Euro Crisis Has Washington on Edge (6/19)     Print Email

By Michael Mosettig, Former Foreign Editor, PBS News Hour

Washington policy wonks are so worried about the euro that a luncheon speech from German Vice Chancellor and Economics and Technology Minister Philipp Röesler packed a hotel ballroom. Sponsors of the event, the Friedrich Naumann Foundation, said they haven't pulled in this kind of crowd in two decades.

 

Coming on the heels of the second Greek parliamentary election, Röesler's speech reflected the collective sigh of relief heard from the G20 Summit at Los Cabos, Mexico, to markets in Asia, Europe and the U.S.

But from the minister, who gave his prepared speech in English and handled questions after in German, the response to the defeat of an anti-bailout leftist party was clearly measured, as if anticipating tough bargaining ahead with whatever coalition comes together in Athens.

"Only if Greece has a functioning government, can we continue on the path of consolidation," Röesler said, adding, "we expect the Greek government to implement the promised reforms."

The minister did try to demonstrate some flexibility, asserting that budget trimming was not an end in itself and consolidation and growth go together. But when asked why easier terms were not on offer for Ireland, which has complied with EU austerity demands, he said that structural reforms have to be in place in countries receiving bailouts before more money emerges.

Without specifying either his French partners or his U.S. counterparts one block west in the Treasury Department and White House, Röesler asserted that growth fueled by borrowing will not work in the long term.

The Free Democrat party leader gave an upbeat answer to the final question about the FDP's political prospects as their poll numbers have dramatically shrunk since the 2009 elections. He suggested the party has hit bottom, that the polls are moving back and that Germans are once again listening to their arguments.

 
  • World Radio Conference Outcomes

    By Patricia Paoletta, Washington DC

    The latest World Radiocommunication Conference (WRC) wrapped up in late November after four long weeks of negotiations between 3400 delegates from around 165 Member States. All in all, the WRC resulted in positive outcomes for both 5G and Wi-Fi, and will benefit both the U.S. and Europe's communications agendas, particularly with respect to the decisions on spectrum to be allocated for the all-important 5G service. The effect will be to ensure the more rapid development of the next generation of mobile broadband in a manner consistent with U.S. planning and existing development.  Debates on 5G dominated the conference, but allocations for high-altitude platform stations (“HAPS”) sought by U.S. based firms were also favorable. As a result, plans to provide additional internet service to underserved areas may be accelerated.

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UMD Jean Monnet Research Project

The University of Maryland has received a Jean Monnet grant from the EU to conduct a series of policy exchanges between Europe and the US on filling infrastructure needs and the utility of public/private partnerships as the financing mechanism. If interested in participating in or receiving more information about these exchanges, please contact Rye McKenzie (rmckenzi@umd.edu).

New from the Bertelsmann Foundation

The Bertelsmann Foundation is an independent, nonpartisan and nonprofit think tank in Washington, DC with a transatlantic perspective on global challenges.

"Edge of a Precipice" by Nathan Crist

"Newpolitik" by Emily Hruban

 

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