Jump to content

Europe


alonso
 Share

Recommended Posts

http://www.fidelity.com.au/insights-centre...ical-weak-spot/

 

This is the last couple of sentences from the above articleÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¦

 

Investors and others will need to form their own judgments if polls show Le Pen is heading towards the presidency (France) ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ in July she took the lead in the first-round polls for this election; in September she beat Hollande in a second-round matchup, according to one polls.] Just beware that if Le Pen should win, she has pledged that on her first day in office that she will take steps to rid France of the euro and that she is willing to let "financial Armageddon" rip if other eurozone countries won't agree to a joint breakup. "What are other countries going to do (to stop me)," she taunts. "Send in tanks?"

Link to comment
Share on other sites

  • 6 months later...
  • 5 months later...

The Greek values that have led to its mendicant economy

Too many politicians and economists blame austerity ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ urged by Greece's creditors ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ for the collapse of the Greek economy. But the data show neither marked austerity by historical standards nor government cutbacks severe enough to explain the huge job losses. What the data do show are economic ills rooted in the values and beliefs of Greek society.

 

Greece's public sector is rife with clientelism (to gain votes) and cronyism (to gain favours) ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ far more so than in other parts of Europe. Maximum pensions for public employees relative to wages https://www.issa.int/country-details?countr...;filtered=false are nearly twice as high as in Spain; the government favours business elites with tax-free status; and some state employees draw their salaries without actually turning up for work.There are serious ills in the private sector, too ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ notably, the pervasive influence of vested interests and the country's business and political elites. Profits as a share of business income in Greece are a whopping 46 per cent, according to the latest economic data http://capitalism.columbia.edu/files/ccs/w...r_87_phelps.pdf. Italy came in second at 42 per cent, with France third, at 41 per cent. (Germany's share is 39 per cent; the United States', 35 per cent; and the United Kingdom's, 32 per cent.) Insiders receive subsidies and contracts, and outsiders find it hard to break in. Astoundingly, young Greek entrepreneurs reportedly fear to incorporate their firms in Greece, lest others use false documents to take away their companies. According to the World Bank http://www.doingbusiness.org/rankings, Greece is one of the hardest places in Europe to start a business. The result is that competition for market share is weak and there are few firms with new ideas.

 

This stunted system springs from Greece's corporatist values, which emphasise social protection, solidarity instead of competition, and discomfort with uncontrolled change. These values may well be beneficial for family life; but, even with the best of intentions, they are a recipe for a static economy and stultified careers.

 

Indeed, Greece's labour productivity http://www.oecd.org/std/productivity-stats...rs-22252126.htm (GDP per worker) is only 72 per cent of the level in the UK and Italy, and a mere 57.7 per cent of that in Germany. And surveys indicate that mean life satisfaction in Greece is far below that found in the wealthiest EU countries (the EU15). Contrary to claims by the Greek government, corporatism impoverishes the less advantaged. EU data on poverty rates in 2010 put Greece at 21.4 per cent ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ far higher than the mean EU15 rate of 16.7 per cent.

 

To be sure, Greece saw productivity gainshttp://www.worldbank.org/en/region/eca/pub...n/golden-growth after World War II ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ but mostly from increases in education and capital per worker, which can go only so far. Two important sources of broad prosperity are blocked by Greece's system. One is an abundance of entrepreneurs engaged in detecting and exploiting new economic opportunities. Without them, Greece does a poor job of adjusting to changing circumstances (an imperative emphasised by Friedrich Hayek). Greece's much-lauded shipowners, for example, were too slow to adapt to containerisation, and thus lost their market share.

 

The other source of broad prosperity is an abundance of business people engaged in conceiving and creating new products and processes ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ often termed "indigenous innovation". Here, Greece lacks the necessary dynamism: venture capital investment inflows are smaller, relative to GDP, in Greece than in any other EU country. So Greece's economy has scant ability to create sustained productivity growth and high human satisfaction.

