German politicians and media are intensifying pressure on Rome in anticipation of today’s EU Commission verdict on Italy’s national budget. Already last week, EU Budget Commissioner Günther Oettinger announced, in reference to the Italian deficit, that the Italian government must “correct” its draft budget. Media reports refer to a “black week” for Rome. Negative reporting – like rating agencies’ devaluation of Italy’s creditworthiness – can contribute to the destabilization of Italy’s financial and credit markets. The country’s current downward spiral threatens to re-escalate the banking crisis. Whereas Berlin insists that the EU take sharp measures against deficits, Germany’s Finance Minister at the time, Wolfgang Schäuble had prevented the EU Commission from taking measures against excessive surpluses, which the commission sees as potentially just as destabilizing. Germany has been achieving these surpluses year after year.
EU politics
Colm Tóibín: ‘Catalonia is a region in the process of reimagining itself’
From The Guardian The Germans made it clear after the election of Syriza in Greece: In the EU democracy is secondary. Primary are contracts and laws. Thus two former fascist nations can now “legally” stymie […]
Economics
Bill Mitchell: The so-called euro stability spawned banking system that caused havoc
A very interesting analyses of the role of the EU and European banks in the Great Financial Crisis. Read here
Corruption
The Guardian: Cloud of corruption hangs over Bulgaria as it takes up EU presidency
Among journalists there is a trick to getting controversial articles past the powers that be: wait until between Christmas and New Year. This is a real corker in the Guardian, explaining why despite the horrendous […]
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