Tag Archives: EU

Europe Rethinks the Schengen Agreement

G.Friedman
Mr. George Friedman
is the CEO and Chief Intelligence Officer of  Statfor, a private intelligence company located in Austin, Texas.

 

  • Forecast
    • Rising immigration and fragile economic recovery in Europe will reduce political support for the Schengen Agreement, which eliminates border controls among member states.
    • The Schengen Agreement will likely be reformed to make room for countries to tighten their border controls more frequently.
    • Friction between Schengen members and other countries will remain, as will tension within the bloc itself.

Analysis

When France, West Germany, Belgium, the Netherlands and Luxembourg signed the Schengen Agreement in 1985, they envisioned a system in which people and goods could move from one country to another without barriers. This vision was largely realized: Since its implementation in 1995, the Schengen Agreement eliminated border controls between its signatories and created a common visa policy for 26 countries.

The treaty was a key step in the creation of a federal Europe. By eliminating border controls, member states gave up a basic element of national sovereignty. The agreement also required a significant degree of trust among its signatories, because it put the responsibility for checking foreigners’ identities and baggage on the country of first entry into the Schengen area. Once people have entered a Schengen country, they can move freely across most of Europe without facing any additional controls.

The Schengen Agreement was implemented in the 1990s, when the end of the Cold War and the prospect of permanent economic prosperity led EU members to give up national sovereignty in many sensitive areas. The creation of the eurozone is probably the most representative agreement of the period. But several things have changed in Europe since then, and member states are beginning to question many of the decisions that were made during the preceding years of optimism.

Continue reading Europe Rethinks the Schengen Agreement

A better deal for Greece is possible

By Barry Eichengreen, Peter Allen & Gary Evans

in ekathimerini.gr  Greece,  July 27, 20156

Greece’s debt is unsustainable. The International Monetary Fund has said so, and it’s hard to find anyone who disagrees. The Greek government sees structural reform without debt reduction as politically and economically toxic. The main governing party, SYRIZA, has made debt reduction a central plank of its electoral platform and will find it hard to hold on to power — much less implement painful structural measures — absent this achievement.

Moreover, tax increases and spending cuts by themselves will only deepen the Greek slump. Other measures are needed to attract the investment required to jump-start growth. Reducing the debt and its implicit claim on future incomes is an obvious first step.

Continue reading A better deal for Greece is possible

Dutch PM says Greece must accept deep reforms

From eKathierini.com / Reuters.
Mark RutteThe Netherlands’ prime minister, Mark Rutte, said on Monday that Greece will have to accept deep reforms if it wants to remain in the eurozone.

For the entire report go to
http://www.ekathimerini.com/199083/article/ekathimerini/news/dutch-pm-says-greece-must-accept-deep-reforms