Some worthy articles from the past few days. A Weekender-post coming later today. - MoreLiver
The Economist
The self-delusion of European leaders as they wrangle over yet another treaty
The new government is turning the fiscal screws
Some Italians take violent exception to paying taxes
€176 billion of non-performing real-estate loans and foreclosed assets (52% of the banking system’s total property book).
For central bankers, unconventional is the new conventional – The Economist
Alan Blinder, a Princeton economist and former Fed official, has likened them to a family that lets its crazy aunt out of the closet only on special occasions. QE is “best kept in the locker marked ‘For Emergency Use Only’”, is how Charlie Bean, the Bank of England’s deputy governor, put it in 2010.
The Telegraph
Fiscal Compact Draft 2 – The Telegraph
Full draft text. Germany and France have insisted on changes, to the original 16 December text, that clash with David Cameron’s promises that the new treaty will not override the EU or use its institutions to police a non-union pact.
Cameron warns EU over tampering with single market – The Telegraph
David Cameron has warned he will not accept attempts to tamper with the European single market by any group other than the full 27 members of the European Union.
Euro won't collapse in 2012, says IMF chief Lagarde – The Telegraph
The euro is likely to survive 2012 despite the eurozone debt crisis, International Monetary Fund Managing Director Christine Lagarde said on Friday.
Will the euro crack in 2012? – The Telegraph
Persson (director of Open Europe) sees risks: downgrades and banks (especially Spanish)
Der Spiegel
The Danger Debt Poses to the Western World – Spiegel
Countries around the world, particularly in the West, are hopelessly in the red, with debt rising every day. Even worse, politicians seem paralyzed, unable -- or unwilling -- to do anything about it. It is a global disaster that threatens the immediate future. But there might be a way out.
Merkozy's Men: Advisers Seek to Bridge Euro Differences – Spiegel
Nikolaus Meyer-Landrut and Xavier Musca are not household names, but the two are playing a crucial role in efforts in Paris and Berlin to find joint policies for saving the euro. As the main advisers to Merkel and Sarkozy for coordination between Germany and France in the crisis, the two are building a bridge between two vastly different political worlds.
The holiday break was welcome, but on Tuesday, a Greek government spokesman said that the next three months were crucial if his country was to remain part of the euro zone. The bailout agreement with the EU, he said, must be finalized. Or else.
Since its inception, the euro zone has been built on lies, the most grievous of which is the idea that the common currency could work without political union. But Europe's politicians are currently suffering under a different but equally fatal delusion -- that they have all the time in the world to fix the crisis.
New Greek Government Runs Out of Steam – Spiegel
Six weeks after forming a transitional government to overcome its crisis, Greece is still failing to deliver its promised reforms. The cabinet of Prime Minister Lucas Papademos is deeply divided and has lost the public's confidence. Even the most urgent measures have ground to a halt.
Anti-Putin Protesters Search for Direction – Spiegel
Where will the Moscow protests lead? Already calling for the creation of their own party, the opposition movement is still searching for a leader. Their hope is to challenge Vladimir Putin in March's presidential election. But the Russian strongman refuses dialogue with the protesters.
Encounters with the Calabrian Mafia – Spiegel
The shadowy Calabrian mafia, the 'Ndrangheta, has become one of the most powerful criminal organizations in the Western world through its dominance of the European cocaine trade. For the first time, local syndicate bosses described their business model to SPIEGEL. It's a mixture of entrepreneurial talent, skillful management and deadly ruthlessness.
Sweden Shows Europe How to Cut Debt, Weather the Recession – View / BB
Lessons: 1) The value of monetary independence 2) Fiscal stimulus isn’t a necessary condition for economic recovery 3) Fiscal conservatism can be popular.
Lessons: 1) The value of monetary independence 2) Fiscal stimulus isn’t a necessary condition for economic recovery 3) Fiscal conservatism can be popular.