 

Some economists believe that these structural considerations have nothing to do with Greece's current crisis. In fact, a structuralist perspective illuminates what went wrong ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ and why.

 

For several years, Greece drew on the EU's aptly named "structural funds" and on loans from German and French banks to finance a wide array of highly labor-intensive projects. Employment and incomes soared, and savings piled up. When that capital inflow stopped, asset prices in Greece fell, and so did demand for labor in the capital-goods sector. Moreover, with household wealth http://www.ecb.europa.eu/pub/pdf/scpsps/ecbsp2.en.pdf having far outstripped wage rates, the supply of labor diminished. Thus, Greece went from boom to outright slump.

 

The structuralist perspective also explains why recovery has been slow. With competition weak, entrepreneurs did not rush to hire the unemployed. When recovery began, political unrest last fall nipped confidence in the bud.

 

The truth is that Greece needs more than just debt restructuring or even debt relief. If young Greeks are to have a future in their own country, they and their elders need to develop the attitudes and institutions that constitute an inclusive modern economy ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ which means shedding their corporatist values.

 

Europe, for its part, must think beyond the necessary reforms of Greece's pension system, tax regime, and collective-bargaining arrangements. While Greece has reached the heights of corporatism, Italy and France are not far behind ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ and not far behind them is Germany. All of Europe, not just Greece, must rethink its economic philosophy.

Edmund S. Phelps, the 2006 Nobel laureate in economics, is Director of the Center on Capitalism and Society at Columbia University and author of Mass Flourishing.

 

I am sure this will cause offense to many (he certainly ain't your 'local Keynesian'); the peculiar circumstances of being in the Eurozone are a further distortion/ amplification of problems. Greece is just an extreme example of the pretty pickle a lot of countries are in, as the challenge of too much DEBT is across the board.

Link to comment
Share on other sites

  • 3 years later...
Belgium, Finland, Germany, Ireland, and the Netherlands (though not in France any longer, interestingly). This is evidence of a profound structural malaise.

 

The ECB has already pre-committed to holding its reference rate at minus 0.4pc until late 2019. By then the global economy will be acutely vulnerable since the sugar rush from Donald Trump's tax cuts and infrastructure spending will have faded.

 

The US is entering uncharted and perilous waters. The jury is out over whether it can - in extremis - follow the example of Japan and push the public debt ratio to stratospheric levels (245pc of GDP).

 

The difference is that the Japanese are the world's biggest savers and external creditors. The Americans must import capital to finance their twin deficits.

Ambrose Pritchard-Evans
Link to comment
Share on other sites

  • 10 months later...
....the July IFO Survey of German Business Expectations .... fell to 92.2, a level even lower than that seen during the European sovereign debt crisis. This led Clemens Fuest, president of the IFO Institute to say, âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“In manufacturing, the business climate indicator is in freefall.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ

 

...We wonâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢t know German Q2 GDP until 14 August, however, I suspect it will be weak, if not negative. As we all know Germany is a global export champion and with just one quarter of Americaâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s population, they produce roughly the same share of total world exports. The OECD estimates that more than 25% of German jobs rely on exports; in America the equivalent figure is less than 10%.

 

All of this tells us that Trumpâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s trade war with China is having a very significant impact upon the locomotive of Europe as it is on the export champions in the east.

 

Given all of the above it is little wonder that the president of the ECB said, in his press conference last Thursday, that the economic situation was getting âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“worse and worse.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ

 

Which means that Mario Draghi will need to do âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“whatever, and whatever, it takesâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ when he unleashes his monetary bazookas in his final ECB meeting in September, as he retires in October.

Link to comment
Share on other sites

  • 1 month later...
The strengthening dollar in 2018 was responsible for knocking the Swiss off their perch as the worldâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s wealthiest citizens, according to a wealth report by German insurer Allianz. The average Swiss was worth ââ€Å¡Ãƒ‚¬173,438 (CHF190,087) last year compared to ââ€Å¡Ãƒ‚¬184,411 for the average American. The figure measures net wealth per capita, stripping out debt that each person owes on average.

