The row over debt mutualisation
Europe's crisis countries are pushing for the mutualisation of Eurozone debt, a plan Germany rejects before central control over national budgets has been established. Must the euro states relinquish sovereignty to save the single currency?
Süddeutsche Zeitung - Germany | Thursday, 11. April 2013
US star investor George Soros has made a vehement case for the introduction of euro bonds and criticised Berlin for rejecting the idea. But these joint bonds are not a panacea for Europe's crisis, the left-liberal Süddeutsche Zeitung counters: » more
US star investor George Soros has made a vehement case for the introduction of euro bonds and criticised Berlin for rejecting the idea. But these joint bonds are not a panacea for Europe's crisis, the left-liberal Süddeutsche Zeitung counters: "Euro bonds would undoubtedly lower the risk premiums on the government debt of the peripheral states. But Soros himself pointed out that the possibility of borrowing money more cheaply is not exactly an incentive to increase competitiveness. This became clear after the introduction of the euro. Then there's the fact that the euro bonds have a legitimacy problem in the current political system, because they would effectively entail using taxpayers' money without voters having any say in the matter. … But there is a third alternative [besides euro bonds or Germany exiting the euro]: the countries of Europe can reform their structures - not just those of their national budgets but also the structure of their social systems and the European institutions. Because only once Europe becomes fully functional as a state can the governments within this entity make sensible use of euro bonds."
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Spiegel Online - Germany | Wednesday, 10. April 2013
Europe needs eurobonds to overcome the crisis, the Hungarian-born US star investor George Soros writes: » more
Europe needs eurobonds to overcome the crisis, the Hungarian-born US star investor George Soros writes: "The danger of default would disappear and so would the risk premiums. The balance sheets of the banks would receive an immediate boost and so would the budgets of the heavily indebted countries. Italy, for instance, would save up to 4 percent of its GDP. Its budget would move into surplus and fiscal stimulus would replace austerity. Its economy would grow and its debt ratio would fall. Most of the seemingly intractable problems would vanish into thin air. It would be truly like waking from a nightmare. With some modification, the fiscal compact would provide adequate safeguards against the risks involved in a joint and several obligation. It would allow member countries to issue new eurobonds only to replace maturing ones, but nothing more; after five years the outstanding debt would be gradually reduced to 60 percent of GDP. ... It is up to Germany to decide whether it is willing to authorise eurobonds or not. But it has no right to prevent the heavily indebted countries from escaping their misery by banding together and issuing euro bonds."
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taz - Germany | Friday, 7. December 2012
One week before the EU summit, Council President Herman Van Rompuy has presented proposals for restructuring the European economic and monetary union. However the euro bonds Germany has rejected all along are no longer part of the plan, the left-leaning daily taz criticises: » more
One week before the EU summit, Council President Herman Van Rompuy has presented proposals for restructuring the European economic and monetary union. However the euro bonds Germany has rejected all along are no longer part of the plan, the left-leaning daily taz criticises: "The division of the Eurozone into those who suffer from the crisis and those who profit from it continues. And this despite the fact that it's a matter of course that members of a stable monetary union should all pay the same interest rates. Within Germany no one doubts that the same rate should apply in Bremen and Bavaria. But within Europe uniform interest rates based on common liability are maligned as 'interest-rate socialism'. This way of bowing to pressure to the detriment of a decisive goal does not augur well for other issues. Van Rompuy's proposal for financial equilibrium among states - or their social insurance systems - is a good idea. However it seems very unlikely that it stands much chance of success against the resistance we can once again expect from Berlin."
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Lidové noviny - Czech Republic | Tuesday, 23. October 2012
The conflict between Germany and the UK over the EU budget is coming to a head. According to a report by the Financial Times Deutschland, Chancellor Angela Merkel is considering having the budget summit planned for November called off if Prime Minister David Cameron holds to his veto against a raise. The conservative daily Lidové noviny fears the British may react out of spite: » more
The conflict between Germany and the UK over the EU budget is coming to a head. According to a report by the Financial Times Deutschland, Chancellor Angela Merkel is considering having the budget summit planned for November called off if Prime Minister David Cameron holds to his veto against a raise. The conservative daily Lidové noviny fears the British may react out of spite: "Of course as far as the issue itself is concerned, Cameron's right. Why should an exception be made for the EU Commission when the governments that finance it are forced to adopt austerity plans? ... But in fact, compared with the conflict over the banking union this is just a side-show. The government in London generally takes a hard line vis-à-vis the EU. By the looks of it Cameron wants to promise his citizens a referendum on staying in the EU. A British exit from the EU would be a catastrophe. In the long term it would change the Union far more than a Greek exit from the Eurozone."
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Il Sole 24 Ore - Italy | Friday, 19. October 2012
Participants at the EU summit are reluctant to come out say what a banking union actually entails, the liberal-conservative business paper Il Sole 24 Ore criticises: » more
Participants at the EU summit are reluctant to come out say what a banking union actually entails, the liberal-conservative business paper Il Sole 24 Ore criticises: "The last few months have demonstrated that the two decisive steps towards saving the euro - a banking and fiscal union - overlap to such an extent that creating a banking supervisory authority without a fiscal union, in other words without pooling financial resources, is implausible. Berlin, which wants to discuss both points, is aware of this but instead of accelerating the two steps Merkel is trying to delay a banking union. Germany, like France, has now introduced the idea of a mini rescue fund for the Eurozone that would be financed through the financial transaction tax [Merkel proposed this in a government statement]. This is an attempt to divert attention from the real problem. But it's obvious that Berlin's main goal is to avoid the proposals for the introduction of euro bonds being brought up again."
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Main focus of Thursday, 18. October 2012
In an interview with six European newspapers French President François Hollande called for more solidarity in the Eurozone. With his appeal for the introduction of ... » more
In an interview with six European newspapers French President François Hollande called for more solidarity in the Eurozone. With his appeal for the introduction of euro bonds and against stringent austerity he has openly defied Germany just before the EU summit begins this Thursday. Some commentators praise Hollande for defending the crisis countries while others say that the confrontation will only delay urgently need consensus in the EU.
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Público - Portugal | Thursday, 18. October 2012
François Hollande stressed in his interview that "we cannot impose a life-long sentence on nations which have already made considerable sacrifices if people do not perceive the fruits of their efforts". The liberal daily Público praises the French president for these words: » more
François Hollande stressed in his interview that "we cannot impose a life-long sentence on nations which have already made considerable sacrifices if people do not perceive the fruits of their efforts". The liberal daily Público praises the French president for these words: "It is not just an ethical statement about the austerity policy but also a realistic assessment of its impact. The austerity budget presented to us for 2013 is indeed a 'lifelong prison sentence'. The tax burden will only intensify the financial crisis, undermine political stability and rob the Portuguese of all faith in the 'fruits of their efforts'. Hollande's statement must be seen as part of a strategy aimed at establishing a balance of power in the EU. His proposals for the introduction of euro bonds won't be implemented in the short term. But his call for Germany to change its priorities is a great help to countries in difficulties."
