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Uniting democracies has been the key international political trend of the last hundred years. Understanding this trend and enabling it to continue is the key to world political development.

What's New

Streit Council Board Members Steve Hanke and Richard Conn Henry Propose a NEW CALENDAR in an article published in the January 2012 issue of GlobeAsia.  In "Changing Times" the authors explore the adoption of a new modern calendar and the use of Universal Time rather than time zones to realize economic benefits such as banks and businesses (if desired) being open at the same time around the world and unambiguous scheduling of conference calls.  In addition, the adoption of a modern calendar would allow school, sports and business schedules to be the same every year. To view the proposed Hanke-Henry Permanent Calendar, click here.  To read this article in full, please click here.

The Streit Council is now publishing the Washington Watch, a weekly round-up of events hosted by members of the Washington DC policy and academic community that focus on issues related to transatlantic relations and inter-democracy cooperation.  Updated weekly, the Washington Watch provides a listing of local events of interest to the Council and likeminded thinkers.

G20 Summit 2011 - Major Issues and Our Perspective
The next G20 summit will be held in Cannes, France, on November 3rd and 4th, 2011. The Eurozone crisis, unemployment and social unrest, the international monetary system, fluctuating commodity prices, financial regulation, and development are set to rank high on the agenda. Additional details can be found here. For the Streit Council's position on the summit, click here.

Advisory Board Member Stanley R. Sloan’s new article “The War on Terror and Transatlantic Relations” has been published in the September 2011 issue of Atlantisch Perspectief (Atlantic Perspective).  In this article, Sloan explores both the unifying and divisive pressures that the War on Terror has placed on transatlantic relations.  On balance, he argues that the divisive pressures which the War on Terror has placed on the transatlantic relationship have overshadowed the unifying pressures. This might begin to change, however, now that American public opinion has shifted away from support for the war in Afghanistan and closer to European opinion. To read this article in full, click here.

Paul Findley's new book on U.S. foreign policy - Speaking Out: A Congressman's Lifelong Fight Against Bigotry, Famine, and War
In his twenty-two years as an Illinois congressman and in the years since he left office, Paul Findley has fought to eradicate famine, end wars, and eliminate bigotry in U.S. foreign policy. This sweeping political memoir opens with Findley’s early days in rural Pittsfield, Illinois, and chronicles his service during six administrations in Washington. His many accomplishments in Congress include authoring the Famine Prevention Act, coauthoring the 1973 War Powers Resolution, leading agricultural trade missions to the Soviet Union and China, and strongly opposing the Vietnam War. This autobiography is also a no-holds-barred critique of Israel’s lobby and its toll on the national interests of the United States. Few politicians are so openly critical of their government, and Findley’s opinions on what he believes to be disastrous foreign policy provide a unique behind-the-scenes perspective on the shaping of these policies in the latter half of the twentieth century. For a preview, click here. Additional information about this book can be found here.


Streit Council Board Member Steve Hanke Receives Honor

On December 10, 2010, the Free University of Tbilisi awarded Steve H. Hanke, a Professor of Applied Economics at the Johns Hopkins University in Baltimore, a Doctorate of Economics, Honoris Causa for his pioneering work on currency boards and economic reforms in emerging-market countries.  On the occasion of this award, Prof. Hanke’s new book, A Blueprint for a Safe, Sound Georgian Lari, which he co-authored with his long-time collaborator and former Hopkins post-doctoral fellow Dr. Kurt Schuler, was released.  For more information on Steve Hanke’s accolades, click here.

Kenneth Weisbrode's New Book on the Transatlantic Community
The Atlantic Century, is the first major historical study to re-examine the American-European partnership with an emphasis on the personalities behind the policy. Our strong system of European alliances built during the last century did not happen serendipitously. It was carefully constructed and cemented by a network of diplomats and politicians, who imagined, built, and sustained a new international system. In their vision, America and Europe were part of a single cooperative transatlantic community—not rivals or one another’s periodic savior, as they had been during two world wars.  To read more about this book, click here.

Streit Council Launches New Blog, Streit Talk
The Streit Council for a Union of Democracies is pleased to announce the launch of its new weblog, Streit Talk. This new site is designed to keep you informed on the latest transatlantic news, while offering expert opinion on our core areas of transatlantic study, including economy, energy and environment, security and global governance.  Also feel free to interact with our staff and other transatlantic policy watchers in the comments section. You can head over to our new blog by clicking here.    

