Saturday, August 4, 2012

Varoufakis on Draghi

Yanis Varoufakis:
Then came the moment to put up or forever lose his credibility. Alas, probably under incredible pressure from the Bundesbank, he opted for the latter. Citizens and investors felt a wave of desperation hit them and all the gains from the grand declarations fizzled out. Since then, some analysts went back to what Mr Draghi said during the Thursday press conference and read between the lines some evidence of actions-to-come that may offer relief to the struggling Eurozone. They are clutching at straws, I am very much afraid.
And for a roundup of opinion on the Draghi moves (or non-moves), see Brad Plumer.

The Hollande-Miliband Axis

François Hollande must know the old American political adage, "Don't get mad, get even." In his own quiet way, he has paid back David Cameron for any number of snubs, both during the campaign and since Hollande's assumption of office (such as the invitation to French entrepreneurs to flee to Britain). Hollande invited Labour Party leader Ed Miliband to Paris and received him as though he were already Prime Minister. Meanwhile, Miliband may have borrowed a few ideas from Hollande about how to achieve that goal. There are similarities between the two, starting with the fact that both have been consistently underestimated. It's a bit premature to posit, as The Times does, that Hollande is already imagining himself as the leader of a reinvigorated trans-European left. But it's good to see him recognizing that cross-border alliances can take forms other than the notorious Merkozy duo.