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The lack of trust in negotiations on the terms of spending cuts between Greece and EU ministers in February 2011. In difficult exchanges between German finance minister Schauble and Greece's finance minister Venizelos, Schauble criticized the Greek government for not beginning negotiations for reduction in the minimum wage. EU ministers at a meeting with Venizelos on Feb 10, 2012, showed a distrust of Greece's figures on austerity cuts and asked for an additional $428 million in cuts to make up for the refusal of Greece to cut supplemental pensions. In Greece five ministers in the Greek cabinet resigned in protest over the conditions set by the troika of the EC, ECB and the IMF, just as unions launched a 48 hour strike in Athens. Greece is in the fifth year of a recession with unemployment at over 20%, making sharp cuts more painful. A shrinking economy makes achieving budget defict targets even more difficult and worsening the debt situation.

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Portugal's economy is shrinking. Austerity measures taken in exchange for 78 billion euros from the IMF and the EU under a May, 2011 agreement have reduced the prospects of growth. The ratio of debt to GDP was 107% in May 2011. It is expected to reach 118% in 2013 because the economy is shrinking- even though Portugal will have achieved its targets for reducing the budget deficit. Portugal's finance minister, Vitor Gaspar, a former ECB research director, has reduced the budget deficit by one third by cutting spending, pensions, wages and increasing taxes. GDP fell by 1.5% in 2011 and is expected to decline by 3% in 2012. Even the IMF says in its recent economic review that if growth is lacking the debt of Portugal "would not be sustainable." David Bencek, analyst at the Kiel Institute for the World Economy, says that the Portuguese economy lacks the structure needed to grow, and therefore has debt that is unsustainable. Portugal lacks a manufacturing base and exports, and was just emerging from decades of neglect by military rulers of education and other essential parts of a modern economy when it joined the EU....

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The Merkel government's effort to convince a skeptical German public about the need to aid Spain's banks. This includes a video on YouTube. The German parliament will vote shortly on the loans to Spain's savings banks.

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France's unemployment rate for youth 15-24 is over 25%. France's president Hollande has a plan to get companies to hire young workers on a permanent contract. The "generation contract" gives small business 4000 euros a year for three years to hire a young person on a permanent contract a the same time committing to keep an employee over 57 years in age. Companies with over 300 employees are required to set targets for hiring younger workers and keeping older workers or face sanctions. The program would cost France $1 billion a year and the government estimate is to generate 500,000 jobs in 5 years. A think tank OFCE sees this as generating about 100,000 jobs, because many companies would have hired anyway. The German approach is focussed on state sponsored apprenticeships and vocational training, which some French companies says is the right direction for France. German youth unemployment is 8.1%, with 2.6 million students at vocational schools, and 1.46 million apprentices. Beginning Jan 2013, Germany will support youth from other eurozone countries with language courses and travel costs to work in these programs in areas of Germany with shortages of workers....

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The stark divergence between 2011 and 2013 forecasts for Portugal's economy show the need for better terms on Portugal's EU loans. The 2011 forecasts of EU lenders estimated a much lower level of contraction in the economy and unemployment. In 2011 the lenders estimate was for a economic contraction of a combined 4% in 2011 and 2012 and returning to growth in 2013, with unemployment peaking at 13%. The forecasts in 2013 estimate the economic contraction at 7% for 2011-2013, with unemployment reaching 17.3%. Portuguese government officials say they overestimated tax revenues and underestimated the payouts for social benefits to the unemployed. Prime minister Coelho is criticized for increasing taxes and making spending cuts blindly. He faces angry protestors singing the anthem of Portugal's revolution against the dictatorship in 1974- "Grandola, Vila Morena."

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The CUP party repudiates the leadership of Arturo Mas following a corruption scandal in the Catalonia ruling party Convergence. Convergence led by Mas is losing support in the state in 2016.

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A new generation of younger leaders takes over at the European Central Bank under Mario Draghi. Belgian economist Peter Praet succeeds Peter Stark of Germany in the Economics Department. Portugal's Vitor Constancio is vice president. Jorg Asmussen, 45, from Germany is on the ECB executive board, so is Benoit Coeure, 42, from France, and Klaas Knot, 44, from the Netherlands. Asmussen will head the ECB's International Division. Jens Weidmann,43, is the new head of the Bundesbank. The result experts say could be a reorientation of the ECB's outlook away from the rigid anti-inflation stance of Draghi's predecessor, Claude Trichet, and a willingness to try new approaches to help Europe tackle this recession.

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The historical allusions in the media in Greece, Italy and Germany, and cultural perceptions which have increased differences in the European Union. This comes at a time of austerity programs in the Southern tier of EU countries and pressure on Germany to fund the debt reduction in some EU countries.

