Carnegie Endowment for International Peace
The ECB’s September purchase of Spanish and Italian government bonds in the secondary market is fraught with political and economic risk both for Germany as well as the periphery.
Propping up the euro through contentious fiscal and banking arrangements, all without adequate guarantees from countries on Europe’s periphery, may not produce the long-term stability that is in the interest of both sides of the Atlantic.
The EU acts as a bloc with all 27 member states discussing issues and unanimously making decisions, but behind the scenes lies a tacit agreement that the Big Three, France, Germany, and the United Kingdom, take the lead on foreign policy.
The deepening economic crisis in Europe can be attributed to ignorance and the increasingly unbalanced concentration of the power to make critical decisions.
Spain had a stronger fiscal position and healthier bank balance sheets than many of its peers when the crisis began, but it still may end up having to leave the euro and restructure its external debt.
With European voters voicing their frustration at harsh austerity measures, economic fears are back in the eurozone and any respite from government and central bank intervention appears to be fading.
As concerns rise over a potential exit by Greece and a possible bailout for Spain, the eurozone remains in a very difficult predicament, with few good options for moving forward.
While the relationship between the European Union and India has a great deal of potential, it has underperformed. To revitalize it, both sides need to move from dialogue to joint action on a regional or multilateral level.
The next years will see most, if not all, of NATO's major military operations draw down as the Alliance finds itself, for the first time in twenty years, without a major operation to run.
Neither candidate in France's presidential election has addressed the growth and competitiveness issues underlying the country's economic problems. But failing to grapple with them could be ominous for the entire eurozone.