Get to Know the Face of the EU: The Polish Presidency
Starting in July 2011, Poland took over the Presidency of the European Union fo a period of six months.  One of the most pro-EU countries, Poland as beaten the odds and actually enjoyed economic growth this year while Europe has struggled as a whole.  Indeed, perhaps they are the best option to lead the EU during this time of crisis.  Prime Minister Donald Tusk hopes that Poland will leave its mark on the EU Presidency, focusing on deeper economic integration, strengthening the Single Market, and promoting EU enlargement. For more on the Polish Presidency, click here.

Discover the NATO Lisbon Summit
Delegations from the 28 member-states that comprise NATO will meet in Lisbon, Portugal on November 17-19 to discuss a host of issues essential to maintaining the alliance.  The agenda includes a discussion of NATO’s new Strategic Concept, an overarching plan to guide the alliance for the next ten years, and reforming NATO’s institutional make up, including restructuring the common funding practices and the consensus rule.  Also under discussion will be the proposed anti-ballistic missile shield and deeper integration with Russia, the European Union, Japan and Australia.  For an overview of the issues likely to addressed at the NATO Lisbon Summit, click here.

Advisory Board Member Stanley Sloan's New Book on the Evolution of NATO Permanent Alliance? NATO and the Transatlantic Bargain from Truman to Obama, provides an in-depth analysis of the evolution of transatlantic security relations. Focusing on European integration, global security, and emerging powers, Sloan has written the third in his series studying transatlanticism. The newest installation discusses whether NATO has become the 'permanent alliance' which President George Washington warned against or if it is nearing the end of its utility. It also reflects on the administrations of the last decades, breaking down their contributions and strategies when faced with changing transatlantic policy. The book is a key text for anyone interested in or studying transatlantic security relations and international relations. To read more about this book, click here.


Transatlantic Relations and Global Governance News

Serbia Deserves Candidates Status in March – EP President
26 January 2012 – B92  
The newly-elected European Parliament President Martin Schulz has stated that he believes Serbia should be granted EU candidate status as of March. The EU commission has recommended Serbia should attain such status; it is now a decision to be made unanimously by all EU leaders. Schulz adds that the European Parliament will be in favor, as a majority. Schulz acknowledges and applauds Serbia’s great advances on its path to EU accession; signing of the Srebrenica resolution and the capturing of UN war criminals. However, Schulz believes that talks with Kosovo would need to improve and normalize before the EU could fully support Serbia’s candidacy. (Read More)

Former EU Parliament President Defends Cost of New Museum
26 January 2012 – The Parliament
The EU’s former President of Parliament Hans- Gert Poettering has vehemently defended the plans for the European House of History Museum in Brussels. Although, the cost of the museum is meant to only cost €52 million, some expect that it could rise to €100 million, and will not be completed until 2014. Criticisms of the museum have said it will manifest centre-right ideas; with some arguing it will promote the federalist view of Europe not supported by all. The EU currently has a €17 million visitor centre and many feel with nations freezing budgets it is a waste of money.  (Read More)

Poland Threatens to Derail Fiscal Treaty
26th January 2012 – European Voice
Poland’s Prime Minister Donald Tusk has threatened to withdraw support for the fiscal pact if Poland is not allowed to attend the Eurozone meetings. Germany had hoped to have resolved the pact by the end of next week. Poland is unlikely to join in the Euro for several years but in the meantime it would like to participate in the decision making process. At present the UK is the only one outside of the fiscal pact, with nations such as Sweden, Hungary and Czech Republic set to ask their parliaments respectively. Although the revised treaty, as of the 19th January, stated that non-Eurozone nations could attend Eurozone meetings once a year, it is unlikely that these meetings would be substantial. Nonetheless, Poland’s demands are unlikely to be heeded with France taking an adamant stance that Eurozone meetings should be for Eurozone members. (Read More)

Eurozone Debt to Dominate Davos Talks
25 January 2012 – Al Jazeera
Many politicians and business leaders will gather at this year’s World Economic Forum in Switzerland to discuss the eurozone crisis among other things.  Among those attending include German Chancellor Angela Merkel and British Prime Minister David Cameron.  The leaders of Greece, Italy and Spain, the countries currently suffering the most from the crisis, will not be present. The meeting will focus on developing a new world model as “capitalism in its current form, has no place in the world around us”, states Klaus Schwab, founder and organizer of Davos.  (Read More)

