Europe / Middle East

The tail risks of a Greek exit from the eurozone or a massive loss of market access in Italy and Spain have been reduced for 2013. But the fundamental crisis of the eurozone has not been resolved, and another year...

Underlying tensions between European countries are gradually emerging as austerity measures imposed by richer economies exacerbate already painful recessions among indebted nations. But while the ECB has managed to stave off an outright economic war between its members for the...

François Hollande’s rise to power in France was supposed to herald the re-emergence of Left-wing politics in Europe. But with the French Socialist Party now falling in line with the neoliberal austerity agenda, other ‘Genuine Left’ parties across Europe have...

Germany and the ECB are now relying on the hope that large-scale liquidity will buy time to allow the adjustments needed to restore growth and debt sustainability in the eurozone periphery. But, if a eurozone breakup can only be postponed,...

  August has been a dangerous month in European history, but this year it could be the turning point for the eurozone – and perhaps for the world economy. That depends on whether – and how – the European Central...

At their meeting at the end of June, European leaders acknowledged for the first time the multiple dimensions of the crisis, accepting that austerity – putting everyone’s house in order – will not suffice. What is still missing, however, is...

EU states lose an estimated €1 trillion in potential revenue every year from tax evasion and avoidance activities. Much of this amount, it turns out, has been squirreled away to offshore tax havens – known otherwise as “treasure islands”. Can...

Crises are usually defined by sustained economic decline, high and long-term unemployment, poverty, rampant inflation, a precipitous fall in the exchange rate, fiscal deficits, high borrowing costs, and political dysfunction. But only a handful of "misery indices" are present in...

Summer crises are a familiar feature of European history – and of financial history. Often, addressing some technical issue was not enough to resolve a major political problem, which is true today as well, with Europe’s current crisis reflecting exactly...

The EU summit, held in Brussels last week, managed to bring about some much needed, albeit temporary, relief for the euro. Nevertheless, the region’s fundamental weaknesses remain unresolved and confidence in Europe’s periphery is now waning. The EU summit, held...

The eurozone crisis might break European leaders’ inherent resistance to compromise, collaboration, and common action. But the longer they bicker and dither, the greater the risk that what they gain in willingness will be lost to incapacity. NEWPORT BEACH –...

As the economic-policy debate in Europe and around the world shifts from fiscal austerity towards measures aimed at stimulating growth, smarter taxation will be essential to getting the balance right. That means focusing on energy and carbon taxes, which have...

As recently as six months ago, one didn’t discuss in polite company in Madrid the possibility that Spain would leave the euro and restructure its debt.  The prospect was unthinkable and like many unthinkable things it could not be discussed....

With François Hollande’s defeat of Nicolas Sarkozy, Merkel has virtually no support left in the eurozone. As the world looks for signs that Europe’s new power duo can overcome political difference and work together to save the euro, almost all...

Europe’s single-minded focus on austerity is a result of a misdiagnosis of its problems; and the fact that so many economies are vulnerable to natural disasters only makes the man-made disaster of austerity all the more tragic. Accordingly, the pain...