URL: Latest posts
Greece's real challenge
by Katinka BaryschThe German idea of sending Athens a ‘budget commissioner’ was daft. Berlin itself could not tolerate such interference in its fiscal sovereignty (the constitutional court would never allow it). But to restrict such budgetary ove...
Why France is leaving Afghanistan
By Edward BurkeThe decision by President Nicolas Sarkozy to speed up the withdrawal of French troops from Afghanistan has re-awakened suspicions that Paris is not to be trusted as an ally. Sarkozy responded to the deaths on January 20th of four Frenc...
The Baltic states and Ireland are not a model for Italy and Spain
by Simon TilfordEurozone policy-makers – from President Sarkozy and Wolfgang Schäuble to the former President of the ECB, Jean-Claude Trichet – advocate that Italy and Spain should emulate the Baltic states and Ireland. These four countries, the...
Is Austria the new Finland?
by Katinka BaryschIn August 2010, a newly elected Slovak government refused to contribute to the first Greek bail-out. A year later, the rising popularity of the anti-euro True Finns pushed the Finnish government to demand that Greece should put up c...
What Europe's new diplomatic service can do for Britain
By Edward BurkeAs the influence of individual European countries vis-à-vis rising giants such as China declines, many look to the EU’s new diplomatic corps – the European External Action Service (EEAS) –– to augment their strength. But in 20...
The Commission’s energy roadmap is a missed opportunity
by Stephen TindaleThe European Commission recently published its 'Energy Roadmap 2050'. The paper begins by repeating the EU's commitment to reduce greenhouse gas emissions by 80-95 per cent (against 1990 levels) by 2050, and highlights the 2020 gree...
The UK-EU split: The impact on Central Europe
By Tomas ValasekThe UK decision to boycott the new EU treaty removed an important liberal economic voice from the centre of European decision-making. This has left like-minded EU countries, including most of the Central European states, in a far weak...
Britain on the edge of Europe
By Charles GrantThe outcome of the Brussels summit on December 8th and 9th is a disaster for the UK and also threatens the integrity of the single market. For more than 50 years, a fundamental principle of Britain’s foreign policy has been to be pr...
EU summit: Enough to save the euro?
by Simon TilfordThe UK’s decision to marginalise itself by vetoing a new EU-27 treaty has dominated the post-summit media coverage. And for good reason – it could prove a big step towards UK withdrawal from the EU. However, the bigger question is...
The French learn followership
by Charles GrantFor the first time in the history of the EU, Germany is the unquestioned leader, and France is number two. Since the financial crisis struck in 2008, the economic inequality between France and Germany has grown. Although regular summi...
The curious case of German leadership
By Katinka BaryschSome of Germany’s European partners accuse Chancellor Angela Merkel of refusing, or failing, to lead properly in the euro crisis. Many Germans agree with that analysis and call for Merkel to guide the rescue efforts with a firmer...
The eurozone and the US: A tale of two currency zones
by Philip WhyteEuropeans think it is all very unfair. They point out that, in aggregate, the eurozone is in no worse an economic position than the US: its public finances are in better shape than the US’s, and its overall level of private sector de...
Governments need incentives to pool and share militaries
by Tomas ValasekSince the financial crisis began in 2008, EU countries have cut military spending by an amount equivalent to the entire annual defence budget of Germany, Europe's third largest. While the prospects for an economic upturn are dim, the...
Global trade imbalances threaten free trade
by Simon TilfordThe developed world’s slide into recession threatens an outbreak of protectionism. Unlike in 2008, governments now have few tools with which to combat a renewed economic downturn, which raises the likelihood of it developing into a...
Britain, the City and the EU: A triangle of suspicion
by Philip WhyteAfter years of mutual suspicion, Britain and its EU partners seemed in early 2009 to be converging in an area of policy where they had often been at odds – financial regulation. The Turner Review, Britain’s official report into the...
Eurozone crisis: Higher inflation is part of the answer
by Simon TilfordThe biggest challenge facing the eurozone is how to generate economic growth. Whatever its leaders agree in terms of fiscal targets and surveillance will achieve little in the absence of growth. Excessively restrictive fiscal policy i...
The euro: Reaching the endgame?
by Simon TilfordEurozone policy-makers, especially German and Dutch ones, have been unable to rise above hubris and moral posturing, leaving the eurozone with very little ammunition to confront the coming financial storm. They have stubbornly dug in...
What Libya says about future NATO operations
by Tomas ValasekLibya has been a difficult war for NATO. It has shown the alliance divided: only eight out of 28 allies sent combat forces. Some of them ran out of ammunition and Italy withdrew its aircraft carrier in the midst of the conflict becaus...
The US and the EU should support the Palestinian bid for UN membership
by Clara Marina O'DonnellFor months, the US and the EU have tried to discourage the Palestinians from asking the UN to recognise the state of Palestine. On both sides of the Atlantic, governments are concerned that the UN bid will exacerbate the conf...
Race to the bottom
by Tomas ValasekFor decades, European countries cut defence budgets with little worry. The United States kept enough troops on the continent to deter all potential enemies, almost irrespective of how small European militaries became. But the US conti...
