-MoreLiver
The Telegraph
While Germany appeared to offer Britain alternative proposals to the controversial Europe-wide levy on financial transactions today, a draft Franco-German paper, seen by The Daily Telegraph, reveals that the financial transaction tax is seen in Berlin and Paris as the first step to giving the EU a new power to "coordinate" taxation.
Portugal's borrowing costs have jumped to record highs and are tracking the moves seen in the culminating phase of Greece's debt crisis, dashing hopes that the country will be able to stave off contagion by embracing drastic austerity.
Europe's leaders don't want to hear this. They still cling to the belief that monetary union of fiscally sovereign nations can, provided everyone sticks to fiscal disciplines, be made a functioning and transformational engine of growth.
The IMF is no longer serving its purpose – The Telegraph
To save the eurozone, the International Monetary Fund needs to dispense tough love, not endless bail-outs.
Der Spiegel
The financial markets have calmed for the moment, but the next wave of turbulence may be just around the corner. Germany is under pressure from all sides to provide more funds to rescue the common currency, but Chancellor Angela Merkel would prefer not to pay any more.
Greece on Friday took huge strides toward reaching a deal with its private creditors in an effort to slash the country's debt by 100 billion euros. And with insolvency looming, the agreement comes not a moment too soon.
Rating Agency Downgrades: 'Anglo-American Interests' and the Currency War Myth – Spiegel
The Germans love a good conspiracy theory. The latest is about the evil American rating agencies that want to destroy the wonderful euro. It is a viewpoint shared even in the highest political circles. But that doesn't make it any less absurd.
'Ratings Agencies Are Not Responsible for Crisis' – Spiegel
Standard and Poor's has downgraded the European bailout fund, the EFSF, following last week's downgrade of nine euro-zone members. European politicians are doing their best to exude calm. German observers argue that the messenger shouldn't be blamed for bad news.
Temporary Respite: Why ECB's Tricks Won't Solve the Crisis – Spiegel
Ever since the European Central Bank began flooding the markets with cheap money, European banks have rediscovered their taste for sovereign bonds. But the crisis is far from over, as Standard and Poor's recent raft of downgrades showed. Some bankers are saying it's just a matter of time before yields on peripheral bonds shoot up again.
Interview with Linde CEO: 'I Don't Believe the Euro Should be Rescued at All Costs' – Spiegel
In a SPIEGEL interview, top German industrialist Wolfgang Reitzle argues that Germany should withdraw from the currency union if Europe's crisis-ridden countries fail to push through reforms. But whatever happens, Greece will have to leave the euro zone, he warns.
Ex-Chief Economist Slams ECB Bond Purchases – Spiegel
The former chief economist of the European Central Bank wrote a farewell letter to the bank's staff in which he criticized the policy of buying bonds issued by ailing euro-zone states, SPIEGEL has learned. The ECB was wrong to subordinate itself to the needs of fiscal policy, and could not solve the problems of the euro zone, he wrote.
Italian Prime Minister Mario Monti has called on Germany to do more to help Italy and other debt-stricken nations to push down their borrowing costs. If the efforts of nations submitting themselves to austerity programs aren't sufficiently recognized, he said, there will be a "powerful backlash."
The Economist
Greece’s creditors would all have to take a massive hit to right its finances
The hangover – The Economist
America is recovering from the debt bust faster than European countries. Why? – The Economist
French politics: Down a notch – The Economist
A French downgrade also downgrades Nicolas Sarkozy’s re-election chances
A familiar problem for central Europe
And then there was one – The Economist
Germany now stands alone. But its power may weaken the euro zone
The euro crisis returns: Salve Italia – The Economist
If Germany’s Angela Merkel wants to save the euro, she must do more for Italy’s Mario Monti
Mario Monti has restored Italy’s good name in Europe. Now he wants help