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Christian Science Monitor, 31 December 2008 Corruption in Bulgaria tests EU expansion "Brussels needed to get serious, to show they're not just taking a country's word for fighting corruption," says Katinka Barysch, deputy director of the Centre for European Reform in London. "If they can't do that with Bulgaria, how are you going to do that with the countries still queuing outside?" Associated Press, 31 December 2008 Slovakia 16th country to adopt euro Katinka Barysch, an analyst at the Centre for European Reform think-tank, said the currency swings of recent months have underlined the benefits of the euro to east European states. "The very stark experience of being in the middle of a global economic storm means they have felt very cold and uncomfortable," she said. Time, 30 December 2008 'Old Europe' wary as Czechs take over EU presidency Just because the current Czech government is led by eurosceptics doesn't mean they might not have good ideas. "The Czech government could rise to the challenge nonetheless," says Hugo Brady, from the Centre for European Reform, a London-based think tank. "As a small country, it is used to making deals, so it knows about the art of compromise." Reuters, 30 December 2008 Czechs take EU helm from fringe as crises rage Charles Grant, director of the London-based Centre for European Reform think tank, said with those countries taking a lead role on major crises such as the Russia-Georgia conflict and the European Commission on the economy, the Czechs' size or inexperience need not lead to problems. "There is some apprehension, but most of it revolves around Klaus ... As long as it's really Vondra who calls the shots, rather than Klaus, I think other governments will not be too worried about the Czechs being in the driving seat," he said. The Economist, 30 December 2008 The euro at ten: Demonstrably durable A 2006 report from the Centre for European Reform, a London think-tank, concluded that Italy could follow three paths. It could continue to muddle through as the euro areas slowest-growing economy; it could introduce reforms to tackle its poor productivity and high labour costs; or it could leave the euro, default on its euro debts and devalue its currency. Two years on, Simon Tilford, the author of the report, reckons that with deep recession and ballooning budget deficits on the horizon, muddling through is no longer an option. He also thinks Italys exit from the euro cannot be ruled out. International Herald Tribune, 26 December 2008 NATO awaits new leadership Charles Grant, director of the Centre for European Reform in London, thinks personal authority will be crucial. "Influence is informal and depends on the strength of the personality, not on formal powers, which are negligible," he said. The Age [Australia], 23 December 2008 EU success boosting Sarkozy 'for now' "For all his faults, Sarkozy brought a degree of political energy and leadership that the EU was sorely in need of," said Philip Whyte, research fellow at the Centre for European Reform in London. ...For Whyte, the global financial meltdown, seen in France as a crisis of Anglo-American capitalism, will make it increasingly hard for Sarkozy to defend his centre-right reform agenda. Bloomberg, 23 December 2008 Sarko struts Napoleonic stuff in top EU job "Sarkozys chief contribution was extraordinary energy at a time when the EU was crying out for leadership," said Hugo Brady, researcher for the London-based Centre for European Reform. It is still not clear what clout a full-time presidency - which could take effect as soon as January 2010 depending on a successful ratification of the Lisbon treaty this year - would have. "It does not have executive authority, and it does not have a mandate to lead the EU in all matters, said Brady. It will be more like a secretary general of the UN." Voice of America, 19 December 2008 NATO, Russia meet for first time after Georgia invasion Clara O'Donnell, a defense expert a the Centre for European Reform in London, said there was a feeling on the part of NATO members that it was a mistake to break contact with Russia. "There was a feeling that there was a certain lack of strategy on how to go forward. There was a realization that everybody else had started talking to Russia again, and NATO was the organization that wasn't," she said. O'Donnell said even during the height of the Cold War between the West and the former Soviet Union, the two sides talked together. The reason, she said, is simple. "NATO and Russia need each other. Or more to the point, the countries within NATO and [Russia] need each other. The two groups are very interdependent on energy issues and many geopolitical issues - if we're talking about Afghanistan, the Balkans, Iran, these are all issues that if the Europeans and americans want to solve them, they need Russia's help," said O'Donnell. The Economist, 18 December 2008 Lisbon or no Lisbon? Charles Grant, who heads the Centre for European Reform, a think-tank, reckons it is "more likely than not that we'll have a Lisbon treaty". If so, he says, the EU will be able to get on with serious issues instead of fretting about its own internal workings. Time, 18 December 2008 Portugal's offer to help the US close Guantanamo "Until now, it was not obvious how to resolve Guantánamo," says Tomas Valasek, director of foreign policy and defence at the London-based Centre for European Reform. "The Portuguese initiative neatly allows the US to tie up the loose ends. It's brilliant: it allows the US to do something it had always wanted it to do. It also makes the E.U. look proactive, showing it is not just waiting for the Obama Administration to come in and set the pace." The Guardian, 12 December 2008 Brown all talk and no action on Congo, say critics Tomas Valasek, a foreign policy expert at the Centre for European Reform, said: "This isn't a quick reaction, in-and-out operation that the battle groups were designed for. They were meant to deploy for a relatively short space of time, and then be withdrawn and replaced." Valasek said that there were fears that a European bridging force might not be relieved for months, if at all, as it had proved difficult to find Monuc reinforcements. "The British say the real problem is there are not enough UN forces, that Congo is a problem receiving international attention but that you don't address the problems of a UN force by deploying a parallel force. It would lead to