Austerity

Going, Going, Gone: Crisis-Plagued Madrid Sells Out City Assets

"Mayor Ana Botella would like to bring the Summer Olympics to Madrid in 2020, following the city's third attempt to capture the games. Her predecessors have already invested more than €6 billion in the effort, and she needs at least another €2.5 billion. That might explain why, in recent months, Botella has begun to sell off public buildings and properties -- even if she hasn't managed to raise very much money so far. A Chinese bank snatched up a magnificent building near the Prado Museum at a price discount of almost a third. The fire sale also included 26 works by Spain's best-known contemporary artists, which were part of the city hall's inventory." Continue reading →

Continue ReadingGoing, Going, Gone: Crisis-Plagued Madrid Sells Out City Assets

Beware the man on the white horse…

"As far back as ancient times, whenever civilizations fell into great crisis, people in desperation have almost invariably turned to a single individual who promised them better times. Of course, history is full of examples of men who did not give up power willingly once the crisis passed. The ancient historian Herodotus lists as many as fifty ‘tyrants’ in his writings, a word that has its origins in ancient Greek despotic rulers. For thousands of years, ambitious men have always taken advantage of crisis, social turmoil, and economic downturns to solidify their positions and take control… often creating even more destruction in their wake." Continue reading →

Continue ReadingBeware the man on the white horse…

Beware the man on the white horse…

"As far back as ancient times, whenever civilizations fell into great crisis, people in desperation have almost invariably turned to a single individual who promised them better times. Of course, history is full of examples of men who did not give up power willingly once the crisis passed. The ancient historian Herodotus lists as many as fifty ‘tyrants’ in his writings, a word that has its origins in ancient Greek despotic rulers. For thousands of years, ambitious men have always taken advantage of crisis, social turmoil, and economic downturns to solidify their positions and take control… often creating even more destruction in their wake." Continue reading →

Continue ReadingBeware the man on the white horse…

‘No Longer Necessary’: Hungary Wants to Throw Out IMF

"A long-running dispute between Hungary and the International Monetary Fund escalated on Monday when the head of the country's central bank called on the IMF to close its office in Budapest, saying it was no longer needed. On Monday, central bank chief Matolcsy said Hungary would repay the 2008 loan in full by the end of this year. He said the government had succeeded in pushing its budget deficit below the EU ceiling of 3 percent of GDP. Matolcsy is the architect of Orbán's unorthodox economic policy which is based on imposing heavy special taxes on large companies. He became central bank governor four months ago." Continue reading →

Continue Reading‘No Longer Necessary’: Hungary Wants to Throw Out IMF

Nearly 2,500 British bankers paid over €1m, says EU regulator

"In 2011, 2,436 UK-based bankers earned in excess of €1m, down from 2,525 the previous year, according to a study by the European Banking Authority. The most senior bankers working in Britain took home on average €1.44m in 2011, down from €2.3m in 2010, highlighting the impact of the downturn in the financial services industry.In total, the country's highest paid financiers shared a salary and bonus pool in 2011 worth €3.51bn, down from €5.8bn in 2010.However, based on average pay levels, bankers in Spain earned the most, with earnings of €2.26m (£1.95m) in 2010 and €2.44m in 2011. The number of individuals paid more than €1m in Spain was 125." Continue reading →

Continue ReadingNearly 2,500 British bankers paid over €1m, says EU regulator

Unemployment crisis in Italy hits immigrants the worst

"Immigrants are being hit harder than Italians by the country’s unemployment crisis, a new report showed Monday, saying the figures were 'extremely worrying' and could lead to 'major social destabilisation'. The report said the number of unemployed foreigners in the country was currently 385,000 — up from 220,000 at the beginning of the economic crisis in 2008. The report also outlined the importance of immigrants in Italian society and said those who did work were often stuck in low-skill and low-pay jobs. Without migrants, Italian demographic growth would be zero and the population would be ageing at a faster rate, according to the report.." Continue reading →

Continue ReadingUnemployment crisis in Italy hits immigrants the worst

Germany fears revolution if Europe scraps welfare model

"German Finance Minister Wolfgang Schaeuble warned on Tuesday that failure to win the battle against youth unemployment could tear Europe apart, and dropping the continent's welfare model in favor of tougher U.S. standards would spark a revolution. Germany, along with France, Spain and Italy, backed urgent action to rescue a generation of young Europeans who fear they will not find jobs, with youth unemployment in the EU standing at nearly one in four, more than twice the adult rate. If U.S. welfare standards were introduced in Europe, 'we would have revolution, not tomorrow, but on the very same day,' Schaeuble told a conference in Paris." Continue reading →

Continue ReadingGermany fears revolution if Europe scraps welfare model

Europe’s ‘new deal’ for jobless dismissed as rhetoric

"The Prado in Madrid has become the unlikely symbol of Europe’s unemployment curse. The museum recently advertised for 11 low-level jobs, mostly guarding paintings by Velasquez, El Greco and Picasso from enthusiastic tourists. The starting salaries were just €13,000 (£11,100) a year yet, to the astonishment of the curators, 18,524 people applied. The print-out list of applicants runs for 357 pages. This is the 'white heat' of a youth jobs crisis that has crept up on EU leaders and now threatens to set off a volcanic political eruption. Francois Hollande, the French president, warned on Tuesday that failure to offer these people hope risks destroying the EU altogether." Continue reading →

Continue ReadingEurope’s ‘new deal’ for jobless dismissed as rhetoric

French president auctions off wines in austerity fire sale

"The expected price of the wines range from 20 euros to 2,500 euros ($25 to $3,235) per bottle and include top-end offerings such as a Chateau Latour dating back to 1936, a 1990 Petrus and a slew of 1985 Romanee wines. The cellar at the Elysee was established in 1947 during the presidency of Vincent Auriol and now holds 12,000 bottles. Burgundy and Bordeaux wines will dominate in the auction but there are also offerings from Alsace, the Loire and the Rhone valley. Demand for wine from France, the world’s leading wine producer by value, is high especially from well-heeled buyers in China and the United States. China is the world’s biggest importer of Bordeaux wines." Continue reading →

Continue ReadingFrench president auctions off wines in austerity fire sale

Idea of Euro Exit Finds Currency in Portugal

"A book by a Portuguese economist achieved a small feat on its release last month: It instantly topped Portugal's bestseller list. The book, 'Why We Should Leave the Euro' by João Ferreira do Amaral, has helped ignite a public debate in Portugal about the real cause of the country's economic pain. Communist parties in Portugal and Cyprus have turned against euro membership. Two parties in Italy's Parliament want a euro referendum. And two small anti-euro parties recently formed in depression-hit Greece. Even in prosperous Germany, angst about the cost of euro-zone bailouts has led to the launch of an anti-euro party, Alternative for Germany." Continue reading →

Continue ReadingIdea of Euro Exit Finds Currency in Portugal