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Die Zeit - Germany | Thursday, 18. October 2012
Schäuble's proposal for a currency commissioner who would control the budgets of the euro states is as idealistic as it is illusory, the liberal weekly ... » more
Schäuble's proposal for a currency commissioner who would control the budgets of the euro states is as idealistic as it is illusory, the liberal weekly paper Die Zeit comments, asking "Can anyone seriously believe that would work? That, for example, the French National Assembly would really let a Brussels commissioner prevent it from slightly increasing the public debt in order to raise teachers' salaries, purchase a modern aircraft carrier or support the national car industry? That's an illusion. The pattern of the stability pact, with its quickly transgressed three-percent-deficit limit, has shown how Europeans (or at least the powerful ones, that is the Germans) deal with self-imposed obligations when they start to pinch. The EU in its current state is not a club that can be trusted to respect its own rules. It should be cautious about seeking salvation in new regulations, competences and institutional arrangements. ... Think carefully before donning the next corset!"
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Le Figaro - France | Wednesday, 17. October 2012
Given that French President François Hollande's ideas run counter to the German position, the conservative daily Le Figaro doubts that an agreement will be reached at the EU summit: » more
Given that French President François Hollande's ideas run counter to the German position, the conservative daily Le Figaro doubts that an agreement will be reached at the EU summit: "The contradictory positions are reminiscent of the chicken and the egg. For Germany, budget control comes before solidarity. France wants solidarity before stricter controls are introduced. ... At the core of this enormous misunderstanding lies the banking union agreed on in June. Like Madrid, Paris sees it as an instrument for supporting ailing banks, regardless of the national deficit of the country in question. Not so fast, answers the chancellor, who wants to prevent her country from being lumped with the losses of Spain's banks before they are subject to European controls. In this chicken-and-egg dispute it will be hard for François Hollande and Angela Merkel to find common ground."
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Die Presse - Austria | Thursday, 18. October 2012
The EU's crisis policy looks increasingly like a game of hopscotch and is frustrating the people, the liberal-conservative daily Die Presse writes: » more
The EU's crisis policy looks increasingly like a game of hopscotch and is frustrating the people, the liberal-conservative daily Die Presse writes: "When the heads of state and government meet yet again this week in Brussels to find a solution for Greece and the euro the game of hopscotch will continue. French President François Hollande and Germany's Finance Minister Wolfgang Schäuble ... are trying to keep their customers happy with maximum demands aimed at sending the message 'At least I tried!'. The one is making a fresh demand for the introduction of euro bonds and influence over the wage policies of other countries; the other is calling for a powerful budget commissioner with total control over the austerity programmes of countries like Greece, Italy and Spain. … But in reality this conflict over which direction to take is doing nothing but increasing people's frustration at the inability of Europe's leaders to negotiate a common solution."
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Jyllands-Posten - Denmark | Thursday, 18. October 2012
The EU summit that begins today won't produce the urgently needed results, the liberal daily Jyllands-Posten believes: » more
The EU summit that begins today won't produce the urgently needed results, the liberal daily Jyllands-Posten believes: "Even if the German Finance Minister Wolfgang Schäuble did manage to push through his proposals and all 27 member states were to approve the corresponding changes to the EU treaties, it would be at least one and a half to two years before the plan bore fruit. Europe can't afford to wait that long. Because now even the German economy is running into difficulties - the main force keeping Europe's head above water. Germany's modest economic growth is down to less than 1 percent. If the countries of the Eurozone fail to achieve economic stability across the board so that the Eurozone becomes interesting for international investors once more, the future looks pretty bleak. The EU summit must reflect this reality. The time for talking is over. Now we need action. But it's unlikely that this will come about."
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Main focus of Wednesday, 17. October 2012
German Finance Minister Wolfgang Schäuble plans to propose in-depth reforms of the EU at its summit meeting, which begins on Thursday. Among other measures he ... » more
German Finance Minister Wolfgang Schäuble plans to propose in-depth reforms of the EU at its summit meeting, which begins on Thursday. Among other measures he wants a new currency commissioner with the power to veto the budgets of member states. For some commentators Schäuble genuinely wants changes to the EU treaties in order to stabilise the Eurozone. Others believe he is just seeking to secure more elbow room for Germany .
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Trouw - Netherlands | Wednesday, 17. October 2012
Schäuble's initiative is a counterconcept to EU Council President Herman Van Rompuy's plan for stronger economic integration of the EU, which the German finance minister considers too vague. But for the Christian-social daily Trouw Van Rompuy's calls for centralised bank supervision, debt mutualisation and the Eurozone to have its own budget go too far: » more
Schäuble's initiative is a counterconcept to EU Council President Herman Van Rompuy's plan for stronger economic integration of the EU, which the German finance minister considers too vague. But for the Christian-social daily Trouw Van Rompuy's calls for centralised bank supervision, debt mutualisation and the Eurozone to have its own budget go too far: "Van Rompuy's proposals are certainly no incentive for the rich countries of northern Europe to go a step further. In fact he has pushed so far ahead that he may lose sight of these countries entirely. Van Rompuy understandably wants less arbitrariness and more unity for the monetary union, but he has utterly failed to take into account the mood in a number of countries, including the Netherlands. … The same goes for the proposal for Euro bonds. With this proposal he demands more solidarity from the northern countries, yet the reality is that public opinion is putting that solidarity sorely to the test."
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Die Presse - Austria | Wednesday, 17. October 2012
Just days before the EU summit takes place Germany's Finance Minister Wolfgang Schäuble has decided to play with fire, the liberal-conservative daily Die Presse comments, adding that his bringing up his old idea of an EU currency commissioner again was just a ploy: » more
Just days before the EU summit takes place Germany's Finance Minister Wolfgang Schäuble has decided to play with fire, the liberal-conservative daily Die Presse comments, adding that his bringing up his old idea of an EU currency commissioner again was just a ploy: "The current Commissioner for Economic and Currency Affairs should be given powers to rule on the reliability of the budget legislation of Eurozone countries on his own. … That would be a clear break with the current approach to agreeing on budget policy in the EU. … This is why Schäuble got nowhere with his idea of a currency commissioner in November 2011 and in February 2012. France, in particular, is allergic to the idea. Because a currency commissioner would push through the very same ideas about budgeting against which François Hollande pitched his whole election campaign. … Schäuble's proposal is therefore just a strategy aimed at securing more room for manoeuvre for the chancellor at the summit meeting on Thursday. If Angela Merkel backs down on this absolutist demand she will be allowed to get her way on issues that she considers realistic - for example her call for the Eurozone to have its own budget."