unnecessary duplication," Valasek said. Spiegel, 11 December 2008 EU ire with Gemany spills into the open Katinka Barysch, deputy director for the Centre for European Reform, says that Germany has begun focusing more on its national interests than it has in the past. "In Berlin they are saying, 'If France can so blatantly do whatever works for France and Italy can do what's best for Italy and Britain is a reluctant European in any case, then why are we expected to be the good Europeans all the time?'" Barysch told Spiegel. ...Still, Barysch said, the blame for the current butting of heads can't be pinned entirely on Germany. On the one hand, it is only natural that, having created a broad consensus on the EU's environmental targets, disagreement arises when it comes to ironing out the details and the burden sharing. On the other, France has likewise played a major role in poisoning the relationship with Germany. "It used to be that whatever happened in the European Union, Germany and France discussed it first before going public with a proposal," Barysch said. "Now, they open up the newspaper in Berlin to learn that Sarkozy has sprung a new idea on them. They are constantly being put on the spot having to respond to proposals from Sarkozy. And they really don't like that." The Times, 11 December 2008 Angela Merkel turns her back on green dream of EU "On a broad range of issues the Germans seem to think the European Union no longer advances their interests and are more prone to go their own way," said Charles Grant, director of the Centre for European Reform. "In Brussels, Paris, Washington and other capitals, one increasingly hears the same complaint: Germany is acting unilaterally." BBC News, 10 December 2008 France races to clinch EU deals Simon Tilford, an economist at the Centre for European Reform think-tank, said backsliding over CO2 targets by the older EU countries would be more serious than opposition among the new member states. "In that case, it would be harder to keep the East Europeans on board," he told BBC News. International Herald Tribune, 10 December 2008 Merkel appears isolated on key EU policies Charles Grant, director of the Centre for European Reform in London, believes this has tested the affection of a new generation of politicians for the EU. "Both the Germans and the French," Grant said, "have discovered that, after its enlargement, the EU has really changed. If they don't run the EU, they won't support it in the same way, because they don't see it as the projection of their interests in the way they did." ...But Grant, the analyst, believes that other short-term factors have poisoned relations between Berlin and its partners including politics among coalition colleagues and rivals preparing for elections next year. Another issue, he says, is "the rudeness and arrogance of some German officials and political leaders when they deal with colleagues." Time, 10 December 2008 Is Europe getting cold feet on climate change? "If Europe is to persuade the US and emerging economic powers like China and India to take similar action, it has to back up its rhetoric with action," says Simon Tilford, chief economist at the London-based Centre for European Reform (CER). "If the EU retreats from its leading position on climate policy it will surrender its first-mover advantage and with it the chance to make European firms leaders in key environmental technologies." Associated Press, 6 December 2008 Euro's lustre shines bright in hard times Katinka Barysch, an analyst at the London-based think tank Centre for European Reform, said the currency swings of recent months have sold the benefits of the euro as a safe haven to many Eastern European states. "The very stark experience of being in the middle of a global economic storm means they have felt very cold and uncomfortable," she said. Newsweek, 6 December 2008 Maligned euro is now winning friends, influencing Danes It's been quick to cut interest rates and pump cash into the money markets to help out the liquidity-starved banks. In happy times, voters tend to see the EU's imperfections, says Hugo Brady of the London-based Centre for European Reform. But in a crisis, "it's welcome if it can promise some kind of stability." Financial Times, 4 December 2008 Ireland to set conditions to ratify Lisbon treaty Hugo Brady, an analyst at the Centre for European Reform think-tank, cautions: "There will be greater opposition to this concession from other member states than the Irish imagine. But if the government was successful, the Yes side would have a stronger hand in any new campaign in Ireland." Radio Free Europe, 4 December 2008 EU enhances 'eastern partnership' - but is there less than meets the eye? Katinka Barysch, deputy director of the London-based Centre for European Reform, says the proposal demonstrates the EU's mounting commitment toward forging closer ties with ex-Soviet nations. "It is a significant sum for some of the countries involved that are quite small, and a significant increase from what the European Commission had previously committed," Barysch says. "It shows that the European Union is quite serious about making a difference. It's always easy to talk, but it seems that the European Union is willing to put some money where its mouth is." ...But Barysch of the Centre for European Reform says the Kremlin is unlikely to pay close attention to the initiative. "I don't think that Russia is going to be overly upset by what is still essentially quite a bureaucratic process," Barysch says. "The Russians take the [EU] eastward enlargement seriously because they see that it can create new borders within the European landmass. But I don't think they take the European neighborhood policy very seriously." Associated Press, 2 December 2008 Euro gains new luster in hard times Katinka Barysch, an analyst at the London-based Centre for European Reform think-tank, said the currency swings of recent months have sold the benefits of the euro as a safe haven to many east European states. "The very stark experience of being in the middle of a global economic storm means they have felt very cold and uncomfortable," she said. Deutsche Welle, 2 December 2008 Czech President: EU's outspoken global warming doubter Having Klaus at the helm of the 27-member bloc "is clearly going to cause some anxiety," said Simon Tilford, chief economist at the London-based Centre for European Reform. While presidential office in the Czech Republic is largely ceremonial