Portugal’s Post-Crisis Challenge

Portugal’s Post-Crisis Challenge

photo: GlynLowe Portugal is in its 4th year of recovery, following a sudden stop in capital inflows at the beginning of the decade and the severe recession that followed. While the external flow imbalance has been corrected and the sovereign’s full access to financing restored, the stock of public and private debt remains high, labor slack […]

The French Endgame about Labor Reforms: Europe’s Summer of Discontent

The French Endgame about Labor Reforms: Europe’s Summer of Discontent

photo: Tim Lam French government wants structural reforms, but unions and most people don’t. As political friction is escalating, Paris is preparing for the Euro 2016 football tournament, which is attracting terror efforts by radical right, ultra-left and the jihadists. At the same time, the country has been pummeled by ‘once-in-a-century’ flooding. As long as the […]

The EU Division Over China’s Market Economy Status

The EU Division Over China’s Market Economy Status

photo: AK Rockefeller The dispute over China’s “market economy status” (MES) divides Europe by countries and industries. It stems from China’s 2001 agreement to join the World Trade Organisation (WTO), which Beijing believes required countries to grant MES to China within 15 years – by December this year. Reportedly, EU lawyers reached similar conclusions over year […]

Brexit: Financial Risks for the UK

[Photo Credit: Becky McCray] The head of the Bank of England, the British equivalent of the US Federal Reserve, told parliament today that a potential Brexit was the “biggest domestic risk to financial stability” for the UK. BoE Governor Mark Carney elaborated on the risk by saying that he was unable to “provide a blanket assurance that there would […]

Why Would Anyone Want to Make the US More Like Europe?

Why Would Anyone Want to Make the US More Like Europe?

photo: Moyan Brenn The idea that Democrats want to make America more like Europe is a favorite Republican attack line. Writing in The New York Times, David Brooks expresses amazement that so many millennials are supporting Bernie Sanders, an open admirer of the European model. Why would anyone in their right mind favor “sluggish” Europe over “vibrant” […]

Europe’s Fake Recovery

Europe’s Fake Recovery

photo: Chris Goldberg Investors were disappointed when they undid the wrapping on the European Central Bank’s (“ECB’s) early holiday present.  The package was not insignificant: a cut in deposit rates by 0.10% from negative 0.20% to 0.30%; an extension of the €60 billion per month bond purchase program by six months (additional €360 billion in liquidity); […]

Hunt for Alpha Succeeds if the Entrepreneur Attracts the Right Investors

Hunt for Alpha Succeeds if the Entrepreneur Attracts the Right Investors

From a speech given at the Olivetti day: “How to finance innovation and why it needs to be done.” Brescia, Italy, 16 October 2015 Italy is experiencing a period of extraordinary importance for its future. If current developments have positive outcomes, a virtuous circle could be created with the potential to launch a new and much […]

New Perspectives on Trade from the Commonwealth

New Perspectives on Trade from the Commonwealth

The recent release of the inaugural Commonwealth Trade Review brings a fresh perspective to debates on global trade issues at a time in which much attention has been focused on negotiating regional and inter- or mega-regional trade agreements.   The Commonwealth Secretariat’s new report effectively frames the particular rôle that the Commonwealth has to play in […]