Can Italy and Spain survive rates of 6-7%? CEPS Policy Brief No. 279, 27 July 2012

The sentiment that the euro is now in real danger is based in large part on the widespread conviction that interest rates of 6-7% are simply unsustainable for both Italy and Spain., After taking a closer look at the fundamentals, however, Daniel Gros concludes in this new Policy Brief that both countries should be able to live with this level of interest rates for quite some time, but only if they mobilize domestic savings, which remain strong in both countries. For Spain, some debt/equity swaps are also needed.

spotlight europe #2012/04, June 2012: Can mobility offset unemployment?

Almost a quarter of the young people in the EU are unemployed. And once again it is the crisis-ridden states that have been hit hardest. But in other countries such as France, Sweden, and Luxembourg, younger members of the workforce, far more than their older counterparts, are also finding it difficult to get a job. Freedom of movement within the EU could help to provide them with new opportunities. All that is needed is the right kind of support.

spotlight europe #2012/04, Juni 2012: Mobil statt arbeitslos? = Can mobility offset unemployment?

No abstract.

Beyond retrenchment over Iran: can the EU offer a framework for regional security? CEPS Commentary, 3 September 2012

A new and far-reaching round of sanctions imposed recently on Iran by the EU is starting to hurt the country, its economy and its citizens. Yet Iran’s leadership seems deaf to demands for international weapons inspectors to be allowed unhindered access to its nuclear enrichment facilities. With a regime that is not likely to sway to international and domestic pressure, and in view of the shifting strategic landscape in the Middle East, the question is whether the twin-track approach of sanctions and diplomacy should be kept up, or whether it should make way for an alternative set of policies that could preserve the fragile stability in the wider Middle East and turn a vicious circle into a virtuous one. In this new Commentary, CEPS Senior Research Fellow Steven Blockmans argues that the High Representative of the EU for Foreign Affairs and Security Policy, supported by the European External Action Service, is in a good position to offer a negotiated way out of this seemingly intractable situation.