and the center-right government of Prime Minister Mirek Topolanek does not share Klaus' views, western Europe worries that "Czechs would not attach as much priority" to the climate efforts, Tilford said. "It is unfair to say: If we don't agree this year we won't have it," he said. "But there are some concerns because the Czech government is not as enthusiastic." Voice of America, 1 December 2008 EU finance ministers to discuss $253 billion economic stimulus plan Analyst Katinka Barysch, of the Centre for European Reform in London, believes the ministers will come to some kind of consensus at the end of the meeting, Tuesday. "Hopefully a fairly united statement that the EU governments acknowledge that a fiscal stimulus is needed," she said. "That any protective reactions will have to be resisted. That there will be some kind of watering down of the stability and growth pact. That they will allow the European Commission to accelerate spending on regional aid projects and infrastructure projects, which means losing some of the rules that we usually apply to that spending." ..."There are obviously big divisions and Germany, particularly, is in the dock, because people say Germany, despite its very sound budget position and despite its big external surplus, isn't really willing to put as much into a fiscal stimulus as other countries are doing," continued Barysch. EU Observer, 1 December 2008 EU-China relations continue to fray The latest summit and death penalty row could play into the hands of European leaders keen to restrict the flow of Chinese imports during the EU's economic downturn, experts warn. "Protectionist sentiment toward China in Europe has been growing for a while," Centre for European Reform analyst Katinka Barysch wrote in the Wall Street Journal. "Anti-China sentiment is on the rise in Germany ...Even in traditionally liberal Britain, people who see China as an economic threat outnumber those who see it as an opportunity by four to one." Deutsche Presse-Agentur, 26 November 2008 EU calls for 200 billion-euro economic stimulus plan "(The figure of) 1.5 per cent is a significant amount, but most will be distributed at the national level, and the question is how much will qualify as genuine stimulus and how much will be devoted to shoring up competitivity in key sectors," Simon Tilford, chief economist at the London-based Centre for European Reform told dpa. The Earth Times, 25 November 2008 Czech president: EU's most outspoken global warming doubter Having Klaus at the helm of the 27-member bloc "is clearly going to cause some anxiety", said Simon Tilford, chief economist at the London-based Centre for European Reform. While presidential office in the Czech Republic is largely ceremonial and the centre-right government of Prime Minister Mirek Topolanek does not share Klaus' views, Western Europe worries that "Czechs would not attach as much priority" to the climate efforts, Tilford said. "It is unfair to say: If we don't agree this year we won't have it," he said. "But there are some concerns because the Czech government is not as enthusiastic." Trend News, 21 November 2008 Doubts in Europe regarding successful Czech chairmanship to EU Hugo Brady, researcher of the Centre for European Reform, mentioned individualism of Klaus, who is constantly, basically refuses to take the usual role in the presidential democracy and not commit on matters that are handled by the prime-ministers and the executives. Klaus, a long standing eurosceptic, campaigns against the adopting of Lisbon Treaty, although in Czech Republic the parliament is responsible for the foreign policy, not the president. Brady indicates non-diplomacy of Klaus. "There is a diplomatic mess in the Czech Republic," he told Trend News by telephone. Brady considers the actions of the Czech President during his visit to Ireland non-diplomatic and inappropriate. Forbes, 16 November 2008 Europeans cheer G20 summit, eye implementation A G20 pledge to support the global economy with fiscal stimulus measures, another theme pushed by Brown, was vague reflecting the difficulty in coordinating national economic polices on a global scale. "More regulation and supervision can help but the question is whether it really addresses the root causes of the financial instability," said Katinka Barysch, deputy director of the London-based Centre for European Reform. "For that you need to address global imbalances, you need more co-operation at the macroeconomic level." Time, 14 November 2008 Europe's Obama problem: Afghanistan "Afghanistan will be at the top of the US priorities for Europe," says Tomas Valasek, director of foreign policy and defense at the Centre for European Reform, a London think-tank. He says Obama will appeal for more soldiers in the dangerous southern part of Afghanistan to fight Taliban insurgents. "Obama will put more troops in the country and expect Europe to do the same. And even though all European governments are short on troops and money, many will respond in kind." The Economist, 13 November 2008 No room in the ark Euro membership is certainly not a panacea. It can store up trouble by reducing pressure for structural reforms, says Simon Tilford of the Centre for European Reform, a London-based think-tank. For example: thanks to low euro interest rates, Italy can service its debts more cheaply. But without the option of devaluing its own currency, its competitive weakness is being cruelly exposed. Deutsche Welle, 12 November 2008 EU aims to get tough on credit rating agencies The new regulations, if approved by EU member states and the EU parliament, would subject CRAs to greater government supervision and dictate how they operate. "The general drift in the EU is to try to prevent future financial crises by tightening the regulatory screw," said Philip Whyte, analyst at the Centre for European Reform. The Guardian, 12 November 2008 German recession fails to slake thirst for beer Simon Tilford, chief economist at the Centre for European Reform, says the European commission's estimate for Germany is not credible because an economy built on exports is "hugely vulnerable" to sluggish growth in world trade. Manufacturing orders fell 8 per cent in October alone. Reuters, 11 November 2008 European governments turn left in global crisis Simon Tilford, chief economist at the Centre for European Reform think tank based in London, said: "Some governments are actually quite keen to exploit the precedent that has been set to re-establish a