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Il Sole 24 Ore - Italy | Wednesday, 17. October 2012
Schäuble is not just after a broad fiscal union; MEPs from the Eurozone should also be able to make separate decisions in the EU Parliament having to do with the Eurozone. German Finance Minister Wolfgang Schäuble is pursuing a double strategy with his proposals, the liberal-conservative business paper Il Sole 24 Ore conjectures: » more
Schäuble is not just after a broad fiscal union; MEPs from the Eurozone should also be able to make separate decisions in the EU Parliament having to do with the Eurozone. German Finance Minister Wolfgang Schäuble is pursuing a double strategy with his proposals, the liberal-conservative business paper Il Sole 24 Ore conjectures: "For years Germany defended the importance of the European single market. Is it now prepared to sacrifice to a certain extent the unity of the 27 states for the sake of an inevitable integration of the Eurozone? This is a legitimate question in view of the (new) demand for a reform of the EU treaties. … Germany is pursuing two goals. On the one hand it wants more stability through increased reciprocal control over national budgets and economic reforms. On the other hand the idea of amending the EU treaties is driven by the desire to appease the German public in the year before Germany's parliamentary elections with the assurance that new rules will be drawn up to improve the administration of the monetary union."
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Süddeutsche Zeitung - Germany | Wednesday, 17. October 2012
With his proposal the German Finance Minister Wolfgang Schäuble is deliberately seeking a confrontation with the EU, the UK and the German Constitutional Court, the left-liberal daily Süddeutsche Zeitung writes: » more
With his proposal the German Finance Minister Wolfgang Schäuble is deliberately seeking a confrontation with the EU, the UK and the German Constitutional Court, the left-liberal daily Süddeutsche Zeitung writes: "Schäuble is clearly dissatisfied with the reform paper of the presidents of the EU Commission, the European Council, the Euro Group and the Central Bank. In their proposal the four presidents didn't refrain from proposing the euro bonds so detested by the German government. As it now looks, Schäuble is ready to strike back. The idea of a quick new convention [which would begin preparing an amendment to the EU treaties as soon as December] is also a nod to Britain. ... Anti-European at home, but placatory when it deals with the continent, the British government is playing a double game. It is right to demand that the UK take a stand on whether it will at least deign not to stand in the way of the euro bailout. And what about the German Constitutional Court in Karlsruhe? ... If Schäuble is now challenging the judges in calling for a currency commissioner, it only fuels suspicions that he's not just interested in amending the EU treaties - but also the German Basic Law."
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Main focus of Friday, 12. October 2012
IMF Chief Christine Lagarde has called on the Eurozone to give the crisis countries more time to fulfil the austerity terms. She admitted that the ... » more
IMF Chief Christine Lagarde has called on the Eurozone to give the crisis countries more time to fulfil the austerity terms. She admitted that the austerity policy was having a far more detrimental impact on the economy than expected. Some commentators welcome the IMF's about-turn and hope that the EU will take this message to heart. Others see Lagarde's initiative as a sign of perplexity at how to deal with the situation.
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Kathimerini - Greece | Friday, 12. October 2012
The IMF's warnings about too much austerity and Angela Merkel's visit to Athens raise the conservative daily Kathimerini's hopes that the austerity measures will be eased: » more
The IMF's warnings about too much austerity and Angela Merkel's visit to Athens raise the conservative daily Kathimerini's hopes that the austerity measures will be eased: "The International Monetary Fund is exerting pressure for Greece to be given more money and more time to implement the austerity measures. But the countries and institutions of the Eurozone have been reticent in their reaction. This means that there are problems and so far nothing is certain. Nonetheless, the general mood now is far less threatening and the basic conditions are far more positive. In addition, Samaras' daring decision to invite Merkel to Greece has paid off. The chancellor's comment that she sees light at the end of the tunnel did not go unnoticed. The same goes for her statement that she will help Greece if Athens sticks to its course and executes structural reforms, as Samaras has promised to do."
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Sydsvenskan - Sweden | Friday, 12. October 2012
IMF chief Lagarde's proposal to give Greece more time won't solve the dilemma the EU currently faces, the liberal daily Sydsvenskan laments: » more
IMF chief Lagarde's proposal to give Greece more time won't solve the dilemma the EU currently faces, the liberal daily Sydsvenskan laments: "Keeping Greece's head above water for two more years in the hope that the reforms will be implemented and prove effective will be expensive. Greece and the other crisis countries must reform their economies. On the one hand the EU should not become a transfer union, where the debts of the one country are automatically the debts of all the others. Principles are important. But on the other hand a certain pragmatism is also necessary. The demands put on Greece must be realistic, and the period for implementing them must be appropriate. Because the danger that the medication prescribed could prove fatal, at least in the case of Greece, is clear for all to see."
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Main focus of Wednesday, 10. October 2012
German Chancellor Angela Merkel stressed during her visit to Athens on Tuesday that she wants Greece to remain in the Eurozone and promised the country ... » more
German Chancellor Angela Merkel stressed during her visit to Athens on Tuesday that she wants Greece to remain in the Eurozone and promised the country further financial assistance from Germany. Some commentators see her meeting with Greek Prime Minister Antonis Samaras as a courageous sign of solidarity. Others say warm words will placate financial markets but they won't help Greece.
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De Volkskrant - Netherlands | Wednesday, 10. October 2012
Angela Merkel's professions of solidarity were just empty phrases, columnist Sheila Sitalsing mocks in the left-liberal daily De Volkskrant: » more
Angela Merkel's professions of solidarity were just empty phrases, columnist Sheila Sitalsing mocks in the left-liberal daily De Volkskrant: "Words are the water used to put out the fire in the euro crisis. That is: say the right words and the crisis abates for a while. The men who watch the markets interpret the words as meaning that the Greeks will receive the next envelope full of cash after all. Somewhere in the small print of the incomprehensible rules it says that things get boring when one of the players stops playing. The people wearing stick-on Hitler moustaches [the demonstrators in Greece] know that the money they get from the North to make them fulfil their obligations is just Monopoly money. They won't be able to buy many hamburgers with it. And they certainly won't get back their work, their pensions and their dignity. And so they hobble on. But Angela Merkel is showing solidarity."
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Les Echos - France | Wednesday, 10. October 2012
The French National Assembly approved the European Fiscal Compact on European Budget Discipline on Tuesday. But the pact itself is no more than symbolic, the liberal business paper Les Echos writes: » more
The French National Assembly approved the European Fiscal Compact on European Budget Discipline on Tuesday. But the pact itself is no more than symbolic, the liberal business paper Les Echos writes: "The wastepaper baskets of history are full of agreements that were never implemented. And the application of non-applicable accords like the Treaty of Versailles can have catastrophic consequences. The Europeans know this. In recent years they have joyfully transgressed shared regulations for the sake of their holding their Union together. The essential thing about a treaty is more often signing it than heeding it later on. ... Let's put this treaty behind us, a deposit demanded by the Germans to ensure we would work together and build a stronger Union, one more united in solidarity. ... In any event we will not be able to escape the spirit of the fiscal compact, even if we don't apply it to the letter. When public debts skyrocket, they must be controlled in one way or another."
