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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

The EU as a p(e)acemaker

One night after Christine Lagarde and Schaeuble fought about the necessity of austerity measures, the EU has been awarded the Nobel Peace Prize for “contributing to peace” in general. On first sight, that’s primarily one thing: incredibly confusing. It trumps Obama’s Prize in 2009. Why now, for crying out loud? But it does add another €8m to the EU’s budget/bailout funds/collateral. So thanks, Norway, for supporting the union that you continuously refuse to join to protect all the oil you’re sitting on. Barroso’s reaction: “When I woke up this morning, I did not expect it to be a good day.” Ha. Fair enough, we all know why.

But yes, fine, there’s another side to the story. Of course, this continent has seen a lot of wars in recent history and the EU has created a safety net for peace preservation and transnational cooperation. Say what you want, for example that the EU is a slow and overly bureaucratic construct, specialized in ineffective policy, but it has kept Europe at peace and let’s just admit that we haven’t exactly been good at that historically. read article

Meanwhile, Coca-Cola Hellenic Bottling, the company’s Greek division and second largest bottler in the world, is leaving Greece. Due to capital risks in its current location, the company will move its headquarters to Switzerland and re-list on the London Stock Exchangewiping out 1/5 of the Athens stock exchange. Despite being minority-owned by The Coca-Cola Company, the Greek company had its credit rating downgraded, which triggered the move. Most of its 2,000 production employees will stay [employed] in Greece. In July, Greece’ unemployment rate rose to 25.1%, marking the 35th consecutive month of increasing jobless rates.

Otherwise, the Chinese renminbi has hit the highest levels against the dollar in 19 years, reasons for which are thought to be a move against imported inflation brought about by US quantitative easing and an artificial calming of the market. Credit Agricole mentioned that this could also be China’s way of endorsing president Obama, who has continuously pushed for appreciation of the renminbi. read article

Speaking of which, yesterday’s vice-presidential debate didn’t yield a winner as clear as last week’s deeply upsetting Romney-Obama debate. Naturally, they disagreed on taxes and economic issues, Reuters has the key quotes, the Washington Post got a video with highlights.

Weekend reading

– a short history of debt crisesread article

– why the IMF gets to run the worldread article
– the world’s quest for socialist capitalismread article
– the first world victim: Michael Lewis gets a message from a Wall Street banker’s disgruntled sonread article
Have a good one.
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2 Responses

  1. princess1960 says:

    hello EU NOBEL PRICE.i am happy but not agree WHAT creteria follow for one laurant ?maybe who is wors ?if this OK
    coca-cola Hellenic (you know when this people have learned to have profit ) and now is difficult they lose in chrimatistirio..so .
    Debate last night i saw a true PR was very sure what he say the smile all the time to BIDE mean was unconfortable ..but and he was very decided in speech…congatulation for both .
    thank you i have for weekend reading ..
    have a nice weekend to you for me is the same

  2. Roger Hopkins says:

    The E.U. has kept the peace since 1945 ?????
    You’ve got to be joking.
    N.A.T.O. has kept peace between the major powers in Europe since the second world war.
    The E.U. will destroy peace in Europe ( riots in the streets in Greece and Spain), unless it accepts that a single currency is not suitable for a range of divergent economies.

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