more ... interventionist industrial policy, or economic policy more generally." Miami Herald, 11 November 2008 Europe expects to flex its muscle at financial summit Philip Whyte, an economist at the Centre for European Reform in London, noted that the fair-value accounting rules have been blamed for "exacerbating the crisis by forcing banks to sell assets." Whyte called the Europeans' heavy emphasis on regulation to resolve or avoid future financial problems "a bit simplistic." In his view other factors contributing to the current crisis, such as the big surpluses in countries like China, need to be addressed. "They stand in relation to the Americans and British as a drug dealer stands in relation to a drug addict," he said of China. "They supplied the liquidity." Reuters, 10 November 2008 Not gloomy enough Simon Tilford, chief economist at the Centre for European Reform, reckons it may be even darker than the Commission expects. The Commission, he says in an article, has a tendency to be slow to downgrade its forecasts, and much of what it said last week was already looking out of date when released. "The indications of an unprecedented slump in economic activity are multiplying all the time." Tilford reckons the forecasts for Germany and Spain - the euro zones first and fourth largest economies, respectively are among the most out of sync. Germany, for example, is seen standing still. But Tilford asks where such strength as even that will come from given the economys reliance on exports and a projected dive in global trade volumes. As for Spain, he wonders how a decline in output can be held to the Commissions minus 0.2 per cent with unemployment rising rapidly, industrial production tanking and construction and housing activity collapsing. All this, Tilford says, shows that the Commission is too complacent about the state of the European economy. What it needs is to cajole member states that have run up large surpluses and strong fiscal positions to boost demand. "Current account surpluses are not sustainable in the present climate," he concludes. Associated Press, 8 November 2008 Spain tries to win invite to summit in US Spain has been outspoken in its desire to attend. With globalization and growing economies in Asia, Spain could be fighting its last battle to be recognized as one of the big players. "That is why it is important for Spain to have a seat at the table because they sense that if they don't get a seat now, they will never get a seat," said Katinka Barysch of the Centre for European Reform in London. Instead, Europe should learn to speak in one voice, without the glut of individual nations represented. "You are not going forward because you need to have fewer European countries, not more. So Spain muscling in there is complicating what we really need to do," she said. Voice of America, 7 November 2008 EU leaders discuss global financial crisis European leaders are far from united on what is needed to tackle the financial crisis, as Centre for European Reform analyst Katinka Barysch points out. "Within the European Union you have quite significant differences at the moment between the governments on what the longer term reaction to the crisis should be," said Barysch. "And Sarkozy, who is called a hyperactive president, is coming up with a wealth of proposals about what the EU should do and most of them are being shot down as soon as they emerge." EU Business, 6 November 2008 The roles of key European figures in tackling the financial crisis Gordon Brown: The British prime minister, who had been coming under fire from members of his own government and seen poll ratings plummet, saw his stock rise first on the European stage. His plan to bail out banks was used as a blueprint in the EU and the US. "He's the surprise winner in the crisis," said Katinka Barysch, an analyst at the Centre for European Reform. De Telegraaf [The Netherlands], 6 November 2008 Bedrijven blij met Obama Philip Whyte van de Britse denktank CER (Centre for European Reform) verwacht niet dat Obama in de huidige omstandigheden de begrotingstekorten op korte termijn zal wegwerken. Dat is wat overheden deden in de jaren dertig, en dat pakte desastreus uit. Whyte vreest wel de protectionistische geluiden van Obama gedurende zijn nominatiecampagne. Een groot deel van zijn achterban ziet meer vrijhandel als een rechtstreekse bedreiging voor de eigen baan. Een Democratische president kan een obstakel voor de wereldhandel zijn, aldus Whyte. International Herald Tribune, 5 November 2008 Croatia makes progress toward joining EU Katinka Barysch, deputy director of the Centre for European Reform, said the tough message to most EU applicants was clear. "The commission is saying: We understand you have local problems but, at some point, that's not enough, you have to make reforms," she said. "Giving a tough message is important to preserve the credibility of the process." The Age [Australia], 5 November 2008 Europe's new love affair promises an entente cordiale According to Tomas Valasek, director of foreign policy and defence at the London-based Centre for European Reform, Senator Obama is seen to represent the "cleanest break with America's least popular policies". The Guardian, 5 November 2008 Europe's looming skills crisis At a seminar here this week organised by the IPPR/Centre for European Reform, experts agreed that net inflows and outflows were now unpredictable. But we all agreed, too, with Peter Sutherland, BP chairman and UN secretary-general special representative on migration, who said recently: "It is inevitable that if GDP growth globally declines ... then this will have an effect on migrants, either in terms of wanting to go home or in terms of being unemployed in the places to which they come." Reuters, 3 November 2008 European climate backlash puts global deal at risk Such a threat has set minds in Brussels to thinking how the east European alliance might be broken apart, possibly by handing out funding to pay for low-carbon alternatives to coal, or by linking them to an EU power grid. "I think that alliance can be picked apart, because what they really want is recognition of their reliance on coal and the obstacles they face in switching to gas," said Simon Tilford at London's Centre for European Reform. "I think it just needs a financial re-jig." ...Other nations, including Britain, counter that cutting oil consumption is good for consumers and new green industries like electric cars could replace jobs lost