Sunday, January 31, 2016

Greece Resists Its Role as European Union’s Gatekeeper

By LIZ ALDERMANJAN. 30, 2016

The New York Times

IDOMENI, Greece — On a recent weekday, 40 buses jammed into the parking lot of a gas station near the Macedonian border, carrying thousands of refugees who had survived a perilous crossing on wintry seas from Turkey.

Now they were approaching ground zero in the intensifying debate over how to curb the unceasing stream of men, women and children from war-ravaged and poor nations in the Middle East and Africa heading to the safety and prosperity of Europe.

Saturday, January 30, 2016

Greece vs austerity



Greece’s far-left Syriza government is tottering

The Economist

A year after Alexis Tsipras’s sweeping victory, economic woes and scandals threaten to bring him down
Jan 29th 2016 | Europe


ON JANUARY 24th Alexis Tsipras, Greece’s prime minister, gave a rousing speech to his supporters in a stadium in Athens, marking the first year in power of his far-left, anti-austerity Syriza party. He vowed to come down hard on his party’s enemies, and blamed the Greek people’s continuing misery on the opposition. Meanwhile Greece’s public broadcaster, ERT, aired a six-minute retrospective on Syriza’s first year, featuring gauzy shots of Mr Tsipras and a voice-over proclaiming that his government had battled elites, delivered social justice, fixed the economy and made Greece an international symbol of dignity. Even leftists rolled their eyes at the heavy-handed propaganda. But if Mr Tsipras’s speech and video were intended to boost morale, they backfired.

Friday, January 29, 2016

A Russian journalist explains why there is no corruption in Russia


The Washington Post

By Adam Taylor January 28 at 2:33 PM

In the West, many think of modern Russia as near synonymous with corruption. We know all about the oligarchs, the mafia and the "Wild East" capitalism of the 1990s. One recent poll found that Russia was considered one of the more corrupt countries in the world, placing 119 out of 168 on Transparency International's Corruption Perception Index (where a lower ranking indicates a higher perceived level of corruption).

In Greece’s Populism, Precious Lessons for Europe


The New  York Times

Nikos Konstandaras JAN. 28, 201

Athens — It may just be coincidence, but in the year since a radical left movement and an extreme right-wing party joined forces to govern Greece, the resilience of the European Union has been tested. But it may be also that the forces released in Greece have emerged in many other countries, poisoning relations among member states.

The glue that holds Greece’s paradoxical coalition together, and which we see across Europe, is populism. Not some coherent ideology that puts the people’s interests first, but a policy based on opportunism, on cultivating a grandiose sense of national identity and then presenting that identity as being threatened by domestic and foreign enemies. It uses current problems to undermine efforts at solutions, and conjures past and future utopias rather than trying to keep up with dizzying change.

Thursday, January 28, 2016

Europe Raises Pressure on Greece to Tighten Its Borders

By JAMES KANTERJAN. 27, 2016
 The New York Times
BRUSSELS — The European Union authorities on Wednesday raised pressure on Greece to step up its efforts to slow the flow of migrants and tighten control of the bloc’s external borders, the first step in a process that would allow some countries to its north to extend their border controls for up to two years.

Valdis Dombrovskis, a vice president of the European Commission, the bloc’s executive body, said that Greece was “seriously neglecting its obligations” by failing to properly register and fingerprint migrants. That conclusion led the commission to file a report to member states detailing “persistent and serious deficiencies” by Greece at controlling its borders.

Refugee trail: Postcards from the mud, misery, anger and hope

By Rachel Clarke, CNN
Updated 0437 GMT (1237 HKT) January 28, 2016
(CNN)Refugees are still striving to reach Europe. Young men, families, the elderly are trekking through snow, seeking shelter and local aid or perhaps beginning to think of a new, brighter future.

But the Europe so many have reached is now fractured in its reaction -- some as open and welcoming as at the height of compassion last year in the wake of the drowning of Syrian toddler Alan Kurdi, but many not. With migrants blamed for New Year's Eve harassment and rape and even now a killing, some communities and governments are taking a tougher line.

This week, CNN met locals and migrants across the continent and beyond. Here are snapshots of what we found.

