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Showing posts with label Stability. Show all posts
Showing posts with label Stability. Show all posts

11/23/19

WTO: Canada urges U.S. to save WTO from chaos " brought on by the US Trump Administration"

The global trading system that took decades to build is days away from disarray as the U.S. appears keen to paralyze the World Trade Organization's enforcement system.

Read more at:
https://www.cbc.ca/news/world/canada-urges-u-s-to-save-wto-from-chaos-1.5369843

11/4/19

Germany: In 20 years, 1 in 3 people will be a migrant

In large cities of Germany up to 70% of inhabitants will have a migrant background in two decades, experts say. Germany will need to attract a "range of nationalities" to keep the "economy stable."

Read more at:
https://www.dw.com/en/germany-in-20-years-1-in-3-people-will-be-a-migrant/a-51101172

12/1/17

Germany Facing a Return to the Grand Coalition

On Thursday, German President Frank-Walter Steinmeier received the two party leaders for a long discussion, but even in the days leading up to that meeting, it had become clear that the two were eagerly burying the hatchet to lay the groundwork for a possible coalition. Schulz and Merkel, together with Horst Seehofer, who leads the Bavarian conservatives, now intend to explore the possibility of slapping together another governing coalition - the same "grand coalition" that voters so clearly rejected in the general election in late September.

As a group, Germans are thought to value political stability. But a repeat of the SPD-conservative coalition is the kind of stability that wouldn't be good for the country. The last four years have shown that a grand coalition is a static alliance, one that is good at spending money but not as adept at moving projects forward - aside from the project of right-wing populism, of course.

Deputy SPD head Olaf Scholz said recently that a rebirth of the grand coalition would "have negative consequences for our democracy." It would also mean that the right-wing populist Alternative for Germany (AfD) would be the strongest party in opposition. That means it would always have the privilege in parliament of delivering the first rebuttal to Merkel's speeches.

Nevertheless, for the leaders of the parties involved, a grand coalition isn't completely unattractive
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For Merkel, it represents the best opportunity to secure her power, a motive that has long been important to her. And SPD head Martin Schulz already seems to be practicing the arguments he hopes to use at next week's party congress to convince unwilling delegates of the utility of another alliance with Merkel's conservatives.

Read more: Germany Facing a Return to the Grand Coalition - SPIEGEL ONLINE

3/12/16

The euro zone is marching along nicely, with ECB leading the way - by ERIC REGULY

euro-zone hanging in there
How many blows can the euro zone take before it collapses into a great, bleeding sovereign heap? A lot, apparently.

Every few years, indeed, every few months, the euro zone is written off as a failed experiment. Every monetary union since the Roman empire has blown up or simply faded away and the euro zone will be no exception, its detractors insist; just give it time. Nineteen countries running at 19 different speeds, with jobless rates ranging from 5 per cent to 25 per cent can’t possibly stick together.

The European Central Bank’s response on Thursday to waning inflation and growth seemed to prove the detractors right. Almost eight years after the 2008 financial crisis, the euro zone remains such an indolent economic sloth that the ECB actually invented a way to pay the banks to make loans to businesses and consumers. The novel scheme was part of yet another stimulus package, one that knocked interest rates to zero and boosted the ECB’s quantitative easing bond purchases to €80-billion ($118-billion) a month, that was flung on top of piles of stale stimulus packages that basically didn’t work.

The ECB’s new and seemingly desperate attempt to juice up the economy was an overreaction, although not massively so, and the euro zone is not as utterly hopeless as the headlines suggest. The euro zone may look like it’s dancing drunkenly through a field of land mines, never more than a stumble away from destruction. But the dance is not the suicide run it seems to be.

Take the Sentix Euro Break-up index. The index shows how investors rate the probability of a breakup of the euro zone (such as Greece hitting the road) within 12 months. The latest reading was 19.9 per cent, which looks pretty high. In comparison to previous peaks, it’s not. In 2012, at the height of the euro zone crisis, the index hit 70 per cent. Last summer, when Greece again taunted the euro zone with its exodus, the index reached 50 per cent. From the investors’ point of view, the breakup scare, while far from absent, is now relatively low.

More evidence that the euro zone is not doomed comes from the fairly strong growth rates in some countries and the rocket-like performance in a few. Ireland, which sued for a bailout in 2010, is taking on Celtic Tiger status again. Its gross domestic product grew a stunning 9.2 per cent, year-over-year, in the last three months of 2015, outranking India and China. Spain, the euro zone’s fourth-largest economy, grew 3.2 per cent in 2015. It, too, had been a basket case during the crisis.

