“What is clear is that Greece cannot pay its debt and will never pay it. There needs to be an acquittance. And European legislation does not allow for waivering of debt. What they are going to do now, and it should have been done seven years ago, is to modify the conditions in such a way that the debt will be practically waivered,” says Spanish economist Fernando Eguidazu, as he leaves his Foreign Office post of Secretary of State for the European Union.
Articles by Luis Marti
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Germany’s enormous trade surplus is causing resentment throughout the rest of Europe, which accounts for a little over half of the annual surplus of more than €263.1 billion. Brussels and the IMF believe there is room to raise salaries and, above all, for a substantial increase in public investment.
Within the German government and amongst the (serious) media there is a fair amount of comprehension towards the PP government. This is in part, I suppose, because some party members have taken advantage of official contacts to explain the reforms undertaken (particularly the labour reform) and how they identify with the demands of a tough adjustment programme. Furthermore, they have no doubt offered support for German proposals within the EU or the Eurogroup
Milton Friedman once wrote (1969) something like a short story about money creation. A helicopter drops banknotes amongst the population: a few lines in an article on how ‘to create’ inflation when the economic policy measures are thought to be exhausted.
Many countries refused to contribute to the European community’s handling of the crisis and, left on her own, Merkel explains: “We hope that once there is peace you will be able to return to your country”.
Germany has a very broad history in government coalitions. So is there anything in its formula that makes it exportable to other parts of the world, including Spain? Whatever happens in Germany in the coming months, there are a couple of points worth taking into account.
“The need to impose good governance comes to the forefront among providers of development aid. But no one knows well how to get it.” The quote from Collier’s book only has as its objective to remind us that humanity continues without overcoming the “trap” of underdevelopment, and therefore without resolving the problem of poverty in the world.
France’s proposal to move forward with eurozone fiscal and political integration, with a single government for the area, one budget…is still at at a very early stage. As German experts point out, the reality is that none of the 19 parliaments involved are currently considering giving up any more sovereignity.
MADRID | June 18, 2015 | By Luis Martí | The negotiating tactics of the Greek government can only be understood against the backdrop of an impossible set of electoral promises –impossible, that is, unless the government gained access to an unlimited inflow of financial resources from abroad at no charge. This not being the case, President Tsipras has to act within a constrained framework.
MADRID | By Luis Martí | You’ll probably know by now that the Court has turned down the Argentinian request to hear an appeal of a lower court decision. The decision established that the unwillingness of Argentina to pay defaulted holdouts, while duly servicing restructured debt, violated the spirit of the pari passu clause. Well, there’s a lot to be said for this interpretation, and a lot against.