Tuesday, January 26, 2016

Opinion: Greece - a lost year

The victory of the radical left-wing Syriza party in Greece exactly one year ago was a political earthquake for Europe. Spiros Moskovou takes a very critical look at the past 12 months with Alexis Tsipras.

Deutche Welle

After his surprisingly clear election victory, the people's tribune Alexis Tsipras formed a new government in record time with the right-wing populist Anel party. Back then, Tsipras was promising an end to austerity policies and the decisive renegotiation of the bailout package with Greece's international creditors.

GREECE FURIOUS OVER SCHENGEN SUSPENSION PLANS

BY JOSH LOWE ON 1/26/16 AT 8:50 AM

Newsweek

Greece has responded furiously to proposals to modify the Schengen agreement which would see the country’s borders effectively sealed off from the rest of the continent.

EU interior ministers meeting in Amsterdam on Monday discussed moving the southern frontier of the passport-free travel zone, which includes most of the EU, to the north, deploying joint police forces along the Macedonia-Greece border. Other European states piled pressure on Greece to do more to control the influx of migrants into Europe via its shores.

Monday, January 25, 2016

China Deepens Its Footprint in Iran After Lifting of Sanctions


By THOMAS ERDBRINKJAN. 24, 2016

The New  York Times

ZARRINABAD, Iran — Rising from the yellowish, treeless plains so typical for central Iran stands a square labyrinth of pipes and conveyor belts, topped by a silver chimney that glitters in the summer sun.

Sanctions against Iran failed to halt the construction of the complex, a steel mill that went into operation in September and now churns out ingots and billets. The sanctions also did not stop Sheng Kuan Li, a Chinese businessman, from pouring $200 million into the project.

SYRIZA ANNIVERSARY: WHAT HAS ALEXIS TSIPRAS ACHIEVED?

BY JOSH LOWE ON 1/24/16 AT 2:32 PM

Newsweek

Power can do funny things to a person. Just look at the panel Greek Prime Minister Alexis Tsipras sat on at the World Economic Forum in Davos on Thursday. There, the former firebrand, besuited and sporting a fancy watch, shared a stage with an old foe, German Finance Minister Wolfgang Schauble, and other EU leaders. Tsipras solemnly warned an audience of brainy business types and the global super-rich about the dangers of “populism” for Europe.

Tuesday, January 19, 2016

China fourth-quarter growth weakest since 2009 as policy misstep fears grow

Markets | Tue Jan 19, 2016 2:37am EST Related: CHINA
BEIJING | BY KEVIN YAO AND XIAOYI SHAO

China's economic growth in the fourth quarter slowed to the weakest since the financial crisis, adding pressure on a government that is struggling to restore the confidence of investors after perceived policy missteps jolted global markets.

Concerns about China's policy making ability have shot to

the top of global investors' risk lists for 2016 after a renewed plunge in its stock markets and yuan currency CNY=CFXS stoked worries that the economy may be rapidly deteriorating.

Xi’s new model army


Xi Jinping reforms China’s armed forces—to his own advantage
Jan 16th 2016 | BEIJING

The Economist

CHINA’S biggest military shake-up in a generation began with a deliberate echo of Mao Zedong. Late in 2014 President Xi Jinping went to Gutian, a small town in the south where, 85 years before, Mao had first laid down the doctrine that the People’s Liberation Army (PLA) is the armed force not of the government or the country but of the Communist Party. Mr Xi stressed the same law to the assembled brass: the PLA is still the party’s army; it must uphold its “revolutionary traditions” and maintain absolute loyalty to its political masters. His words were a prelude to sweeping reforms in the PLA that have unfolded in the past month, touching almost every military institution.

Monday, January 18, 2016

Opposition leader’s landslide win in Taiwan puts onus on China to respond


The Washington Post

By Simon Denyer January 17 at 2:44 PM 
TAIPEI, TAIWAN — A stunning victory for Taiwan’s opposition and the election of the island’s first female president Saturday signal a new era and send a clear message: Taiwan is coming of age as a democracy.

The question is whether Beijing is listening, and how it will respond.

Even as the final votes were being tallied, President-elect Tsai Ing-wen was reaching out to China and calming any fears the giant neighbor might have.

