- By Joshua Keating
Joshua Keating is associate editor at Foreign Policy and the editor of the Passport blog. He has worked as a researcher, editorial assistant, and deputy Web editor since joining the FP staff in 2007. In addition to being featured in Foreign Policy, his writing has been published by the Washington Post, Newsweek International, Radio Prague, the Center for Defense Information, and Romania's Adevarul newspaper. He has appeared as a commentator on CNN International, C-Span, ABC News, Al Jazeera, NPR, BBC radio, and others. A native of Brooklyn, New York, he studied comparative politics at Oberlin College.
With the events in North Africa and the Middle East this week, it’s been easy to miss major developments North of the Mediterranean. First, there was some news out of Germany:
Germany’s supreme court has rejected petitions to block ratification of Europe’s $640-billion rescue fund, giving the go-ahead for a key element of European leaders’ strategy for combating the continent’s long-running debt crisis.
The constitutional court was petitioned by 37,000 Germans who argued that the European Stability Mechanism, or ESM, contravened the country’s constitution.
In what was viewed as one of the most important decisions in the court’s 61-year history, the justices dismissed the petitions but imposed some significant conditions on the use of the ESM, namely a limit to Germany’s liabilities.
The decision will allow the European Central Bank to buy bonds from countries like Italy and Spain that are struggling with high interest rates. Chancellor Angela Merkel has backed ECB Chief Mario Draghi’s bond-bying plan. Jacob Heilbrunn sees this as a sign of Germany returning to its historic role as a European hegemon, a development that should at least make George Soros happy.
Prime Minister Mark Rutte claimed victory for his liberal VVD party. Centre-left Labour came a close second. Both parties performed better than predicted, seeking a pan-European solution to the eurozone crisis.
Dutch voters returned to parties of the centre, following recent elections which produced highly fragmented results and multi-party coalitions.
(In a week where religious conflict was topic A, it also seemed telling that Geert Wilders’ Freedom Party lost nine seats.)
Taken together, the week’s events seemed to indicate that, for better or worse, Europe’s leaders and citizens are intent on keeping the eurozone together. What they do to fix it is another question.
Clyde Prestowitz is the founder and president of the Economic Strategy Institute (ESI), where he has become one of the world's leading writers and strategists on globalization and competitiveness, and an influential advisor to the U.S. and other governments. He has also advised a number of global corporations such as Intel, FormFactor, and Fedex and serves on the advisory board of Indonesia's Center for International and Strategic Studies.| Prestowitz |