French President Sarkozy’s request for Chinese money in support of the euro rescue symbolized three historic shifts in great power relations: the fragility and endangerment of the European project, the ascendance of China, and the beginning of the end of the American era.
The global economic outlook for 2012 and 2013 is exceptionally uncertain. With the euro crisis continuing to fester, a global credit crunch, and generalized slowdown threatening emerging markets, it remains unclear where growth will come from.
The euro crisis has grown too big for Europeans to handle alone. The United States must act to help save the euro—or risk paying a much bigger price if it collapses.
Managing the tension between domestic politics and the demands of a global economy is one of the major challenges facing politicians around the world.
Five misconceptions—all rooted in denial—are preventing policymakers from appreciating the gravity of the crisis in Europe, which represents the greatest threat to the global economy since the Lehman debacle.
Greenhouse Gas (GHG) emissions caused by truck transport have long been left unregulated both in the United States and the European Union, but recent U.S. measures are challenging EU lawmakers.
Having benefited from the euro at the expense of nations such as Greece, Spain, and Portugal, Germany now has the opportunity to take responsibility for the survival of the Eurozone by sacrificing its current account surplus and allowing debt-laden countries to resume growth.
Poland, a non-eurozone member holding the rotating EU presidency for the first time, faces difficulty pushing ahead its agenda because of the eurozone crisis. The crisis also risks diminishing the successes the Polish presidency has achieved thus far.
The European leaders’ emergency summit featured plenty of headline-grabbing numbers, but far fewer actual commitments and details. It will not save the eurozone, but it will allow it live on to fight the next battle.
An economic crisis comparable in size and virulence to the Lehman Brothers episode could erupt if Italy and Spain lose their ability to borrow. The G20 must act now to stabilize the eurozone.