International politics

There’s a pessimistic mood in Westminster at the moment, a sense of gloom about the economic prospects of the West. The government expects there to be another round of the European sovereign debt crisis this autumn and believes that the problems of the eurozone will take at least a decade to resolve. No one I’ve spoken to really believes that the plan Merkel and Sarkozy announced on Tuesday will be enough to keep the markets at bay for long. Looking across the Atlantic doesn’t raise spirits either given the state of both the American economy and political system. But the global economic situation will get an awful lot worse if

Banks and financial institutions endured a painful day’s trading, following Angela Merkel and Nicolas Sarkozy’s announcement yesterday that the Eurozone should adopt a ‘Tobin tax’, a charge on financial transactions. Once again, M&S chose piecemeal changes over the grand structural scheme desired by markets. The Tobin tax was just one proposal of three. The other two were: to create “genuine economic governance of the Eurozone” under, for the moment, EU President Herbert van Rompuy. The second: to impose a ‘Golden Rule’ on the budgets of Eurozone members. The ‘Golden Rule’ will bind national parliaments to agree to limits on national debt levels and impose statutory requirements on mastering budget deficits. The

The American historian Walter Russell-Mead has a cynical — but very possibly accurate — take on what the French are trying to persuade the Germans to accept with their plan for Eurobonds: ‘France’s clear short term goal is to commit Germany to underwrite debts from weak EU states.  That not only staves off a crisis that threatens to engulf France; by putting Germany on as a co-signer for Greek, Italian and Spanish loans, France will ensure that Germany’s credit rating will not be better than France’s. The French will accept almost any German rules to limit the ability of countries like Greece to run up new debts.  It is in

Israeli politicians have been worrying that the Palestinians would join the protests sweeping the Middle East. So far, this has not happened. But now the Israeli leadership is facing something it probably never expected: an Israeli Spring.   Tens of thousands of Israelis took to the streets last weekend to protest against the high cost of living and demand that Prime Minister Benjamin Netanyahu conduct extensive economic reforms. Over 150,000 people are thought to have demonstrated in Tel Aviv, Haifa, Jerusalem, Beersheba and six other cities in left-wing protests against housing policy, but which seem to be morphing into a broader political movement. The dissent began a few weeks ago when

Syrian President Bashar Al Assad has praised his troops for ‘foiling the enemies’ of his country. Some enemies. 140 civilians are said to have died in a pre-Ramadan crackdown on protesters, adding to the toll of 1,600 civilians who have been killed since anti-government demonstrations began in mid-March. Details of the events in Hama are unclear because journalists have been kept out of Syria. But the pattern of events is familiar: protests against the Assad regime emerge; the army moves in to kill demonstrators; more protests then take place, which leads to more killings. Meanwhile, the international community stands by. Germany and Italy have called for an urgent meeting of

The Egyptian revolution may be in for its greatest challenge yet. Last weekend saw clashes between different groups of protesters, as one group sought to march on the Supreme Military Council. Now Salafists have promised to occupy Tahrir Square on Friday, seeking to turf out the broad-based group of revolutionaries that have occupied the square for a number of weeks. Many people fear a bloodbath. The military, meanwhile, is benefitting from a fracturing of the revolution. Some even see an explicit (if short-term) agreement between the military and the Muslim Brotherhood and the Salafists which will allow the military to push against the liberal Tahrir Square activists. If the Salafists

  A reportedly enormous bomb blast has shaken the PM’s office and the oil ministry in Oslo, the Norwegian police confirm. Reports have confirmed that the Norwegian Prime Minister is safe, but it’s not clear if he’s un-injured. Early reports suggested that this might be a gas explosion, but those were discounted because there is no mains gas supply in Oslo. Norway’s state broadcaster has confirmed that one person has died, with more than 8 injured. Fortunately, it is the height of Norway’s holiday season and there were few people about. The Norwegian police, however, warn that there are other casualties being treated. Details remain vague. There also appears to have been at least one

It was a problem that would be fixed with a snap of the Commissioners’ manicured fingers, but now fresh euro-storms are louring in the near distance. As predicted over the weekend, the markets reacted to the European Banking Authority’s deeply flawed stress tests with fevered concern and a clear note of contempt. The FTSE shed 90 points yesterday, with banks among the day’s biggest losers. The performance in Frankfurt and Paris was equally baleful, as investors fled for safe commodity stocks. As Fraser has noted, Allister Heath argues that the Eurozone crisis is responsible for the booming price of gold. The markets have recovered slightly this morning; but that does

The UN has lifted sanctions on 14 Taliban leaders, the strongest indication yet that the international community is opening a negotiated settlement with elements of the Afghan insurgency. Indeed, Germany’s UN ambassador said the move “sends a strong signal: the Security Council and the international community support the efforts of the Afghan government to engage reconciled Taliban in a political dialogue in order to achieve peace and security in Afghanistan.” There are serious concerns about engaging with the insurgency, which, though amorphous, shares common ground in its unreconstructed religious extremism. Renowned war correspondent Dexter Filkins has written of the resilient Taliban’s mounting aggression. The instability that their action causes is