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Underreporting of coronavirus cases in China poses risks for other nations in not giving them a sense of the magnitude and severity of coronavirus. This leads to a false sense of security- in Japan, Sweden and other countries, much delayed action and a sense of exceptionalism that we can ride this thing through like an ordinary virus, In the U.S. and Italy, Spain, UK and Germany, loss of crucial weeks before taking action. Looking to the future this poses new risks as it still leaves people without a sense of how long to continue lockdowns.  The pandemic poses huge risks for Asia and Latin America because of poverty, crowded conditions and sanitation levels. The early action by prime minister Modi was a huge step in the right direction before coronavirus spread could damage the economy and people- as Mr. Modi said if not done right such as with a 21 day lockdown this could set India back by 21 years. It had value in that it alerted other countries such as Philippines, Indonesia, Malaysia, Bangladesh, Pakistan to take strong action early. As the WSJ says here in this essay by what is important for China and all other countries reporting on coronavirus is that this reporting is vital only because it can save many other countries from making costly mistakes. Which is why the direct doctor to doctor contact between Chinese doctors and American doctors is an encouraging right step, says WSJ.  ...

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Night trains are making a comeback in Europe. Nostalgic ideas of travel from way back are when trains were the main forms of transportation. In 2017 European transport emissions were 28% above 1990 levels. The European Green Deal sees cutting these emissions as a priority for meeting climate change. Rail is critical for achieving this. For EU CO2 emissions road transport is largest contributor (73%), aviation (13%) and maritime (11%).Austria's OBB rail system is launching night sleeper trains from Vienna to Brussels and Vienna to Amsterdam.  Competition will increase in rail. Italy's Trenitalia  has applied to EU Agency for Railways (ERA) to operate in France. French SNCF and Trenitalia will enter Spain in June 2020. Critical are capital investments in rail per person for each country. Austria and Switzerland lead, and Germany is 140 euros per person target as part of the 86 billion euro plan in capital investments  for rail over the next ten years. Technical standardization is an important goal- as a stop in Aachen for Austrian railways night train from Vienna to Brussels for 30 minutes because of changing a locomotive and the train driver having to be Flemish. Freight movement by rail is another goal as it is stuck at 17% for years.  The Green Deal in transport in Europe is likely to have an impact around the world as rail makes a comeback for sustainable tourism. ...

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The ECB's effort to attract talent from national central banks to fulfill its role as supervisor of 7000 banks in the eurozone countries by the second half of 2014. Supervisors who are hired will be located at the ECB's headquarters in Frankfurt. The ECB positions offer attractive perks for young workers with families and children.

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After 16 months of talks political leaders from Dutch language Flanders, French speaking Wallonia, and multilingual Brussels, historically at odds with each other, come up with a new arrangement for running the country in 2011. Belgium will move closer to being a confederation like Switzerland, with powers and funds shifted to the regions. Of particular significance is the resentment by the Flemish people in the north of an administrative arrangement that was setup along French lines. The new devolution of powers gives autonomy to the Flemish region. In the past frequent coalition governments have added to the political instability.

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Modi's success in tackling problems of electricity development in Gujarat state and the model for India, as a new Modi administration is elected for India in 2014. Other areas that are the focus for development include high speed rail and transportation, other infrastructure development, creating new jobs in manufacturing. Modi made three trips to China in the last decade as a four term chief minister of Gujarat state (similiar to a governor of a U.S. state), and has adopted a China type focus on infrastructure development and manufacturing for the western state of Gujarat, which was part of the old Bombay state in British times. Mumbai, the new name for the old British settlement of Bombay on the west coast, is about 300 miles south of the major Gujarat city of Ahmedabad, at one time a major textile manufacturing center. Mumbai and commercial minded people from Gujarat occupy a role similiar to Shanghai in India's economic development. Under British times trading minded Gujaratis settled on the east and southern coast of Africa, in the Persian Gulf, with retail businesses. Of India's two largest companies the Reliance Group made its early start in textiles in Gujarat in the seventies, set up by a young emigrant who returned from the Persian Gulf. The Tata Group which owns Land Rover was set up by a Parsi immigrant community in Gujarat. Its founder Jamshedji Tata set up India's steel industry under the British at the turn of the century. The Parsis settled in Navsari, Gujarat, immigrating from Iran and other parts of the Persian Gulf centuries ago. When the media talks of Modi's origins as a tea seller's son, one has to take this in the context of the origins of people such as Reliance founder Ambani who was the son of a schoolteacher from a rural village in Gujarat. With about a 1000 mile coastline facing the Persian Gulf, Gujarat has been known to engage in the textile trade long before the arrival of the Portuguese and the British in the 1600's, and before the Muslim period from the 1300's. Many Gujaratis settled in Mumbai and are a key part of the commercial, financial center in the city. Just as Britain with its commercial centre of London evolved over centuries with commerce affecting attitudes towards democracy, free media and capitalism compared to more feudal France, Gujarat and Mumbai has evolved in a similiar manner compared to other states in the north of India. With all the media infomation and misinformation on Modi's mishandling of communal riots little has been said of the unique position of Gujarat and Gujaratis in the industrial development and modernization of India. Compared to other parts of India historically there is a greater degree of tolerance in Gujarat for other communities, similiar to Britain's compared to France and Spain, because of this commercial outward looking orientation for new ideas. ...