December 26, 2012

Europe Faces a Difficult 2013

Desmond Lachman, RealClearMarkets

AP Photo

Hope springs eternal about Europe's ability to finally resolve its sovereign debt crisis. For despite a double dip economic recession and despite the clearest of signs of austerity fatigue, the markets appear to be buying European policymakers' reassurances that the worst of the crisis is now behind us. The markets do so seeming to have forgotten previous hollow European policymaker reassurances since the start of the crisis in early 2010. They also do so in seeming disregard of the underlying economic and political forces now at play in Europe. Those forces offer little hope that the European periphery will soon extricate itself from its seeming downward economic and political spiral, which could make 2013 yet another challenging year for the Euro.

 

2012 was not a...

Read Full Article ››

TAGGED: Greece, Eurozone, Europe

RECOMMENDED ARTICLES

December 18, 2012
Inevitable Return of Europe's Crisis
Nouriel Roubini, Project Syndicate
The risks facing the eurozone have been reduced since the summer, when a Greek exit looked imminent and borrowing costs for Spain and Italy reached new and unsustainable heights. But, while financial strains have since eased,... more ››
December 19, 2012
Greece Is Now Nothing But a Debt Colony
Matthaios Tsimitakis, Al Jazeera
The Greek government has hailed the eurozone finance ministers' latest decision on Greece, requiring the country to lower its debt in return for bailout funds, as yet another political victory. This was not surprising at all to... more ››
December 24, 2012
The Return of Toxic Nationalism
Robert Kaplan, Wall Street Journal
The spread of universal values is being rolled back on many fronts, from Russia to the Middle East. more ››
December 19, 2012
Europe Will Bounce Back in 2013
Ruchir Sharma, Financial Times
Watching the crisis in Europe I cannot help but recall the drama that unfolded in Asia in 1997 and 1998. Fear of insolvency seized Bangkok and spread to Jakarta, Seoul and Kuala Lumpur, triggering fiery protests and chasing off... more ››