Slovak head of government Robert Fico has threatened to expropriate foreign utility companies if they seek to overcharge their customers. The Swiss daily Neue Zürcher Zeitung says the threat has populist motivations: "This threat from Fico, who was elected head of government in the summer of 2006 on the strength of an anti-liberal platform, is both ill-conceived and implausible. The Slovak state budget could not afford to carry through an expropriation process that would necessitate massive payments of damages. Fico must also be aware of what a devastating message this would send to foreign investors who make a significant contribution to the economic growth of the country. If Fico appears enthusiastic about the economic policy methods [of Venezuela's socialist president] Hugo Chávez, this is primarily for electoral policy reasons. It was not least the promise to protect citizens from steep price increases which brought the head of government his election victory two years ago. The introduction of the euro scheduled for the beginning of 2009 has fanned the people's fear of considerable increases in prices - a fear that Fico is trying to allay among other things with stringent price regulation." (19/08/2008)

» full article (external link, German)
More from the press review on the subject » Economic Policy, » Slovakia

In its leading article, Le Monde casts about for a way out of the recession looming in Europe and France: "Economic slowdown and stagnation are real. France is not the only country to suffer from an economic crisis which it did not bring on itself. The causes are primarily the sub-prime crisis and the rising price of raw materials, above all petrol. ... Without seriously waiting for an economic plan coordinated on an European level - which is only envisaged hypothetically - the countries of Europe are looking for answers on the national level. Economic logic would demand that France take counter-cyclical measures, or to put it another way, that it encourage entrepreneurial activity and household consumption. But unlike its neighbours, France lacks the financial means." (19/08/2008)

» full article (external link, French)
More from the press review on the subject » Economic Policy, » France, » Europe

After their sharp increase in recent months, prices for crude oil and other raw materials are now on the decline. In view of this development, the Spanish business newspaper Cinco Días sees hope for the European economy. "Both factors - cheaper raw materials and the falling euro - are strong arguments in favour of an upswing in the European and Spanish economies. The [price] rise of products linked to oil and food prices will slacken, and lead to a relaxation of interest rates. And the services offered by European enterprises will regain the appeal they lost with the strong euro." (18/08/2008)

» full article (external link, Spanish)
More from the press review on the subject » Trade, » Consumers, » Financial Markets, » Spain, » Europe

The daily Jyllands-Posten takes a look at the ways the European Central Bank (ECB) can react to the dangers of inflation and looming recession. "While Europe's economy was successful the ECB was able to stick to its interest rate policy without provoking major criticism. But the threat of recession along with growing unemployment and other economic consequences has faced the ECB with a dilemma: which disease to tackle first - inflation or the recession? Many European politicians take it for granted that the recession is the most pressing problem. This is why the ECB should follow the example of the American Federal Reserve and lower interest rates in order to improve conditions for European families whose private consumption is vital for the well being of Europe's economy. ... If the ECB does indeed lower interest rates later this year, as some economists have predicted, it will only do so once it sees clear signs that inflation is slowing down." (18/08/2008)

» full article (external link, Danish)
More from the press review on the subject » Economic Policy, » Financial Markets, » Europe

Under pressure from Brussels, the Polish government must come to a decision in the coming weeks about the privatisation of Polish shipyards. The liberal news magazine Polityka comments on the predicament faced by the finance minister: either he can sell the shipyards for a pittance to foreign investors, or he can let them go bankrupt. "Either decision could see the finance minister arraigned before the supreme court, as the [conservative opposition party] PiS has announced. ... The minister's hands are tied not only by his narrow room for manoeuvre, but also by fear. Instead of threatening him, the [trade union] Solidarność and the PiS should redress their own errors, at least in part. Whatever the finance minister decides, his decision should be met with vociferous support, from both the opposition and the president. Because the dockyards should be saved, and not misused cynically as a political weapon for the umpteenth time." (13/08/2008)

» full article (external link, Polish)
More from the press review on the subject » EU Policy, » Corporations, » Economic Policy, » Poland
All available articles from » Joanna Solska

