In The News

The EU as Last-Ditch Escape Artist

Jonathan Fenby April 1, 2013
Europe plays a dangerous game by tackling debt crises country by country. The latest economy to implode is a small nation that gained a reputation as an offshore banking center: Cypriot banks invested in Greek bonds and, after Greece imploded, required rescue – which comes at a cost. With deposits in Cypriot banks insured up to €100,000, holders of larger deposits may lose half their savings....

Moscow’s Mysterious Move on Cyprus

Owen Matthews March 28, 2013
Russian deposits may account for about one third of Cypriot bank accounts worth more than €100,000, which could be frozen and taxed by up to 25 percent as part of a EU bailout deal. Russian President Vladmir Putin has denounced such methods for rescuing the Cypriot economy and “many non-Russian commentators agree with Putin that raiding private savings risks undermining confidence in Europe’s...

Euro Crisis Poses Grave Dangers to EU Unity

Spiegel Staff March 26, 2013
During a banking crisis, political leaders try to maintain calm to prevent panic and a run on vulnerable banks that can’t possibly return deposits to customers all at once. But a bailout for EU member Cyprus could fracture the calm by even suggesting new precedents, especially early proposals to tap into all bank depositors’ savings accounts and ignore guaranteed protections on holdings up to €...

What Americans Ignore About Finland's School Success

Anu Partanen March 19, 2013
Educators around the globe are curious about the consistently high test scores from students in Finland, as measured by OPEC. “Compared with the stereotype of the East Asian model – long hours of exhaustive cramming and rote memorization – Finland's success is especially intriguing because Finnish schools assign less homework and engage children in more creative play,” reports Anu Partenan...

World Markets Roiled as Cyprus Bailout Deal Stalls

Eric Reguly March 18, 2013
Cyprus, with a population just over 1 million, is posing big challenges to global financial markets. The government failed to pass a €10-billion package that would have taxed bank deposits to pay for the rescue – 6.75 percent for deposits less than €100,000, 9.9 percent for those with more. “None of the euro zone’s sovereign and bank bailouts, from Ireland to Greece, has insisted that bank...

UK Will Find EU Bank Bonus Cap Hard to Lift

John O'Donnell March 6, 2013
Europeans are impatient with the pace of economic recovery. The European Union surprised the financial industry by imposing a cap on bonuses for banks’ senior managers and traders, and the mood was also reflected by Swiss voters who approved of shareholders having a say on board and executive salaries. The plan is to reduce excessive pay and end the practice of rewards for crisis. How many...

Marketing Berbers Abroad – Avenue for Cultural Preservation?

Jonathan Gifford February 28, 2013
While globalization can have an antithetical role to the preservation of indigenous cultures, a Berlin fashion label has recently played a pivotal role in protecting a native Berber sewing technique. Andrea Kolb, founder of the fashion label Abury, says she conceived of the idea a few years ago, after friends commented enthusiastically on a Berber-made embroidered leather bag purchased on a visit...