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from The Great Debate:

Putin’s anti-American rhetoric now persuades his harshest critics

People I know in Russia, members of the intelligentsia and professionals who have long been critical of President Vladimir Putin’s anti-Western stance, have suddenly turned into America-bashers. Many have been swept away by Putin’s arguments that the United States, not the Kremlin, is destabilizing Ukraine.

Since the current crisis broke in Ukraine over its efforts to side with the European Union rather than Russia, Putin has been at war with the United States. He seems intent on proving that a U.S.-centric world order is over and that Europe should decide on its own what its relations with Russia will be.

Putin’s big lie reached fever pitch after Malaysian Airlines Flight 17 went down over eastern Ukraine on July 17. Putin swiftly placed the blame on the Kiev government and its reputed U.S. masters -- not even bothering to express proper condolences about the dead.

Instead, the Russian president disingenuously asked for transparency in the investigation into the downing of the plane. In his laconic statements, Putin promised cooperation but delivered little. He insisted issues of politics had to be kept out of the tragedy.

from Stories I’d like to see:

The Russian sanctions information gap

Emergencies Ministry member walks at the site of a Malaysia Airlines Boeing 777 plane crash near the settlement of Grabovo in the Donetsk region

There are so many gaps in the reporting about the effort to use economic sanctions against Russia to get President Vladimir Putin to pull back support for the Ukraine separatists that it makes sense to devote my whole column this week to listing them.

Of course, it’s a lot easier to identify the gaps than to do the reporting to fill them. Still, many are so obvious that it suggests that for all the resources spent on getting great video of the Malaysia Airlines Flight 17 crash site, interviews with the victims’ families and reports from the war front in eastern Ukraine -- all important stories -- there is more heat than light being produced when it comes to the most critical, long-term question related to the Ukrainian conflict: If economic sanctions are the global economy’s modern substitute for using military force in repelling aggression, how is that playing out in the first test of that strategy against a global economic player like Russia?

from The Great Debate:

Sanctions finally find Russia’s Achilles heel

Russia's President Vladimir Putin gestures as he chairs a government meeting at the Novo-Ogaryovo state residence outside Moscow

Russian President Vladimir Putin and President Barack Obama were reportedly engaged in a heated telephone conversation last Thursday when Putin noted in passing that an aircraft had gone down in Ukraine. The tragic crash of the Malaysian airliner in rebel-held eastern Ukraine continues to dominate the headlines, but it is important to remember what agitated Putin and prompted the phone call in the first place -- sanctions.

Sanctions against Russia have been the centerpiece of the U.S. response to Putin’s interference in Ukraine. While they primarily have been directed against prominent friends of Putin and their businesses, the underlying target has been a weak Russian economy.  The sanctions have definitely found Russia’s Achilles’ heel, and with harsher sanctions looming in the aftermath of flight MA17, Putin is finding it increasingly difficult to craft an effective reply.

from Hugo Dixon:

What is EU capital markets union?

What is capital markets union? Jean-Claude Juncker, the European Commission’s president-elect, has embraced the goal of creating one for the European Union. But so far it is more of a slogan than a set of policy actions. There’s no harm in having a catchy term to encompass a myriad of specific plans, but the idea needs fleshing out.

The first thing is to clarify the goals. One is to finance jobs and growth throughout the European Union. Another is to have a financial system that is better able to absorb shocks. Banks are shrinking and so can’t do the job of funding economic expansion on their own. Nor are they good at coping with crises. Indeed, they often magnify them, as the credit crunch and euro zone saga showed.

from Hugo Dixon:

UK prepares for possible EU failure

David Cameron looks to be preparing for the possibility that his plan to renegotiate Britain’s relationship with the European Union will fail. The UK prime minister would then campaign for the country to quit the EU in a referendum he plans to hold by 2017. That seems the best way to interpret his appointment of a eurosceptic foreign minister and the nomination of a little-known former lobbyist as Britain’s European commissioner.

This is not to say that Cameron wants to take Britain out of the EU – which would be a historical mistake. It is rather that he apparently thinks quitting could be an acceptable Plan B that would keep him in his job and his Conservative party reasonably united.

from Hugo Dixon:

How to fight UK immigration fears

By Hugo Dixon

Hugo Dixon is Editor-at-Large, Reuters News. The opinions expressed are his own.

If the UK leaves the European Union, the main reason will probably be because people fear immigrants are overrunning the country. The best way of assuaging these concerns is to show how free movement of people within the EU benefits the economy and society overall, while acknowledging that some groups may be harmed and working hard to improve their lot.

from Anatole Kaletsky:

Karl Marx was right — at least about one thing

 A board displays the Dow Jones industrials average after the close at the New York Stock Exchange

Confidence in the global economy is steadily improving, as shown in the financial markets’ bullish behavior and confident comments from companies and policymakers over the past few weeks. Though these columns have argued in favor of a robust recovery, when investors get uniformly bullish, the pessimistic case deserves attention.

Many distinguished economists believe that the current improvement in global conditions is just a blip. They insist that the world faces years, if not decades, of “secular stagnation.” How seriously should we take them?

from The Great Debate UK:

Europe needs smarter education and research investment

Anka Mulder--Anka Mulder is Vice-President for Education and Operations at Delft University of Technology.  She was formerly Global President of the OpenCourseWare consortium.—

Education and research infrastructure, such as laboratory facilities and digital learning networks, play an increasingly important role in diffusing knowledge and technology to enhance prosperity. At a time when the overall EU budget has decreased for the first time ever, education and research programmes such as Erasmus+ and Horizon 2020 continue to receive significant funding increases, but Europe is still falling behind other areas of the world in building digital infrastructure.

from Hugo Dixon:

The European politician worth watching

By Hugo Dixon

Hugo Dixon is Editor-at-Large, Reuters News. The opinions expressed are his own.

Matteo Renzi is on a roll. The Italian prime minister is a brilliant politician. His youthful dynamism has bought him time with his people, the markets and the European Union to carry out the immense job of reforming Italy. But he has yet to show he can execute. He now needs to, because even his time will run out.

from Anatole Kaletsky:

How EU politics pushed Merkel to lift Germany’s austerity policies

German Chancellor Merkel and Luxembourg's Prime Minister Juncker hold a joint news conference after a meeting in Luxembourg

Matteo Renzi, the prime minister of Italy who took the revolving presidency of the European Union this week, seems to be the sort of man that Napoleon was referring to when he reputedly said that the key qualification he sought in recruiting a general was good luck.

Renzi become prime minister without even needing to win an election because Silvio Berlusconi and all other rivals self-destructed. He took power just after Italy passed the lowest ebb of its economic fortunes. In May, he was rewarded for his good fortune by Italy’s voters, who anointed him with a strong democratic mandate in the same European elections that discredited almost all Europe’s other national leaders. Now he is taking the helm in Europe, as an economic recovery is starting and the European Central Bank is swinging decisively in support of growth.

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