Christine Lagarde, Managing Director of the International Monetary Fund, speaking in Washington DC last Wednesday 2 April stressed that the world economy, in the aftermath of the Great Recession of 2008-2012, faces a long period of slow and sub-par growth, “well below the solid, sustainable growth that is needed to create enough jobs and improve […]The ECB ‘accidentally’ followed IMF‘s policy advice for growth and job creation by printing more money
April 7, 2014 by Leave a Comment
Christine Lagarde, Managing Director of the International Monetary Fund, speaking in Washington DC last Wednesday 2 April stressed that the world economy, in the aftermath of the Great Recession of 2008-2012, faces a long period of slow and sub-par growth, “well below the solid, sustainable growth that is needed to create enough jobs and improve […]Obama, Crimea and the TTIP pill
March 28, 2014 by Leave a Comment
It was two days ago, Wednesday 26 March, that the President of the USA paid us a visit here in Brussels and caused a congestion chaos in the Belgian capital. The reason of his visit was to sell. To sell ideas about freedom, NATO membership ‘upgrades’ and a bit of shale gas. As sales are […]Ukraine: turning challenges into opportunities
March 26, 2014 by Leave a Comment
Last Friday Ukraine and the EU signed the political part of the Association Agreement. Although deliberately diminished in Europe, the significance of this event is unquestionable for Ukraine and its government ad interim.
Political association is taken in Kiev as a sign of European acknowledgment and recognition at a time of continuing threats from Russia. The economic part […]#TwitterisblockedinTurkey and so is Erdogan
March 25, 2014 by Leave a Comment
Last Thursday night Turkey’s Prime Minister Recep Tayyip Erdogan officially ‘declared war’ to Twitter. With a public, old authoritarianism-scented speech at late evening, he announced that he wants to “eradicate Twitter”, adding that the social media platform is a “menace” and he’s “not interested in what the international community says”. “They will see the power […]Crimea, a wicked game of political chess and a ‘big’ coincidence
March 24, 2014 by Leave a Comment
Last Friday, 21 March, was a historic day in modern geopolitical proceedings. A former Soviet Union member was opening its door to the European Union while just a few hours later a significant part of the same country was being annexed by Russia. The former sentence on its own could have been taken from a […]Ukraine: Is there a political force able to undo the division?
March 20, 2014 by Leave a Comment
Last Monday, the EU Foreign Affairs Council condemned the illegal referendum in Crimea and took restrictive measures against 21 Russian and Crimean politicians and military officers. Also on Monday, probably without understanding what they were doing, the 28 European Foreign Ministers had the unfortunate idea to discuss during the same meeting the present state of […]Crimea: The last bloodless secession of a Ukraine region?
March 17, 2014 by Leave a Comment
There is no doubt about the outcome of the referendum on Crimea’s future annexation to Russia. It’s not only that 68% of the Crimean population is of Russian origin and speak Russian. The omnipotent presence of the Russian armed forces in the peninsula, the transparent ballot boxes and the fact that there are no envelopes […]EU Parliament: No EU-US trade agreement without safe data
March 14, 2014 by Leave a Comment
The European Parliament, in a strongly worded and overwhelmingly voted resolution, set a definite condition for the legislature’s approval of the currently under negotiation EU-US free trade agreement (Transatlantic Trade and Investment Partnership – TTIP). The condition is that American NSA’s mass surveillance practices be completely stopped. The relevant Press release clearly states that “Parliament’s […]ECB readies itself for extraordinary monetary measures defying Germany
March 14, 2014 by Leave a Comment
In direct antithesis with the German Federal Minister of Finance Wolfgang Schauble, Mario Draghi, the President of the European Central Bank, raised yesterday the issue of the deflation risk (negative inflation, most prices fall) which could possibly engulf Eurozone. Draghi, after receiving the ‘Schumpeter Preis’ in a ceremony for the Schumpeter Award, at the Oesterreichische […]How the EU sees its own and Russia’s role in Ukraine
March 7, 2014 by Leave a Comment
Donald Tusk, the Prime Minister of Poland, after yesterday’s European Union summit of its 28 leaders convened to examine the situation in Ukraine, termed it as stormy. He added that the sanctions against Russia the 28 decided were very limited but still, given the deep divisions of the leaders, he said those measures were the […]ECB ready to counter the rise of the euro?
