A repository of solutions to global problems

For two years now, leading policy makers, academics and businessmen have been meeting for discussions in the Global Economic Symposium to provide concrete solutions for the most pressing global governance issues the world will be facing this century. Here is the result of these discussions: a repository of concrete policy proposals.

No German miracle

By: Wolfgang Munchau

The bottom line is that Germany’s economic performance will almost certainly improve relative to the eurozone average in the years ahead, but also that the current wave of enthusiasm is much exaggerated.

Eurozone Meltdown

This is the first in a new series of regular briefing notes on important issues facing the euro area. In this briefing note we are asking whether the euro area could ever break up. We think not. But we are not as certain as we used to be.

Bundesbank asks President Wulff to fire Sarrazin

Germany’s absurd “Jewish gene” scandal takes a decisive turn, as the board of the Bundesbank gave a unanimous recommendation that President Wulff should fire Thilo Sarrazin; Wulff like to accept the recommendations, but formidable legal obstacles remain; the ECB extended the unlimited liquidity support operations until early next year, but decision was not unanimous; a deal in principle was finally agreed on EU banking supervision, which marks a victory for those opposed to a better coordinated EU system; the European Commission’s proposals on naked short are much closer to Germany’s law than meets the eye; Eurostat confirms 1% growth for eurozone in Q2; French trade unions consider Woerth a liability in pension reform debate; President Giorgio Napolitano said the fight against youth unemployment should become Italy’s key strategic priority; Paul Krugman said Germany has done worse than the US on growth, since the crisis, but much better on employment; Peter Boone and Simon Johnson, meanwhile, argued that Ireland is essentially insolvent.

Why the euro should prevail

By: Eric Chaney

Will the euro area survive its debt crisis? The short answer is yes. The longer answer is, this is a conditional probability, not a certainty. The conditions are an orderly resolution of the current tensions and the implementation of three sets of reforms.

The end of muddling through is nigh

By: Wolfgang Münchau

One of the aggravating problems in this crisis is the financial illiteracy of Europe's political classes.

One Fiscal Size Does Not Fit All – a Korean lesson for Spain

By: Adam Posen

Twelve years ago, the Asian Financial Crisis hit. The International Monetary Fund took a common approach across the crisis countries, prioritizing fiscal austerity. In retrospect, outside observers and the Fund itself came to the conclusion that this was a mistake – while appropriate for Indonesia, the ‘It’s Mostly Fiscal’ approach made the situation worse than it needed to be in South Korea, with negative spillovers for the rest of the region. The euro area governments, under pressure from Berlin and Brussels, are repeating this mistake.

Suffocating Europe

By: Jörg Bibow

The real irony in this German tragedy is that German beggar-thy-neighbor policies have effectively forced a fiscal union upon Europe. Or, rather, if not a fiscal union, a general default it will be.