EUROZONE: Experts Reassess EU Break-up Risk.

NYTIMES/ JACK EWING and JAMES KANTER/
    This news blog often focuses on the intersection of economics and politics.
   Today's link from the NYTIMES not only updates the Irish debt bailout crisis...but also poses some intriguing "what if" scenarios about the stability of the euro and the EU itself.
  Banker Martin Taylor states: “If weaker countries don’t behave in a way necessary to sustain the euro zone, it will break up.”
 But for many experts, a split in the euro zone is too horrible to contemplate.

SERBIA: Are Its Soccer Thugs Impeding EU Membership?

GUARDIAN/ Ian Traynor :  
    "For the second time in three days Serbian thugs have laid waste to a European city in riots that have combined wanton and random violence with organizational talent and political backing. Yesterday in Genoa, the Scottish referee Craig Thomson had first to delay the kick-off for the Euro 2012 qualifier between Italy and Serbia by 45 minutes because of fans' rioting, and then call the game off after seven minutes. Earlier the angry young men from Belgrade went on the rampage in the Mediterranean port and Uefa have opened a "full and thorough" investigation into the incidents."
AND:"... the hooligans have been a fixture of Serbian life for decades, often used and abused by ruthless politicians, warlords and organized crime."

Plus, there's the recent ugliness in Belgrade as over 6,000 skinheads and nationalists attacked the first gay parade. That demonstration saw over 250 arrested and 150 injured.

A legitimate question is...would you want people with such uncivilized behavior in your political and economic union?

EUROZONE: Profile: EU President Herman Van Rompuy.

NYT/    STEVEN ERLANGER and STEPHEN CASTLE /

       Economist Herman Van Rompuy, 62, heads the council of 27 government leaders who control the E.U. He has been credited with guiding the EU during its crisis over Greek debt and the crash of the euro.      “If the euro zone had fallen apart,” he said, “it would have been the end of the European Union.”
“Trying to be the first man in Europe and no one else around you would be a real catastrophe,” he said. “If you want to be the president of Europe with a high profile, you immediately come into conflict with other European institutions and member states. There are nuances, of course, depending on your ego, but there is only one way to do it: with a mixture of leadership and giving others the way to play their role.” He said: “I call myself a facilitator.” Then he said: “You cannot govern Europe against the member states.”

EUROLAND: Giving A Voice To The Populace Could Present Problems.

NYTIMES/    The EU will soon give its 500 million citizens a voice — if they can collect at least one million signatures from a “significant” number of member countries. A little debated clause in the Lisbon treaty allows for citizens to propose legislation. Some experts believe that the EU could soon see many petitions from bullfight bans, burqas and genetically modified food; to offshore drilling new taxes and keeping Turkey out of the union.

EU/MERCOSUR SUMMIT: Hoping To Revive Stalled Trade Talks.

BBC/     In a Madrid summit, the EU hopes to revive stalled trade talks with Latin America. The EU is Latin America's second biggest trading partner and the region's biggest investor. Currently, Argentina is an especially difficult market for EU farmers. The Mercosur group includes Argentina, Brasil, Paraguay and Uruguay. Negotiations with the EU were suspended in 2004.

THE EU: Must Audit And Punish Goldman Sachs For Going Rogue With Greek Debt.

BASELINE SCENARIO/ Economist Simon Johnson's blog/   It now looks like a single rogue bank can also bring down the world’s financial system. Goldman Sachs may be that rogue bank if the revelations by the NYTimes about Greece's debt and Goldman's  leveraging are true. Johnson argues that the EU MUST launch a special audit of Goldman Sachs and ALL its European clients.

PORTUGAL: Scares EU With Higher Budget Deficit of 9.3%.

WSJ ONLINE/
The Euro hit its lowest level in 5 months after Portugal reported it would record a higher-than-expected budget deficit of 9.3% of GDP for 2009. The EU had projected it with an 8% budget deficit for 2009. Portugal has been given until 2013 to bring its deficit below the required 3% of GDP level.
Setting its 2010 budget, it said government wages would be frozen and payrolls reduced through attrition. It also planned to introduce a 50% tax on bonuses paid in 2010 to top executives in financial institutions and to resume privatizations of state assets.

UKRAINE: EU Losing Patience With Kiev, Exposing Weakness Towards Russia.

GUARDIA/UK/ COMMENTARY/ Simon Tisdale/
"EU officials are casting a wary eye at Ukraine as it prepares for watershed presidential elections in January that look likely to spark a lurch back towards the Russian sphere five years after the former Soviet republic was supposedly set free by the "Orange Revolution". The cautious approach in Brussels is again raising questions about the EU's apparent lack of a strategic vision – and political courage – in its dealing with its eastern neighbours."

POLAND: Growth In Rural Poland.

TRANSITIONS ONLINE/
"The broad picture, supported by statistics, is that Poland’s entry to the EU has likely initiated the best period in the history of rural Poland in decades."