Portugal, another bailout victim, eked out growth of 1.5 per cent last year. Greece, now grinding through its third bailout, remains the lone euro zone country in recession (Finland entered a technical recession last year, defined as two consecutive quarters of contraction, but is expected to bounce out soon). Italy is expanding painfully slowly, but managed to report good news on Friday: Industrial production in January jumped 1.9 per cent, month-on-month.

Over all, euro zone growth is not great, but it’s improving. The ECB expects growth of 1.4 per cent this year and 1.7 per cent in 2017. No crisis here. So what made the ECB president haul out the bazooka this week? His stimulus package was more aggressive than economists had expected.

In a word, inflation. Or more precisely, the lack thereof. In February, inflation turned negative, at minus 0.2 per cent compared with a 0.3-per-cent rise in January. Mr. Draghi wants headline inflation at close to, but not beyond, 2 per cent. But the figure seems arbitrary. There is no compelling rationale to argue that inflation of, say, 1.5 per cent or 2.5 per cent is inherently evil, and falling inflation rates are not always terrible to behold. 

In this case, they are largely owing to the collapse in energy and commodity prices in the last year and a half, which have given consumers extra spending power. If energy and seasonal food prices are excluded, “core” inflation actually rose by 0.7 per cent in February.

Inflation, in other words, hasn’t disappeared. The ECB expects more or less flat inflation this year, rising to 1.3 per cent in 2017 and 1.6 per cent in 2018, and those figures could prove conservative if oil prices, which have climbed by almost 50 per cent since January, keep rising. Mr. Draghi’s big, fat stimulus package seems more like an insurance policy than a panic response to a new crisis. There is no new crisis.

To be sure, the euro zone and the wider European Union face serious problems, from Britain’s potential departure from the EU to the refugee crisis. But Britain probably will vote to stay put and, even if it goes, the euro zone’s integrity would not be compromised since Britain doesn’t use the euro. The refugee crisis has not killed the EU’s passport-free zone, known as Schengen, in spite of endless predictions that it would. The loony populist parties of the far right and the far left have yet to form governments (Greece’s far left Syriza party wasn’t loony enough to ditch the euro). There is no war in the EU countries.

Growth and inflation are not dead. On the whole, the euro zone is in much better shape than it was three or four years ago, even two years ago. The new stimulus package is bound keep things moving in the right direction. For that, you can thank the ECB.

Read more: The euro zone is marching along nicely, with ECB leading the way - The Globe and Mail

5/5/15

Italy passes electoral overhaul to end chronic instability

Italy's parliament on Monday gave final approval to the new electoral law, despite furious objections from the opposition and some members of Renzi’s ruling Democratic Party.

The electoral overhaul, which becomes law after more than a year of discussion in both chambers of parliament, is a central part of the prime minister's political and economic reform agenda.

It replaces a widely decried electoral law passed more than a decade ago under former premier Silvio Berlusconi, nicknamed “Porcellum” (which means pig in Latin).

The new legislation, which only takes effect in July 2016, is based on proportional representation but guarantees a big majority to the winning party and gives party bosses wide powers to handpick preferred candidates.

If the winning party gains at least 40 percent of the vote, it qualifies for a winner's bonus that automatically gives it 340 seats in the 630-seat Chamber of Deputies.

If no party wins 40 percent, a run-off ballot between the two largest parties is held two weeks after the first election to determine which party gets the winner's bonus.

Read more: Europe - Italy passes electoral overhaul to end chronic instability - France 24

3/31/15

Greece: In order to save Greece and the EMU the EU might have to dump Ukraine

Greece failed to reach an initial deal with the European Union and the IMF to unlock aid after the creditors dismissed a package of reforms from Athens as ideas rather than a concrete plan, officials said on Tuesday.
The lack of a deal further raises pressure on Athens, which faces the prospect of running out of money in a few weeks unless it can convince lenders to dole out more financial help.

Athens put a brave face on the failure to reach an agreement with the "Brussels Group" of representatives from the EU and the IMF, saying it remained keen for a deal on the basis of its long-held demand that the measures it is asked to implement do not hurt economic growth. Lenders will intensify efforts to collect data in Athens, it said.

he country’s immediate fate now hinges dangerously upon a colourful but corrosive personality struggle. Prime Minister Alexis Tsipras’s charm has worn thin, and so has Finance Minister Yanis Varoufakis’s charisma. Mr. Varoufakis is visibly despised by his German counterpart, Wolfgang Schaeuble, though the latter is no match for him in wit and lucidity.