in polluting industries. "It is beholden on the countries that pushed for this to stick to their guns, and that's where Germany could be a problem," said Tilford. "If Germany asks for too many concessions, there's a risk of it becoming a free for all." Der Tagesspiegel, 31 October 2008 Schulterschluss mit London Simon Tilford, Wirtschaftsexperte des Centre for European Reform kommentierte: Man vermutet, dass es Sarkozy nicht um eine bessere Regierung der Eurozone geht, sondern um Barrieren gegen Investoren, Protektionismus und darum, die Rolle des Staates auszuweiten und das wäre das Schlimmste, was passieren könnte. Tilford fügte hinzu, die Briten hätten eine tief sitzende Skepsis gegen eine Ausweitung der Rolle des Staates. Eine fundamentale Änderung dieser Haltung wird es auch durch die Krise nicht geben. New York Times, 29 October 2008 Sarkozy boldly attacks financial crisis, but Europe wants results But they are also going to look for results, said Katinka Barysch, an economist and the deputy director of the Centre for European Reform in London. "For Sarkozy, its a tricky strategy," she said. "In a situation where confidence is in such short supply, having a politician leave the impression hes in charge and can do things can be good. But if like Sarkozy, you convene one summit after another and present one idea after another, you raise expectations you cant fulfill." EU Observer, 29 October 2008 Financial crisis should not delay US missile shield According to Tomas Valasek from the London-based Centre for European Reform, campaign speeches tend to differ from real action and even a president from Democratic camp is likely to find himself under pressure to show leadership and strength on security. "Although senator Obama is surrounded by people who have expressed doubts about parts of the missile defence system, they do not question its philosophy as a whole," the expert on foreign and defence policy told EUobserver. In addition, it is more difficult for a politician to defend a milder stance on security when faced with the basic argument of "why should we protect our people less sufficiently," Mr Valasek added. Differences are stronger, however, when it comes to the idea of using space for military purposes, for example by launching laser weapons or micro-sattellites to intercept enemy missiles during their flight, the analyst said. Senator Obama also said in July he would "not weaponise space." But according to Mr Valasek, the argument enjoys support beyond the Democratic party, with many saying that an arms race in space would be the most damaging to the US because of the country's clear primacy in the area for now. Agence France Presse, 28 October 2008 Sarkozy, Brown hold financial talks in sign of warming ties But Philip Whyte, senior research fellow at the Centre for European Reform, warned not to "read too much" into the thawing of ties. "Franco-British relations are clearly a lot better than during the fag end of the (Jacques) Chirac years," when Sarkozy's predecessor opened a rift with London and Washington over the Iraq war. "But this idea that France and Britain are going to become some sort of subsitute, or are going to supplant the Franco-German relationship is nonsense. "When it comes down to long-term considerations of France's interest, Germany remains the primordial relationship," Whyte said. Christian Science Monitor, 28 October 2008 Europe's financial crisis is spreading eastward In many cases, the loans Western European banks have made to Eastern European customers for mortgages were made in foreign currencies euros, dollars, Swiss francs, and others at substantially lower interest rates than they would have received in their own currencies, which were strengthening rapidly. That wasn't a problem, as long as those Eastern European currencies remained strong, says Katinka Barysch, the chief economist at the Centre for European Reform in London. "But now these currencies are under pressure," Ms. Barysch says, "and you will really struggle to service your mortgage if the value of your own salary is collapsing vis a vis your mortgage payments in Swiss francs or euros." Daily Times [Pakistan], 26 October 2008 Mediterranean union bogged down by Mideast politics Clara Marina ODonnell, at the Centre for European Reform in London, said the trouble is no "surprise, because all the difficult tricky procedural questions were not addressed, all the difficult things were delayed" till November. "There was an undue optimism when Sarkozy started this union because basically he tried to rebrand it all without addressing the core strategic shortcomings" notably that some members "dont talk to each other," she said. Financial Times, 25 October 2008 Pressure mounts on China to offer help "All the countries with current account surpluses have people knocking on their doors at the moment and China, with the biggest surplus, will be the most courted," said Charles Grant, director of the London-based Centre for European Reform. The Irish Times, 23 October 2008 If Europeans could vote in US election, Obama would win, but then what? "Europeans will cheer the departure of George Bush and see it as an opportunity to rebuild the transatlantic relationship but they should be careful not to have overblown expectations of the new US president," says Hugo Brady, an analyst with the London-based think tank, Centre for European Reform. Either Barack Obama or John McCain would offer real prospects for better EU-US relations, although most of the tricky issues dogging transatlantic relations will remain such as Iran and Afghanistan, says Brady. The Guardian, 23 October 2008 From brake to boon: German prudence shields economy "I think the fact that (the Germans) haven't had asset bubbles means they will escape some of the nastiness that we are going to see elsewhere," said Simon Tilford, chief economist at the Centre for European Reform in London. ...Long seen as Germany's Achilles heel, private consumption could now provide some support for the economy, even if it is unlikely to boost it much. "The savings rate is high and it is unlikely to rise further, so to that extent that will support consumption," said Tilford. "They (the Germans) are certainly less vulnerable than the UK, or Spain or France." Reuters, 22 October 2008 Asia and EU wrestle crisis in messy diplomatic dance "The fact that the EU is not a very effective negotiating partner, that it can be so opaque and complex, is a frustration for China, I'm