March 7, 2014 by Leave a Comment
As expected by many, the European Central Bank left its basic interest rate unchanged at 0.25%. However, Mario Draghi, the President of ECB, raised the tone of the central bank’s readiness to confront possible unfavorable developments in the money markets. Presumably he has in mind the risks which may arise in international money markets, from […]Ukraine: The West and Russia negotiate shares of influence
March 6, 2014 by 1 Comment
The seriousness of approach, the magnitude of the interest and the pertinence of the proposal the European Union adopted yesterday to end the stalemate in Ukraine can be seen in the kind of money the EU sets aside for this country. José Manuel Barroso, President of the European Commission stated yesterday that the Union can […]Europe enters uncharted waters with Kiev-Moscow standoff
March 4, 2014 by Leave a Comment
With a brief announcement of the G7, the West is practically recognising the occupation of Crimea by the Russian armed forces as a ‘fait accompli’ and by the same token the dismembering of Ukraine. The announcement signed yesterday by the G7 heads of states or governments, even accepts that Russia has “security or human rights […]De Gucht: More gaffes with the talks on the EU-US free trade agreement
March 3, 2014 by Leave a Comment
European Commissioner Karel de Gucht, responsible for Trade, speaking after the informal Athens meeting of the EU Foreign Affairs Council (Trade), attended by the 28 Foreign Trade ministers, failed to accurately report the Council’s opinion on the Transatlantic Trade and Investment Partnership (TTIP) that is the free trade agreement currently under negotiation between the Union […]Ukraine’s new political order not accepted in Crimea
February 28, 2014 by Leave a Comment
With the blessed by the West Julia Tymoshenko’s men in control of Kiev’s political scenery, and Russian army units or paramilitary units of Crimean Russians in control of the Black Sea southern peninsula, the Ukrainian division seems to consolidate. The EU and the US have practically recognized the new political order which is now established […]How to test if Kiev’s ‘Maidan’ was an authentic revolt or a well-planned operation
February 27, 2014 by Leave a Comment
The difficulties to formulate a new government in Ukraine are obviously related to the country’s economic stalemate, the deepening east-west division and the inextricable situation in the energy sector with only supplier, the Gazprom Russian monopoly. All that may be very real and difficult to solve equations. However, there is an additional factor, the importance […]Can the US deal a blow to EU and Russia together over Ukraine?
February 24, 2014 by Leave a Comment
Within 24 hours the agreement that the European Union brokered in Ukraine was turned into a worthless paper by around 200 MPs and some hundreds of heavily armed ‘protestors’ in Kiev. Given that the power behind this radical change in the Parliament couldn’t be Russia or the EU it has to be Ukraine’s proper oligarchs, […]Russia won’t let Ukraine drift westwards in one piece
February 22, 2014 by Leave a Comment
Somebody must stop this person heading Europe’s diplomacy in the External Action service. Yesterday Catherine Ashton broke all limits in two successive statements, one for Libya and another for Ukraine. Even if she doesn’t mind her own credibility and political correctness, her bosses in, London, Berlin and Paris have to think again if she adds […]EU-US trade deal: Europe to Americanize its social model?
