In The News

Europe Close to Creating “Budget Tsar”

Joshua Chaffin November 15, 2011
With European countries struggling to get a control on debt, the European Commission is taking steps to appoint one person responsible for scrutinizing finances. Rival commissioners could not over-ride disciplinary measures imposed by the commissioner for economics and monetary affairs on nations that overspend. “Commission officials argue that the new changes are necessary to prevent national...

German Automakers Embrace Car-Sharing

Christian Wüst November 14, 2011
Austerity is a science in Germany, and youthful Germans no longer yearn for cars. Attuned to such sensibilities, BMW and other automakers are developing car-sharing programs that allow members to reserve cars online and then drive a new vehicle, as needed, for few euros. “[M]embers get an electronically readable driver's license sticker, which opens the doors of hundreds of BMWs or Minis...

Why Italy’s Days in the Eurozone May Be Numbered

Nouriel Roubini November 11, 2011
Italy is the world’s eighth largest economy and the government is now obliged to borrow at interest rates of 7 percent for daily operations. Italians have approved austerity reforms, but the nation’s €1,900 billion in debt may require restructuring, sending shudders among banks and investors. Restructuring won’t trigger economic growth, and reviving Italy’s credibility could require at least a...

Denying Imbalances, G20 Risks Chaos – Part III

Jonathan Fenby November 9, 2011
Mounds of unsustainable debt in wealthy nations threaten the global economy, and many of these nations must keep borrowing in demanding global markets for daily operations. The G20 summit in France, a meeting of the world’s most powerful economies, failed to develop a strategy to ease spending, protect bondholders and lift confidence among consumers and investors. The G20’s failure will have...

The Popular Mandate

Nayan Chanda November 8, 2011
A suggestion by the Greek prime minister for a referendum on a proposed European bailout – negotiated by European leaders to continue lending to Greece while erasing half the nation’s debt –was bashed by financial markets and Western leaders. Analysts anticipated an angry Greek electorate to reject the deal, and the prime minister backed down. "Athens offers a valuable lesson in...

Denying Imbalances, G20 Risks Chaos – Part II

David Dapice November 7, 2011
Once again, the leaders of the world’s most powerful economies have procrastinated in coming together on a viable global strategy to end unsustainable imbalances. Overshadowing the G20 summit was the threat of a disorderly Greek default; the Greek government’s scrambled response; and rising bond prices and trouble for Italy’s debt. Eurozone leaders agreed to set up a rescue fund of at least $1...

Greeks Seek to Escape Debt Crisis Abroad

Ingrid Melander November 3, 2011
Governments that dawdle in resolving economic crisis – or impose unfair taxes or cuts – could lose their smartest, most skilled citizens. As Greece’s debt crisis rocks the European Union, thousands of young and skilled workers are emigrating, reports Ingrid Melander for Reuters. Nonprofit aid organizations for the Greek diaspora are swamped with aid requests, she adds. Greeks are furious about...