Breakdown: Colour-coding Germany’s election 18 Sep 2017 GroKo, black-green or Jamaica? Angela Merkel is almost certain to win a fourth term, but the race to be her partner is wide open. The outcome matters for Germany – and for Europe. Breakingviews decodes the colourful jargon, and looks at the consequences of different outcomes.
Dixon: No escape from debtors’ prison for Greece 11 Sep 2017 Alexis Tsipras is desperate to avoid surveillance of his actions by the country’s creditors when its third bailout ends next August. The best the Greek prime minister can hope for is to move from a high-security unit to an open prison – and only if he behaves.
Italy’s latest bank bailout is gentle on taxpayers 11 Sep 2017 The country’s deposit fund is forking out 640 mln euros to clean up three small banks before they are sold to Credit Agricole. Prepping a target for a foreign rival looks generous and the fund’s returns are uncertain. At least taxpayers will be spared a hit this time.
Guest view: Tax relief made for U.S. manufacturers 5 Sep 2017 President Trump's broad reforms probably will take many months to craft, but Congress already has a narrower bipartisan plan to help. Offering credits for putting R&D side by side with domestic factories can help productivity, argues Dhaval Jadav, the CEO of a tax consultancy.
5-Star’s softer stance on euro is clever tactic 4 Sep 2017 The radical Italian party sees a referendum on euro membership as a last resort, one of its top lawmakers says. The apparent U-turn could help soothe markets and business before upcoming elections. There’s room to backtrack, but 5-Star is holding up and getting more nuanced.
Trump may unite Congress – against him 31 Aug 2017 The U.S. runs out of money in a month and the president is attacking lawmakers in his own party. That could prompt Republicans and Democrats to work together to keep the lights on. Plus: Rupert Murdoch could be overpaying for Sky.
Trump antics may be virus, cure for uneasy market 23 Aug 2017 The president threatened a government shutdown over border-wall funds as the risk of a U.S. debt default looms weeks away. Trump is angering the lawmakers he needs on the issues. Ironically, his divisiveness could actually unite the middle to resolve these economic hurdles.
Merkel matters less than her next coalition allies 18 Aug 2017 The German chancellor is poised to win a fourth term in September’s vote. However, Angela Merkel may well be forced to govern with a small majority in partnership with the Free Democrats. That party’s trenchant calls for even more austerity are bad news for Germany and Europe.
Hadas: A lesson for the Brexit mess from Obamacare 16 Aug 2017 The British vote to leave Europe and the vow by Republicans to cut back government health insurance were triumphs of dreams over reality. Facing the unpopular prospect of actually reducing benefits, the Americans blinked. The UK, with even worse choices, could do the same.
Mortgage interest deduction’s death long overdue 16 Aug 2017 White House officials are considering limiting a tax break that encourages home purchases. The incentive mostly helps the rich and induces risky behavior. The gimmick has also had little impact, with the home-ownership rate falling to a 51-year low in 2016. Its demise is welcome.
Washington has infrastructure backwards 15 Aug 2017 What’s needed to plug a $2 trln investment gap for U.S. airports, roads and such isn’t taxpayer cash. It’s the removal of hurdles to private financing and a change in the mindsets of authorities and consumers. There are good ideas to borrow from the likes of Canada and Australia.
Exchange Podcast: Art Laffer 8 Aug 2017 U.S. Republicans are pursuing the holy grail of Washington policy: tax reform. The last comprehensive overhaul was in 1986 under Ronald Reagan. The Exchange met with Reagan adviser Art Laffer, known as the father of supply-side economics, to discuss the prospects for reform today.
Bank of England is hostage to Brexit negotiations 3 Aug 2017 The central bank left interest rates on hold as it lowered growth forecasts. Uncertainty about Britain’s departure from the European Union is weighing on the economy’s potential. If Brexit leaves output permanently reduced, though, Governor Mark Carney will still need to hike.
U.S. tax-cut hopes may give pensions a rare boost 2 Aug 2017 International Paper is borrowing to stoke its retirement fund. Rising plan costs and a desire to lock in tax benefits before any reduction in rates prompted the move. With other firms likely to follow, this is one way Trump’s fiscal policies can trickle down to the little guy.
Corporate America faces little guy in tax reform 1 Aug 2017 The White House is pitching an overhaul of the tax code. Republican leaders highlight company rate cuts while rank-and-file lawmakers are prioritizing middle-class relief. Congress is also toiling over how to pay for the revamp. Corporations may have to temper their wish lists.
Viewsroom: Why U.S. tax reform is doomed, too 20 Jul 2017 Republicans’ failure to replace Obamacare throws into doubt Washington’s ability to keep other high-profile election promises, not least cutting corporate levies. Meanwhile, President Trump’s fuzzy agenda for reforming NAFTA could give Canada and Mexico more bargaining power.
Third Senate GOP health attempt is most charmless 18 Jul 2017 Having twice failed to pass alternatives to Obamacare, Republicans may try to repeal it with no replacement. Based on a similar 2015 effort an estimated 32 mln Americans would lose insurance cover, some 10 mln more than under the nixed bills. It’s hard to see senators backing it.
Macron’s choice: Europe or Gallic exceptionalism 13 Jul 2017 The French President and Germany’s Angela Merkel are keen to revamp the euro zone. It’s hard for Macron to be a role model as long as France’s budget deficit is too big – and harder still given the pressure to cut taxes quickly. This fiscal dilemma is the euro zone’s problem.
Exchange Podcast: Bill Emmott 5 Jul 2017 The system of political and economic openness built after World War Two is under threat, Bill Emmott argues in his new book "The Fate of the West." He joins us to discuss globalization, populism and why there's still cause for optimism about the future of liberal democracies.
U.S. GOP tries version of “extend and pretend” 26 Jun 2017 The mantra used to defer the reckoning on dodgy loans has come to Congress. Some lawmakers want to extend the 10-year budget horizon to at least 20 years. That would allow bigger tax cuts and deficits in the near term, but would be as irresponsible as the worst of Wall Street.