Tsai’s Democratic Progressive Party considers Taiwan to be a sovereign, independent nation, but it sees no need to anger Beijing by making a formal declaration of independence. But Tsai went further, promising in her victory speech that she would rise above party politics, maintain peaceful and predictable relations with Beijing, and avoid doing anything provocative.

Greece Seeks German Know-How to Tackle Tax Evasion


By THE ASSOCIATED PRESS ATHENS, Greece — Jan 16, 2016, 4:04 PM ET

Greece has turned to a German state government to seek help in combating tax evasion.

Greek tax officials, initially numbering about 50, will be trained by the tax authorities of North Rhine-Westphalia, a state noted for its success in persuading German citizens to repatriate capital they had whisked abroad to avoid taxation. Their efforts have resulted in 1 billion euros ($1.09 billion) in extra revenue since 2010.

Sunday, January 17, 2016

Next Up for Greece: How to Shrink the Debt

Political talks to begin after first bailout review is done

The Wall Street Journal

By VIKTORIA DENDRINOU
Jan. 14, 2016 1:44 p.m. ET

Greece’s creditors are expected to start talking soon over an issue that has been looming over the eurozone since 2010: cutting the country’s mountainous debt burden.

Greece already sliced its debts to private lenders through a bond swap in 2012. But that wasn’t enough. Now, most of its debt is owed to other eurozone governments, which have conceded Athens needs more relief.

Thursday, January 14, 2016

After Nuclear Test, South Korea Urges China to Rein In North

The New York Times

By CHOE SANG-HUNJAN. 13, 2016

SEOUL, South Korea — A week after North Korea conducted its fourth nuclear test, President Park Geun-hye of South Korea urged China on Wednesday to do more to rein in the North, amid growing criticism that Ms. Park’s policy of building stronger ties with Beijing was not showing results.

China has repeatedly said publicly that it would not tolerate North Korea’s nuclear weapons,” Ms. Park said in a nationally televised speech. “I think China is fully aware that if such strong will is not matched by necessary measures, we cannot prevent fifth and sixth nuclear tests by the North or guarantee real peace and stability on the Korean Peninsula.”

As Taiwan’s Workers Flock to China, Concerns About Economy Grow

By AUSTIN RAMZYJAN. 13, 2016
The New York Times

TAIPEI, Taiwan — Jason Lee spent most of the last decade building a business in a field for which Taiwan is famous. With three friends, he founded an animation studio here, churning out TV shows and special effects for games and films.

But costs rose and orders dried up, and they closed up shop in 2011. A few years later, Mr. Lee left Taiwan for mainland China, where he was hired to run an animation studio in the city of Qingdao. Five months ago, he started his own studio there. He has 20 employees, a number he hopes to double after the Chinese New Year next month — growth he could not have imagined in Taiwan.

Tuesday, January 12, 2016

Greece Renews Challenge to Creditors’ Austerity Policies

Labor Minister says stimulating growth, not belt-tightening, is best way to bolster country’s finances

The Wall Street Journal

By NEKTARIA STAMOULI and  MARCUS WALKER
Jan. 12, 2016 4:41 a.m. ET

ATHENS—Greece’s left-led government renewed its challenge to its creditors’ austerity policies on Tuesday, vowing to resist further pension cuts while calling on Europe to let Greece meet budget targets mainly via economic growth, not belt-tightening.

“The best way to fill this gap [in Greece’s budget] isn't by reducing, but by increasing the economy,” Labor Minister George Katrougalos said in an interview with The Wall Street Journal.

Monday, January 11, 2016

U.S. may send more strategic weapons to Korean peninsula: South Korea

Mon Jan 11, 2016 4:51am EST Related: WORLD, SOUTH KOREA
SEOUL | BY JU-MIN PARK AND JEE HEUN KAHNG
Reuters

The United States and its ally South Korea were discussing on Monday sending more strategic U.S. weapons to the Korean peninsula, a day after a U.S. B-52 bomber flew over South Korea in response to North Korea's nuclear test last week.

North Korea said it set off a hydrogen bomb last Wednesday, its fourth nuclear test since 2006, angering China, the North's main ally, and the United States, which said it doubted the device was a hydrogen bomb.

