy, Economy and Finance, Germany
No Alternative to the Euro
The poor euro is a scapegoat for everything, for everybody, everywhere. But the little fellow’s doing just fine, thank y
01/11/2005 | by Norbert Walter
Poor euro. Not welcome on the block. Greeted in the womb as a soon-to-be-stillborn. Feared to be a deprivation for owners of the “good old national money” it replaced. Caricatured as the “teuro” (cost-inflating euro) despite conspicuously lower inflation in the euro era than in the decades before. Belittled in 2000 to 2002 because of its declining external value (versus the US dollar).
Category Economy and Currency, European Union, Trade, Finance, Economy and Finance, Geographical areas of Europe
European Mergers Trump US Acquisitions
Legitimacy makes all the difference
01/11/2005 | by Richard Rosecrance
Corporations have learned the difference. And various European nations have learned from their imperial problems in the past. But the super power United States still has this learning curve ahead of it. Takeovers don’t produce the cooperative trust that maximizes productive synergies.
Category Economy and Currency, Enlargement Process, European Union, Europe-USA, Transatlantic Relations, Economy and Finance, Europe, United States of America
If America Won't, Germany Must
A globalizing world needs a new economic hegemon
01/08/2005 | by Adam S. Posen
An economic hegemon is a land that is big enough economically and gains enough from an international regime itself, even if no other country contributes. Germany was the nice guy who picked up the EU check. Now it should do the same for the globe.
Category Economy and Finance, German Foreign Policy, Economy and Currency, European Union, Globalization, Germany
An Empire of Law and Consensus
A call for a Europe–and Europeans–beyond the nation-state
01/02/2005 | by Ulrich Beck
Europe can become neither a state nor a nation–and it won’t. Hence it cannot be thought of in terms of the nation-state. The path to the unification of Europe leads not through uniformity but rather through acknowledgment of its national particularities. Diversity is the very source of Europe’s potential creativity. The solution to national problems lies only in European interaction.
Category European Union, Globalization, Economy and Finance, Political System, Government and Society, Europe
Failure in the Third Generation
Why should the grandsons favor more European integration?
01/02/2005 | by Kiran Klaus Patel
The main problem of the EU is its unprecedented success. The founding fathers sought above all to eliminate war from a bloody continent. Their project succeeded so well that peace is now taken for granted. The average European is no longer grateful that war has been made unthinkable.
Category Enlargement Process, European Union, Globalization, Economy and Finance, Europe
Development and Globalization
Developing countries can benefit greatly from globalization
01/01/2005 | by Georg Koopmann
UNCTAD deplores a new “development pessimism” that says it is not development, but integration into the world market, that is the best path to reducing poverty in developing nations. The two are not exclusive.
Category Global Imbalances, Trade, Economy and Finance, Worldwide
Russia’s Economy
01/08/2004 | by Roland Götz
If one gives Putin the benefit of doubt, this concentration of power in the hands of the president is designed to support his program of economic reforms and the growth of the economy. Whether this can be achieved by authoritarian means and what sort of repercussions this may have for Russian society is quite another matter.
Category Economy and Finance, Economy and Currency, Russia