Europe

Germany, Spain, Italy and France have met to hammer out a unified front ahead of the upcoming European summit and Spanish bailout. This is likely a fleshed out version of the G-20 plan that Barack Obama was privy to. Their answer is the 120…

This week I am doing the weekly newsletter in two parts, both outside the paywall. This is part two. Previously, this column argued that it was folly for the euro zone to take the bailout and austerity approach because it risked breaking…

This week I am doing the weekly newsletter in two parts, both outside the paywall. This is part one. As Charles Wyplosz has recently written, the euro zone's rescue strategy adopted in May 2010 has failed. Like his column, this column…

The EZ rescue strategy adopted in May 2010 failed to restore debt sustainability, avoid contagion, or reduce moral hazard. This column argues that a volte face is needed. The debt of Greece, Portugal and Italy – and perhaps Ireland, Spain…

According to US administration sources, Barack Obama has received guarantees from European leaders who met Tuesday at the G-20 that soon, likely at next European Council meeting, Europe will announce a comprehensive plan that is designed to…

The latest, with Spanish ten-year debt over 7% and 12-month loans just secured for over 5%, is that the ESM will buy Spanish bonds directly. According to the Guardian, Germany is prepared to use the ESM bailout fund to buy Spanish (and…

I was on the Alyona Show panel these past two Mondays talking to Alyona and Reason's Anthony Randazzo about the debt crises in the US and Europe. As much as we tried to find something we could disagree on, we ended up agreeing a lot in both…

My view is that the euro zone sovereign debt crisis will end in a combination of monetisation, breakup or default. Let's review why.

Last week, in framing the Greek elections, I reminded you that irrespective of who won the elections in Greece on Sunday, it was clear that Greece would be unable to hit their deficit targets. This is why the German government is already…

Hans-Werner Sinn is the sometimes controversial head of Germany's Ifo Institute, A German-based center for economic studies. He has been in the news for his warnings about the Target2 system at the heart of trans-national money clearance in…