Prejudices

Copyright V.Angelo

Different approaches are welcome as long as they sustain a common project. 

We cannot fall into the trap that sees some Europeans as just part of the decoration and little less. Some people in Brussels and in some Northern capitals are again tempted to look at nations from that perspective. We all know that arrogance and contempt have filled the history of Europe with wars and pain.

Sovereign nightmares

The New Year brings back the sovereign debt question as the most urgent issue for the EU member States. Now that it is clear that Greece and Ireland have reached unsustainable levels of debt, all the attentions are moving to Portugal. On Wednesday next week, Lisbon will be again in the market to try to place Treasury paper. There is deep anxiety in Brussels and other capitals about the investors' response to that move.

The Portuguese government has shown they prefer to pay very high rates of interest to making use of the EU/IMF financial facility. This option is politically expedient in the short run. It delays the moment for hard decisions, particularly at a time when the presidential elections are around the corner, on 23 January, and the government's candidate is lagging behind in the polls. But, sooner or later, the moment of truth will come. The poor performance of the country's economy will then hit the wall.

In support of the European project

Both Chancellor Merkel's and President Sarkozy's New Year messages had strong words in support of the European project. They should be acknowledged. This is what I call leadership. It is important to set the path, particularly at times of confusion and hesitation.