Mr. Schaeuble is more or less in tune with his boss, Chancellor Angela Merkel, but both are at loggerheads with Jean-Claude Juncker, the new President of the European Commission in Brussels. Mario Draghi, president of the European Central Bank, is in conflict with Jens Weidmann, president of the German Bundesbank. The Prime Minister of Spain, fearful of a challenge from his leftist opposition, is openly derisive of the new Greek government, and even the socialist leaders of Italy and France are keeping their distance.

The root cause of this personality struggle is the merit of so called “austerity” as a remedy for indebtedness. Under German leadership, the European Union has imposed spending cutbacks on Greece that are the most severe in postwar history: the outcome has been the most prolonged economic contraction and highest unemployment in Europe’s postwar history.

In order to save  Greece the EU might even have toi go as far as cancelling its planned investments in Ukraine and offer Ukraine as a gift to Russia thereby guaranteeing stability in the EMU and the survival of the EU if the US likes it or not..

EU-Digest

1/4/15

The future of Europe - Navel Staring European Politicians - Mrs Merkel the only exception with vision

Mrs. Merkel - a true European visionary with political skills
An Observer editorial notes: "Seventy years after the founders of modern Europe set out to bring stability, unity and prosperity to a war-ravaged continent, Europe and its principal political manifestation, the European Union, face a renewed, potentially defining struggle against the re-energised forces of internal division and fragmentation and external hostility and encroachment.

The scale of this challenge has yet to be fully appreciated. Its outcome is wholly uncertain. In consequence, 2015 may prove a fateful year for all the peoples of Europe.

The challenge comprises many elements, chief of which is whether the politics of austerity will be replaced by a more flexible, people-friendly economic regimen. Austerity, mainly in the form of public spending cuts and attempted deficit reduction, has wrought huge human and social damage. One key measure of pain is unemployment. In Spain, joblessness stands at around 23%. In Greece, the figure is 25%. In some areas of France and Italy, youth unemployment topped 40% at its highest point. Across the EU in 2013, 26 million people were unemployed, or one in eight of all workers. Many millions more are underemployed.

Austerity has caused tremendous political as well as social strain. The tough line dictated by chancellor Angela Merkel of Germany, who will arrive in London this week, is increasingly resented and there are clear signs of push-back. France’s new prime minister, Manuel Valls, introduced a €30bn reform package designed to boost business and jobs. His boss, President François Hollande, an old-school socialist, openly reviles Merkel’s “neoliberal” policy and its main underpinning, the European stability pact governing national budgets.

“To reform is to affirm our priorities, while refusing austerity,” Valls declared. Another newcomer, Italian premier Matteo Renzi, described as “Merkel’s most dangerous rival”, also links structural reform to a loosening of EU rules, notably Merkel’s holy grail, the 2012 fiscal pact. In November, both countries won budget reprieves from the European commission.

Still the only European leader who can credibly claim international statesman stature, Merkel, who is coming to London on Wednesday for talks with David Cameron on a range of issues, including the European economy, faces increasing criticism at home, not least from her centre-left vice-chancellor and coalition partner, Sigmar Gabriel. He argues the rise of right- and leftwing populism across Europe can only be checked by rapid economic improvements.


Nor can Merkel count on useful support from the new European commission president, Jean-Claude Juncker, or, more surprisingly, from Britain’s government, fellow champion of austerity and no friend to Hollande. In more skilful hands, David Cameron’s calls for EU reform might have meshed well with German priorities for sound money and stability, but Cameron has recklessly squandered European alliances and opportunities. In any case, he may soon be out of office.

While recent indicators suggest the worst of the recession is over, the full extent of the political fallout at grassroots level across Europe is only now becoming apparent. Elections this year in Greece, Spain, the UK, Denmark, Finland, Poland, Portugal and Estonia will provide further proof of the fragmentation of postwar consensus politics as erstwhile minority parties come to the fore.

In Britain, Ukip, the Greens and the Scottish Nationalists are aiming to usurp the traditional centre-left and centre-right parties. Likewise in Greece and Spain, it seems the centre cannot hold against a surge in support for the populist, anti-austerity leftwing insurgents of Syriza and Podemos respectively. In Sweden, the two mainstream parties, desperate to keep the far-right Sweden Democrats out of government, conspired to form a Merkel-style grand coalition, thereby effectively denying voters real choice. Finland faces a similar dilemma over its hard-right, anti-immigrant party.

