Eurozone

Europe’s Problems Go Way Beyond How To Deal With Austerity – The EU Should Seriously Rethink Who Belongs and Who Does Not – The Poor South Will Never Catch Up

Posted by on April 24, 2013 at 11:10 am

By Paolo von Schirach April 24, 2013 WASHINGTON -  Recently the WSJ provided a lengthy insight into Germany’s role in determining how the long and painful fiscal crisis affecting Southern Europe has been and will be handled. But, in fact, we already know the issues. The weak countries at Europe’s periphery, (Greece, Portugal, Spain, Italy and [...]

Italy’s Chronic Problems Deeply Entrenched – Do Not Expect Changes With A New Center Left Government, Even If Backed By Reformist Mario Monti

Posted by on February 17, 2013 at 1:29 pm

By Paolo von Schirach February 17, 2013 WASHINGTON – The usually sober The Economist, after providing a scathing indictment of the Italian society and its ruling elites, (Who can  save Italy?, Feb. 16 – 22, 2013), engages in the worn –and in this case almost silly– wishful thinking whereby a major challenge (fixing Italy) is [...]

With Berlusconi’s Rise In the Polls, Expect A Fight Between Right Wing And Left Wing Populists In Italy – Monti’s Centrists Will Get Little Support – Very Low Chances For Real Reform After These Elections

Posted by on February 3, 2013 at 1:43 pm

By Paolo von Schirach February 3, 2013 WASHINGTON – Whatever the final outcome of Italy’s upcoming political elections, the surprising Berlusconi come back from the dead is worth noting as a clear indication that the for ever immature Italians love populist seducers who will tell them anything they want to hear. It also says a [...]

Praise For Mario Draghi Is A Way To Forget That Europe’s Structural Economic Problems Have Not Been Fixed – The Financial Situation Is Much Better; But The Economies Of Southern Europe Remain Hopelessly Weak

Posted by on January 20, 2013 at 12:50 pm

By Paolo von Schirach January 20, 2013 WASHINGTON – I am really worried about too much praise for European Central Bank President Mario Draghi. He is described as Europe’s savior, as a genius because last Summer he bluntly said that he would do whatever is necessary to defend the Euro. 

Europe Avoided Disaster – But The Economies Are Fragile And So Are The EU Institutions – Expect Current Weakness To Continue

Posted by on January 15, 2013 at 1:32 pm

By Paolo von Schirach January 15, 2013 WASHINGTON – These days in Europe there is a far more optimistic  atmosphere. It would appear that the big Eurozone crisis has been solved. No Greece exit. Italian and Spanish bond yields are back to tolerable levels. It seems that all problems, if not entirely taken care of, are now smaller and manageable. 

A Future Center-Left Government Led By Democratic Leader Bersani Will Be Unable To Steer Italy Towards Fiscal Stability And Economic Growth – The Left (In Italy As In The Rest Of Europe) Is Still Prisoner Of Unaffordable Big Government Models

Posted by on December 9, 2012 at 11:03 pm

By Paolo von Schirach December 9, 2012 WASHINGTON – It was expected that Mario Monti would not have a long tenure as Italy’s care taker Prime Minister. The distinguished economist is an outsider, the non political technocrat called upon a year ago by President Giorgio Napolitano to fix Italy’s finances and restore a modicum of international credibility. And [...]

More Bail Outs for Greece Will Solve Nothing – Weak Countries Do Not Belong In The Eurozone – Indefinite Rescue Plans Will Weaken Europe

Posted by on December 4, 2012 at 1:35 pm

By Paolo von Schirach December 4, 2012 WASHINGTON – It seems as if Europe’s slow bleeding will continue, indefinitely. So far, all the debt crisis interventions, including repeated Greek debt bail out packages, have been unable to bring the weak “Club Med” countries back to anything resembling normality.

Italy’s Economy Remains Structurally Weak – Lack Of Investments, No Innovation, Record High Unemployment – “The Worst Is Yet To Come”

Posted by on December 3, 2012 at 12:37 pm

By Paolo von Schirach December 3, 2012 WASHINGTON – Italy is not falling into the abyss; but it will stay in the swamp of no growth and high unemployment for many more years. The Italian daily La Repubblica interviewed experts asking them to predict Italy’s growth and employment for 2013 and beyond. The headline is depressing: Lavoro, [...]

Once Again Europe Failed To Reach Final Agreement on Greece – Public Opinion Used To EU Impotence – Wishful Thinking About ECB “Magic Powers” To Fix Debt Crisis By Buying Bonds

Posted by on November 21, 2012 at 12:48 pm

By Paolo von Schirach November 21, 2012 WASHINGTON – Yet another EU-ECB-IMF summit about Greece ended with no final formula for ending the debt crisis that exploded in October 2009. Europe’s structural inability to finally fix the insolvency of Greece, by all measures a small country, should be taken as a powerful indicator of frightening institutional weakness.

Greece Is An Extreme Case, But Excessive Debt Due To Unaffordable Social Programs Is A Common Western Malady – No Indication Of Any Change Of Course

Posted by on November 11, 2012 at 11:29 pm

By Paolo von Schirach November 11, 2012 WASHINGTON - Western nations have too much debt because of ever expanding social program that cannot be paid for. At the end of the road you may have severe basket cases like Greece, or less severe ones like Italy or France. The US is well on it way to [...]