.'"...Par.scabo.parc,"

Germany If Europe'seconomies are to recover,Angela Merkel must lead thecontinent: leader, page 12.

Europe's reluctant hegemonneeds to rethink the wayit seesitself and the world: see ourspecial report after page 46.The euro zone once again looksanxiouslyto Karlsruhe, page 54

Chris Christie The route fromNew Jersey to the White Houseis steep and narrow: Lexington,page 34

America's endangered coastsPeople are building beachfronthomes even as the oceans rise,page 27

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TheEconomist

Volume 407 Number 8840

First published in September 1843to take part in "a severe contest betweenintelligence, which presses forward, andan unworthy, timid ignorance obstructingour progress."

Editorial offices in London and also:Atlanta, Beijing, Berlin, Brussels, Cairo,Chicago, Hong Kong, Johannesburg, Los Angeles,Mexico City, Moscow, New Delhi, New York, Paris,San Francisco, Sáo Paulo, Singapore, Tokyo,Washington DC

The Economist June 15th 2013Contents

On the coverA government's first job is toprotect its citizens. But thatshould be based on informedconsent, not btind trust:leader, page 11. America'sNational Security Agencycollects far more informationabout the world'scommunications than mostpeople thought. Will scruti nyspur change? Pages 23-26.It's hard, and getting harderto disappear, page 24.Freedom without democracyleads Hong Kong into allsortsof trouble: Banyan, page 46

8 The world this week

Leaders11 Surveillance

Secrets, lies and America'sspies

12 Germany and EuropeThe reluctant hegemon

13 AbenomicsNot so super

13 State pensions inAmericaRuinous promises

14 The UN in CongoArt of darkness

Letters16 On liberalism, electric

cars, Chile, poverty, rawmilk

Briefing

23 SurveillanceLook who's listening

24 Online privacyHow to disappear

United States27 Coastal cities and climate

changeYou're going to get wet

28 California's budgetRedemption song

29 Organ transplantsPlaying God

30 EducationRaising the bar

32 Virginia's governorshipMachiavelli y Torquemada

32 IllegalimmigrantsLet them drive

34 LexingtonChris Christie's tightrope

The Americas35 Security in Mexico

The new face of policing

36 Land in BrazilFarmers v Amerindians

36 Venezuela's electionBeside the point

Asia37 Abenomics

The third arrow misses

38 North Korean schools inJapanEnd game

39 Aung San Suu KyiThe halo slips

39 Cambodia's electionLiars and deniers

40 India's oppositionModicum of success

40 Aged MPs in IndiaThe long view

China

43 The strong yuanChina's currency pacifism

44 Human-rights diplomacySigns of trouble

44 Peacekeeping forcesOer there

46 BanyanHong Kong: strange haven

Special report: GermanyEurope's reluctanthegemonAfter page 46

Middle East and Africa

47 Syria's civil warThe regime digs in

48 Syrian refugees in TurkeyWill they ever go home?

48 Libya's miajasIs the tide turning?

49 Iran's electoral internetBehind a thick curtain

50 Congo and the UNBigger guns on their way

50 Central African RepublicA new grey zone

52 Kenya and BritainDrawing a line

► Contents continues overleaf

The Economist June 15th 2013Contents

5

JO 213132 e E

6

Emerging-market turmoilThe prospect of lessquantitative easing has rockedcurrency and bond markets,page 71. After enduring adecade of criticism for itsweakness, the yuan now looksuncomfortably strong, page 43

Oilin Nigeria Court documentsshed light on Shell's and ENI'smanoeuvres to win a hugeNigerian oil block and thedilemmas of their industry,page 63

The other mite-high clubA new lightweight tift cablewill let buildings soar everupward, page 77

•

Europe53 Turkey's upheaval

Descent into confrontation

54 The Turkish economyStrong but vulnerable

54 Germany and the euroThe ja and nein court

55 Vladimir Putin's RussiaBattles over the river

56 CharlemagneL'exception franÇaise

Britain57 Sir Mervyn King

Leaving the Old Lady

58 Stephen HesterA banker at bay

59 BagehotWhat Bohemia built

International60 The G8 agenda

The transparency summit

61 Roland DallasBluesooth

62 Phone boxesA new

Business63 Oil companies in

emerging marketsSafe sex in Nigeria

65 Consultancies and spiesHiring digital 0075

66 Spanish companiesAn ill wind

68 Google buys WazeStreet plan

69 Superhero filmsSuperman v Spider-Man

69 Streaming musicI dreamed a stream

70 SchumpeterWomen bosses in Brazil

Finance and economice71 Emerging markets

The end of the affair

72 ButtonwoodQuality stocks

73 The oil priceThe triple-digit barrel

73 Indian banksIt ain't over yet

74 Renewed Greek troublesDarkness at midnight

74 Immigration and thepublic financesBoon or burden?

75 Crowdfunding studentsStart me up

76 Free exchangeCredit in China

Science and technology77 Lifts and skyscrapers

The other mi le-high club

78 Modelling tsunamisThe dangers ofinsularity

78 AIDS in IndiaThe cost of living

79 Animal behaviourPlanet of the apes

4

Books and arts80 China and America

Cool war

81 AntarcticaSouth park

81 Contemporary philosophyPump-primer

82 America's energy futureMeet the frackers

82 New fictionGabriel Weston

83 Unicorns at the CloistersHorns of plenty

88 Economic and financialindicatorsStatistics on 42economies, plus a closerlook at world primary-energy demand

Obituary90 Tim Samaras

Chasing the storm

Death of a storm chaserOur obituary ofTim Samaras,page 90

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