Offshore Wind in Europe: Lessons for the U.S.
The gain in S&P 500 futures signaled U.S. equities may halt their two-day slide. The benchmark gauge rose 4.7 percent last quarter and closed at a record of 1,725.52 on Sept. 18. The MSCI gauge of global shares advanced 7.4 percent in the third quarter, the most since the first quarter of 2012. Tankan Survey Confidence among large manufacturers rose to the highest level since the early stages of the global credit crisis in 2007, with the quarterly Tankan index for big manufacturers rising to 12 in September from 4 in June, the BOJ said today. Euro-area manufacturing was 51.1 in September compared with 51.4 in August, London-based Market Economics said today. A reading above 50 indicates growth. The U.S. factory index report by the Institute for Supply Management Inc. was 55 in September, based on the survey median, after the prior months reading of 55.7, which was the strongest since June 2011. The report is due at 10 a.m.
As Ukraine looks west to Europe, Russia’s shadow looms
Earlier this month, Air France-KLM Group , Europes biggest airline, scrapped a plan to break even at its main French unit this year, putting 2,800 jobs in the country at risk. While most Southern European economies are struggling to provide work for the unemployed, the jobless rate in Germany, the regions largest economy, remained at 6.8 percent in September, according to 31 estimates in a separate Bloomberg survey. Thats close to a two-decade low of 6.7 percent. The Federal Labor Agency is due to publish these data tomorrow at 9:55 a.m. in Nuremberg. Resurgent Economy A robust job market and Germanys economic strength in the midst of the euro areas debt crisis helped Chancellor Angela Merkel s Christian Democrats take the largest share of the vote in Sept. 22 elections. German retail sales rose 0.5 percent in August from July, the Federal Statistics Office in Wiesbaden said today. That missed the median estimate of a 0.8 percent increase in a Bloomberg News survey of 26 economists. Gross domestic product in the 17-nation euro economy grew 0.3 percent in the three months through June, the first quarterly expansion after six contractions. Economic confidence rose more than forecast in September, with sentiment improving in the industrial sector as well as in services, retail and financial services. Even so, euro-area inflation slowed for a second month in September, led by falling energy prices.
Europe’s Record Jobless Rate Seen Resisting Recovery: Economy
There are many differences between the U.S. and Europe on energy policy and, on some issues, we in the U.S. will never go Europe’s way. Nevertheless, in the area of offshore wind, U.S. energy policymakers can learn a lot from the lessons Europe has to offer. Here is what I picked up from the leaders in the field. A Large Commercial Industry. Compared to the U.S. where we have no turbines in the water, in Europe offshore wind is serious business. Total installed capacity of offshore wind power from 55 wind farms (1,662 turbines) in ten European countries by the end 2012 was 4,995 MW megawatts , the combined capacity of several nuclear plants. More than $15 billion in investments has been made in the industry over the last 8 years. There were about 58,000 jobs in the industry in 2012, with growth expected up to 191,000 in 2020.
They are also not sure a deal can be clinched by the meeting after that on Nov. 18 – just 10 days before the eastern partnership summit. “If you ask me, I think this will go right down to the wire, or at least very close to it,” said a senior EU official directly involved in the negotiations. Asked if Tymoshenko might still be in custody in Ukraine on Nov. 29, when Kiev should be signing the association agreement, two EU officials involved in trying to resolve the dispute acknowledged that might be the case. “But she may not still be there in early December,” one of them said, hinting at the possibility of a compromise that involves her leaving the country soon after the summit. REPERCUSSIONS Both Ukraine and the EU appear determined to seize the moment and sign the agreement, no matter what the reservations. The message that would send to the wider region, including the resource-rich Caucasus, would be a powerful one. From the EU’s point of view, Ukraine is an opportunity that cannot be missed: Kiev wants closer association and if Europe does not act now, it may well lose it to Russia and the customs union forever, the tide of history ebbing away. The failure to draw in Ukraine would likely diminish the EU’s sway over other countries covered by the eastern partnership policy, undermining its goals of spurring democratic reforms in the region and safeguarding political stability. “We cannot accept any attempt to limit these countries’ own sovereign choices,” European Commission President Jose Manuel Barroso told the European Parliament in his annual address last month.
What Africa can learn from medieval Europe
The creation of strong and stable states in nineteenth-century Europe enabled investment in canals and railways, which increased growth rates there. The development of professional civil services and judiciaries, where promotion was based on merit rather than corruption, also helped too. These types of reforms contributed towards creating open access societies where all groups of the population have equal opportunity to access state services, such as the courts system to enforce property rights. Mr Broadberry and Ms Gardner argue that failure to fulfill these threshold conditions in most African countries have resulted in them being trapped in the cyclical pattern of growth reversals seen over the last 60 years. They argue policy makers should encourage both democratization as well as the expansion of “state capacity”in order to escape from the threat growth reversals still pose to Africa’s current phase of growth. But perhaps other lessons could be learned from this sort of economic history as well, aside from the importance of good institutions for growth. Social conditions could also be important in explaining development. Both modern Africa and medieval Europe suffered growth reversals after long-lasting epidemics: after HIV/AIDS hit Africa and after bubonic plague spread into Europe. Perhaps higher expenditure on healthcare and preventative measures against future epidemics could boost growth. And as growth took off in Europe after the invention of the printing press and the spread of mass literacy, higher spending on education may matter too. New explanations of underdevelopment are putting increasing stress on sociological factors as well.