France 'convinced Greece will live up to economic reform promises'

Sun Jan 10, 2016 4:52pm EST
PARIS

Reuters

Greece found an ally in France's finance minister on Sunday as Athens seeks support from its European creditors for its efforts at economic reforms that are crucial to opening talks on easing its debt burden.

Speaking after meeting in Paris with his Greek counterpart, who is on a tour of euro zone capitals, French Finance Minister Michel Sapin said he was won over and that France was in favor of moving on to tackling the debt issue quickly.

Putin: US and NATO want to 'sit on the throne in Europe alone'


Deutsche Welle
11-1-2015

Russian President Vladimir Putin has defended his policies in Ukraine and Crimea and slammed NATO expansion and the United States. He also said he trusts German Chancellor Angela Merkel.

Russian President Vladimir Putin slammed western sanctions against his country as "geo-political" rather than aimed at solving the crisis in Ukraine and criticized NATO expansion and the United States for trying to impose its will, in a wide-ranging interview published Monday in the popular German daily newspaper "Bild."

Greece's conservatives choose reformer to lead

11-1-2015
Deutsche Welle

The conservative New Democracy party has voted in no-nonsense reformer Kyriakos Mitsotakis as its new leader. The Harvard-educated economist is expected to challenge Greece's charismatic Prime Minister Alexis Tsipras.

The party announced Mitsotakis' victory after 70 percent of the nationwide vote was counted, with the new leader claiming 51 percent of the vote to former parliament chief Vangelis Meimarakis' 49 percent.

Kyriakos Mitsotakis Elected to Lead Greece’s Conservatives

New Democracy voters choose former administrative reforms minister over rival Vagelis Meimarakis

By STELIOS BOURAS
Updated Jan. 10, 2016 6:44 p.m. ET
1 COMMENTS
ATHENS—Greece’s main opposition party, center-right New Democracy, elected Kyriakos Mitsotakis as its new leader, a party spokesman said, making the 47-year-old former minister the main challenger to Greek Prime Minister Alexis Tsipras.
Mr. Mitsotakis, the American-educated scion of one of Greece’s most prominent political dynasties, is an advocate of market-oriented economic overhauls, including slimming down Greece’s often-inefficient state. His surprise victory in Sunday’s party leadership ballot provides a boost to the cause of economic reforms of the kind demanded by Greece’s creditors, whose bailout loans have been keeping Greece from bankruptcy since 2010.

Saturday, January 9, 2016

A New Economic Era for China Goes Off the Rails

By KEITH BRADSHERJAN. 7, 2016

The New York Times

HONG KONG — When President Xi Jinping of China convened a group of top officials to discuss the economy last month, the highly publicized meeting was seen as a moment of triumph.

A stock market plunge last summer, and a messy currency devaluation that followed, had faded from global view. In the relative calm, he seemed to usher in a new era of economic management, promising policy coordination at the highest levels to prevent another bout of turmoil.

Less than three weeks later, his plans have been derailed as China’s stock market and currency once again rattle investors around the world. The latest rout sets up a challenge for Mr. Xi, who has positioned himself as the master of the country’s economy.

Friday, January 8, 2016

Police Report of Cologne New Year’s Eve Details Chaos, Overwhelmed Force

Angela Merkel signals willingness to toughen deportation procedures

The Wall Street Journal


By RUTH BENDER
Updated Jan. 7, 2016 4:18 p.m. ET
142 COMMENTS
A detailed account of the mass assaults in Germany’s fourth-largest city on New Year’s Eve emerged Thursday, drawing a picture of chaos and aggression that left police overstretched and attackers enjoying virtual free rein.

An internal federal police report dated Jan. 4 and seen by The Wall Street Journal described scenes in Cologne of crying women fleeing sexual molestation from crowds of men, passersby trying to rescue young girls from being raped, and groups of intoxicated men throwing bottles and fireworks at a police force no longer in control of the situation.

Greece’s Glimmer of New Year Hope


The potential election of Kyriakos Mitsotakis as head of Greece’s main opposition party would be a watershed moment, Simon Nixon writes

The Wall Street Journal

By SIMON NIXON
Jan. 6, 2016 3:35 p.m. ET

It is easy to list what might go wrong in Europe in 2016: a global economic slowdown that rekindles fears over eurozone debt sustainability; a worsening refugee crisis that leads to the collapse of the Schengen passport-free travel zone; increased political instability as a result of rising support for populist parties; plus the possibility that the U.K. might vote to exit the EU in a referendum likely later this year, which would trigger a political earthquake that would destabilize the entire continent.

