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The prospects for a coalition government of the PD of Luigi Bersani and the parties supporting outgoing prime minister Mario Monti. This is the best outcome for the eurozone and for lowering Italy's borrowing costs on debt.

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The Washington Post points out the damage to civil society and the rule of law in Egypt in 2014-2015.

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How will countries like India generate jobs when technology enables manufacturing and other activity to do work with fewer and fewer people. Even Hon Hai in China is shifting work to robots. Technological progress is leaving more people unemployed and widening income gaps with the benefits going to a few people, says the Economist in this research based essay. It will require carefully managed governance to invest in infrastructure, raise skills of less skilled workers through education, and wage subsidies for those left behind to ensure our current system works in the future.

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There are similarities in the Republican and Democratic party platforms in 2016. One area of agreement is in the reinstatement of Glass Steagall Act. That legislation made in the Depression period to separate commercial banking from investment banking was changed  when president Clinton made changes in a deal with Senators Phil Gramm and Jim Leach in 1999. The too big to fail problems of banks and the problems of investment banks during the 2008 financial crisis are attributed to the lack of Glass Steagall protections for financial stability and safety. The result is that in the post 2016 environment banks can expect a tougher regulatory environment. Another are is in trade where both parties are expected to take tougher positions to protect U.S. interests. The Republican platform calls for "better negotiated trade agreemets that put America first."

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Egyptian leader ElBaradei describes his talk with U.S. Secretary of State Kerry and E.U. leader Ashton on the day of the coup on July 3, 2013 to convince them about the need for the military to intervene to oust president Morsi. He says two and ahalf years have been wasted but this time Egyptians have to get it right. Morsi was elected with the help of liberals, but failed in ElBaradei's view to form an inclusive government and respect all sides of opinion, including the young people who formed the core of protests against years of military rule.

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Misgivings among Egyptians not connected with the Muslim Brotherhood about the coup in Egypt. Tamer El-Ghobashy covers this part of Egyptian opinion which sees the best approach to poor performance by Morsi would be to vote him out of office or hold a referendum.

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A report released by the Organization for Economic Cooperation and Development (OECD) shows growing income inequality in 34 OECD countries. OECD Secretary General, Angel Gurria says: "The social contract is starting to unravel in many countries. This study dispels the assumptions that the benefits of economic growth will automatically trickle down to the disadvantaged and that the greater inequality fosters greater social mobility. Without a comprehensive strategy for inclusive growth, income inequality will continue to rise." Countries with the largest ratios between incomes at the top and the bottom, are the United States, Turkey and Israel, roughly 14 to 1. Germany, Denmark and Sweden have ratios of 6 to 1, with their ratios up from the 1980's. Gaps in Chile and Mexico are at 25 to 1. The study covers the period from 1980 to 2008. Overall inequality went up by 25% in the U.S. from 1980. In 2008 the top ten percent in the U.S. earned $114,000, 15 times than incomes for the bottom 10%. The top 1% of Americans saw incomes go up from 1980 to 2008, increasing from 8 percent to 18 percent. The richest 1% having $1.3 million in after tax income, and the lowest 20% making $17,700. The trends have accentuated an increase at the highest end- the top 1% and top 10% of the people- and a sharp decrease for the bottom 20%, which can be grasped from the $17,700 and the $1.3 million, both at extreme ends. The study attributes the rise in inequality to a growing gap in wages for highly skilled workers as technology advances, a surge in foreign direct investment and a looser regulatory regime that reduces employee protections leading to wage premiums for financial jobs and smaller incomes for workers at the bottom. Income groups and professions and sectors that had the greatest influence in government were able during this period to get the greatest protection for incomes, and able also to maximize their incomes. Incomes in the financial sector increased dramatically in the last decade, as a result of deregulation leading to higher risk and speculative activities in the financial sector, leading to the financial crisis of 2008-2009. Financial crises further depress incomes at the lower end. Similiar income inequality trends can be seen for India and China. China has a Ginni coefficient of 0.5 according to researchers at Beijing Normal University, up from 0.3 three decades ago- a Ginni Coefficient above 0.4 is considered destabilizing. Another factor that played a part in these countries is corruption and lobbying by special interests for favored treatment of sectors or groups. Austerity measures taken in Europe and in the U.S. are likely to widen income gaps by depressing the lower end income groups, creating social unrest, especially in the absence of efforts to stimulate growth....

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Yields on Greece's 10 year bonds rise to nearly 9% in October 2014, as growth slows to near zero in the eurozone, including Germany, in the second half of 2014.