sure," said Charles Grant, director of the Centre for European Reform in London. "But China is also a frustratingly opaque and rigid partner, so the EU is also frustrated." Le Point, 21 October 2008 L'Allemagne envisage des mesures ciblées pour doper l'économie "L'Allemagne pourrait se permettre de réduire les impôts tout en augmentant les dépenses publiques, ce qui donnerait un coup de fouet aux économies allemandes et européennes, mais je ne pense pas que cela se produira. Ou si cela se produit, ce ne sera pas suffisant, ou il sera trop tard", estime Simon Tilford, économiste en chef au Centre pour la Réforme européenne. The Guardian, 21 October 2008 Germany mulls measured stimulus measures Having made fiscal consolidation a hallmark of its [Germany's] economic policy, the coalition government is unlikely to change course, said Simon Tilford, chief economist at the Centre for European Reform. "Germany could afford to cut taxes and boost public spending, and give both the German and European economies a shot in the arm. But I don't think we're going to see it. Or if we do see it, I think it will be too little, too late," Tilford said. Associated Press, 21 October 2008 Sarkozy: EU should consider sovereign wealth funds Some analysts doubt whether other European leaders would support the plan given that EU nations lack the deep pockets of the oil-rich nations. "Is this the best use of taxpayers' money? No," said Katinka Barysch, economics expert at the Centre for European Reform, a London-based think tank. Reuters, 21 October 2008 Italian backlash threatens EU's climate fight "Nobody really envisaged a west European state playing hardball," said analyst Simon Tilford at London's Centre for European Reform. "It won't dilute the target, but it might make it harder to meet it," he added. "And this is all before the economic crisis has really started to make itself felt." Time, 16 October 2008 Is Europe backsliding on climate-change targets? But even if the EU can still honor the spirit of its climate change commitments, they might have to be scaled down, according to Simon Tilford, chief economist at the London-based Centre for European Reform (CER). "It was always going to be tough, but it is now much, much harder," he says. "It would be too pessimistic to say the whole agenda will be derailed. But it is difficult to see how it can be kept on track in its current form." International Herald Tribune, 16 October 2008 Euro's appeal growing amid financial meltdown Philip Whyte of the Centre for European Reform said that may be wishful thinking, as the euro is considered a "dead issue" in Britain. Deutsche Presse- Agentur, 16 October 2008 EU summit backfire sets up for bumpy climate ride And that backfire leaves the French government, current holder of the EU's rotating presidency, facing a rough ride if it is to forge a deal on flagship EU laws on fighting climate change in December. "It was understandable what the presidency tried to do, but maybe it was always unlikely that it would work," Simon Tilford, chief economist at the Centre for European Reform in London, said. "Europe is facing a recession, perhaps a prolonged one. Against that backdrop, EU governments are even more determined to ensure that their red lines are not crossed," Tilford told dpa. Earth Times, 15 October 2008 United we stand, emboldened EU leaders say Hugo Brady, an EU expert at the Centre for European Reform, a London-based think-tank, says the bloc's response to the credit crunch has reminded its citizens of the importance of monetary union. All they need to do is look at non-EU member Iceland, which is facing national bankruptcy as a result of the crisis. Or Denmark, which has refused to join the eurozone and has now been forced to raise interest rates to defend its currency. But Brady also cautioned leaders against becoming too self- confident. "I would council against a premature declaration of victory," Brady said. "The patient has a good chance of surviving, but we don't know yet if it will be able to walk." Financial Times, 14 October 2008 EU summit marks pivotal point "Of the major powers and potential powers, only the EU starts from the assumption that multilateralism is desirable," says Charles Grant of the Centre for European Reform think-tank. "Faith in the rule of international law, and in the potential of international institutions, run deep in the DNA of Europe's political elite." EU Business, 14 October 2008 France thrives as Europe's crisis-manager "Most governments gave Sarkozy quite a good mark," said Charles Grant, director of the European Center for Reform in London. But agreements negotiated with Moscow and Tbilissi have been criticised for lacking specifics while a first attempt at a Europe-wide response to the banking crisis with Britain, Germany and Italy fell flat. The Spectator, 14 October 2008 Whither the euro The financial crisis has partially revived the euro debate. Eurosceptics think that it might bring the whole thing down while those who favour British entry believe that they have found a new argument for it. To date, it has been the usual suspects making the case on either side. But today Simon Tilford and Philip Whyte of the Centre for European Reform, a pro-European think-tank run by Charles Grant, have a piece in The Guardian which is surprisingly bearish on the euros prospect. Heres the key section: "The credit crunch should test conclusively whether it is sustainable for countries to share a single currency outside a political union. The financial markets seem to be sceptical. The difference (or "spread") between the yields on German government bonds and those of many of the other member states have widened steadily over the course of 2008. In Greece's case, the spread over German bunds is now almost a full percentage point, while in Italy it is 0.9 and Spain 0.6. A year ago, the differences were negligible. What these spreads tell us is that investors have more confidence in the ability of the German government to service its debts than the Italian, Spanish or Greek governments. And since they share the same currency, this means investors believe there is a growing risk that the euro area will unravel." World Bulletin [Turkey], 11 October 2008 5th Bosphorus Conference on "Turkey-EU relations" begins Many businessmen, politicians, bureaucrats, academicians, representatives of NGOs and journalists from Turkey and abroad will participate in the conference. The seminar, as part of the conference, will