Be Scared of China's Debt, Not Its Stocks

107 JAN 7, 2016 5:34 PM EST
By Noah Smith
Bloomberg
China’s stock market is crashing again. After two days this week with big and rapid declines -- the latest of which shut off trading only a few minutes after the open -- Chinese stocks are back in the neighborhood of their mid-2015 lows. The raft of administrative measures that the Chinese government has used to prop up its markets since the big plunge last year seems to only have postponed further declines, rather than prevented them.

Greece Deserves a Break on Pension Reform

25 JAN 7, 2016 4:38 AM EST
By Mark Gilbert
Bloomberg
After teetering on the brink of exiting the euro for much of last year, Greece has started 2016 looking much more likely to hang on to its common-currency membership card. Now, after clearing several reform hurdles set by its creditors, the nation deserves some leeway on the thorny issue of pension reform.

Tuesday, January 5, 2016

How ISIS runs its economy

By Financial Times
From the site of the World Economic Forum
Dec 16 2015

This article is published in collaboration with The Financial Times.

Even under jihadi rule, death and taxes remain the two great certainties of life. Some learn that the hard way.

As Isis officials announced a religious tithe known as zakat last summer, Mansour, a 26-year-old grocery storekeeper in eastern Syria, stalled payment while he tried to cook his books.

Monday, January 4, 2016

EU enters brave new world of bank bail­ins

By Hugo Dixon
January 4, 2016
Reuters

The author is a Reuters Breakingviews guest columnist. The opinions expressed are his own.
The European Union entered a brave new world of bank “bail­ins” at the start of 2016. Europe has wasted so much taxpayers’ money on bailing out bust banks in recent years that it is right to try to get investors to help foot the bills in future. However, the tough new regime carries big political risks. The key new rule is that no bank can be bailed out with public money until creditors accounting for at least 8 percent of the lender’s liabilities have stumped up. So­called bail­ins typically mean wiping out creditors’ investments, slashing their value or converting them into shares in the bank. Uninsured depositors could get caught along with professional investors.

Stocks Fall Sharply on China Slowdown Worries

Stoxx Europe 600 falls 2.2%, led by 3.3% drop in Frankfurt’s exporter-heavy DAX index
The Wall Street Journal
By RIVA GOLD
Jan. 4, 2016 4:20 a.m. ET
1 COMMENTS
Global stocks sold off sharply on the first trading day of 2016 following fresh signs of an economic slowdown in China.

Weaker-than-expected manufacturing data and a falling currency triggered declines in mainland Chinese stocks so steep that authorities halted trading there for the rest of the day.

European stocks also fell sharply, with the Stoxx Europe 600 down 2.2% in early trade, led by a 3.3% drop in Germany’s exporter-heavy DAX index.

China Lands Test Flight in Disputed Island Chain

Vietnam, Philippines unhappy about flight to new airfield in the South China Sea’s Spratlys
 The Wall Street Journal

By TE-PING CHEN
Updated Jan. 3, 2016 3:54 p.m. ET
105 COMMENTS
BEIJINGChina said it landed a test flight on a newly completed airfield in the disputed Spratly Islands in the South China Sea, a sign of its growing military capabilities in the region.

The flight drew a quick protest from Vietnam, which said China had “seriously violated” its sovereignty. A Philippines foreign ministry spokesman said Manila, another claimant in the Spratlys, also planned to lodge a protest with the Chinese.

Greek central banker urges government on bailout reforms

Sat Jan 2, 2016 6:01pm GMT
ATHENS | BY GEORGE GEORGIOPOULOS

Greece's central bank chief has urged the leftist-led government to implement bailout reforms agreed with the country's lenders, warning that backtracking would entail risks the economy could not withstand.

Prime Minister Alexis Tsipras' ruling coalition, which has a majority of just three seats in parliament, faces tough pension reforms that will test his resolve to carry out measures demanded by international creditors.