Euro bank notes (Photo credit: Wikipedia)
StratRisks, August 28, 2012
Spanish consumers are pulling their cash out of banks at record levels, according to figures released on Tuesday.
Private sector deposits fell by nearly 5 percent in July to €1.509, the Telegraph reported, citing European Central Bank data, as public confidence in the banking system reached all-time lows amid a worsening economic situation.
Various Euro bills. (Photo credit: Wikipedia)
By Alexa van Sickle, Assistant Editor, International Institute for Strategic Studies, August 28, 2012
‘The euro is irreversible’ – Klaus Regling, head of the European Union’s bailout fund, says the EU is moving in the right direction after its debt crisis, but that Greece’s future in the eurozone depends on its progress in meeting the terms of its bailout… (more) http://ow.ly/1maM1P
By Michael Spence and David Brady, Project Syndicate, August 15, 2012
It is no secret that the global economy is struggling. Europe is in the midst of a crisis whose root cause is a structurally flawed monetary and economic union. The United States, emerging slowly from a financial crisis and widespread deleveraging, is experiencing a growth slowdown, a persistent employment problem, an adverse shift in income distribution, and structural challenges, with little effective or decisive policy action… (more) http://ow.ly/1lYPMo
By Sami Moubayed, Carnegie Institute
If the EU remains noncommittal in its approach to the conflict inWhen protests broke out against the regime of Syrian President Bashar al-Assad in the spring of 2011, local, regional, and international actors developed very different sets of expectations about how the crisis would unfold. The Syrian regime, for its part, believed the protests to be foreign-orchestrated and calculated that a rapprochement with the United States and the European Union would bring them to a halt… (more) http://ow.ly/1lUz2C
Peter Sutherland, Project Syndicate, August 9, 2012
When Mario Draghi, the president of the European Central Bank, publicly proclaimed that the ECB would do “whatever it takes” to ensure the future stability of the euro, the effect of his remarks was immediate and remarkable. Borrowing costs fell dramatically for the governments of Italy and Spain; stock markets rallied; and the recent decline in the external value of the euro was suddenly checked… (more) http://ow.ly/1lTN7r
By Garret Martin, European Affairs Editor-at-Large, European Institute
Divisions are a reality of Europe’s DNA. For much of its history, the continent’s aspirations for peace and unity have fallen prey to disputes and wars over religion, politics, or ideology to name a few. The European Union’s current woes are the latest example, with the ongoing Eurozone crisis undermining the ideal of integration as ancient centrifugal forces emerge anew. On the surface, the current divide reflects contrasting economic fortunes, with the Southern European states (particularly Italy, Spain, Greece and Portugal) disproportionately impacted by the Eurozone debt crisis, and forced to rely on substantial economic relief from the wealthier Northern European states. According to Indermit Gill, lead author of the World Bank’s seminal study on the European economic model, the EU economy can be viewed as three lanes of traffic, a slow-speed lane in Western Europe, a high-speed lane in formerly Communist Eastern Europe and a third lane, the South – “where cars are going in reverse.” (more) http://ow.ly/1lNKqs