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Blog Pitsirikos - Greece | Tuesday, 9. October 2012
Merkel's visit to Athens has no significance for the Greeks and can do nothing to help save the country, blogger Pitsirikos writes: » more
Merkel's visit to Athens has no significance for the Greeks and can do nothing to help save the country, blogger Pitsirikos writes: "Thousands of Athenians demonstrated yesterday, as if it were Merkel who had elected this government and not them. But that's what we Greeks are like. We blame the Germans and the immigrants for our country's bankruptcy, as if they'd been in cahoots to destroy us. ... Merkel wants Greece to remain in the Eurozone. But it looks very much as if she's making fun of us, because any logically-minded person realises that Greece must leave the Eurozone on the double. Merkel's visit doesn't mean a thing. And when she comes next time or the time after that to officially and definitively conclude the sale of the country, no one will react and everyone will be submissive and well-behaved. Auf Wiedersehen, Mrs Merkel."
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Financial Times - United Kingdom | Wednesday, 10. October 2012
Angela Merkel has shown courage and sent the right signals, the liberal business paper Financial Times writes: » more
Angela Merkel has shown courage and sent the right signals, the liberal business paper Financial Times writes: "She has also answered two opposing camps of critics at home: the Social Democrats on the left, who argue she has been too hard on the Greeks; and her coalition partners on the right who believe she has not been tough enough. It is a difficult balancing act that the German chancellor has managed with some skill in recent months as Europe's debt crisis intensified. She gambled when she backed the European Central Bank's bond-buying programme, despite opposition from Jens Weidmann, Bundesbank president and did so again in flying to Athens. As for Mr Samaras, he now has to recognise the risks that Ms Merkel has taken. Only by swiftly completing the new austerity package and implementing long overdue structural reforms will he prove to still-sceptical Germans that Greece can be a trustworthy partner in Europe's recovery."
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tagesschau.de - Germany | Tuesday, 9. October 2012
Merkel and Samaras have demonstrated in Athens that the fates of their countries are inextricably bound together, the news portal tagesschau.de notes with relief: » more
Merkel and Samaras have demonstrated in Athens that the fates of their countries are inextricably bound together, the news portal tagesschau.de notes with relief: "The Chancellor has guts. She could have met head of government Antonis Samaras and his cabinet on Crete, Rhodes or Santorin instead. Some faraway island in the sea. But she went right into the lion's den. It had to be the capital. This sends a strong message - the right message! ... The German-Greek friendship has come under severe strain. The bond which took decades to grow threatens to collapse, to go down the drain, as the saying goes. And the main reason for this is money. ... Shared money needn't cause a friendship to end. Europe is more than an idea or a community of interests. Today Europe is more than ever a community with a shared destiny. Samaras and Merkel have sent a strong message of solidarity in Athens."
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Main focus of Tuesday, 9. October 2012
German Chancellor Angela Merkel travels to Greece today for the first time since the start of the euro crisis. The visit is accompanied by a ... » more
German Chancellor Angela Merkel travels to Greece today for the first time since the start of the euro crisis. The visit is accompanied by a wave of protest, with thousands demonstrating against the chancellor's crisis policy and the Greek government in Athens on Monday evening. Even if Merkel's intention is to underline her determination to keep Greece in the Eurozone, the country's problems are far from over, commentators warn.
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Les Echos - France | Monday, 8. October 2012
According to three leading European economic institutes, the economy of the Eurozone will shrink until the end of the year and stagnate in the first two quarters of 2013. The liberal business paper Les Echos writes that the euro countries should finally take concerted action to fight the crisis: » more
According to three leading European economic institutes, the economy of the Eurozone will shrink until the end of the year and stagnate in the first two quarters of 2013. The liberal business paper Les Echos writes that the euro countries should finally take concerted action to fight the crisis: "Consensus now rules over the causes of the recession, and that is good news: monetary union is not enough, there must also be a budgetary, banking, social and fiscal union. ... The concept has been worked out, it's time to act. But Germany resists the banking union, Spain rejects financial solidarity, France pretends to accept budgetary restraints while hoping they will soon be eased, and the euro countries have not advanced at all on the question of the social union. The first recession, in 2009, was an external shock. The second, which we are experiencing today, has obliged us to take stock of the situation. Perhaps it will take a third for us finally to reach a decision on what must be done."
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Main focus of Monday, 1. October 2012
Thousands of French citizens demonstrated in Paris on Sunday against François Hollande's austerity policy and the EU fiscal pact, the ratification of which the French ... » more
Thousands of French citizens demonstrated in Paris on Sunday against François Hollande's austerity policy and the EU fiscal pact, the ratification of which the French National Assembly will begin debating on Tuesday. Commentators urge France to agree to the pact and call on Hollande to introduce labour market reforms as well as austerity measures.
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Die Presse - Austria | Saturday, 29. September 2012
The executive board of the German Social Democratic Party (SPD) will officially nominate the former finance minister Peer Steinbrück today, Monday, as chancellor candidate for the parliamentary elections in 2013. The liberal-conservative daily Die Presse is delighted, as Steinbrück belongs to the pragmatic Left: » more
The executive board of the German Social Democratic Party (SPD) will officially nominate the former finance minister Peer Steinbrück today, Monday, as chancellor candidate for the parliamentary elections in 2013. The liberal-conservative daily Die Presse is delighted, as Steinbrück belongs to the pragmatic Left: "As opposed to François Hollande, who is as charming as he is out of touch with reality and whose soufflé policy continues to burden the economy and the budget while France needs just the opposite, Peer Steinbrück is firmly convinced that the debt burden is the most pressing and the most serious problem for countries in general and for the euro in particular. Like Tony Blair and Gerhard Schröder, who publicly supports him, the former finance minister is clearly in the tradition of pragmatic Left. As a result the left wing of the party, which has otherwise set the programme in many countries during the crisis, is now more or less out of the picture. And with Steinbrück, the massive campaign against Merkel's (relatively) strict euro discipline will not constitute an inordinate danger on the topcis of Greece, euro bonds and towering rescue packages. ... In this way Steinbrück strengthens the German position - and the euro as well."
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Tages-Anzeiger - Switzerland | Thursday, 27. September 2012
In an analysis released on Tuesday, the rating agency Standard & Poor's indirectly blamed the Swiss National Bank's purchases of foreign currency, aimed at bringing down the franc's exchange rate, for the disparities in Eurozone interest rates. The more the euro crisis escalates, the more difficult it will be for Switzerland to avoid its impact, the liberal daily Tages-Anzeiger writes: » more
In an analysis released on Tuesday, the rating agency Standard & Poor's indirectly blamed the Swiss National Bank's purchases of foreign currency, aimed at bringing down the franc's exchange rate, for the disparities in Eurozone interest rates. The more the euro crisis escalates, the more difficult it will be for Switzerland to avoid its impact, the liberal daily Tages-Anzeiger writes: "Autumn has brought a new test of endurance between the north and south, between the hard core of model pupils led by Germany and the debt sinners on the periphery. ... It's no wonder that all the nervousness is putting Switzerland - the outsider in the heart of the Eurozone - into the limelight. The criticism of the rating agency Standard & Poor's that Switzerland's monetary policy is widening the gap in the Eurozone could be just the beginning. A lot of the money pulled out of banks in Greece, Italy and Spain has landed in Switzerland - and that money is now urgently needed by the governments of the periphery. If the euro crisis continues to escalate the pressure on Switzerland may also grow."
