Opinion | Europe on the Edge: What Helmut Kohl would say about this crisis?
Europe is in crisis. And that’s good. For the word crisis comes from the Greek meaning decision. Europe needs to decide so. Not only as to the currency, but how is it to continue with the Union. Why Europe is good? Europe and how much we worth?
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- Photo: DAPD / DAPD Chancellor Angela Merkel and French President Nicolas Sarkozy dominate the course towards the EU
Do we really think that the EU will be “two Europes” includes, as French President Nicolas Sarkozy announced after the last summit in Brussels? And we really want to belong to its Europe, the “wants above all solidarity among its members and regulation”? Or to a Europe of 27, that the idea of the solidarity of the entire West, committed on members of the EU as well, and the principle of freedom?
Merkel and Sarkozy push EU reform progress
we have not heard it yet. The Kommentariat coined the chimera “Merkozy” to symbolize the unity of the Franco-German leadership. But apart from that Sarkozy and Merkel’s power crumbles at home, has a “Merkozy” like one of those circus horses, which go at the end of the clown number front and rear in different directions.
What’s better, of course, as would be expected, Merkel and Sarkozy, considered Atlanticist and supporter of free market, or until recently were considered to realize the old dream Gerhard Schroeder and Jacques Chirac of Europe as a counterbalance to the U.S. and the UK actually.
The euro is a political currency, we have a political crisis
If you want to see beyond the small-step crisis management, one has to recognize what the crisis is. The government will not tire of emphasizing that it is not a euro crisis, but a sovereign debt crisis. But the debt of the Euro-zone are compared with those of other states is not particularly onerous.
And the countries of southern and western periphery of the EU could not make so much debt, yet they would demand their mining so many victims, they were not part of the Euro-zone. No, we are dealing with a euro crisis and because the euro is a political currency, with a political crisis.
leadership or dominance – Angela Merkel and the crisis €
Helmut Kohl said that the euro will “make the unity of Europe irreversible”. But because the monetary union was introduced, there was no harmonization of fiscal policy and the economic culture of the differences within the euro currency union has not been leveled, but reinforced.
Because the weak countries could borrow cheap money, they were flooded with cheap euro, the construction boom and financed campaign gifts. Since the euro was undervalued in comparison to the D-mark and because wages and prices in the euro area were artificially high, Germany was able to expand its export advantage. Because all benefited, all were silent.
Even the EU is the largest economy in the world
The time now the “deficit sinners” imposed austerity seems more like a religiously motivated as penance for sensible economic policy. Who can to save yourself from a recession, believes that also believes in miracles. That European-made crisis already affected the growth of emerging economies, “seems Merkozy” not interested. Nor fear that America might not last slip down thanks to European stinginess in a second recession, with unpredictable political consequences.
The Protestant rigor that comes from the chancellor’s office appears – seen from a global perspective – such as fear of responsibility, disguised as a virtue and modesty. We have lived beyond our means, they say. But Europe has not even begun to live according to his means – and to act.
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The EU leaders have agreed on a further tightening of budgetary control in the euro-zone . Moreover, the instruments for the protection clamp member countries improved in quality, even if the permanent euro rescue mechanism ESM will not initially be increased.
DEBT IN THE BRAKE CONSTITUTIONS
The euro countries should in principle balance the state budget. In exceptional circumstances or poor economic deficits would still be within the three-percent limit allowed. The budget balance would be achieved with a structural – ie adjusted for cyclical effects – deficit of no more than 0.5 percent of gross domestic product. Exceeding this limit would have an “automatic correction” mechanism are set in motion. The European Court of Justice to oversee the implementation into national law. The State is an economic partnership program with the EU Commission must conclude, in its reform commitments are set.
, sanctions PROCEDURE
In future, the introduction of the sanctions process for exceeding the three percent deficit ceiling to be unstoppable with a qualified majority of EU finance ministers. That’s according to the EU Treaty is not yet possible. Countries subject to a sanctions procedure is due to excessive borrowing, should deliver a mandatory program to reform and deficit reduction at the Commission and the Council.