THE EU: Support Crumbles For Tony Blair As First President.

THE INDEPENDENT/
A succession of countries cast doubt on Tony Blair winning support to be nominated as the first President of the European Council.
France and Germany, Blair's early supporters, are reportedly now cool about his candidacy.
German Socialist Martin Schultz described Blair's chances as "about zero", adding: "Blair is out of the running. Nobody wants to give him that job." Angela Merkel was said to be "not particularly ethusiastic" about Blair.

Like The Czechs, Slovak Minister May Also Seek Lisbon Treaty Exemption.

REUTERS/NYTIMES/
Slovak Prime Minister Robert Fico said his government may ask for an exemption from the Lisbon treaty to protect itself from potential post-war property claims... if the Czechs succeed in getting one.

Soros Criticizes EU For Faulty Latvia Financial Rescue.

REUTERS/
"The pressure for them to reduce government spending -- the problem is in the private sector -- is the wrong kind of policy, which ought to be avoided," billionaire investor George Soros said.
"I think that the European Union countries ... ought to help Latvia more than they are currently doing."

Contrarian Euro-skeptic Czech Vaclav Klaus Threatens EU Crisis.

AP VIA GOOGLE NEWS/
The Czech Republic's president, Euro-skeptic Vaclav Klaus, has continuously attacked the Lisbon Treaty. Now Klaus can block it even though he is only a ceremonial head of state — like the Queen of England. Because the Czech Parliament has ratified it, he is legally bound to sign the document. Yet he seems prepared to stall for as long as he can even if polls show that most Czechs want him to sign.
The ultra-conservative Klaus also doubts that humanity is causing global warming and strongly opposes gay marriage.

Europe's Economy Suffering From "Eurosclerosis."

NYTIMES/
"Europe appears likely to be the world’s laggard, threatening a return to the dark days of “Eurosclerosis.” Leaders who once spoke optimistically of fundamental changes aimed at enhancing productivity have turned to the more prosaic tasks of protecting jobs and avoiding painful political choices."

Poland's President Signs EU Treaty.

BLOOMBERG/
Poland's President Lech Kaczynski, a noted Eurosceptic, signed the Lisbon treaty. Kaczynski said in a speech just before the signing he was "deeply convinced" that the "great experiment" of the treaty would be successful.

Latvia Close To Agreement With IMF, EU And Sweden.

BLOOMBERG/
“Latvia is on the way to coming to an agreement with its international lenders,” said Liga Krapane, Prime Minister Valdis Dombrovskis’s spokeswoman.
The IMF, European Union and Sweden agreed to loan Latvia 7.5 billion-euro ($11 billion) in December and have vigorously urged Dombrovskis to cut budget some 500 million lati ($1 billion) a year until 2012. Swedish Premier Fredrik Reinfeldt said on Oct. 5 Latvia “must correct” its deficit and Riksbank Governor Stefan Ingves has said the country may be left “in the cold” if it doesn’t comply.

Poland's President In No Hurry To Sign EU Treaty.

WSJ ONLINE/
According to a statement released by President Lech Kaczynski's press office, an aide told public radio "nobody says we need to urgently rush" the Lisbon Treaty ratification process.
The aide, Wladyslaw Stasiak, the Polish president's chief of staff, said the president will eventually complete the process.
"Those who say the signature now, even before breakfast, will change something on the E.U. stage are wrong. No, it really doesn't matter," he said.

New Czech Move To Block EU Treaty.

BBC/
Czech senators opposed to the EU's Lisbon Treaty have filed a new complaint against it with the country's constitutional court.
The complaint could create a new delay to treaty ratification, even if Irish voters back the treaty in a referendum on Friday.
Czech President Vaclav Klaus, a eurosceptic, says he will not sign the treaty until the court decides.
The treaty cannot take effect unless all 27 EU member states back it.

EU Criticized For Letting Poland Pay Dell $54.5 Million Euros For Move-out.

IRISHTIMES/
Dell computer is moving production from Ireland to a new manufacturing plant in Poland, and the Polish government is giving 54.5 million euros in aid for the factory.
Irish officials are calling the EU's decision a “disgrace”, and would be greeted with outrage in Limerick and throughout Ireland.
“Earlier this year Dell announced that they were relocating the European centre of operations from Ireland to Poland with the loss of 1,900 jobs from their plant in Limerick...taking much-needed jobs from one of the most economically-deprived regions of one member state and allowing them to be relocated in an equally-deprived region of another member state simply defies logic.”

Slovenia Prospering In EU.

GLOBALPOST.COM/
After separating from Yugoslavia, Slovenia grew its manufacturing and transportation infrastructure. It joined the EU along in 2004 and adopted the euro as its currency on Jan. 1, 2007. In 2008, Slovenia had the highest GDP per capita of any new Eastern European EU member state, at 16,600 euro ($24,300).