emphasize "frank, off-the-record discussion of the most important and controversial aspects of EU-Turkey relations". The British Council, Centre for European Reform (CER) and Turkish Economic and Social Studies Foundation (TESEV) are jointly organising the fifth Bosphorus Conference on EU-Turkey relations. This high-level, invitation-only conference will take place in Istanbul on 10-11 October 2008. Among the participants of our previous four highly acclaimed conferences were Abdullah Gül, Ali Babacan, Mehmet Simsek, Olli Rehn, Carl Bildt, Lord Kinnock, Geoff Hoon, Peter Mandelson, Joost Lagendijk, Lord Hannay, Ahmet Davutoglu, Dominique Moïsi, Andrew Duff and many other senior figures to discuss the politics and economics of Turkish accession. The Journal of Turkish Weekly, 10 October 2008 Europe's troubles take toll on single currency But even before European banks began to fall like dominoes, the euro had been taking a battering. "It partly reflects a belief on the part of investors that the US, for all of its problems, might come out of this crisis more quickly than Europe," says Simon Tilford, chief economist at the Centre for European Reform in London. He says it's not a perception he shares. "I think people are being too pessimistic on Europe, I don't think the US will come out of it more quickly than Europe but there's no doubt that the eurozone faces a period of much weaker growth than people thought feasible a few months ago." ...Could pressure rise to the point that one or several members are forced out? Tilford of the Centre for European Reform says that's unlikely, not least because the weaker members couldn't afford such a move. "Leaving would almost inevitably have huge costs for the country that was leaving because of lack of competitiveness and indebtedness," he says. "For example, if the Italians were to leave and were to introduce some devalued lira the costs of servicing Italian debt would rise prohibitively, the yields on the debt would rise, and the debt once denominated back into lira would be a much higher proportion of Italian GDP as it is at present." Turkish Press, 10 October 2008 5th Bosphorus Conference on Turkey-EU relations to take place in Istanbul The "5th Bosphorus Conference" on "Turkey-EU Relations" will take place at the Consulate General of the United Kingdom in Istanbul on October 10 and 11. The British Council, Centre for European Reform (CER) and Turkish Economic and Social Studies Foundation (TESEV) are jointly organizing the conference. Many businessmen, politicians, bureaucrats, academicians, representatives of NGOs and journalists from Turkey and abroad will participate in the conference. The seminar, as part of the conference, will emphasize "frank, off-the-record discussion of the most important and controversial aspects of EU-Turkey relations". Today's Zaman [Turkey], 10 October 2008 EU heavyweights travel to Istanbul for seminar EU Enlargement Commissioner Olli Rehn, Dutch Foreign Minister Maxime Verhagen, Swedish Foreign Minister Carl Bildt and Joost Lagendijk, who heads the EU-Turkey Joint Parliamentary Committee, are among participants of the fifth Bosphorus Conference on EU-Turkey Relations. Foreign Minister Ali Babacan will also attend the high-level event, jointly organized by the British Council, the Centre for European Reform (CER) and the Turkish Economic and Social Studies Foundation (TESEV). The conference will open on Friday evening with a gala dinner and keynote speeches by Rehn and Maxime. The main seminar on Saturday will start with addresses from Babacan, Baroness Cathy Ashton, leader of the British House of Lords, and Bildt. The seminar will emphasize frank, off-the-record discussion of some of the most important and controversial aspects of EU-Turkey relations, organizers have said. Washington Post, 9 October 2008 Financial crisis tests limits of unity within the EU If Lagarde or Sarkozy recognized at the time that the Lehman Brothers demise was the beginning of catastrophe, they did not sound the alarm. Neither did anyone else among leaders of the 27-nation EU. "Well, they are human, too," said Katinka Barysch, deputy director of the Centre for European Reform in London. "Nobody foresaw this." New York Times, 7 October 2008 Facing a financial crisis, European nations put self-interest first After a week of squabbling and rushed meetings, finance ministers agreed Tuesday to take a few modest steps to shore up markets. But they did little to dispel growing doubts that the European Union could grapple collectively with a common crisis. "This is unprecedented," said Simon Tilford, chief economist of the Centre for European Reform, a research organisation in London. "It has exposed the limits of European integration and co-ordination when presented with a crisis of this magnitude." Wall Street Journal, 7 October 2008 Pressures mount for bank plan An EU bailout fund would have to survive negotiations over how much money each country would contribute, which assets or banks the funds would be spent on, who would administer the plan, and how to share the profits or losses after the crisis. "There isn't any time to sort all that out," says Simon Tilford, chief economist at the Centre for European Reform, a London think-tank. "All Europe can do at this point is get agreement on what needs doing, and let member-states carry it out." Christian Science Monitor, 7 October 2008 EU struggles for unified response "What the US can do because it has central fiscal authority [is] get into the game of ensuring solvency," says Katinka Barysch, deputy director of the London-based Centre for European Reform. "We cant do that. As a result, in the middle of a crisis, we dont have the mechanisms available, so it means we cant do a European bank bailout." In Europes defense, Ms. Barysch argues that there has been some good multinational cooperation, such as with the rescue of crossborder banks Fortis and Dexia. "Think about what would have happened if you had a bank based in El Salvador, Venezuela, and Uruguay that went bust. It would have been mayhem," she says. EU Observer, 7 October 2008 Poland to push new EU energy solidarity plan The original legislation says decisions are to be taken by the European Commission - the "guardian" of common EU interests. But Berlin wants the individual states involved in any deal to have the final say. "This looks as if the commission is trying to dictate to Russia the way in which it should regulate the operation of its energy