Iran Defiant as EU Imposes Oil Embargo
24 January 2012 – Al Jazeera
An oil ban on Iran was approved in Brussels on Monday, forbidding all new contracts for crude oil and petroleum from Iran to member states of the EU.  Washington also announced new sanctions on Bank Tejarat, Iran’s third largest state owned bank.  Iran’s foreign ministry spokesman has responded by commenting: “Imposing economic sanctions is illogical and unfair but it will not stop our nation from obtaining its rights”.  He also stated that ‘The European countries and those who are under American pressure, should think about their own interests. Any country that deprives itself from Iran's energy market, will soon see that it has been replaced by others."  (Read More)

I.M.F. Trims Estimates for Global Growth on ‘Sharply Escalating’ Risks in Europe
24 January 2012 – NY Times
The International Monetray Fund warned on Tuesday that global growth prospects had dimmed as the debt crisis in the euro zone entered a “perilous new phase.”  Estimates of global growth this year fell from 4 to 3.25 percent.   The IMF is is calling on the European Union to expand its bailout fund to at least $1 trillion from its current capacity of 440 billion euros, or about $570 billion.   The fund warned that “potential spillovers” from the euro area crisis might “include direct exposures of U.S. banks to euro-area banks, or the sale of U.S. assets by European banks. (Read More)

NATO Hails 2011 Successes in Afghanistan
25 January 2012 – Agence France-Presse – Lawrence Bartlett
NATO claimed 2011 as a successful year in their annual report card. According to the report, International Security Assistance Force (ISAF) has forced the Taliban to retreat to its stronghold in the southern part of the country and driven down the number of security incidents. Cited as “outstanding” were successful anti-narcotic operations. The report describes the capital Kabul as being under the control of the ISAF and Afghan government. However, this positive report contradicts a series of high profile attacks carried out by the Taliban in the capitol including a 19-hour siege of the American embassy. The United Nations reported a far bleaker picture of the country than NATO, citing an increase of security incidents. NATO’s operations in Afghanistan are the largest the Euro-American alliance has undertaken outside of Europe. (Read More)

The More Things Change, the More They Stay the Same
24 January 2012 – Deutsche Welle – Dr. John C. Hulsman
For 2012, Dr. John C. Hulsman argues that the United Nations Security Council will remain largely the same as 2011. Three of the five permanent members will hold elections this year. This means that change is unlikely as regardless of the outcome of each election, at for 2012, sweeping foreign policy change is unlikely. Incumbants generally tweak rather than carry out bold, new initiatives while newly elected governments will follow its predecessor’s’ foreign policy, given that it takes time to implement new initiatives and advise institutions on that implementation. Combined with the deadlock that inhibits movement on current major issues such as Iran’s nuclear program, the Arab spring, and events in Syria, Hulsman may well be correct. (Read More)

A Good Professor in Rome
21 January 2012 – The Economist
Italy’s new prime minister could not come at a better time. Facing a crisis of European unity through the debt crises’ impact on the Euro, skepticism of European Union institutions is high even for Italy. As an economic liberal, Prime Minister Maro Monti has argued for moving closer to a single market, drawing upon his background at multinationals and European government in Brussels. Domestically, he promises better enforcement of the tax code which is part of a larger agenda of advancing Italy as pro-market. (Read More)

EU Beefs Up Electronic Waste Recycling
24 January 2012 – The Guardian
Under legislature voted on by the EU parliament last week, the amount of e-waste recovered and recycled by each nation will be increased. Under the new Waste Electrical and Electronic Equipment (WEEE) directive countries will have to collect 45 tonnes of e-waste per 100 tonnes of electronic goods put on sale three years previously. This contrasts to the target of 4kg per person set previously. It is hoped that not only will these quotas reduce the environmental impact of disposal but also that the retrieval of valuable raw materials would provide an economical incentive. However, some IT charity companies have argued that the EU has overlooked the pertinence of reusing electronic equipment and has focused in on the wrong area.  (Read More)

