As Manuel points out in the accompanying post, Romano Prodi’s resignation as Italy’s Prime Minister is a rather sudden and dramatic, but scarcely unexpected, development. The immediate political crisis may be resolved as rapidly as it appeared, but again as Manuel indicates it may only serve as a prelude for further things to come, and [...]

Italian Finance Minister Tommaso Padoa-Schioppa is going to be a man of his word (and not follow in the path of that other European political leader who was lying about his budget in the morning, in the afternoon, and at night). He assures us of this:
Mr Padoa-Schioppa was adamant any adjustments to the budget, which [...]

Many thanks to David for offering me a chance to raise my profile just before the second edition of the Satin Pajama Awards with a two-weeks guest-blogging stint here at AFOE.
For the 99% of you who don’t already know me, I usually display my limited knowledge of economics and politics at my own blog [...]

Will there or won’t there be an eleventh hour agreement on the new EU budget. Tony Blair is clearly burning the midnight oil, but the foreign ministers did not seem to be unduly impressed:
EU foreign ministers’ talks on the 2007-2013 budget ended after less than a minute on Monday (12 December), with the UK set [...]

Yesterday the news from Italy was the sudden drop in industrial output, today it is the fact that this makes Berlusconi’s re-election much more uphill work. In particular his coalition just lost a vote in Messina, Sicily, that they normally should have won.
This trend in indutrial output is important for what it implies about [...]

Germany isn’t the only EU country where serious ongoing economic problems are leading to political gridlock. Italy’s situation is no better, and arguably worse. This ‘worse’ aspect was pushed into the headlines yesterday by the resignation of Economy Minister Domenico Siniscalco. This is sending shock waves throughout the entire Italian political system. It still isn’t [...]

Hungary risks missing its 2010 target for adopting the euro unless its government reduces the budget deficit and improves policy co-ordination with the central. This at least is the view of the OECD as expressed in its annual report on Hungary out today. According to the OECD:
“the key conclusion is that further reductions in the [...]

AP writes from Bratislava about how budget airlines are allowing middle-aged villagers from Central and Eastern Europe to get on an airplane for the first time. Presumably they will also allow British stag parties to enjoy piss-up weekends someplace other than Prague (or Ljubljana or Tallinn) for a change.
“British tourists can now discover Poland [...]

The papers this morning seem to be all full of ‘gloomy’ articles whose principal theme is that Europe has finally been plunged into a grave crisis by this weeks summit.
“People will tell you next that Europe is not in a crisis,” Luxembourg Prime Minister Jean-Claude Juncker, who holds the EU presidency, said after [...]

It’s a bit too early to draw any hard and fast conclusions about this weeks summit, but this early snippet of news doesn’t look too promising:
“European leaders plunged into a full-blown crisis at a summit, with a battle raging over long-term EU financing and their lofty plans for an EU constitution nearly in tatters………..French President [...]