Pressure builds in Europe

August is usually a quiet time in Europe as most Europeans go on vacation, including leaders like France's new president, Francois Hollande. However, vacation time is over, and Hollande is facing some major issues, including the crisis in Syria, the announcement of major layoffs at Peugot, and riots in the city of Amiens, as I discussed on the BBC last week:


Hollande was criticized for going on vacation during a time of crisis in France and across Europe, but he is jumping right back into the fray, with a meeting with German Chancellor Angela Merkel on Thursday http://www.reuters.com/article/2012/08/20/us-france-hollande-challenges-idUSBRE87J0IV20120820

Although expectations are low for the meeting, it comes as data on the European economy come out, which are expected to show that the European economy is stalled, or even shrinking.  This data will impact European Central Bank deliberations as noted in the Wall Street Journal "The European Central Bank meets in a little over two weeks, and the surveys are among the last top-tier data officials will have in hand as they weigh interest-rate cuts and new steps to stabilize Spanish and Italian bond markets."

Angela Merkel is also facing major pressures at home and related to the Euro crisis. She has faced the greatest pressures, due to Germany's key role in managing the crisis, but she has also faced an unraveling coalition at home as noted in another article from the Wall Street Journal "German Chancellor Angela Merkel faces one of the toughest choices of her career in the coming weeks: whether to risk the unraveling of the euro zone, or her government."

Another top issue is Greece - the next few weeks may decide whether or not Greece will remain in the Eurozone.  Hollande and Merkel will each have meetings with the Greek Prime Minister this week, as Greece struggles to meet it's debt reduction commitments and Samaras tries to convince his European partners that they should continue to provide bail-out funds:
http://ca.news.yahoo.com/greeces-euro-fate-hangs-over-merkel-hollande-meet-032859601.html

What's going on in Europe? (besides the Euro crisis)

Denmark elected a left government last Fall, a historic election for the new woman prime minister (article).  However, as Denmark completed its 6 month Presidency of the European Council,  things were not looking as good for Thorning-Schmidt, as her far left coalition partner was angered over a deal on taxes with the center right (Economist). Another Danish politician, Pia Kjaersgaard, today decided to step down as leader of the Danish People's party, which has declined in influence since the election. The anti-immigration party had a strong influence over Danish governments beginning with the 2001 election, supporting the minority right-wing government, but the right suffered defeat with the fiscal crisis, despite the fact that Denmark is not part of the Euro zone.

On the immigration front, this has been a difficult time for immigrants in Greece. Armed gangs have been patrolling parts of Athens where immigrants live, often assaulting people. The government is detaining and preparing to deport large numbers of illegal immigrants, as Syrian refugees stream into Turkey and then try to make their way across the Greek-Turkish border. Greece is sending more border patrol agents, trying to stem the flow (Greece to deport 1600 in immigration crackdown).

In Sweden, a gathering by far-right anti-Islam groups from the U.S. and Europe was considered a flop, with estimates of only 100 to 200 in attendance (article).

Finally, the Olympics in London can only be described as a big success, despite the concerns in advance, and the empty seats the first few days.  There has been drama, heroism, and amazing performances.  It's just what the world needs in a time of great economic and political uncertainty.

Euro Crisis grinds along

Three years ago I started off my class on Western European Politics saying that the Euro crisis was going to be like watching a slow-motion train wreck. Three years later, those words still hold true.  I took a couple of months off from blogging as I was working on some book projects, and I have to say that trying to follow developments in Europe is often a bit tedious, although necessary, as it's not clear when some critical event is going to tip the balance and lead to some major cascade into disaster.  In any case, I need to get back into the swing of things before the semester starts in a few weeks so here are some of the latest headlines:

Don't let the Eurozone Debate Turn Nasty

In Euro Crisis, Every Player Has His Own Agenda

Euro Falls as Italy's Monti Warns of Euro

More to come!