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European debt crisis

Analysis and Comment (16)

Economic modelling predicts that Germany is the most likely country to qualify for the semi-finals at the 2014 World Cup. Economic modelling predicts that Germany is the most likely country to qualify for the semi-finals at the 2014 World Cup. EPA/Andreas Gebert

An economic crisis may make you stronger – in football

Forget Lionel Messi, Cristiano Ronaldo or Mario Balotelli. What will make your country more (or less) likely to succeed in the World Cup is its rate of economic growth. At this point, I expect European…
“The euro has backfired: it is holding back growth and job creation; and it is dividing Europe.” “The euro has backfired: it is holding back growth and job creation; and it is dividing Europe.” Stefan Rousseau/PA

Nobel laureate: tough choices for a troubled euro

One of the most exciting things about working at the LSE is that we get to hear some of the world’s top thinkers and policymakers. One occasion that I recall vividly is the visit of two great Europeans…
Dark clouds are gathering over Slovenia. Dark clouds are gathering over Slovenia. lassi.kurkijarvi

The downfall of Slovenia, and why it matters for Europe

The eurozone crisis appears to have a new victim: Slovenia. To avoid the need for a bailout, the IMF has called on the country to immediately recapitalise its banks. This should worry the rest of Europe…
Economics is at the heart of Portugal’s political crisis. Economics is at the heart of Portugal’s political crisis. marionzetta

Portugal political crisis rooted in drastic economic measures

The current political crisis in Portugal has surprised both local economists who know little about politics and international analysts who are ill-informed about the Portuguese economy. In May, I had the…
Tough times in the zone: the euro is holding out for a hero. Tough times in the zone: the euro is holding out for a hero. Rock Cohen/Flickr

The European banking union as a matter of equality

Academics, politicians, international economists and central bankers alike talk and talk about the theoretical benefits of a European banking union. But these reflections go far beyond the current, real…
Greece is feeling the heat from its European creditors. Greece is feeling the heat from its European creditors. liako

Battle over broadcaster a sign of deeper Greek political woes

The latest political crisis in Greece began with a spat over the future of public tv and radio. The fragile political consensus among the three-way government coalition was finally broken with one party…
Greek protestors take to streets after the ERT shutdown. Greek protestors take to streets after the ERT shutdown. Yanis Varoufakis

The view from the studio, as Greece’s state TV was shut

For those of us who grew up in the Greece of the neo-fascist colonels, nothing can stir up painful memories like a modern act of totalitarianism. When the television screen froze last night, an hour before…
Greece: not just riots and unemployment. Greece: not just riots and unemployment. flikr/Imagaday

Europe’s latest investment opportunity … Greece

The IMF has conceded that mistakes were made in the way the first Greek bailout in May 2010 was handled. Its report suggests the need to refine the fund’s lending policies to accommodate for conditions…
Cyprus is making a last-ditch bid to negotiate a bailout deal from the IMF, the EU and the ECB. Cyprus is making a last-ditch bid to negotiate a bailout deal from the IMF, the EU and the ECB. AAP

As deadline looms, Cyprus' fate lies in the hands of the troika

Last week, the Parliament of Cyprus rejected a bill that would impose a levy of 9.9% on bank deposits over the insurance threshold of €100,000 and a levy of 6.75% on deposits below the insurance ceiling…
The Euro crisis has finally arrived at the economic heartland of Germany; but the road to recovery may be the same for the Eurozone core powers as the peripheral economies. The Euro crisis has finally arrived at the economic heartland of Germany; but the road to recovery may be the same for the Eurozone core powers as the peripheral economies. AAP

The Euro crisis has arrived in Germany: but is a recession scenario plausible?

Last week the German government’s economic forecasts for 2013 have made clear that the Euro crisis will have a serious economic impact on Germany, with the economic growth projection cut down to a mere…
With the implementation of the Single Supervisory Mechanism, European Central Bank chief Mario Draghi has taken a major step towards greater financial integration in the Eurozone. With the implementation of the Single Supervisory Mechanism, European Central Bank chief Mario Draghi has taken a major step towards greater financial integration in the Eurozone. AAP

EU banking union is a decisive step towards saving the euro

Last week was one of mixed fortunes for the Eurozone. The week began badly with news that Italy’s Prime Minister Mario Monti was resigning due to Silvio Berlusconi’s withdrawal of parliamentary support…
The Basque cooperative Mondragon has remained resilient, despite Spain’s deepening economic slump. The Basque cooperative Mondragon has remained resilient, despite Spain’s deepening economic slump. Flickr\Fagor Automation

The Mondragon model: how a Basque cooperative defied Spain’s economic crisis

Back in the early 1980s, the former Secretary of State for Education in Harold Wilson’s Labour government, Shirley Williams, alerted me to a remarkable instance of regional economic development through…
Tackling France’s mounting sovereign debt will prove challenging for French President François Hollande. Tackling France’s mounting sovereign debt will prove challenging for French President François Hollande. AAP

There are no easy solutions for France’s economic woes

Pressure is mounting for the recently elected French Socialist president, François Hollande and his government to address France’s sovereign debt, which is currently at a post-war record of 91%. France…
Protesters outside the Federal Constitutional Court of Germany express their anger over Germany’s support of the ECB’s debt buy-back scheme. Protesters outside the Federal Constitutional Court of Germany express their anger over Germany’s support of the ECB’s debt buy-back scheme. AAP

Balancing stability and sovereignty will prove challenging for the Eurozone

The past few days have seen economic crisis management — if not the political landscape in the Eurozone — change fundamentally. On September 6, the ECB announced it would buy-back unlimited government…
European Central Bank President Mario Draghi announced that the ECB will buy back bonds on the secondary market in a bid to curb the debt crisis. European Central Bank President Mario Draghi announced that the ECB will buy back bonds on the secondary market in a bid to curb the debt crisis. AAP

Bonds to the rescue: ECB reveals its Eurozone rescue plan, but will it be enough?

Yesterday, the European Central Bank’s president, Mario Draghi, unveiled the European Central Bank’s rescue plan for the Eurozone. Mr Draghi said that the ECB is now prepared to buy sovereign bonds of…