The Challenge at Davos: A Crisis of Global Politics, Not Just the Economy
24 January 2012 – TIME
Davos’ history of being the pinnacle of globalization and economic fruition may not be enough today. With recent events such as austerity protests and Occupy movements there is a sense to which disillusionment with free-markets and democracy is becoming apparent in the West, especially in nations where years of austerity lay ahead. The healthiness of state-capitalism in areas such as China and Russia are leading to ‘seeds of dystopia’. Compiled with rising euroskepticism and democratic fatigue, comparisons will the fall of the Soviet Union are being drawn. Davos needs to address more than just the economic numbers but instead the mentality and confidence in what it has stood for for so long. (Read More)

EU Decision-makers Biggest Allies of Poland’s Euroskeptics
25 January 2012 – Warsaw Business Journal
Warsaw’s ever pro-European stance ran into difficulties in recent months when it was announced that despite its eagerness to take part, Poland, like other non-euro EU nations, would not be allowed to attend euro-zone meetings. However these meetings would have ramifications for non-euro EU nations, and as such Poland’s Prime Minister Donald Tusk has fought to get in. The opposition in Poland has used this event as an illustration that though Poland may be pro-EU, that attribute is not always reciprocated. However, the latest draft treaty does now allow for non-euro nations to attend the summits once a year, but opposition in Poland still feels that attendance once a year will not achieve anything.  (Read More)

Parliament Must Be Given the Final Say on Human Rights
25 January 2012 – The Telegraph
Britain’s Prime Minister David Cameron will today address the Council of Europe and present reforms for the European Court of Human Rights declaring that a nation’s Parliament should be able to object and be successful in upending European rulings. This comes on the back of two highly public cases in the UK of which popular opinion has met European rulings with disbelief; the blocked deportation of terror suspect Abu Qatada and the assertion that all prisoners have the right to vote. David Cameron hopes to get support from all 47 nations involved in the Council of Europe, and to do so he has presented his reforms as a way of improving efficiency; arguing that the reforms would reduce the backlog of 160,000 cases currently waiting. (Read More)

What's Left to Do About Damascus?
23 January 2012 – New York Times – Judy Dempsey
Europe and the US have few options left to deal with Syrian President Bashar al-Assad as government forces violently crack down on protesters. Its sanctions are relatively harsh, from banning top Assad administrators from travelling to the EU or US, to freezing Syrian assets stashed abroad, and to sanctioning Syrian oil products. Yet, Assad’s behavior shows no sign of changing. While military action by the US and EU was successful in Libya, that option is unlikely through the UN Security Council, as China or Russia would likely veto while the NATO expedition to Afghanistan has left member states with the stomach for more. Beyond additional sanctions, the US and EU can do little else to change the situation. The US appears to agree as it prepares to shutter its embassy in Damascus after removing its high profile ambassador.  (Read More)

U.S., EU Begin Next Step In Airbus Subsidies Case
16 January 2012 – Aviation Week – Madhu Unnikrishnan
In the eight year old government subsidy dispute between Boeing and its European counterpart Airbus, US officials attempted to determine how compliant EADS has been with the World Trade Organization (WTO)’s ruling this past summer. While EADS did submit compliance documents to the US by the 1 December 2011 deadline, the US argues that its claims are unsubstantiated and is attempting to flesh out more information. While the US can file a request with the WTO for additional compliance procedure in February, the process will still add years before definitive action is taken. Note that the separate EADS case against Boeing receiving government subsidies is still pending. (Read More)

Why Europe Should Be Glad its U.S. Troops Are Leaving
23 January 2012 – The Atlantic – Heather Horn
As part of broader US security strategy, the American military presence in Europe is being drawn down in favor of a largest presence in Asia, particularly in the Persian Gulf. Horn argues that this provides an impetus for the EU to fill the security void with its own security provided by member states. Some eight months ago, Robert Gates expressed his annoyance of the US shouldering the European security burden even more so given the austerity recent European measures’ impact on security budgets. However, it seems unlikely that any one member state will contribute significantly, let alone amongst the entire 27 block as the largest economic powers are handicapped.  Other members of the block are either engaged in the NATO conflict in Afghanistan or still rebuilding after the post-Cold War drawn down in Eastern European countries. While valid, Horn’s suggestion appears to have been ignored. (Read More)

