.. the US there’s politics, too.
Germany: Chancellor Merkel’s coalition Government is in hot water. The junior partner FDP, a strictly neoliberal party, has received the fifth and, if you ask me, final blow at last Sunday’s elections in Berlin, when they were down to 1.8% of votes. This bodes ill for the ruling coalition.
German Chancellor Angela Merkel dislikes putting her foot down to solve government disputes. She associates that form of exercising authority with ill-tempered men who use arrogance to make up for their lack of competence. And she thinks people who keep banging their fist on the table end up getting ignored in the long run. (read more)
I beg to differ with some of the article, however. The SPD (Social Democrats) would be ill advised to enter a coalition government in times of really unpleasant decisions about the future of the Euro. They’ll tolerate a minority rule and ask for new elections, is my guess.
Italy: S&P has now downgraded Italy. Italy, is one of the more important economies in Europe, so I expect the stock markets to go down significantly again today. (Update: With markets you never kow. The indices are up right now. Markets always know best. What do I know? 🙄 )
S&P’s downgraded its unsolicited ratings on Italy to A/A-1 from A+/A-1+ and kept its outlook on negative, sending the euro more than half a cent lower against the dollar.
The agency, which put Italy on review for downgrade in May, said that the outlook for growth was worsening and there was little sign that Prime Minister Silvio Berlusconi’s fractious center-right government could respond effectively. (read more)
But Berlusconi is dealing with more pressing problems:
The conversations, wire-tapped as part of a probe into an alleged prostitution ring surrounding Berlusconi, also suggested for the first time that he gave money to the women he allegedly slept with, contradicting his repeated insistence that he never paid for sex, ‘The Daily Telegraph’ reported.
The taped conversations revealed in extraordinary detail how parties involving dozens of young starlets and escort girls were organised for the Italian PM by a 36-year-old middleman, Gianpaolo Tarantini, a convicted cocaine dealer. (read more)
United Kingdom: Blair’s back, or did he ever go away? Cameron is taking advice from Tony Blair? Well here’s an expert. Watch out, you may end up with another war on your hands! The question is, how much are they paying for his consulting prowess? He likes the cash.
David Cameron is secretly receiving political advice on foreign affairs from Tony Blair – most recently on how to resolve the international deadlock over Palestinian statehood, The Independent has learnt.
Mr Cameron has buried party political loyalties and privately invited the former Labour Prime Minister to Chequers to discuss the impasse, according to Foreign Office sources. (read more)
Hey Tony, there’s a warm cell in The Hague waiting for you (I hope)!
This is our Open Thread. This is my part of the world. What’s up in yours?