Europe’s debt crisis has roiled financial markets and populations. But beyond nationwide strikes and gyrating markets, Europe has put its crisis to good use. Here Jacob Funk Kirkegaard, a research fellow at the Peter G. Peterson Institute for International Economics points out five trends that will ultimately strengthen the European Union and the euro currency.
American decline is the conventional wisdom, as the United States suffers from high unemployment, crushing debt, and political gridlock. Here's the bigger picture: a competitive and innovative economy, reliable allies, a superior military, and foreign autocrats on the run.
European stocks as well as the euro dropped as optimism from last week's euro crisis summit yielded to tough questions about the EU's ability to avert fresh crises.
Trade and economic interaction happens with countries outside of the Eurozone as well.
Images of Greek protesters waving signs of German Chancellor Merkel in Nazi uniform have troubled Germans. Many in struggling eurozone countries resent Merkel's hard line.
Every year, the group Transparency International releases its Corruption Perception Index, which measures the perception of corruption – misuse of public resources, bribery, and backdoor deals, to name a few – in countries worldwide. On a scale of 0 (most corrupt) to 10 (least corrupt), no country scores a 10 and more than two-thirds of the 183 countries on the index score below a 5. The US comes in at 7.1. The index is built using data from surveys examining enforcement of anticorruption laws, tracking of public funds, kickbacks in government contracts, etc.
Europe debt crisis solution would be joint-issued euro bonds. Germany denies reports that it has initial plans to solve Europe debt crisis with euro bonds issued by nations with triple A credit.
Yesterday, investors began dumping bonds, even in stronger economies like Austria and Finland. The sell-off shows a need for bolder solutions to the European debt crisis, say some.
European politicians reacted angrily and financial markets slid after Greek Prime Minister Papandreou stunned Europe with the announcement of a Greek referendum on latest aid package.
Mao Zedong's 'ping-pong diplomacy' thawed Chinese-US ties. Could Kim Jong-il's 'golf club diplomacy' do the same for North Korean-US relations?