Last year’s European parliament elections revealed unprecedented, pan-European dissatisfaction with politics as usual, but Brussels took scant notice, installing Juncker, a quintessential establishment figure, and creating a centrist coalition in parliament. Out of touch hardly describes such complacent behaviour. The significance of the rise of Europe’s new parties can no longer be denied, nor can they be dismissed as mere, temporary protest movements.

Yet Europe’s new politics, organic in nature and fast evolving, cannot be easily quantified or defined. Some, such as the Pegida demonstrators in Germany, are motivated by racist and anti-Muslim views. Merkel was entirely right last week to condemn them. But a new poll showed one in eight Germans sympathises with Pegida. Such views have a more pernicious, formal presence on Germany’s political stage in the shape of the anti-euro, anti-foreigner Alternative für Deutschland, which is eclipsing the old Free Democrats in the way Ukip may eclipse Britain’s Liberal Democrats.

In each country, new parties produce new imponderables. In Greece, for example, the growth of leftwing radicalism is in part a response to the advancing neo-Nazis of Golden Dawn. In the case of some of Europe’s secessionists, meanwhile, self-determination and economic justice have sometimes been confused with an unattractive, exclusionary nationalism. There is one constant: everywhere, it seems, immigration is an issue of concern.

The overall effect of these powerful and often conflicting currents is plain: in prospect is an unstable landscape of weak and fragile national governments, escalating friction over EU policies, intensifying north-south eurozone strains and a growing inability to present a united European front to the world.

A united front is required more than ever, as Europe faces the triple challenge of mass movements of people, Russian aggression and Islamist extremism. Almost alone among Europe’s leaders, Merkel continues bravely to make the case for accepting refugees from conflict in Syria, Libya, Iraq, Somalia and elsewhere. But as the plight of asylum-seekers trapped on the Ezadeen, which arrived in Italy yesterday, again demonstrated, this is an enormous international problem.

Most European states, including Britain, have not begun to face up to their responsibilities in dealing with mass migration and tackling the roots of the religious extremism that often causes displacement.
After Vladimir Putin dismembered a European country by annexing Crimea,

 Europe enters 2015 lacking certainty, for the first time since the cold war, that its borders are secure. It was left to Merkel, again, to point out in November that Putin’s attempt to re-establish Soviet-era spheres of influence affects not only Ukraine, Georgia and Moldova, but countries much closer to Europe’s heart, such as Serbia and Bosnia, and EU members Hungary and Slovakia.

Russia’s expansionist and anti-democratic outlook recalls the worst aspects of the legacy Europe fought to overcome after 1945. The struggle for a Europe whole, prosperous and free has now returned with a vengeance."

EU-Digest

6/6/14

EU Presidency: Herman Van Rompuy: ‘A huge majority want to stay in the union and the eurozone’

United We Stand Divided We Fall
The eurosceptic backlash in the recent European elections was a major shock to the EU establishment.

Large numbers of people voted for anti-European parties across the bloc. In France Marine Le Pen’s Front National won 25 percent of the ballot, while in Britain the UK Independence Party (UKIP) bettered that still, with 27 percent of the poll.

Against that backdrop euronews’ Isabelle Kumar spoke to Herman Van Rompuy, the President of the European Council . In addition to discussing the political ramifications of the EU election result and what it means for Europe, Rompuy also spoke about the crisis between the EU, Ukraine and Russia, his future plans, and his love for Haiku poetry.

Play the video ( click on link below)  to watch the full interview

Read more: Herman Van Rompuy: ‘A huge majority want to stay in the union and the eurozone’ | euronews, the global conversation

5/27/14

Egypt Isn’t Stable according to Pew Research Center's Global Attitudes Project - by Richard Wike


There is little drama to the upcoming Egyptian presidential election, which will take place on May 26 and 27. Former Defense Minister Abdel Fattah al-Sisi is certain to emerge victorious. While international observers and his Islamist rivals will question the legitimacy of his victory, Sisi will emerge from the vote in control of the Egyptian state.

Much of the media coverage from Egypt since Mohamed Morsi and the Muslim Brotherhood were pushed out of power nearly a year ago has focused on Egypt’s sometimes virulent nationalism and the emerging cult of personality around Sisi.

Tired of instability, frustrated with a poor economy, and experiencing buyer’s remorse from electing Islamists, the Egyptian people — so the argument goes — turned to Sisi and the military to save them from extremism, restore order, and bring back the optimism that followed the toppling of Hosni Mubarak.

