European Institute

By Federico Santi, editorial assistant at European Affairs

Reactions to the victory of François Hollande, the first socialist to hold the French presidency since 1985, have dominated the news for days as leaders and observers around the world assess the impact that his victory, along with the tumultuous election in Greece, will have on the way Europe will deal with the current economic crisis and the swirling debate on austerity versus stimulus for growth.

By Zachary Laven, European Affairs Editorial Assistant

In the tug-of-war over new EU rules levying carbon taxes on airlines’ flights, the U.S. has signaled for the first time that failure to change or at least postpone the European plan could hold up future progress on global climate-change talks.

In response to the sovereign debt crisis in Europe the Fiscal Compact was signed in March by every EU member state except the Czech Republic and the United Kingdom. The fate of this Compact has been made uncertain by the elections in France and Greece, which are seen as a popular rejection of its terms and effects. Inspired by Germany and other proponents of fiscal discipline in Europe, the pact aims to prevent excessive deficits requiring bailouts like the ones needed by Greece, Portugal, Ireland, and Hungary. It requires national budgets to be in balance or in surplus, the EU’s new “golden rule.” The treaty will enter into effect on January 1, 2013, if by then twelve out of the 17 members of the Eurozone will have ratified it.

By European Affairs

After years of transatlantic debate, the controversial U.S.-EU passenger name record agreement was finally ratified on April 19 by the European Parliament by a wide majority of 409 votes in favor, 226 against and 33 abstentions.