February 20, 2014 by Leave a Comment
It can’t be both. Either the EU Trade Commissioner Karel De Gucht hadn’t recovered from the transatlantic trip hangover, while speaking in Washington on Tuesday, or he thinks we are all morons. He said: “I invite all Europeans to also discuss their concerns about the Transatlantic Trade and Investment Partnership (TTIP) (free trade deal)… Because […]Eurozone: Despite anemic growth and shaky banks marks record trade surplus
February 15, 2014 by Leave a Comment
Yesterday morning, Eurostat, the EU statistical service, reserved a pleasant surprise to the European decision-makers by announcing its estimates for economic growth during the last quarter of 2013, with all four big Eurozone economies found in the positive part of the chart. Of course this development was not a surprise for Germany, but for both […]Industrial producer prices on free fall and stagnant output
February 14, 2014 by 1 Comment
During the last few days, Eurostat, the EU statistical service, has produced disappointing data on the Eurozone economy. Last week it was a fall of the volume of retail sales in December by 1.6%, compared to November. Also in December last year compared with December 2012 the retail sales index decreased by 1% in […]Sochi not far away from Ukraine
February 8, 2014 by 1 Comment
On the day the Russian organizers of the $51 billion Winter Olympic Games staged the opening ceremony in Sochi, the European Union found the opportunity to talk to Moscow about pigs, European pigs. Yesterday, Friday 7 February, Health Commissioner Tonio Borg called once more on the Russian Federation to “engage in constructive talks on the […]The US banks drive the developing world to a catastrophe
January 31, 2014 by Leave a Comment
How is it possible that the good news of the growth of the American economy which has raised its gear, also brings forth crisis and possibly destruction in developing countries? Yet this is exactly what is already happening in our brave new world. The good news is that the US economy now grows at a […]The European giant tourism sector in constant growth
January 30, 2014 by Leave a Comment
The tourism industry is undoubtedly a flourishing sector of the EU economy. However it suffers of an increased sensitivity to events like the 11 September 2001 catastrophe, which can harm its potential on a global scale. Even an airplane accident can undermine its activities for a long time. That’s why it is considered as a […]Foreign direct investments the success secrete of Eurozone
January 28, 2014 by 1 Comment
Foreign Direct Investments (FDI) are long-term placements in real economy business, not right away tradable, realized by investors residing outside the country. They should be sharply distinguished from the highly volatile financial investments on stocks and bonds, which can depart from the country at any moment. The crisis years in the period 2009-2012 don’t seem […]War of words in Davos over Eurozone’s inflation/deflation
January 27, 2014 by Leave a Comment
During the last two days, Friday and Saturday, of this year’s Davos gathering of the rich and powerful, an intense debate about Eurozone’s inflation or rather deflation, divided once again the Old Continent between Germans and…anti-Germans. Ollie Rehn, the Finn European Commission Vice-President and Commissioner responsible for finance and the euro, said that the currently […]EU-Russia summit in the shadows of Kiev’s fumes
January 25, 2014 by Leave a Comment
In the shadows of fume of the protest fires in Kiev’s Independence Square, the 32nd EU-Russia summit is expected to take place in Brussels this Tuesday. It will end with a working lunch, without an official dinner being held. The EU side dropped it as an indication of deep concern about Moscow’s role in Ukraine. […]High level political talks didn’t break the stalemate in Ukraine
January 24, 2014 by 1 Comment
Yesterday Ukrainian President Viktor Yanukovych held talks with the leaders of the opposition as he promised to EU President Manuel Barroso during their telephone conversation earlier on the day. But this was all Yanukovych did to fulfil his promise to the EU leader. After many hours of talks, the leaders of the Ukrainian opposition coming […]Glaringly false reassurances about the repercussions of the EU-US free trade agreement
January 23, 2014 by 1 Comment
Yesterday, Karel De Gucht, the EU Trade Commissioner delivered a speech in Düsseldorf, to reassure his German audience that the EU-US negotiations to conclude a Transatlantic Trade and Investment Partnership (Free Trade Agreement), will not lead to abandonment of EU health rules that ban genetically modified food and beef with hormones nor will it give […]IMF launches a new offensive against Germany
January 22, 2014 by Leave a Comment
In the latest issue of its World Economic Outlook (WEO), which was published yesterday, the IMF raises the tone of criticism against Europe. It’s again the risk of deflation and the projection that “economic slack will remain high”, the two axes which constitute the cutting edge of criticism of North America against Eurozone. The latest […]Income inequality threatens the socio-political structures in developed countries
January 21, 2014 by Leave a Comment
Christine Lagarde, Managing Director of IMF, is not renowned for her social concerns and sensitivities. Yet, while speaking last week at the National Press Club, in Washington DC, about “The Global Economy in 2014”, among other important policy proposals for the world to exit the era of the “seven weak years”, she didn’t forget to […]Iceland won’t talk with Brussels about EU accession
January 20, 2014 by Leave a Comment
Iceland has two very good reasons to freeze its EU accession talks until the tiny country holds a referendum on it. Icelanders think twice when it comes to money and fish. On money their views differ widely from what the EU thinks about it and when it comes to fish, Iceland also has quite diverging […]Eurostat confirms a dangerously fast falling inflation in Eurozone
January 17, 2014 by Leave a Comment
Yesterday Eurostat confirmed that the euro area inflation rate for December was down to 0.8% from 0.9% in November, dangerously approaching the negative part of the graph. The announcement coincided with IMF Managing Director Christine Lagarde’s warning that weak growth in Eurozone is now also threatened by deflation (continuously falling prices leading to real economy […]
