Some deeper thoughts on Europe, USA and Asia for the holidays
Previously on MoreLiver’s:
EUROPE
Brussels blog round-up for 15 – 21 December: Cyprus close to insolvency,
Cameron hints at ‘Brixit’ and Depardieu departs to Belgium over tax – europp
/ LSE
Kenen on the euro – voxeu.org
Barry
Eichengreen, Charles Wyplosz: One of the world’s most influence international
economists, Peter Kenen, passed this week. This column highlights the key role
his insights played in the construction of the Eurozone and the problems that arose
when his insights were ignored.
The Netherlands remains divided on the future of European integration between those
wanting a ‘German’ federal Europe, and those in favour of an enlarged, but looser union – europp
/ LSE
The European Union
and the Habsburg Monarchy – eurozine
The threat
that the EU now faces is as deadly as the one that confronted the Habsburg
Monarchy a hundred years ago, writes British diplomat Robert Cooper, one of the
intellectual architects of EU foreign policy. But getting it right does not
need a miracle.
The OECD, bearer of bad news at Christmas? – Open
Europe
The OECD
released it latest assessment of unit labour costs (ULCs) in the eurozone a
couple of days ago and they do not make pretty reading for Italy or France and only slightly better for Spain
A 12.5km
fence rolled with barbwire along the Greek Turkish border is part of a larger
initiative to secure Europe from migrants seeking a better life.
If the EU
is to survive in the years to come it must start making a genuine difference for
its citizens and become not only a champion for free markets and peace, but
also for solidarity, social justice and welfare. This may not be achievable
with the UK continuing as a currently unwilling
member of the club.
The
proposed revision of the European directive on tobacco, presented on December
19 in Brussels, has provoked strong reactions in Sweden.
EU cyber directive 'nearly finished' – euobserver
The EU
executive will release a draft directive on cyber security in 2013, in the
latest indication that the bloc is moving towards a harmonised online rulebook.
True independence for
the ECB: Triggering power - no more, no less – voxeu.org
As governments and the EU wring their hands over
banking reform, a fragile system remains in place. This column argues that the
ECB’s current role undermines its independence. What Europe needs is
a new Restructuring Authority in which the ECB has the power to restructure
banks as it sees fit, but under a system with two authorities, reducing undue
forbearance. If enacted, the Eurozone is set to gain much from bold policy
change.
Swiss, facing EU tax pressure, ponder how to
attract firms – Reuters
The 30th
EU-Russia Summit, held in Brussels on December 20-21 highlighted the
differences opposing the two partners.
BAILOUT
COUNTRIES
A nexus of
media, business and politics lies behind the country's crisis, say critics.
The
"Men in Black," or Troika of lenders from the International Monetary
Fund, the European Central Bank and the European Union, who offer bailouts in
exchange for austerity, have become a source of humour. It is the basis of a
new card game and advertisement, but the laughter hides fears that the
situation will deteriorate in 2013.
The Cypriot
economy is so small that bailout talks don't really matter. Except they do: as
a litmus test for euro zone credibility.
Frankfurter
Allgemeine Zeitung: A German trauma therapist journeys to Greece. What he sees there surpasses his
worst fears. Greek society is crumbling under the pressure of the crisis.
Foreign aid: EU money only benefits the corrupt – De
Standaard / presseurop
According
to the European Court of Auditors, it’s almost impossible to check how EU aid
money is spent by developing countries. As a major EU aid fraud scandal hits Uganda, commentators in Kampala wonder why European donors continue
to funnel cash into a corrupt country.
This is the
first in a three-part series, "The Unequal State of America"
US: Merry Cliffmas – Danske
Bank (pdf)
Despite
progress in negotiations, the US Congress has failed to pass legislation before
Christmas that averts the substantial fiscal tightening about to hit the US economy on 1 January. The Congress
has now left for Christmas holiday but will return on 27 December. This means
that President Obama, House speaker Boehner and the Congress have four days
after the Christmas holiday to strike a deal.
What going over the ‘fiscal cliff’ means – The
Big Picture
The Decline of the "Great Equalizer" – Reuters
Massachusetts, home to America's best schools and best-educated
workforce, has seen income inequality soar. Why? The poor are losing an
academic arms race with the rich.
Why are Cash-Rich Companies Being Subsidized by
Tax-Poor Governments?
– The
Big Picture
Last
December, the chubby and blubbering soon-to-be leader of the hermit kingdom
seemed too inexperienced and unqualified to ever consolidate his rule. Today,
Kim Jong Un is riding high, having become the first Korean to launch a
domestically designed satellite into orbit on the back of a domestically
designed rocket. North Korean society, though, is changing all around him, and
lobbing missiles might not be enough to keep him in power.
China announced last week that its State
Administration of Foreign Exchange would remove the $1bn limit for foreign
sovereign wealth funds, central banks and monetary authorities buying Chinese
assets through the Qualified Institutional Investor Programme (QFII).
The year
2012 began with festering Chinese sovereignty claims in the South and East China Seas, but also with hope that a code of
conduct brokered by the Association of Southeast Asian Nations would enable
them to be resolved peacefully. The year is ending, however, with those hopes
dashed and ASEAN more divided than it has ever been.
A Sobering Assessment – The
Diplomat
National
Intelligence Council's 2030 report on global futures, titled Alternative Worlds
is full of thoughtful and in many instances worrying assessments about where
the Asian strategic order is going, and about the risks of instability and
conflict in the years ahead.