companies," a former advisor to Prime Minister Vladimir Putin, Sergey Yastrzhembsky, wrote in a recent paper for the Centre for European Reform. Euros du Village [Germany], 6 October 2008 After the European Council, an EU with one voice? Interviewed by the BBC after the summit, Charles Grant from the think tank the Centre for European Reform, explained that the main change was that the role of the current EU High Representative for Common Foreign and Security Policy (CFSP), Javier Solana, would be combined with that of the EU External Relations Commissioner Benita Ferrero-Waldner. The two of them "run organisations that work on the same problems (such as energy, Russia and the Middle East) but do so separately, leading to different priorities and, too often, mixed messages to the outside world. The treaty would merge those bodies into an external action service that would support the foreign minister," wrote Grant in a letter to the Financial Times before the summit. Admittedly he was referring to the Constitutional Treaty, but the new Reform Treaty that will emerge from the German Presidencys mandate for the Intergovernmental Conference covers very similar ground. Newsweek, 4 October 2008 Charging to the right A further reason for the parties' renewed success may be that they're no longer that far out of step with mainstream attitudes in much of Europe. "It's becoming politically acceptable to take extreme positions," says Simon Tilford of London's Centre for European Reform. So while the Austrian rhetoric is often ugly, the parties' positions are starting to sound kind of familiar. The Irish Times, 4 October 2008 Brussels opinion divided on whether 'prince of darkness' is a loss to Europe Some have interpreted Mr Mandelson's departure from Brussels just months after the WTO talks collapsed as a signal that Doha is dead. "The fact that he is returning to London clearly shows that he believes there is no longer any hope of saving the Doha round of trade negotiations," said Katinka Barysch of the Centre for European Reform. Associated Press, 4 October 2008 Divided EU leaders head into financial summit British Prime Minister Gordon Brown may also find it difficult to square his domestic political difficulties with the need for a common European stance, said Philip Whyte, a senior research fellow at London-based think tank Centre for European Reform. Britain "is in favor of European cooperation to bailout ailing banks," Whyte said, but Brown "doesn't want to anything at the European level that ties his hands domestically." Brown has suggested that his county would not offer its banks a bailout like the $700 billion package that the administration of US President George W. Bush has pushed for Wall Street. Whyte said EU leaders are also nervous about Ireland's move to grant a comprehensive bank guarantee on all deposits and debts of Irish-owned banks. The European Union, Britain and other EU states battling their own banking crises complained that Ireland was promoting unfair competition. Defence News, 3 October 2008 EU parliament to vote on opening market Tomas Valasek, director of foreign policy and defence for the think tank the Centre for European Reform, favors the moves. "It would not be in the European interest to make the EU market less welcoming for US manufacturers," Valasek said. However, following debate last year among some member states about increasing barriers to trade with non-EU countries at the same time as introducing the directives, he said that "it would not be in the European interest to make the EU market less welcoming for US manufacturers." Reuters, 3 October 2008 Mandelson move a blow to Doha, free trade lobby "The fact that he [Mandelson] is returning to London clearly shows that he believes there is no longer any hope of saving the Doha round of trade negotiations," said Katinka Barysch of the Centre for European Reform (CER). Nouvelle Europe, 2 October 2008 Quel poids pour lEurope sur la scène internationale? Comment lUE est-elle perçue dans le reste du monde? Selon une analyse effectuée par un think tank londonien Comment lUnion est elle perçue dans les puissances émergentes ? par Charles Grant, du Centre for European Reform, le bilan est assez négatif : lInde la voit comme un bloc commercial, plutôt quun acteur majeur en politique étrangère ; la Russie perçoit son fonctionnement institutionnel comme complexe et, par conséquent, faible ; et la Chine est, quant à elle, un des rares pays qui dispose dune bonne connaissance de lUnion, de son fonctionnement et de ses faiblesses, notamment son disfonctionnement institutionnel et son manque de vision stratégique. The National [United Arab Emirates], 1 October 2008 Do not write off the US just yet "Nobody should write off the American economy. Compared to its European peers, its history of recovering rapidly from recession is impressive. Its track record on innovation and start-ups is the envy of the world," said Charles Grant, director of the Centre for European Reform, in a response to a wave of predictions of US decline. "Chinas leaders know this very well and have not resorted to the kind of hubris that we have heard from certain continental politicians." The Guardian, 1 October 2008 After delay and denial, Europe enters crisis mode Charles Grant, director of the Centre for European Reform in London, said he feared such "hyperbolic froth" would fuel a damaging backlash against the very system that has ensured European economic prosperity for decades. "Anglo-Saxon capitalism has its flaws, mistakes were made and there is truth to the criticism, but rhetoric like this can have a dangerous knock-on effect on future policy," he said. The Moscow Times, 30 September 2008 US economists say Kremlin blocking oil The Russian government deliberately engineered the recent slowdown in oil production by imposing high taxes on the industry, two eminent US economists contend in a new book. The claim, by Clifford Gaddy and Barry Ickes in a book to be published by the London-based Centre for European Reform this week, contradicts statements by the government that it is seeking to increase output. Gaddy, of the Brookings Institution, and Ickes, of Pennsylvania State University, co-authored a chapter for the book, "Pipelines, Politics and Power: The Future of EU-Russia Energy Relations." "We argue that the slowdown is neither inevitable nor the undesirable but necessary consequence of bad policy," they wrote, according to an advance copy of t |