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Talks on June 28-29 in Rome between President Francois Hollande of France and Chancellor Angela Merkel of Germany. They will be joined by the Italian and Spanish prime ministers, Mario Monti and Mariano Rajoy. Hollande has invited the opposition Social Democrats in Germany for talks in Paris to win support for his approach to the eurozone crisis. The growth initiative proposed by Hollande is fairly modest and Merkel has expressed her support for this. The tougher issues revolve around some acceptable form of mutualizing of eurozone debt to tackle a loss of confidence in financial markets without a surrender of sovereignty by France and other eurozone nations- a particularly sensitive issue in France. More Europe, would mean more German influence in decisionmaking. Germany rejects eurobonds and direct aid to banks from the ECB. Centralized banking supervision and close regulation by a new European regulatory authority would be needed as part of a new eurozone financial architecture. The immediate issues are of some form of deposit insurance for the eurozone banking system so that there is no run on the banks in Spain and other countries....

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Ariana Huffington of the Huffington Post recalls her days growing up in Athens. She says from her own personal experience that the children should not be penalized for the mistakes of their parents, that the next generation should not have to live desperate lives for the next decade under ECB policies that leave no room for growth. She adds her voice to voices in France, Spain, and other countries in the eurozone about the impact of current EU and ECB policies on Europe, and says exiting the eurozone is a difficult option, but like the Argentine example offers more hope for growth for the young generation in Greece.

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The Social Democrats leader Sigmar Gabriel is Economics Minister in the coalition government of Angela Merkel in Germany. He is sympathetic to French premier Manuel Valls effort to reduce austerity in the 2015 French budget now being reviewed by Brussels. Here he takes the initiative to call for discussion on the issue of growth and austerity facing the European Union, by joining French Economics minister Emmanuel Macron in asking two economists Pisani-Ferry and Enderlein at the Berlin Institute of Governance for advice on generating growth. The process started in late summer with the defeat of the centre right government in Sweden which supported Merkel's strict austerity policies for balanced budgets. The elections to the European parliament showed the dire situation facing Cameron in Britain and Hollande in France with the unpopularity of austerity policies, higher taxes and cutbacks. The Socialist Hollande government has the lowest public opinion ratings of any postwar government in France, at 18%, and it is unwilling to go further down the road with austerity. At the same time Valls has found a partner in Italy with the growing popularity of Matteo Renzi in Italy who won 40% of the vote in Italy for the EU parliamentary elections of 2014. ECB president Mario Draghi, has generated the debate by saying at a October 2014 Brookings Institution conference in Washington D.C. that countries that have fiscal space (referring to Germany) should use it. He added that governments that did not take action in the economic crisis facing the eurozone of no growth will be swept away by public opinion. IMF president Lagarde, a former French Finance Minister under Sarkozy, has also questioned policy of strict austerity. For the first time since the start of the eurozone crisis in 2010 there is an opportunity for open discussion on future policies for renewal in the eurozone....

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Brinksmanship on both sides as Greece's Syriza government continues negotiations with the EU in June 2015. Syriza's Tsipras attends the St. Petersburg Economic Forum as the IMF's Lagarde calls for restoring dialogue "with some adults in the room." The German media describes Greece's finance minister Yannis Varoufakis as "amateurish." Germany says a Greek exit from the eurozone is an option. Creditors are pushing for changes to the pension system before releasing $7 billion, including $1.6 billion owed to the IMF on June 30, 2015.

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Barley points out the resignation of prime minister Monti in Italy is not a cause for panic, as his likely successor Luigi Bersani, head of the centre left Democratic party which leads in the polls with its electoral alliance having about 43% support, has committed to following through with Monti's policies and committments to the EU. Berlusconi is not the factor he once was with only 15% support in the polls, and anti establishment parties opposing public corruption such as Beppe Grillo's Five Star Movement appealing to younger people have about 20% support changing the political landscape in Italy. Other factors favoring Italy- a lower level of debt redemption in 2013 of 158 billion euros compared to 200 billion euros for 2012 will lower Italian bond issuance, Italy's primary budget surplus, the Italian economy bottoming out, and credit conditions improving. Year to date Italian bonds have returned 19.5%, and he sees no reason for an exit from Italian bonds. If polls continue to show a committment to the policies introduced by Monti, Italian bonds will continue to be attractive for investors. By setting Italy on the path to restoring and strengthening governance Monti has removed a key element for volatility in Italian bonds....

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Kirkpatrick and El Shaikh give an account of the days and events leading to the ouster of president Morsi of Egypt in July 2013. Morsi and the Muslim Brotherhood forge an alliance with the military under Gen. Sissi, a younger officer open to working with the Muslim Brotherhood in power. Morsi is elected with the support of liberals and the military under Gen. Sissi against a Mubarak era candidate. Morsi wins with 51% of the vote, which liberals say would not be possible without their help. Morsi fails to form an inclusive government. His authoritarian tendencies from decades of working under a strictly hierarchical leadership in the Brotherhood, a personal style that does not take into account opposing views, and a lack of experience in democratic forms of governance where the opposition, the media and the judiciary, are important to balancing powers of the executive, lead to alienating liberal opinion and younger protesters who initiated the struggle against Mubarak. Gen. Sissi tries repeatedly to achieve a compromise including appointment of a new prime minister and cabinet but Morsi rejects all efforts, leading to the takeover by the military and appointment of the chief justice as president and ElBaradei, as prime minister....