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All available articles from » Stephan Israel
De Groene Amsterdammer - Netherlands | Wednesday, 26. September 2012
Together with ten of his EU colleagues the German Foreign Minister Guido Westerwelle last week presented a paper outlining a "New Vision of Europe". It is nothing but the hollow phrases of political pygmies, the economist Ewald Engelen concludes scathingly in the left-leaning weekly De Groene Amsterdammer: » more
Together with ten of his EU colleagues the German Foreign Minister Guido Westerwelle last week presented a paper outlining a "New Vision of Europe". It is nothing but the hollow phrases of political pygmies, the economist Ewald Engelen concludes scathingly in the left-leaning weekly De Groene Amsterdammer: "A lot of babble about a common defence policy, border controls and more say for the citizens. ... But not a word is lost on the subject of how this is supposed to achieved or, more importantly, whether the citizens actually want this. And yet again all the focus is on fiscal discipline, budget rules and balanced finances. The fact that Brussels's crisis management is only making the already difficult situation (no growth) even worse is overlooked. One member state after another is plunging into a recession, public spending is being cut all over Europe, the austerity policy of one state is slowing down growth in another. And in this way all Europe is sinking slowly but surely into a swamp of self-imposed economic weakness."
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All available articles from » Ewald Engelen
Dienas Bizness - Latvia | Monday, 24. September 2012
The states that joined the EU in 2004 committed in their accession agreements to converting to the euro as soon as they fulfil the Maastricht criteria. According to the business paper Dienas Bizness, Latvia should reconsider its plans to join the Eurozone in 2014: » more
The states that joined the EU in 2004 committed in their accession agreements to converting to the euro as soon as they fulfil the Maastricht criteria. According to the business paper Dienas Bizness, Latvia should reconsider its plans to join the Eurozone in 2014: "Latvia could demand by contract an exemption from participating in the solution of fiscal problems that the euro countries have caused. Naturally it's unlikely that the EU Commission will go along with this, but we must state the obvious loudly and clearly: the Latvian taxpayer doesn't want to and can't afford to be liable for the debts accumulated by other euro countries through irresponsible spending. And Latvia would not be the first to take such a course. A number of European states have already made it clear that they wouldn't dream of joining a Eurozone that is encumbered with the problems it faces right now."
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Wiener Zeitung - Austria | Thursday, 20. September 2012
Germany can leave the euro crisis if it wants to solve the euro crisis, the US investor George Soros writes in the state-run liberal daily Wiener Zeitung: » more
Germany can leave the euro crisis if it wants to solve the euro crisis, the US investor George Soros writes in the state-run liberal daily Wiener Zeitung: "In my judgment the best course of action is to persuade Germany to choose between becoming a more benevolent hegemon, or leading nation, or leaving the euro. ... If Germany left, the euro would depreciate. The debt burden would remain the same in nominal terms but diminish in real terms. The debtor countries would regain their competitiveness because their exports would become cheaper and their imports more expensive. ... The creditor countries, by contrast, would incur losses on their investments in the euro area ... therefore creditor countries would have an interest in keeping the depreciation within bounds. The eventual outcome would fulfill John Maynard Keynes's dream of an international currency system in which both creditors and debtors share responsibility for maintaining stability. ... It may come as a surprise, but the eurozone, even without Germany, would score better on standard indicators of fiscal solvency than Britain, Japan, or the US. A German exit would be a disruptive but manageable onetime event, instead of the chaotic and protracted domino effect of one debtor country after another being forced out of the euro by speculation and capital flight."
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All available articles from » George Soros
Turun Sanomat - Finland | Monday, 17. September 2012
EU Commission President José Manuel Barroso defended on the weekend his calls for the creation of a European federation of nation states. But this vision will be exceedingly difficult to put into practice, the liberal daily Turun Sanomat fears: » more
EU Commission President José Manuel Barroso defended on the weekend his calls for the creation of a European federation of nation states. But this vision will be exceedingly difficult to put into practice, the liberal daily Turun Sanomat fears: "Taking the United States as a yardstick, there's still a long way to go before Europe becomes a federation. Taxes, social policy and education are all decided at a national basis. The shared EU budget is very small. Without the joint consent of all the member states no significant powers can be transferred to the EU level. Barroso was right: there's no reason to fear the F-word. In particular in the area of economic policy there is room and the need for deeper integration. But Europe still can't make much headway on the path to federalism. The project lacks the support of the citizens and a healthy dose of political realism."
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Main focus of Thursday, 13. September 2012
Germany's Constitutional Court on Wednesday ruled in favour of Germany participating in the European Stability Mechanism. However the country's liability may not exceed a fixed ... » more
Germany's Constitutional Court on Wednesday ruled in favour of Germany participating in the European Stability Mechanism. However the country's liability may not exceed a fixed limit without the permission of the German parliament, or Bundestag. The ruling by the judges in Karlsruhe will only plunge the crisis-stricken states further into debt, some commentators argue. Others say the decision has paved the way for the creation of a fiscal union and the rescue of the euro.
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Il Sole 24 Ore - Italy | Thursday, 13. September 2012
The fact that Germany's liability is limited to 190 billion euros for the ESM unless the German parliament gives the go-ahead for more is further evidence of Germany's double standards, the liberal-conservative business daily Il Sole 24 contends: » more
The fact that Germany's liability is limited to 190 billion euros for the ESM unless the German parliament gives the go-ahead for more is further evidence of Germany's double standards, the liberal-conservative business daily Il Sole 24 contends: "It is no mere coincidence that Merkel backs the integration of the banking sector, but at the same time opposes centralised supervision of all European banks. … The same goes for the [190 billion euro] limit on Germany's liability. Here the judges in Karlsruhe have ruled in favour of budgeting sovereignty. … On the one hand Germany calls on its partners to sign the fiscal pact and consequently to renounce sovereignty over their own budget policy in the name of the inevitable Europeanisation of economic and political structures. And on the other, with their ruling on the European bailout mechanism the judges are applying exactly the opposite logic? That smacks of double standards - or blind nationalism."
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All available articles from » Adriana Cerretelli
Spiegel Online - Germany | Thursday, 13. September 2012
With its decision Germany's Constitutional Court has revised its previous decisions on the relationship between the EU and national states, and paved the way for the creation of a European fiscal union, writes business journalist Wolfgang Münchau on the news portal Spiegel Online: » more
With its decision Germany's Constitutional Court has revised its previous decisions on the relationship between the EU and national states, and paved the way for the creation of a European fiscal union, writes business journalist Wolfgang Münchau on the news portal Spiegel Online: "In the Maastricht ruling the court [still] maintained at that point that the EU's sovereignty derived from the member states, whose sovereignty was indivisible, meaning that they could not give up the most important areas of nation-state decision-making. The Lisbon ruling defined what fiscal policy encompassed - if it was to be transferred to the EU, then only through a referendum. The EFSF ruling reaffirmed that the Bundestag could not transfer its essential sovereign rights permanently. All this precluded a fiscal union. With its current ruling, however, the Constitutional Court has given the green light because taken together, the combination of a permanent bailout mechanism, a non-terminable fiscal compact and unlimited bond purchases by the European Central Bank effectively add up to a fiscal union."
