Business Spectator

In late 2009, Greece started the eurozone crisis. Five years later, the country’s problems are still large enough to trigger the next big eurozone disaster.

New Zealand proves that reforms, even in mature democracies, are still possible. They should be possible in Australia as well where they are much needed. For any political leaders wishing to embark on a process of economic reform, whether in Australia or in Europe, a look at New Zealand may well be inspirational.

Kenneth Rogoff may be a good economist but he ignores something quite fundamental about the role of money. Cash may no longer be king, but it is a little piece of freedom we carry in our wallets.

For Germany’s reputation as a place to do business, both cases are damaging. They leave a stench of corruption and unjust enrichment on a country that otherwise likes to celebrate its transparency and cleanliness. They are more reminiscent of a banana republic than one of the leading developed countries in Europe.

Whether Juncker’s political career will come to an abrupt end now depends entirely on whether he can sufficiently distance himself from the Lux Leaks revelations. Or indeed, whether those who elected him to his new office will award him a grace period regardless.

The ECB’s big experiment with negative interest rates is finally reaching ordinary people and two things are ironic about it: First, that it was a bank with a hint of gambling in its name which finally drove this message home. And second, that of all weeks in the calendar it had to happen during world savings week: the last week in October when European banks traditionally pretend they like to manage assets and encourage savings. If only.

If you are a gold bug, and if you think the majority of the Swiss are too, you might want to consider adding some of the yellow stuff to your portfolio. But be careful – even in Switzerland, referenda can result in surprises, and not every opinion poll that glitters is gold.

The eurozone has long been stuck in an economic cul-de-sac. The longer the malaise drags on, the more one gets the impression that it is in a political dead end, too. You cannot find reasonable policies anymore if this is how they are discussed.