Yannis Palaiologos

Yannis Palaiologos is a features reporter for the Kathimerini newspaper in Athens, Greece.

Recent Articles

Europe's Miserable Credit Score

Without access to credit, the European South is unlikely to bounce back anytime soon.

AP Photo/Michael Probst,File
E uropean Central Bank president Mario Draghi surprised markets last Thursday by cutting the Bank’s benchmark interest rate to a record low 0.25 percent (as low as the federal funds target rate in the U.S.). Explaining his decision, Draghi—the person who deserves most of the credit for the lull in the euro crisis over the past 15 months—noted that “monetary and, in particular, credit dynamics remain subdued” and that monetary policy must remain accommodative in order to “assist the gradual economic recovery” taking hold in the Eurozone. In other words, monetary policy must remain extremely loose to prevent Europe from sliding into a Japan-style period of protracted stagnation. The Eurozone recovery, which materialized in the second quarter of 2013 after a year-and-a-half of double-dip recession, is weak and, more importantly, uneven— as the head of the ECB is well aware. While Germany and Finland grew 0.7 percent quarter-on-quarter and France followed closely behind with 0.5 percent,...

Italy's Vote Against Austerity

Flickr/Sara Fasullo
Those pesky European voters have done it again. Last spring the Greek electorate, choked by recession and austerity, nearly gave the reins of government to a hard-left, anti-reform coalition. Now it’s Italy’s turn to throw the plans of the Eurozone high command into disarray. As results of the two-day parliamentary election began streaming in on Monday, Brussels, Berlin, and Frankfurt (seat of the European Central Bank)—not to mention the global markets—looked on in horror. The centre-left coalition led by Pier-Luigi Bersani and his Democratic Party (made up of reformed Communists and other modernized leftists) could not put together a majority in the Senate, even if it went into alliance with the centrists backing the outgoing prime minister, Mario Monti. The right-wing coalition led by Silvio Berlusconi had come within a whisker of outright victory. Most shockingly, M5S (the “Five Star Movement”), an anti-establishment and anti-euro party founded on the Internet and led by enraged...

Austerity's Unintended Consequences

AP Photo/Mauro Scrobogna, LaPresse
AP Photo/Mauro Scrobogna, LaPresse Italian media mogul and former ex-Premier Silvio Berlusconi during a television appearance last week. The latest political polls suggest he is gaining ground on center-left candidate Pier Luigi Bersani ahead of Italy's elections. I s the worst of the Eurozone crisis over? The optimists—out of conviction or calculation—say “yes.” The European Central Bank’s promise to purchase an unlimited amount of government bonds from member-states who find their credibility questioned by the capital markets has brought the borrowing rates of the European periphery down to manageable levels without spending a single euro. Ireland, the second Eurozone country to require an international bailout in November 2010, has already made a partial return to the markets for long-term borrowing, while Portugal, which was bailed out in May 2011, hopes to do so later this year. Even Greece seems to be making headway with reforms and fiscal consolidation, the result of which has...

David Cameron's Malaise Speech

Europe is not impressed with the British P.M.'s plan to loosen the country from the E.U.'s grip.

Rex Features via AP Images
Rex Features via AP Images) Prime Minister David Cameron giving the keynote speech on Britain's future in Europe, Bloomberg head office, London, Britain. I f there is one word that defined the EU in 2012, it was “Grexit.” The prospect of Greece crashing out of the Eurozone hovered over Europe like a dark cloud, threatening a thunderstorm but never delivering. With Greece’s continued membership in the euro looking more secure than it has in a while in these early days of 2013, a new word has captured the imagination of Europe-watchers: “Brexit”, or the possibility of a British departure from the European Union. Prime Minister David Cameron gave a big speech on Britain and Europe in London on Wednesday morning. In it, he expressed his country’s dissatisfaction at the evolution of the European Union, in particular in the age of the euro crisis. Lamenting the slipping competitiveness of European economies and the mounting democratic deficit of the EU, he vowed to renegotiate the United...

The Italian Job

The prime minister’s announcement that he will leave Italy’s top spot early could throw Europe into chaos.

(AP Photo/Geert Vanden Wijngaert)
Mario Monti’s announcement last Saturday that he plans to resign his post as Italy’s prime minister earlier than was previously expected has thrown Italian politics, and the whole Eurozone, into renewed turmoil. Monti, a Yale-educated technocrat and former EU commissioner, took over in November of last year after market pressure forced Silvio Berlusconi to quit in order to prevent the ignominy of Rome having to apply for an international bailout. The plan was for him to serve the rest of the parliamentary term, until elections scheduled for no later than April 2013. But last week, Berlusconi’s PdL (People of Freedom) party, which had been backing the Monti government, pulled its support, just as its exceedingly controversial 76-year old billionaire leader declared that he would make one more run for the premiership (he has been elected three times already in the span of nearly two decades). This led directly to Monti’s announcement that he will go as soon the 2013 budget is passed,...

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