The election of François Hollande as French president has excited some of those who blame Germany’s emphasis on fiscal austerity for many of the eurozone’s ills. Hollande has promised to refocus EU policies on growth and employment.  But can Hollande – as he prepares for his first ever meeting with Chancellor Angela Merkel – really make a difference? Maybe, if he handles Merkel with great diplomatic dexterity, writes the CER’s Charles Grant.

The Czech government hailed the Cabinet deal paving the way for a proposal for nationwide referenda as a significant breakthrough. The fine details of the proposal and obstacles that any petition for a referenda will face before it can be put to the people and the thin chances of such a vote getting the required 50 percent participation puts a very different slant on the so-called move towards direct democracy.

Czech National Bank (ČNB) stress tests show the domestic banking sector is resilient to potential adverse shocks — such as a deeper recession in the European Union due to the eurozone debt cirsis — thanks to good capitalization, profitability and balance sheet liquidity, the central bank said in a report on Tuesday.

Czech Foreign Minister and leader of the TOP 09 party Karel Schwarzenberg has said he is contemplating leaving the government over Prime Minister Petr Nečas’ (Civic Democrats, ODS) refusal to sign the EU’s fiscal discipline treaty, but noted there is time yet for the ODS to opt in and open the way for the next Czech president to ratify the treaty in early 2013.