Breakingviews

Europe can’t force Greece into never-default land

By Neil Unmack
The author is a Reuters Breakingviews columnist. The opinions expressed are his own

A German proposal to tie Greece’s future with a pledge to never default looks barmy. The euro zone already has a hard enough time getting Greece to reform its economy, partly because Greece can wield the threat of a messy default. When Athens reaches a primary budget surplus, as it should this year, it will be in an even stronger negotiating position because it could then default on bailout loans and still pay for the government’s expenses.
Germany has come up with the idea of forcing Greece to prioritise international debt repayment over domestic bills. The euro zone would then be assured it would get its money back. This in turn would make it more credible in pressuring Greece into speedier reforms, since the Greeks themselves would feel the pain of non-compliance.

Google feeds regulators fresh meat to chew on

By Reynolds Holding

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Google is feeding U.S. regulators fresh meat to chew on. Antitrust concerns have swirled around the Internet search giant for years. Now, changes to its data-sharing policies are causing added alarm among lawmakers. Google hasn’t yet crossed any major legal lines but seems destined to find them.

Euro zone ill-suited for long-term economic task

By Pierre Briançon
The author is a Reuters Breakingviews columnist. The opinions expressed are his own

The fiscal treaty euro zone leaders finally agreed on this week adds a solemn touch to their oft-repeated promises that the days of financial insouciance are over. But most of the treaty’s content had already been passed in EU legislation in October, and all monetary union members were already well on the path to stricter budgets anyway. Now that yesterday’s problem has officially been solved, the euro zone has to tackle the challenge of boosting long-term growth, while two of its members – Greece and Portugal – threaten to turn into economic deserts.

Gingrich makes Goldman 4-letter word – to no avail

By Daniel Indiviglio

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The Florida Republican primary’s big winner tonight may be Wall Street’s most infamous bank. Front-runners Newt Gingrich and Mitt Romney are trying to connect one another to the financial crisis. Gingrich paints his rival as an agent of the giant vampire squid, while Romney criticizes his opponent for being paid handsomely for advising Freddie Mac to inflate the housing bubble. But in a state still in pain from the bust, Romney’s line is winning.

EU must learn to cope with new German leadership

By Pierre Briançon
The author is a Reuters Breakingviews columnist. The opinions expressed are his own

It wasn’t the most subtle idea ever developed by German diplomats. The suggestion that a special euro zone commissioner might take control of Greece’s budget was met in Athens with predictable outrage. Athens has failed to implement its bailout programme, and hasn’t done anything to combat the scourge of tax fraud. Europeans everywhere are tiring of pouring into Greece the money its own citizens are sending abroad. But the Kommissar proposal’s insensitivity is a reminder that the new lone German leadership of the euro zone will need some adjusting.

U.S. private sector emerges from government shadow

By Martin Hutchinson

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The U.S. private sector is emerging from government’s shadow. Headline annualized GDP growth of 2.8 percent in Friday’s fourth-quarter data looks more anemic when inventory growth is netted out. But overall in 2011, as government has retreated private enterprise has regained strength.

UK’s problem: it’s the best in Europe

By Ian Campbell

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

UK GDP stalled in the fourth quarter, contracting by 0.2 percent. That’s bad. But which major west European economy will perform best in 2012? It’s the UK again, the IMF predicted this week.

Uninvited guest, Mr 99 Percent, crashes Davos

By Rob Cox 

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The most difficult guest to avoid bumping into at the World Economic Forum this year has no badge. He was not invited to the annual gathering in Davos, but he haunts the panels, hallway conversations and politicians’ speeches. He is Mr. 99 Percent, the specter of the unemployed and disenfranchised.

Obama’s appeal to 99 pct won’t sway a key minority

By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own

Barack Obama hasn’t run out of change yet. He outlined a radical agenda in his annual State of the Union address on Tuesday. He would boost taxes on millionaires, make big banks pay for mass mortgage refinancing and punish multinationals for outsourcing. As ideas, such proposals will resonate with the 99 percent. As policies, they will mostly be blocked by Republicans in Congress.

Counterpoint: Donating a bonus doesn’t reduce it

By Richard Beales

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Royal Bank of Scotland boss Stephen Hester should take a bonus but give it to charity, according to Breakingviews columnist George Hay. He reckons this would address the toxic politics of collecting a big payment from the government-controlled UK bank. That’s humbug. Philanthropy is to be encouraged, but it’s not a valid defense for a bonus.