EU Tries to Counter Hungary's New Authoritarian Measures
23 January 2012 – The New Zealand Herald – Catherine Field
Since Prime Minister Viktor Orbán’s conservative Fidesz party and its coalition’s new constitution came into effect 2 January, Hungary has experienced widespread protest. The opposition argues that the new constitution allows Fidesz and its allies greater control over the economy and judiciary, and allows them to stifle the media’s response. Led by President José Manuel Barroso, the European Commission agreed with the opposition last week when it charged Hungary with three counts of infringement of commitments to liberal democracy. The Commission has some leverage with which to enforce its rulings as it threatened to not join the International Monetary Fund offer of a €20 billion ($32 billion) standby loa. Orbán was at the European Parliament in Strasbourg Friday defending his record and meets with Barroso on Wednesday in Brussels. (Read More)

EU Iran Sanctions: Ministers Adopt Iran Oil Imports Ban
23 January 2012 – BBC News
After months of threats, the EU country’s foreign ministers have formally adopted sanctions on new Iranian oil import contracts. Current contracts will be completely phased out July 1st. The sanctions are yet another attempt to impede Iran’s nuclear energy program which the Western countries argue is cover for developing nuclear weapons. Foreign Secretary William Hague (United Kingdom) was quoted as saying "the resolve of the European Union on this issue". In recent months, that resolve has come under pressure due to the European financial crises and an agreement on the rapid phrase out of some 430,000 barrels of of Iranian crude per day reaffirmed the Union’s strength in a derisive era. Further sanctions on the Iranian central bank are reportedly in the works. (Read More)

Europe’s Hungary Problem Is Not Going Away
23 January 2012 – Die Welt
Hungary’s Prime Minister Victor Orbán visited the EU Parliament last week, not to settle Hungary’s rift with the EU over Hungary’s new constitution, but instead to seek understanding. Orbán‘s presence and self-invitation to Strasbourg to address these issues was appreciated many EU parliamentarians. The Polish opposition party has even signified their support for the Hungarian ‘transformation and renewal’. However, the day before Orbán’s arrival, the EU set in motion its judicial proceedings against Hungary’s new national laws, which the EU feels, conflict with the Union's democratic principles. If found guilty Hungary could find itself paying heavy fines, which would further impact its struggling economy. This would have an adverse effect on Austria and Germany in particular, two nations with large banking ties to Hungary.  For now, Hungary has shown no sign of backing away from its confrontation with the EU. (Read More)

BP and EU Lobbied US on Iran Sanctions: Sources
23 January 2012 – Reuters
The EU, the UK and BP Plc have all lobbied the US government to exempt the Shah Deniz project from any sanctions imposed on Iran according to sources close to the lobbying. BP and Norway’s Statoil Company co-lead the Shah Deniz project which is estimated to house 1.2 trillion cubic meters of gas which is vital to EU energy security. However, National Iranian Oil holds a ten percent stake in the business, which would qualify it for sanctions. Shah Deniz is part of the EU’s move away from Russian energy reliance, a move which the US government supports. BP’s appeal to US lawmakers comes on the back of the shutdown of its Rhum gas field in the North Sea, as Iranian Oil Co Ltd had a fifty percent stake here and thus undoubtedly qualified for sanctions under EU law. (Read More)

Croatia Votes 2 to 1 to Join European Union
22 January 2012 – New York Times
The results of the Croatian referendum showed that two-thirds of Croatians want to join the EU. However, there was disappointment at the low turnout with only forty-four percent of eligible voters participating. The EU saw this as a good sign that it still maintains a strong allure to external nations despite its Eurozone crisis, especially when all new members of the EU following 2004 have to join the Euro. Croatia has had to meet more stringent criteria than any other candidate nation before. Croatia’s history and overlooked judicial issues with Romania and Bulgaria’s accession meant the rules were even tighter. Some opponents of the accession in Croatia have claimed that Croatian independence has been thrown away at the point when they had just achieved it. Croatia will be accepted into the European Union on the 1st of July 2013, with the Euro currency being adopted if certain economic criteria are met following 2013. (Read More)