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All available articles from » Wolfgang Münchau
Hospodárske noviny - Slovakia | Thursday, 13. September 2012
The ruling by the German Constitutional Court gives a carte blanche to anyone who wants to rack up debts unhindered, the business paper Hospodárske noviny laments: » more
The ruling by the German Constitutional Court gives a carte blanche to anyone who wants to rack up debts unhindered, the business paper Hospodárske noviny laments: "It looks very much as if this puts an end to the fight against the far-reaching bailout fund and against all those who break the rules. It is a defeat for everyone who very sensibly tries not to spend more than they take in. In this unequal battle the first to be booted out were the national parliaments. Anyone who wanted to decide matters for themselves was assassinated politically. On September 12 the last hurdle was removed by Germany's Constitutional Court. ... The Union is no longer governed by the principle of freedom and democracy that Brussels once taught us. It rests on the principle of an oligarchy. The last word on systemic bailouts lies with a handful of privileged players: the biggest debtor states, the multinational banks and anonymous investors."
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All available articles from » Dag Daniš
Polityka Online - Poland | Thursday, 13. September 2012
Germany's Constitutional Court did the right thing with its ruling and has contributed to saving the euro, the left-liberal news portal Polityka writes: » more
Germany's Constitutional Court did the right thing with its ruling and has contributed to saving the euro, the left-liberal news portal Polityka writes: "The situation in Spain and Italy would have become even more dramatic and all of Europe would have accused Germany of wanting to destroy the common currency - and perhaps even the entire EU. True, the Germans are fed up of hearing the constant announcements of bailouts for more and more countries. But now there is no going back; the bailout fund is on the way. If the Eurozone is really to survive, not only budgetary discipline but also solidarity must play an important role in the future. That is the price the rich states will have to pay. And in the years to come it could amount to many billions of euros. The sole alternative would be the end of the euro, which would certainly cost even more."
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All available articles from » Cezary Kowanda
Rzeczpospolita - Poland | Tuesday, 11. September 2012
The EU Commission will present a proposal for a central banking supervisory authority on Wednesday. But bank supervision must not go hand in hand with debt mutualisation, writes Paweł Borys, strategy director at the Polish bank PKO BP, in the conservative daily Rzeczpospolita: » more
The EU Commission will present a proposal for a central banking supervisory authority on Wednesday. But bank supervision must not go hand in hand with debt mutualisation, writes Paweł Borys, strategy director at the Polish bank PKO BP, in the conservative daily Rzeczpospolita: "Because that could mean transferring problems from one country to another and from the level of the nation state to the EU level, instead of finding a solution to the problem. For example, a joint deposit guarantee system to bailout banks in Greece and Portugal could mean transferring part of the costs to the Polish banking sector. ... We would be among the biggest payers into the guarantee system. The prospect of raising our costs to save other banks is not exactly propitious. However close cooperation between the individual supervisory authorities is certainly necessary within the states and at the European level."
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All available articles from » Paweł Borys
Süddeutsche Zeitung - Germany | Wednesday, 5. September 2012
Past experience has already shown that ECB intervention can't provide a lasting solution to the crisis, the left-liberal daily Süddeutsche Zeitung points out, arguing against the financing of government bonds: » more
Past experience has already shown that ECB intervention can't provide a lasting solution to the crisis, the left-liberal daily Süddeutsche Zeitung points out, arguing against the financing of government bonds: "Yes, the ECB can put as much money in circulation as it wants to at the touch of a button. But no, so far even the special privilege of printing money has hardly helped at all. So now for the next attempt. … The freshly printed money carries certain risks. For one thing there's the danger of inflation; the many millions drive up prices. Then there's the danger of losses, if for instance Italy left the Eurozone the ECB would be left sitting on a pile of government bonds with a high risk of default. The [German] taxpayer is liable for this to the tune of 27 percent. Has the Bundestag voted in this? No. … If the politicians want to save the Eurozone they should do it themselves, after consulting the people. There are a number of possibilities, from the introduction of euro bonds to a debt settlement pact. The ECB joker is tempting but it's easy to forget that it doesn't pay off in the long term."
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All available articles from » Markus Zydra
Le Monde - France | Wednesday, 5. September 2012
Three renowned German thinkers, the philosophers Julian Nida-Rümelin and Jürgen Habermas and economist Peter Bofinger, call in the left-liberal daily Le Monde for the political integration of Europe: » more
Three renowned German thinkers, the philosophers Julian Nida-Rümelin and Jürgen Habermas and economist Peter Bofinger, call in the left-liberal daily Le Monde for the political integration of Europe: "The euro crisis reflects the failure of a dead-end policy. Despite extensive rescue programmes and countless crisis summits, the situation of the eurozone has steadily deteriorated over the last two years. ... There are only two coherent strategies for dealing with the current crisis: a return to national currencies across the EU ... or the institutional underpinning of a collective fiscal, economic and social policy within the eurozone, with the further aim of restoring to policymakers their lost capacity for action in the face of market imperatives at a transnational level. ... For this reason alone - because it leads on to this broader perspective - the second option deserves preference over the first. ... We believe that we should be entirely open about this process. It is simply not possible to retain the common currency without also espousing the idea of collective responsibility and redressing the institutional deficit in the eurozone."
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All available articles from » Jürgen Habermas, » Julian Nida-Rümelin, » Peter Bofinger
La Tribune - France | Thursday, 30. August 2012
The German Constitutional Court will rule on the legality of the ESM euro bailout fund and the fiscal compact on September 12. The decision is of fundamental importance for the future of Europe, writes Hans-Werner Sinn in the left-liberal business paper La Tribune: » more
The German Constitutional Court will rule on the legality of the ESM euro bailout fund and the fiscal compact on September 12. The decision is of fundamental importance for the future of Europe, writes Hans-Werner Sinn in the left-liberal business paper La Tribune: "People of all walks of life are worrying about how the Court will rule. Europe's taxpayers and pensioners who have squirreled away substantial savings fear that a decision in favour of the ESM could open the way for a mutualisation of Eurozone debt, and that they will have to shoulder the losses of investors. In the event of an unfavourable ruling, the latter fear they will have to bear all the losses they've incurred. ... There is no telling which way the decision will go, which is a good thing. And even better is that there can be no pressuring or petitioning the Court. The European Union can only be founded on the rule of law. And if Europe's politicians manage to put themselves above the law in certain circumstances, the EU will never attain the stability it needs to for peace and prosperity."