Read more: Egypt Isn’t Stable | Pew Research Center's Global Attitudes Project

4/15/14

The European Economy Spring 2014 - by Andrew Watt

The main message for European policymakers from the IMK economic forecast last week – available in German here – is that while there are strong grounds to hope for the best, concrete steps need to be taken to avoid the worst. Let us start with the good news and then ponder the risks, before recommending appropriate policies.

The European economy appears finally to have turned the corner. In the euro area the recession was overcome in the course of last year and employment has bottomed out. The IMK expects growth of 1% and 1.7% in the euro area in the current and coming year respectively. Thanks to faster growth in the UK, Poland and some smaller economies outside the common currency area, the EU as a whole will grow rather faster.

 Even in the crisis countries the signs are at last encouraging. Greece will continue to contract, on annual averages, this year but a substantial rebound is expected in 2015 (3.2%). Spain and Portugal will grow slightly below and rather above the euro area averages this and next year; unemployment is already falling, in Portugal rapidly. Meanwhile Italy continues to lag, stagnating this year and with sub-par growth in 2015 (0.8%).

Read more: The European Economy Spring 2014

10/25/12

The Balkanization of Europe? - "Nationalism and Religion the nails in the coffin of political and economic stability" - by Paul Ames

Europe's rising tide of nationalism swept over Belgium on Sunday when separatists seeking independence for the country's Dutch-speaking north surged in local elections to take power in city halls across the region.

"This is a point of no return in our history," Bart De Wever, leader of the New Flemish Alliance, told cheering supporters after his election as mayor in this historic seaport. "The Flemish have chosen change and we are going to continue on that path."

Separatists also made news in Scotland, where the first minister signed an agreement on Monday setting up a referendum on breaking away from British rule. And in Spain, the president of the Catalonia region vowed to push for the right to hold a similar vote on independence.

Supporters say citizens of historic nations are finally asserting their right to self-rule, but the resurgent separatism, combined with growing political extremism in some countries, is underscoring concerns about European stability as the continent struggles to pull out of its deepest economic crisis in decades.

Note EU-Digest: Nationalism and Religion are the nails in the coffin of political and economic stability.

Read more: The Balkanization of Europe? | GlobalPost

5/5/12

Russia: Putin returns to presidency in a changed Russia - by Lynn Berry

Vladimir Putin's return to the presidency on Monday will technically give him greater powers than he wielded as prime minister. The irony is that his position will be arguably weaker than at any time since he first came to power more than 12 years ago.

In part because of the heavy-handed way in which he reclaimed the presidency, Putin finds himself the leader of a changed country, where a growing portion of society is no longer willing to silently tolerate a government that denies its citizens a political voice.

How Putin responds to the calls for free elections and accountable government will help define his next six years in office and to a great extent determine the future of Russia itself.

The pressure on Putin began to build in the months ahead of the March presidential election as a series of protests drew tens of thousands onto the streets of Moscow. Although the number of protesters has dwindled since the vote and expectations were low for an opposition rally on Sunday, the protest movement has led to real change in Russia.

Note EU-Digest: Whatever the criticism about Russian President Vladimir Putin is, it can be safely concluded he will end up in the history books as one of the great Russian leaders in the years following the collapse of the Soviet Union. Without his strong leadership Russia as we know it today would probably have fallen apart. He brought stability, economic growth  and a sense of pride back to Russia.

Read more: Putin returns to presidency in a changed Russia :: WRAL.com

4/26/12

With austerity failing, Europe turns its focus toward growth - by Jay Bryan

It's been arguably the most serious danger hanging over global financial markets for more than two years, and now there are signs that it's getting worse. Or, if we're lucky, maybe a lot better.

As if to emphasize the difficulties of slashing your way back to economic health, even Britain learned that it had fallen into a double-dip recession, joining much of continental Europe. As a non-member of the eurozone, the U.K. has its own, ultra-easy, monetary policy, but even this seems unable to offset the drag from a budget cutting government.

That's the bad news. But there's good news too, and it's probably more important.
It's that all this bad news has finally begun to convince skeptical political leaders and, maybe more important, bond-buying financial executives, that austerity isn't the best route to debt reduction.
"The tide is certainly shifting," says investment adviser Peter Berezin, managing editor of the Bank Credit Analyst.

"Markets now seem to understand that austerity damages growth. The view has shifted from a very firm focus on cutting to a focus on growth." Berezin sees this not only in the lack of a positive reaction when new austerity measures are announced, but also in comments from clients.

Note EU-Digest: Austerity which benefits only corporations and the wealthy while it makes "Joe Bloke" the tax payer pay the bill won't work. In America the Republicans and T-Party will also figure this out eventually.