Italy’s beggar’s nationalism

The populist government’s reckless budget relies on other countries being ready to bail it out One of the bestselling books in Italy right now is a novel based on the life of Benito Mussolini, the Italian dictator who invented fascism. “M” by Antonio Scurati aims to be the first in a trilogy. Though several historical […]

We are deeply concerned about the future of Europe and Germany

After the 55 million deaths caused by WWII, after centuries of nationalist and imperialist wars left Europe in ruins, the peoples and the national governments across the continent finally realized that European unity was the only way to stop this madness. Immanuel Kant had had this vision 150 years earlier in his philosophical treatise “On […]

No Swift deal: Europe prepares for US Iran sanctions hit

European governments are locked in negotiations over a special purpose vehicle to safeguard trade with Iran as they prepare for a long-awaited US crackdown on Tehran’s oil and finance sectors to come into force. Hours before Monday’s launch of a US squeeze on Iran’s energy industry and central bank, European diplomats said a planned special […]

Bavarian shockwaves shake Angela Merkel’s fragile power base

Sunday’s electoral earthquake in Bavaria changed the political landscape in one of Germany’s most populous states. But its shockwaves also threaten to convulse the delicate edifice of Chancellor Angela Merkel’s power. Ms Merkel’s coalition was already looking tired and fractious before voters in Bavaria shellacked two of the three parties that make up her government […]

Stiglitz: “Can the Euro Be Saved?”

by Joseph Stiglitz The euro may be approaching another crisis. Italy, the eurozone’s third largest economy, has chosen what can at best be described as a Euroskeptic government. This should surprise no one. The backlash in Italy is another predictable (and predicted) episode in the long saga of a poorly designed currency arrangement, in which […]

Europe, Merkel, the ESM and a possible asymmetric shock

Much of the French and German press was preoccupied with analysing what Angela Merkel meant when she made her proposals on the eurozone. The consensus is similar to ours – there is not much change from what we knew already. What we do sense, however, is that some of the commentators underestimate the difficulty to […]

Solidarity in euro zone should not lead to debt union, Merkel says

* Solidarity should be helping others to help themselves – Merkel * ESM should become EMF with national oversight – Merkel * Merkel invites new Italian PM to Berlin   BERLIN, June 2 (Reuters) – German Chancellor Angela Merkel appeared on Saturday to rule out debt relief for Italy, saying in a newspaper interview that […]

French banks are by far the most exposed to Italian debt

With political developments in Italy keeping up tension in the financial markets, the German press has taken a look at the various eurozone countries’ exposures to Italian debt, public and private. Data from the Bank for International Settlements shows that French banks are by far the most exposed to Italian debt. Whether Germany comes second at […]

Italy may trigger new global crisis

In choosing this moment to heighten trade tensions with Europe, Donald Trump is ignoring major economic and political upheaval in Rome. Trouble in Italy, the euro area’s third largest economy, has the potential to trigger a global economic disaster on the scale of the 2008 financial crisis. Before enforcing restrictive trade measures that might blacken […]