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All available articles from » Hans-Werner Sinn
Süddeutsche Zeitung - Germany | Monday, 20. August 2012
After the leader of the German opposition Social Democratic Party (SPD) Sigmar Gabriel and the leader of the SPD in the German parliament, Frank-Walter Steinmeier, now a third high-ranking SPD politician, ex-finance minister Peer Steinbrück, has spoken out in favour of debt consolidation in the Eurozone. But a major reform of Europe would overtax the monetary union at this point in time, warns the left-liberal daily the Süddeutsche Zeitung, calling for more patience: » more
After the leader of the German opposition Social Democratic Party (SPD) Sigmar Gabriel and the leader of the SPD in the German parliament, Frank-Walter Steinmeier, now a third high-ranking SPD politician, ex-finance minister Peer Steinbrück, has spoken out in favour of debt consolidation in the Eurozone. But a major reform of Europe would overtax the monetary union at this point in time, warns the left-liberal daily the Süddeutsche Zeitung, calling for more patience: "Beyond Germany's borders there is no other European state or people where a large majority would be prepared to pass from being a union of sovereign states to being a European confederation. ... A hectic reform would just be half measures again. This would only increase the distrust, particularly if Germany is the one calling for the reform. Therefore it is imperative to decelerate the debate: above all those states that are sceptical about reform must first say what Europe wants to be in future and what it should be capable of. This central question regarding the European Union's identity cannot be answered in the panic of the crisis - it would inevitably lead to disaster. Those who want to help Europe should stop fantasising about sweeping solutions."
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All available articles from » Martin Winter
Blog EUROPP - United Kingdom | Thursday, 16. August 2012
ECB head Mario Draghi and Italy's Prime Minister Mario Monti have repeatedly argued for the quick implementation of a European banking and fiscal union. But this could force the crisis countries into a blatant state of dependency, Antonio Lettieri fears in the blog EUROPP of the London School of Economics: » more
ECB head Mario Draghi and Italy's Prime Minister Mario Monti have repeatedly argued for the quick implementation of a European banking and fiscal union. But this could force the crisis countries into a blatant state of dependency, Antonio Lettieri fears in the blog EUROPP of the London School of Economics: "The governments of Spain and Italy may be secured from speculation, but they have had to apply for aid from the European rescue Funds. Following their request, European Governments ... will establish the conditionality and tools to monitor their implementation. In essence, two out of four major founding countries of the Euro will be put under receivership. To sweeten the potion, this will be considered as a step towards a fiscal union and an anticipation of the European Political Union. This is a strange perspective of Union, one that is hard to sell to the people, as it looks more like a process by which some countries will be subjecting the others into a semi-colonial condition. ... Germany can take steps to dismiss governments in distressed countries, reducing them to a semi-colonial condition, but cannot accept any doubt about the sovereignty of the German Parliament and the Constitutional Court itself."
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La Repubblica - Italy | Wednesday, 15. August 2012
Despite a new complaint filed by eurosceptics against the ESM bailout mechanism, Germany's Constitutional Court plans to stick to its current schedule and announce its decision on the conformity of the new rescue fund with the German constitution on September 12. This is good news but doesn't change the fact that the Constitutional Court is holding the Eurozone hostage, the left-liberal daily La Repubblica comments: » more
Despite a new complaint filed by eurosceptics against the ESM bailout mechanism, Germany's Constitutional Court plans to stick to its current schedule and announce its decision on the conformity of the new rescue fund with the German constitution on September 12. This is good news but doesn't change the fact that the Constitutional Court is holding the Eurozone hostage, the left-liberal daily La Repubblica comments: "Once again the fate of the monetary union is in the hands of the German Constitutional Court. Karlsruhe [where the Court resides] is limiting the government's room for manoeuvre because every agreement Berlin signs with Brussels must previously have received the blessing of parliament. … Although as far as the legitimacy of the government of a democratic country is concerned, there's nothing to be said against this, it also means that on a regular basis Europe is being held hostage by a non-EU institution which it did not appoint and over which it has no jurisdiction. … Moreover this results in a contradiction. In the name of the German constitution the judges of Karlsruhe must preserve German sovereignty at the same time as Germany is calling on other EU countries to give up sovereignty in order to save the monetary union."
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All available articles from » Andrea Bonanni
Imerisia - Greece | Thursday, 9. August 2012
In the Monday edition of the German newspaper Berliner Zeitung the leader of Germany's opposition Social Democratic Party, Sigmar Gabriel, voiced support for the idea of introducing Eurozone debt mutualisation in the long term. This hails a change of policy in Berlin, writes the business paper Imerisia, saying that this reorientation will change the mood in Germany and all Europe: » more
In the Monday edition of the German newspaper Berliner Zeitung the leader of Germany's opposition Social Democratic Party, Sigmar Gabriel, voiced support for the idea of introducing Eurozone debt mutualisation in the long term. This hails a change of policy in Berlin, writes the business paper Imerisia, saying that this reorientation will change the mood in Germany and all Europe: "It is now clear that politicians and observers in Germany are increasingly aware that one can no longer wait until the general elections in September 2013 and that the current government must change its course. … One thing is for sure: the national consensus on the European strategy is broken and the opposition is now much closer to the standpoint of Italian Prime Minister Mario Monti than that of the Chancellor. The debate in Germany will influence [other states], but it will also be influenced by the determination of key partners like France and Italy. Incidentally, a look back to the past confirms this virtually inevitable mutual dependence."
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All available articles from » Giorgos Kapopoulos
Main focus of Tuesday, 7. August 2012
Italian Prime Minister Mario Monti has drawn a barrage of criticism from Berlin and Brussels by saying in an interview published in the latest issue ... » more
Italian Prime Minister Mario Monti has drawn a barrage of criticism from Berlin and Brussels by saying in an interview published in the latest issue of German news magazine Spiegel that governments should have more leeway vis-á-vis parliaments in the crisis. Monti is just voicing an inconvenient truth because democratic principles are already being sacrificed as a result of the crisis, commentators write, and warn against bypassing the citizens and their parliaments.
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Die Presse - Austria | Tuesday, 7. August 2012
Monti's technocratic stance reveals the lack of democratic thinking among EU elites, writes the liberal-conservative daily Die Presse, arguing that in the long term this will hurt the European project: » more
Monti's technocratic stance reveals the lack of democratic thinking among EU elites, writes the liberal-conservative daily Die Presse, arguing that in the long term this will hurt the European project: "Monti and other enlightened rulers no doubt mean well. But their conception of politics is confined to somewhere between technocracy and autocracy. How else could Italy's prime minister seriously preach that every government has the duty to rein in its parliament? In 'Montiropa', not even rhetorically does power emanate from the people. The citizens and parliaments are just obstacles when it comes to saving the euro. ... If under the dictates of the crisis, democratic and constitutional institutions are pushed to the fringes, the project of Europe could in the long term suffer more damage than any dithering on euro decisions inflicts. Quite apart from the fact that even three years after the first signs of smoke from Greece were detected the European fire brigade somehow doesn't give the impression of knowing how to tackle the wildfire spreading across Euroland."
