The OECD estimates the current potential capacity growth rate of the Italian economy at 1.25% a year. Actually I suspect even this very low number is over-optimistic. Growth since 2002 has been as follows: 2003 - 0.1%: 2004 - 0.9%: 2005 - 0.1%. To be sure forecast growth for this year is somewhat higher, [...]

This anniversary guest post was written by the indispensable Jérôme Guillet, who normally writes for The European Tribune.
Laurence Parisot, the head of MEDEF, the French business
organisation, recently complained that:

There is one word who meaning for the public has changed in the past 25 years: “reform”. It used to be synonymous with progress, and now it [...]

Since the withdrawal of the CPE and the resulting collateral damage to Dominique de Villepin, not to mention Nicolas Sarkozy’s unexpected appearance as a unity figure at the height of the crisis, it’s rapidly being promulgated as conventional wisdom that France “is ungovernable”/refuses to “reform”/cannot be “reformed”. There is only one problem with this discourse, [...]

There are some offers you can’t refuse. An invitation to join the permanent roster of Afoe is one of them. Let me first say, then, that I was initially happy and thrilled and grateful to be part of this wonderful blog. All the more so since it means that I’ll be ineligible for the Afoe [...]

José Barroso, European Commission president, yesterday advised Tony Blair not to act like the Sheriff of Nottingham, taking from the poor to give to the rich. I don’t know whether Tony’s been taking his advice, but this decision seems significant, and seems to reflect a willingness to try and get a deal. I don’t [...]

Are the good times and the good life still going to continue to roll in the Italy of the twenty first century? This is the core question the Economist’s Europe editor John Peet asks in the latest Economist Survey: Italy, Addio, Dolce Vita. As Peet says:
Italy is approaching a crunch. Rather like Venice in [...]

The Italian government finally agreed the details of the new penison reform yesterday. Curiously, it does not need to go to parliament for approval. Getting government agreement had not been without difficulty, and again interestingly enough it won’t come into effect for two years, giving next year’s incoming government plenty of time to [...]

The general impact of the French riots is, I feel, being ably covered by others here, what I am curious about is how financial markets reach their opinions. According to headlines in many newspapers, the euro is falling aginst the dollar as a result of what is happening in France (or see here). This [...]

Saturday over at European Tribune says:
In the past few days, everyone talked about Franz Müntefering’s resignation as SPD chairman. I did, too. That is why I nearly missed one of the most important news in German politics for months (or maybe even years):
SPD and CDU/CSU have agreed on the most contentious points of federal reform. [...]

Taking a break from the German elections, I ran across this recent article over at Radio Free Europe. Short version: EU accession for the Western Balkans (Croatia, Bosnia, Serbia, Macedonia and Albania) is stalling.
All of these five states would like to be part of the EU, but — with the partial exception of Croatia [...]