Germany has gone its own way with its open-door migration policy. Like a disapproving headmaster, it looks down on its European neighbours with growing moral arrogance. read more
We cannot rely on central banks to carry us through the Eurozone crisis.
If the Eurozone is to be saved, policy-makers must embrace a strict framework of consistent and enforceable rules.
The Eurozone cannot prosper without respect for the rules and restrictions of the common currency framework. We need a strong referee – and the European Central Bank can fill that role.
The economic rationale of the current crisis is remarkably simple: Without fiscal stability, there will be no economic growth.
The British government’s objection has put European plans for a transaction tax on hold. But there is no convincing alternative: States must regulate volatile trading markets and make the market pay for crisis rescue packages.
Because of its institutional deficiencies, the Eurozone finds itself in a particularly tough position today, even when compared to other nations with similar debt levels.
Demographic change is an undeniable fact for Western societies, and a serious threat to economic competitiveness. But there’s a cure: Education. By focusing on skills and opportunities, we can offset the threat of old age.
We need a strong fortress of financial regulation, not a patchwork of national rules. When that is done, markets can be made to work efficiently again.
Rating agencies continue to dominate market mood swings. Two lessons can be learned from recent down-gradings: Rating agencies must take responsibility for their analyses – and other market actors must not rely blindly on their ratings.
Germany has emerged as the biggest opponent of Brussels’ new economic toy: Eurobonds. And Merkel is right: In the short term, Eurobonds are neither realistic nor effective. They attack the symptoms of crisis while leaving the structural reliance on debt untouched. We need rules, not bonds.