GREATER CONTROL OF NATIONAL BUDGET
The proposals of the European Commission by the end of November, which provides for a greater involvement of the Authority in the preparation of national budgets should be adopted quickly. The Commission may require a modified draft budget if the budget runs counter to the Stability Pact.
NO EURO BONDS
By the EU Council President presented the draft declaration also initially provided to carry out a roadmap for the introduction of euro bonds. This passage was deleted but under pressure from Germany.
ECONOMIC COOPERATION
The euro countries want to take advantage of the possibility of enhanced cooperation in the economic policies of more use. This allows for regulations in the circle of the euro countries, but to the internal market of the 27 EU Member States are not undermined.
OWN CONTRACT
Because the necessary unanimity for EU Treaty amendment could not be reached to close the 17 euro countries have their own contract before March. Specifically, the declaration stressed that the aim will still be anchored to the regulations in the EU Treaty. The governments of Bulgaria, Denmark, Lithuania, Latvia, Poland and Romania already declared their intention to join the agreement. Czech Republic and Sweden must first consult their parliaments. Hungary intends to examine the situation. Only Great Britain has already declared his refusal to accede to the treaty.
CRISIS PREVENTION 1
The permanent rescue mechanism ESM and the preliminary fire EFSF fund is to support long from mid-2012 one years exist in parallel. The entry into force of the ESM is to be preferred to one year. The credit volume of the ESM should be as previously planned 500 billion euros, the sum of the aid already granted loans include. In March 2012, but will check whether a higher volume for the ESM is necessary.
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A waiver of private creditors would continue to be so handled as to the IMF. That is, it would depend on the individual case, whether it comes to cutting debt and not on predefined rules, as it had originally set by Germany. Future euro government bonds but the standardized so-called collective action clauses (CAC) can be obtained, in which case, faster rescheduling agreements between the creditors are taken.
CRISIS PREVENTION 3
To effectively use the ESM, the necessary unanimity is replaced by a qualified majority of 85 percent. The large euro countries Germany, France and Italy to keep her but in fact veto, because they hold more than 15 percent of the shares of ESM.
The EU countries want to consider and confirm within ten days whether they provide to the IMF through their national central banks additional funds totaling 200 billion euros. Of non-European countries also hope to contribute.
Even the EU is the largest economy in the world, we generate almost a quarter of world gross domestic product. We are an attractive destination for immigrants. We are a laboratory of political and social ideas, which are found nowhere else like it.
European Union and the experiment is in the whole world under observation: Can it succeed, to create a multicultural and cosmopolitan Union to overcome the narrowness of national thinking? Especially American and British authors believe in this experiment. The American Jeremy Rifkin speaks of the “European dream”, the Brit Mark Leonard wrote a book titled, “Why Europe will define the 21st century.”
Kohl has not for the cost of European unification in demand
At least we should want to help shape the century. The cost of course: a state election, for example. After Libya debacle, in which Germany opposed the U.S., Britain and France (so much for the way life Merkozys), urged Helmut Kohl, Merkel’s government, the compass had been lost. He was right. This is also true for Europe.
Kohl has not asked how much the German unit would cost. So did Oskar Lafontaine. Kohl has not even asked about the cost of European unification. That it was not for nothing to have, but he knew – as he knew that Germany was not allowed to occur first as disciplinarian of Europe (but then rather paymaster) and secondly, always a balance between France and Great Britain must hold. Where these findings have remained?
euro zone relies on discipline rather than pump money
America is weaker, stronger China. More than ever, it is important to the Atlantic Alliance, the idea of the West to keep alive and vigorous. Europe will become an indispensable size. The cost and responsibility entails. In Arabellion is undergoing a historical change epochal proportions with an uncertain outcome. In the battle for the Arab soul decides the future of Europe.
This fight will be with money to carry, as the heavily indebted U.S. led after the Second World War, the battle for soul of Europe with the Marshall Plan and stationing troops, without asking about the costs. Stingy budget policy along the lines of the Swabian housewife can ruin the Euro, Europe and the West. It is time that Europe is beginning to worry about the world.
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