According to the Belgian daily De Standaard Belgium needs to battle recession not only with short-term measures but by reforming its economy: "Ireland is often held up as a model for a nation that has rid itself of poverty by opening up and modernising its economy. This success has now ... reached its limits but [the modernisation] created prosperity. Reducing the influence of the state on the economy, creating tax incentives and opening up its borders to foreign workers: all these measures have driven growth. If you get rid of the restrictions on companies you create dynamics that no amount of regulations and laws can prescribe. The coming months will be tough. The confrontation between population groups eager to secure their purchasing power and companies that are fighting to survive will be extremely fierce. But what is important is to set one's sights beyond the economic downturn." (14/08/2008)

» full article (external link, Dutch)
More from the press review on the subject » Economic Policy, » Ireland, » Belgium
All available articles from » Bart Sturtewagen

Mervyn King, governor of the Bank of England, has announced a gloomy prognosis for the British economy. The Guardian comments on the implications for the British government. "If wages remain sluggish, the case for a rate cut will soon become unanswerable. The Bank remains nervous, but at least has the prospect that its dilemma will thus ease. No such luck for ministers, who will find no comfort at all in Mr King's suggestion that the 'squeeze on real take-home pay' will soon intensify. For Gordon Brown, in particular, the worry is voters will now turn even more violently on the man who once led them to believe that he had abolished boom and bust. He must show struggling families that he is on their side, but his options are limited as the slowdown is hitting the government's already-battered books. The scant funds available must be channelled into assistance with heating, and targeted help with mortgages for those in danger of repossession. It will not be easy to afford such a package. But what the government can afford even less is to stand idly by and leave vulnerable people to struggle alone as the big squeeze takes hold." (14/08/2008)

» full article (external link, English)
More from the press review on the subject » Domestic Policy, » Fiscal Policy, » Consumers, » United Kingdom

Les Echos newspaper analyses the dispute between the EU member states and the European Central Bank (ECB): "Conflicts over the ECB's interest rate policy have increased over the summer. ... Whether a coincidence or not, shortly before the start of the EU Council presidency, Nicholas Sarkozy stepped into the breach and spoke out against a rise of the base rate. ... For hardliners, a rise in prices has a depressive effect and engenders stagflation, which weighs heavily on individuals' prosperity and ulitmately impoverishes them. For the European monetary authority, the Eurozone takes precedence over the national economies. ... No doubt our politicians, regardless of their political stripe, will soon denounce the European Currency Unit as responsible for a new slow down. ... What better scapegoat than the European Central Bank?" (13/08/2008)

» full article (external link, French)
More from the press review on the subject » Fiscal Policy, » Europe
All available articles from » Béatrice Guedj

The Irish low-cost carrier Ryanair has announced it will stop selling tickets through Internet travel agencies, as it disagrees with their terms and conditions. In addition the airline is threatening not to honour tickets already purchased in this way. La Vanguardia newspaper disapproves: "Ryanair does have the right to sell its tickets where it feels appropriate. ... But it seems less in the right to declare as invalid tickets that already have been reserved and purchased, as it is threatening to do. That is an extreme measure, one which must be dealt with by the responsible authorities for trade and consumer protection in the individual countries. ... Ryanair should change its business tactic at once." (13/08/2008)

» full article (external link, Spanish)
More from the press review on the subject » Infrastructure / Travel and Transport, » Corporations, » Ireland, » Europe

So far the conflict in the Caucasus has had little impact on the price of oil. According to the Financial Times Deutschland, it is down due to economic trends. "Just imagine, there is a war - but oil prices have barely registered it. ... Reactions to the crisis in Georgia so far show just how much the mood has changed on the raw materials markets: the price of crude oil went up ... slightly but the movement remained nothing more than a technical correction following the dramatic price drop of the last few weeks. If the market was hungry for arguments to increase the price, the conflicts in the Caucasus would have immediately catapulted the quotations upwards. ... During the period of wild speculation in the first half of the year the slightest rumour of unrest in Nigeria or mishaps in Venezuela caused prices to fluctuate dramatically. ... If the crisis in the Caucasus spreads and oil supplies are seriously endangered this will not fail to have an impact on the market. But the first moderate price reactions demonstrate that the downwards trend of the past few weeks is pretty robust." (12/08/2008)

» full article (external link, German)
More from the press review on the subject » Energy Policy, » Trade, » Russia, » Global, » Georgian Republic