European Union

Austrian abundance hampers peripheral EU lifeline

29 Jun 2012

On the streets and in the taverns, Austrians are in a surly mood. Selling bailouts of profligate states is tough in a nation with a fifth Spain’s unemployment and solid finances. Such resentment - shared by other core states - helps keep the EU one step behind the crisis.

Google’s antitrust problem is all about privacy

7 Jun 2012

They seem like separate issues, but the internet search giant’s market power is largely fueled by its access to personal data. Limiting that could give competition a useful jolt. U.S. and European regulators need to keep that in mind as they move closer to legal action.

UK could sacrifice its jubilee queen to Europe

5 Jun 2012

A common monarch would give the region the sort of political unity it sorely lacks. And the royal family is basically Continental by blood. English is the regional tongue. Americans would have new respect. Brits would become europhiles. Put it on the next summit’s agenda.

EU probe shows hidden costs of China subsidies

28 May 2012

A mooted trade case against telecom vendors may hinge on their access to state credit. Yet Huawei and ZTE are competitive enough not to need such perks. State support for national champions may now be turning into a disadvantage, since it makes it easy for others to cry foul play.

EU bonus assault would lead banks astray

13 Apr 2012

Brussels is reportedly mulling a proposal to cap bonuses at 100 pct of salary. Investment banking still has a problem with the way it pays staff. But this plan will put further upward pressure on salaries and limit flexibility. That’s clearly the wrong solution.

Europe unrecognizable from U.S. Republican rhetoric

3 Apr 2012

Mitt Romney and Rick Santorum accuse Obama of leading America to “European-style socialism.” The pejorative works to a point but conveniently overlooks German trade surpluses, Dutch unemployment and Polish growth. GOP hopefuls might aspire to some of the continent’s achievements.

Hugo Dixon: After the Robin Hood tax

26 Mar 2012

The European Union’s plan for a tax on financial transactions is dying. This is a golden opportunity to devise better taxes for banks. A levy on hot money and a Value Added Tax for finance would be a good start. So would removing the tax distortion in favour of debt.

China has much to gain from rare earths fight

13 Mar 2012

A new WTO case against China may put Beijing on the defensive. But China’s global dominance puts it in a strong position to resist pressure. Besides, the backdoor trade protectionism plays well at home, as does the effort to make rare earth mining less environmentally damaging.

China has moral high ground over "dirty skies"

6 Feb 2012

Beijing’s principle of non-interference looks callous when it lends support to oppressive regimes, as in Syria and Sudan. But the refusal to pay the EU’s pointless, extraterritorial and unilateral airline carbon tax is right, even if Chinese doubts about global warming are not.

Euro crisis could make IMF bigger and softer

9 Jan 2012

Europe’s travails are an opportunity for the IMF. Its kitty is nearing $1 trillion and should get heftier in 2012. And loan conditions may soften if more powerful nations come asking for help. There are risks, but this is preferable to ever rising national currency reserves.

Don’t shoot the emissions-market messenger

21 Dec 2011

The EU is under pressure to prop up its carbon trading market because falling prices have killed the incentive to invest in clean energy. But the market is accurately weighing supply and demand. Any intervention for public-policy goals must be within clearly prescribed limits.

EEA could be right place for UK in Europe

15 Dec 2011

After the Cameron veto, Britain’s status in the EU is precarious. It won’t move forward into the euro zone and cannot really turn its back on Europe. Some losses are inevitable, but the UK could gain by beefing up the European Economic Area – a fairly happy half-way zone.

Hugo Dixon: UK’s self-immolation beggars belief

12 Dec 2011

The government’s clumsy attempt to extract concessions from euro zone countries in their time of need has set off a chain reaction which could undermine Britain’s interests and even drive it out of the EU. This vicious cycle must be stopped.

Supersized IMF not just for little guy bailouts

9 Dec 2011

Europe’s promise to lend another $270 bln takes the fund’s pot over $1 trln. The move also raises the chance of fat contributions from the BRICs, who have insisted on more euro zone self-help. The muscled-up fund may soon have the scale to help rescue big nations like Spain.

UK’s euro isolation may backfire on City of London

9 Dec 2011

David Cameron says he was defending Britain’s financial industry when he opted out of the pan-European deal to save the euro zone. But the prime minister’s stand leaves the City exposed in Europe - and at home. And it further diminishes the UK influence over designing new rules.

Santander’s stingy bond swap a sign of the times

23 Nov 2011

The Spanish lender’s plan to exchange junior debt for less attractive senior paper may be unpalatable for bondholders. But holding out isn’t much more attractive. With EU lenders under pressure to boost capital and refinancing rates high, investors had better get used to it.

Euro zone-only Tobin tax could make sense

30 Sep 2011

Prompted by France and Germany, the European Commission has proposed a tax on financial transactions. It would be more efficient if it were implemented globally. But even limited to the EU or the euro zone, its benefits could outweigh the risks.