Europeans Shrug Off Mitt Romney’s Criticism
17 January 2012 – Washington Post
Mitt Romney’s attack on Europe as an ‘entitlement society’ has caused little stir in Europe, with many merely attributing the criticism to campaign rhetoric. However, the increased and fervent use of Europe as the ‘punching-ball of the campaign’ has been widely reported on. In Europe there is very little, if at all, any question or debate of repealing any social benefits such as universal healthcare, family subsidies or free education. However, the fiscal policies of Germany have been noted as comparable to Romney’s own economic plans, which has led many in the European media to question what is Europe apparently doing wrong? In France, Romney’s refusal to speak to French journalists, even though he speaks French has been taken as a sign of his anti-European stance. Nonetheless, European media has made light of the situation reminding readers and viewers of the reversal of opinion previous candidates have taken when they took office. (Read More)

U.S. Ambassador's Rough Welcome in Moscow: Is the Reset Failing?
16 January 2012 – The Moscow Times
Almost three years after Secretary of State Hillary Clinton and Russian foreign minister Sergei Lavrov literally pressed the reset button on the two countries’ relationship, US-Russia relations are more strained, not less. One day after accepting US Ambassador Michael McFaul’s credentials, Russian state media questioned them and attacked his record of democratic advocacy as McFaul had met with opposition leaders. The timing of his appointment coincides with heightened Russian concerns towards democratic activists in light of the Arab Spring. Prime Minister Putin recently went as far to accuse Clinton of sponsoring the December protests. Ambassador McFaul’s status as a democratic advocate while an academic and close relationship with the White House (US) appears to have provoked the response. (Read More)

Croatia Suffers Jitters Over Joining Troubled EU
15 January 2012 – The Telegraph
With Croatia set to hold a referendum on EU accession later this month for some in Croatia it is not as an appealing prospect as first thought. Croatia has been on the path of accession since 2005 and is the first nation out of the Balkan conflict likely to join the EU club. However, there is growing concern that for what Croatia has forgone by way of EU requirements it will not equate to what EU has to offer. Many Croatians feel that the standard of living will be better in the EU than outside, but concern has grown over the Croatian involvement in the Eurozone crisis if Croatia was to join. (Read More)

Carbon Tax on Airlines: India May Put Curbs on European Carriers
15 January 2012 – The Economic Times
The implementation of the EU Carbon Tax on airlines landing or taking off from EU nations which begun on the 1st January 2012, has angered India. India’s finance minister has said that in return India will reassess their treatment of EU flights. Previously nations such as the US, Brazil, Russia, Japan and China have all voiced their concern over how the tax is discriminative and violates aviation pacts. In December the US lost its appeal to overturn the tax at the European Court of Justice.  Chinese Aviation authorities had previously announced that they would support their top airlines in refusing to comply with such taxes. Individual airlines are currently reviewing how they will pass on the cost to their customers, but national authorities are also getting involved. (Read More)

UK Faces EU Re-negotiation if Scotland Breaks Away
15 January 2012 – France 24
In recent days talks between Britain’s Prime Minister David Cameron and Scotland’s First Minister Alex Salmond have brought about the real possibility of Scotland leaving the UK following a referendum in 2014. However, questions have arisen as to how this would affect the UK’s membership of the EU and also the new separate Scotland. For the UK its budget contribution would have to be reassessed along with its rebate figures which it receives. Moreover, questions over whether Scotland would have to adopt the euro as a new member have caused concern in Edinburgh. Queries over UK energy policies such as the future of North Sea oil off Scotland’s borders have also arisen. EU officials have refused to comment on the issue for fear of other wealthy sub-states being inspired. (Read More)

IMF’s Christiane Lagarde: Global Economy Could Confront Great Depression-Style Threats
15 December 2011 – The Huffington Post – Martin Crutsinger
The head of the International Monetary Fund said all countries must work together to resolve Europe’s escalating debt crisis. “It’s not a crisis that will be resolved by one group of countries taking action,” Lagarde said in remarks at a State Department conference. She also said that if the issues are not deal with decisively, the global economy could confront the same threats that pushed the world into the Great Depression of the 1930s. Lagarde cautioned financial markets to allow time for individual nations to work through the political process to arrive at a solution to the crisis. (Read More)

UK Officials Will Join Talks Over Eurozone Deal
16 December 2011 – BBC News
The European has invited UK officials to join talks with 17 euro zone and nine other EU states considering signing up. Last week, David Cameron vetoed a EU-wide treaty change involving all states and faced claims it would leave the UK isolated. It comes as French finance minister Francois Baroin added to tension between Paris and London by saying the British economy was “very worrying.” A British government’s spokesman downplayed the remarks by highlighting the plans that the government has created for dealing with the deficit. Mr. Cameron supports moves for closer integration within the euro zone to help it deal with the debt crisis, but he would not agree to treaty changes that would involve all 27 EU states. (Read More)