 

Switzerland and the United States have been trading top place in the Allianz wealth rankings external link for the last few years. Because the figures are converted into euros for the report, the relative strengths of national currencies play a part in determining which country comes out on top.

 

Swiss citizens still enjoy the highest gross wealth, at ââ€Å¡Ãƒ‚¬266,318, compared to ââ€Å¡Ãƒ‚¬227,364 in the US, but Swiss debt, mainly in the form of outstanding mortgage loans, is much higher than in America.

 

Switzerland is one of four countries in western Europe where debt exceeds total economic output (128%). Only Denmark is more indebted per capita in the region (134.2%).

 

On a global level, net financial assets last year fell slightly from 2017âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s record high of ââ€Å¡Ãƒ‚¬132.4 trillion to ââ€Å¡Ãƒ‚¬129.8 trillion. Allianz puts this down to heightened trade and other geopolitical tensions that saw share prices tumble around 12% in 2018.

swissinfo.ch/mga

Link to comment
Share on other sites

  • 6 months later...
The disproportionate impact of the virus on Europeâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s south has revived the European Unionâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s north-south divide rivalry, with Italy and Spain pleading for European Union help.

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“It is the most difficult moment for the EU since its foundation, and it has to be ready to rise to the challenge,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ Spanish Prime Minister Pedro Sanchez said in a televised address Saturday night.

 

Mr Sanchez warned them that a lack of solidarity to share the enormous financial burden of the health crisis and the imminent economic slowdown will put the future of the bloc in danger.

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Europe must provide a united social and economic response. We must have evidence that Europe listens and that Europe takes action.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ

 

There has been some European solidarity - the EU has pledged billions in aid while Germany has taken some patients from Italy and France.

 

However, critics say that not nearly enough as China and Russia have made a point of sending medical aid to Italy, making some Italians question where their allegiances should lie. Cuba and Albania have sent medical teams too.

 

(Well done Boris)

Link to comment
Share on other sites

  • 10 months later...
  • 1 month later...

Just how attainable is this?

The European Union's big-spending commitment to developing a secure battery supply chain in support of its decarbonisation targets is delivering at light speed. The comment was made in March by MaroÃ…¡ Ã… efčovič, a vice president of the European Commission (EC), the executive arm of the European Union, after a meeting with the European Battery Alliance (EBA).

 

The EBA was created by the EC in October 2017 to oversee the development of a European centric battery supply chain estimated to have an annual market value of €250 billion from 2025, and critical to the migration of transport, power and industry away from fossil fuels.

 

After his meeting with more than 500 companies and industry groups involved in the battery industry from mining through to recycling, Ã… efčovič said Europe had turned in to a "battery hotspot'' and was "rapidly closing the investment gap with its major Asian competitors.''

 

"Europe is well on track to become the second largest battery cell producer in the world, behind China,'' Ã… efčovič said.

 

He said that despite the disruption caused by the COVID19 pandemic, 2020 would go down as the year of the electric vehicle (EV) in Europe, with EV sales reaching a record 1.04 million for a 10.5% market share, up from 3% in 2019.

 

EV's sales in Europe are forecast by the battery industry to reach 7 to 8 million units by 2025 in response to Europe's increasingly tough carbon emission standards and most tellingly, bans by individual nations on internal combustion engines taking effect within a 5 to 20 year range.

 

But Ã… efčovič also identified a key challenge for Europe to meet its battery independence ambitions ... the need to develop capabilities in the sustainable sourcing and processing of battery materials (lithium, nickel, cobalt, manganese and others).

 

Taking lithium as an example, there is currently no production of battery grade material in Europe, despite the ambition to be 80% selfsufficient by 2025

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...