Jean Pisani-Ferry via Caixin | For the first time in several decades, a series of Western countries are simultaneously experiencing major political upheaval. In several of them, populist parties that challenge consensual principles and established policies, and candidates who define themselves as anti-system outsiders, are on the rise or already in power.
James Alexander via Historinhas| The Committee on Economic and Monetary Affairs of the European Parliament recently held a session on NGDP Targeting. The French paper starts with a review of the literature on Inflation Targeting and says things went well until the crisis. A caveat they mention is that since both IT regimes and non-IT regimes did well in bringing down inflation it is really too hard to tell if IT was all that superior.
Bruce Newsome | European security needs to change. France has the most at stake and the most influence in the EU. It needs to improve European border security first, before it blames national security.
France has become the Sweden of the 1970s. Both right and left governments have allowed public spending in France, as a proportion of GDP, to exceed that of Sweden at its most critical period.
The Corner | March 26, 2015 | The German economy is leading the way in yet more positive news for the eurozone, as consumer confidence reaches its highest level for 14 years. In Spain, business confidence is at it’s highest level for eight years, while concern about weak GDP figures in France may be offset by a recent improvement in consumption and exports.
MADRID | The Corner | EU posts marginal growth stats, but the figures are indicative of slow pace of recovery.
The European Union (EU) is a group of sovereign states, who are sovereign in that they are entirely free to leave the EU. This freedom to leave means the EU is not a “super state.” There is no coercive force — and no EU army — to make Britain or any other country remain in the union. Britain enjoys a freedom, within the EU, that colonies did not enjoy within the British or other European empires. Britain is, therefore, entirely within its rights in considering the option of leaving the EU, although that does not mean such a course would be wise.
MADRID | The Corner | Markets were sad on Monday until Mario Draghi emerged and spoke his magic words. It seems markets feel more secure every time the president of the ECB takes the lead and assures everything will be alright. Investors felt more confident after his intervention at the European Parliament’s Economic and Financial Committee. However, despite his speech regarding new potential actions in monetary policy, he also highlighted the need of deep structural reforms by the Members States. According to market watchers at Link Securities, sooner or later, “such reforms will have to be faced by Italy or France’s government, because it is necessary to make them competitive and able to grow again.”
John Bruton | I recently attended a conference that looked at France’s domestic economic situation, and the impact that has on the country’s global and European role. According to budgets published in October, France and Italy are failing to meet the eurozone’s requirements for reducing government debts and deficits to sustainable levels.
MADRID | The Corner | The European Commission said on Tuesday it had found no serious fault with eurozone member states’ 2015 budget plans, clearing France and Italy after they made last-minute changes to meet EU demands. The budget review covered all 18 eurozone countries, with the focus on struggling France and Italy after Brussels told them that their original plans fell well short of what was required to meet European Union norms.