'Blue' or Eurobonds guaranteed via joint and several liability by the eurozone member states have been proposed as an important tool to stabilise and structure the eurozone sovereign bond markets. But in this new Policy Brief, Hans-Joachim Dübel argues the case for a partial insurance of sovereign bonds by the European Stability Mechanism. Hans-Joachim Dübel is an independent financial sector consultant based in Berlin and founder of Finpolconsult.
Topic:
Economics, International Trade and Finance, Markets, Regional Cooperation, and Monetary Policy
The Eurozone debt crisis has now reached a turning point. This paper argues for a more organised intervention by the ECB to stop contagion through the creation of a quantitative easing programme, coupled with a political agreement among member states on a more federalist budget for the Eurozone.
Topic:
Debt, Economics, Regional Cooperation, and Financial Crisis
The biggest threat for the eurozone is the contagion of the Greek sovereign debt crisis to the rest of the system. If the Greek crisis could be isolated, it would barely matter for the eurozone as a whole. After countless crisis meetings of the European Council, however, it has to be admitted that the European leaders have failed to isolate the Greek crisis and to stop the forces of contagion. The latest meeting of the heads of state or government of the euro area on July 21st is no exception.
Topic:
Debt, Markets, Regional Cooperation, and Financial Crisis
American Enterprise Institute for Public Policy Research
Abstract:
National security is neither a "sacred cow" nor just another federal budget line item. Providing for the common defense of the American people and our homeland is the primary responsibility of policymakers in Washington. However, in an effort to protect social entitlements like Medicare, Medicaid, Social Security and the health care reform law from serious deficit and debt reduction efforts, President Obama has proposed not only to raise taxes, but also to cut another $400 billion more from future national security spending. As Obama said on June 29, 2011, "[Outgoing Secretary of Defense] Bob Gates has already done a good job identifying $400 billion in cuts, but we're going to do more."
Topic:
Defense Policy, Arms Control and Proliferation, Debt, and War
American Enterprise Institute for Public Policy Research
Abstract:
Over the past year, actions by the People‘s Republic of China (PRC) have called into question its previous assertions that its rise to great-power status would be peaceful. Whether it was scolding countries around the world about the Nobel Peace Prize awarded to Chinese dissident Liu Xiabo, declaring that its ?core interests? now included some 1.3 million square miles of the South China Sea, dismissing complaints of neighbors as failing to recognize that "China is a big country," ignoring North Korean acts of terror, challenging U.S. naval ships on the high seas, creating new confrontations with Japan over disputed islands, slashing its export of rare earth elements, continuing cyber attacks on American defense and commercial entities, or testing a new stealth fighter during the visit of the American secretary of defense, the picture that emerges is of a China that believes it can now throw its considerable economic and military weight around. It‘s a challenge that the U.S. has been slow to meet and, as a result, led to considerable uncertainty among friends and allies about whether the U.S. is up to that challenge—uncertainty fed in no small measure by prospects of a declining American defense budget.
In anticipation of the Secretary-General's report on preventive diplomacy and the coming Security Council debate in the fall, heightened attention has been paid to the topic of preventive diplomacy in 2011. This issue brief serves to provide a background to the current discussions as well as to provide a summary of recent developments.
Topic:
Conflict Prevention, Diplomacy, International Affairs, and Peacekeeping
As they prepare to discuss the renewal of MONUSCO's mandate six months ahead of general elections in the Democratic Republic of the Congo (DRC), the members of the UN Security Council are facing a dilemma. Should they limit the role of MONUSCO to the continued protection of civilians in eastern Congo, as agreed with President Joseph Kabila, or should they expand its mandate in an attempt to enforce democratic principles before the elections at the risk of confronting the incumbent regime? This issue brief argues that MONUSCO should be limited to a technical role in the election—as requested by the Congolese authorities—but only on the condition that the international community reengages President Kabila in a frank political dialogue on long term democratic governance reforms.
Topic:
Conflict Prevention, Democratization, and Peacekeeping
SETA Foundation for Political, Economic and Social Research
Abstract:
The publication of the Palmer report written by the panel of inquiry established by the UN Secretary-General Ban Ki-Moon once again brought the 31 May 2010 Gaza Flotilla incident and the blockade of Gaza back to world's attention. On May 31, 2010, Israeli commandos stormed a passenger ship, the Mavi Marmara, the largest boat of a flotilla of six boats which were carrying 10000 tons of humanitarian aid to besieged Gaza, in international high waters. The operation left 9 activists dead and over 30 activists wounded. The Israeli military assault against the Mavi Marmara immediately ignited worldwide protests and condemnation. Turkey, whose citizens were attacked by Israeli soldiers in international high waters, 72 miles away from the Gazan coast, took the lead in protests and condemnation. Israel, however, claimed that the demonstrators on the Mavi Marmara were aiming to break the blockade of Gaza and the Israeli commandos were forced onboard to react in an act of self-defense.
The EU's Eastern Partnership with the Ukraine, Moldova, Georgia, Armenia, Belarus and Azerbaijan has now been in place for two years. But the EU is not looking eastwards much these days – it is looking inwards to tackle the aftermath of the financial crisis, and south to the Arab Spring. At the same time, the enthusiasm of the Eastern partners seems to be fading. The EU Commission's recent review of the European Neighborhood Policy points in the right direction but if the partnership is to make any sense, it is necessary to make it more attractive.
A controversial bill defining the role and functions of Indonesian intelligence agencies has top priority in the Indonesian parliament. It was originally scheduled for enactment in July 2011 but will now be delayed until September or October. It would be better to put the bill on hold even longer until there is a more comprehensive assessment of security needs and how to address them.
Topic:
Security, Democratization, Development, and Intelligence