Juncker Expects EU to Meet Dec. 19 Deadline for Arranging IMF Crisis Loans
16 December 2011 – Bloomberg News – Stephanie Bodoni
Jean Claude Juncker, the leader of the group of euro zone finance minsters, said the EU should meet an informal deadline on December 19 for arranging loans to the IMF as part of a crisis-fighting package. The EU leaders decided at a December 9 summit to channel and additional 200 billion euros in loans to the IMF to help fight the euro region’s debt crisis. Euro zone countries are expected to provide 150 billion euros, while the non-euro EU states will contribute around 50 billion euros. The German central bank could provide as much as 45 billion euros to the IMF, but only if nations outside the euro zone also contribute, the president of Germany’s central bank said. (Read More)

Eurozone – IMF Rescue Operation in Doubt
16 December 2011 – EurActiv
Last week, the EU agreed to provide the IMF with 200 billion euros in order to help it slow the region’s debt crisis, but there are fears that some countries will not be able to provide the expected money. Germany has said that it will only provide its 45 billion euro share if non-eurozone countries help in the project. Russia may lend at least 7.5 billion euros. Most states in Eastern Europe are either still deciding whether they will contribute, or are stating that they will not.  (Read More)

France: Agencies Should Downgrade ‘Greece-like’ UK
16 December 2011 – EU Observer – Leigh Phillips
After receiving warnings that France’s triple A credit rating may be downgraded, the head of the French central bank said that the UK should be downgraded first. The bank’s chief, Christian Noyer, said the UK has “a bigger deficit, as much debt, weaker growth." French President Nicolas Sarkozy has said that a downgrade would not be “insurmountable.” France has remained harsh toward the UK after they vetoed the intergovernmental treaty the rest of the EU endorsed.  (Read More)

Italy PM Warns Policymakers Against Dividing Europe
16 December 2011 – Reuters – Gavin Jones and Stephen Brown
Mario Monti, the PM of Italy, has warned leaders that dividing the region could be dangerous, while suggesting that Germany’s stiff stance against short-term relief measures should be softened. German Chancellor Angela Merkel is under domestic pressure to get indebted states to reform, while some argue that refusing to utilize short-term solutions will negatively hurt the EU’s South for years to come. Monti stressed that creating two sides, the EU’s North versus the EU’s South, would have terrible consequences for the region. (Read More)

European Parliament Backs Single Permit for Foreign Workers
16 December 2011 – Act Media
The European Parliament has passed a single permit directive allowing workers from outside the EU to more easily enter and work in the bloc with similar wages, pensions, and access to public services as EU citizens. Member States are required to put the directive into national law within two years, when migrant workers will have only one application procedure for residency and work permits. Some in the EU have praised this directive as a step that will decrease illegal immigration, while some do not think it goes far enough to help outside workers. (Read More)

IMF Boosts Emergency Response Powers
15 December 2011 – The Washington Post – Howard Schneider
The International Monetary Fund could pour more than $100 billion in short-terms loans into Italy under a program recently expanded as part of an effort to ramp up the fund’s crisis fighting. But a broader bailout of the country remains problematic as European, IMF and other international officials debate how extensively the burden of Europe’s rescue should be spread around the globe. The IMF considers Europe a chief risk to the global economy – and Italy perhaps the paramount risk in Europe. Despite months of debate at the highest levels of major governments around the world, it remains unclear how a rescue to a country the size of Italy would happen if it is ever needed.  (Read More)

Eurozone Downturn Slows Slightly, PMI Survey Indicates
15 December 2011 – BBC News
The composite survey of thousands of firms by Markit showed a continued contraction but at a slower rate than in November. However, the figures were not as bad as many economists expected. Markit says that a “mild” recession is likely in the first half of next year, leading to economic growth of just 0.1% for the whole of 2012. The euro zone suffered its worst quarter for two and a half years in the final three months of 2011 with PMI data suggesting the region’s economy is likely to have contracted by 0.6%. Improvements in Germany and France are expected to be offset by deep recessions in troubled economies such as Spain and Italy. (Read More)

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