Yannis Palaiologos

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

Recent Articles

Obama's European Socialist Empire

(AP Photo/Haraz N. Ghanbari, File)
It has been a long time since Europe has featured so prominently in an American presidential race. Republicans, in particular, have seen the crisis plaguing the Eurozone as an opportunity to attack president Obama, who—they claim—is leading America away from its core values and towards the sickly collectivism prevalent in the European Union. Mitt Romney, in one of those hilarious-but-horrifying Republican debates last September, spoke of a president “taking his inspiration […] from the socialist democrats in Europe," before pointing out that he, in contrast, believed in America. His vice-presidential pick, Paul Ryan, was complaining to the New Yorker’s Ryan Lizza about the lurch towards a European style of government in March 2009, before the crisis in Greece had begun, and has continued invoking the frightening specter of the Europeanization of American as the Eurozone’s woes have deepened. It is well known that political campaigns leave little...

Bracing for a Hit from Europe

(Flickr/Juan Carlos García Lorenzo)
It may be the peak of vacation season in Europe, but the continent’s fiscal crisis has not taken a break. Last week, Wolfgang Schäuble, the powerful German finance minister, took time out from his holiday to have a sit-down with his American counterpart, Tim Geithner, in the North Sea island of Sylt. The last-minute meeting was organized at Geithner’s request. Less than a hundred days from the U.S. presidential election, it highlighted—as if more evidence were necessary—the Obama administration’s concern about how developments in the Eurozone could affect the vote come November 6. The crisis calendar between now and then is certainly packed; if a week is a long time in politics, three months is an eternity in economics. Below, the Prospect sketches out a road-map of the pitfalls ahead. Greece We start, unsurprisingly, in Greece. The recently elected coalition government there is putting the final touches on a new austerity program—a condition...

Turkey Takes Off

The EU's perennial reject has seen impressive growth—but there are warning signs for the future.

What a difference ten years makes. In 2001, Greece adopted the euro as its national currency. Its borrowing costs, which plummeted in expectation of this momentous event, were almost as low as Germany’s. Its growth rate for the year climbed to 4.1 percent and inflation hovered around 4 percent—a sharp decline from the double digits of the ’80s and ’90s. It was a country on the way up. On the other hand, Turkey, its neighbor and geopolitical arch-rival, was mired in a major financial crisis. Its currency was collapsing, its banking system was broken and unemployment was skyrocketing. These days, it is the Greeks who are in an economic freefall, while Turkey is one of the fastest-growing economies in the world: In 2011, Turkish GDP jumped by 8.5 percent, almost besting its 9 percent expansion in 2010. In a country with a young workforce (the average age is 28), a large rural underclass, and poor infrastructure aching to be upgraded, the prospects for more banner...

Can European Leaders Go Big?

With Spain, Italy, and Cyprus reeling, the stakes are high for the Brussels summit—but Germany stands in the way of broad reform.

(AP Photo/Philippos Christou)
The European Summit today and tomorrow in Brussels is the latest in a series of make-or-break moments for the European project. On many occasions since May 2010, when Greece was first cut off from market access, European leaders have been called upon to make a bold leap forward in the policy integration of the Eurozone—the only way to convince investors of the iron irrevocability of the common currency. Under constant pressure from the ongoing crisis, they have often seemed to be making the big decisions to reform the flawed architecture of the monetary union, only for initial perceptions to give way to a much more underwhelming reality. Markets have grown increasingly savvy and cynical in interpreting summit communiqués. They know that behind grand words and large headline numbers, the political will to come together has yet to be demonstrated. Is this summit meeting—in the week when Cyprus became the fourth Eurozone member to ask for an official rescue and Spain...

Greece Gives the Euro One Last Shot

(AP Photo/Kostas Tsironis)
It was a night of high drama, after a tense pre-election period that often descended into violence. By the end of it, Greek voters had narrowly given the pro-bailout forces one last stab at salvaging the adjustment program with Greece’s creditors and avoiding a disastrous exit from the euro. This has bought the country some time. It must now make the best possible use of it. The first step will be the formation of a government as soon as possible. According to the election results, the conservative New Democracy got 29.7 percent of the vote and 129 out of 300 seats in parliament. Along with third-place PASOK (12.3 percent, 33 seats) and the Democratic Left (6.3 percent, 17 seats), the numbers are there to set up a coalition government with a strong majority and a clear mandate to renegotiate some elements of the bailout program. SYRIZA, the surging hard-left party which garnered an unprecedented 26.9 percent of the vote on an aggressive anti-bailout platform, has already made it...