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All available articles from » Christian Ultsch
Corriere del Ticino - Switzerland | Tuesday, 7. August 2012
Monti's words were directed at Germany because unfortunately it has become a favourite pastime to use Germany as a scapegoat, the liberal daily Corriere del Ticino notes: » more
Monti's words were directed at Germany because unfortunately it has become a favourite pastime to use Germany as a scapegoat, the liberal daily Corriere del Ticino notes: "By ingeniously twisting the facts many agents are holding Germany and the Bundesbank responsible for the ongoing debt crisis. ... But the reality is different, and Prime Minister Monti knows this. But in a crisis everyone looks for someone to blame. Switzerland, which functions as an international scapegoat in the area of finances and taxes, has plenty of experience with this. The search for a scapegoat is an incorrect reaction that doesn't solve the problem and only seeks to shift the blame, one's own share too, onto others. … The austerity policy Germany is calling for no doubt also serves Germany's interests, but far more those of the Eurozone. Because the only chance it has of surviving is to reduce the mountain of debt, as Germany demands should be done."
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All available articles from » Lino Terlizzi
Il Sole 24 Ore - Italy | Tuesday, 7. August 2012
The way German politicians have overreacted shows that Mario Monti has hit a German sore spot with his thoughts on the rights of national parliaments, the liberal-conservative business paper Il Sole 24 Ore writes mockingly: » more
The way German politicians have overreacted shows that Mario Monti has hit a German sore spot with his thoughts on the rights of national parliaments, the liberal-conservative business paper Il Sole 24 Ore writes mockingly: "Where was and where is the army of the indignant when with the Six-Pack [which strengthens the European Stability Pact] and the fiscal compact gave the EU the right to intervene in budgetary decisions made in parliament? Why was there no protest when among others Angela Merkel proposed a fiscal union that includes the renunciation of state sovereignty? ... The sacrifice of certain democratic mechanisms is regarded as a vital tool in overcoming the crisis. Why does the desire to give Berlin greater leeway to react in a timely and cost-effective way to the crisis trigger such a scandal? Perhaps there is a special law in Germany for 'applying double standards' that allows it to impose on others what it does not demand of itself."
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All available articles from » Adriana Cerretelli
Main focus of Friday, 3. August 2012
The ECB will buy the bonds of crisis-stricken state only if they apply for assistance from the euro bailout bond and fulfil the conditions that ... » more
The ECB will buy the bonds of crisis-stricken state only if they apply for assistance from the euro bailout bond and fulfil the conditions that entails, ECB chief Mario Draghi explained on Thursday. With this statement he is breaking his promise to save the euro and ruining the credibility of the ECB, some commentators admonish. Others say it is only right that countries are expected to bear more responsibility for their own fate in the crisis.
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Diário Económico - Portugal | Friday, 3. August 2012
It was dishonest of Draghi not to make good on what he had pledged last week, in the eyes of the liberal business paper Diário Económico: » more
It was dishonest of Draghi not to make good on what he had pledged last week, in the eyes of the liberal business paper Diário Económico: "He began by saying that he would do whatever it took to save the euro, but then he did nothing. ... How normal this has become at the EU institutions: first they study the problem then wait and see what happens. ... The markets don't like encoded messages or people who say one thing and then do another. But this is precisely the way the EU politicians do things: declarations of love for the euro but nothing to back them up. ... The credibility of the EU institutions has been destroyed. This ECB decision was clearly influenced by pressure from Germany and once again Germany's orthodox financial approach has won the day. ... As far as Germany is concerned it would be a sacrilege for the ECB to buy bonds. Draghi wanted to take this path, but has pulled back. Now the bank will only intervene after crisis countries ask the fund for help."
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All available articles from » Bruno Proença
De Tijd - Belgium | Friday, 3. August 2012
With his catastrophic communication policy Draghi has gambled away the ECB's credibility, the liberal daily De Tijd criticises: » more
With his catastrophic communication policy Draghi has gambled away the ECB's credibility, the liberal daily De Tijd criticises: "What got into Draghi? Does he really think that he can get away with telling investors - those of London City, mind you - that 'whatever it takes' will be done to save the euro one week, only to go back on his words the next? Someone has to tell this Italian that investors are a very excitable bunch. By making promises in London that he couldn't keep, Draghi has destroyed the credibility of the ECB. And that's a bad thing. ... The yields on Spanish bonds rose to 7.17 percent yesterday as a result of Draghi's blunder. Draghi will no doubt find this highly irrational once more. But faced with such wretched communication skills it's entirely rational that the investors are running scared."
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All available articles from » Kurt Vansteeland
Corriere della Sera - Italy | Friday, 3. August 2012
ECB chief Draghi does well to make countries take their fate into their own hands, writes the liberal-conservative daily Corriere della Sera: » more
ECB chief Draghi does well to make countries take their fate into their own hands, writes the liberal-conservative daily Corriere della Sera: "With their downhill run the markets are punishing Draghi for not keeping his promise. But the markets are wrong. ... An unlimited ECB aid programme for Italy and Spain of the kind Paul Krugman and many other experts around the globe are calling for would be in contradiction of the EU treaties. ... Unconditional ECB support would also torpedo the debt ceiling that the countries in question have agreed to under the pressure of rising borrowing costs. Because political Europe stubbornly refuses to act jointly in the crisis, the power of decision Draghi lays claim to has advantages that may be rewarded by less jittery financial markets. Firstly, he is leaving all the doors open to the ECB and secondly, he is reminding the political leaders of a key truth: saving the euro depends not just on the ECB but also on the governments and their voters."
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All available articles from » Francesco Daveri
El País - Spain | Friday, 3. August 2012
The ECB has indicated that it is willing to buy massive amounts of government bonds of crisis countries - but only once they have officially applied for help. This decision will have major repercussions for Spanish society, the left-liberal daily El País fears: » more
The ECB has indicated that it is willing to buy massive amounts of government bonds of crisis countries - but only once they have officially applied for help. This decision will have major repercussions for Spanish society, the left-liberal daily El País fears: "For Spain, the consequences are clear. Now that the door of direct intervention by the ECB has closed, the government will have to think about applying for help from the bailout fund and when the best time to do so would be. … After the banking rescue the government insisted that the Spanish economy wouldn't need a second bailout. But now the conditions for refinancing Spain's debt make it seem inevitable that the government will have to apply for help from the ECB, breaking yet another of its emphatic promises. ... It's difficult to avoid the perception that the single currency will be maintained at the expense of draconian measures in Spain and Italy, with unforeseeable consequences for society."
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Main focus of Thursday, 2. August 2012
According to media reports, ECB chief Mario Draghi plans to present a double strategy today, Thursday, for curbing the debt crisis. The plan is for ... » more
According to media reports, ECB chief Mario Draghi plans to present a double strategy today, Thursday, for curbing the debt crisis. The plan is for both the ECB and the ESM bailout mechanism to purchase the bonds of struggling countries. Despite the danger of inflation, commentators favour a stronger role for the ECB because they see the central bank as a more credible player than the European governments.
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Delo - Slovenia | Thursday, 2. August 2012
Europe still hasn't come up with a solution to the euro crisis, writes the left-liberal daily Delo in disbelief: » more
Europe still hasn't come up with a solution to the euro crisis, writes the left-liberal daily Delo in disbelief: "The discussions about the euro crisis increasingly resemble those about global warming. All the politicians are warning of a catastrophe of biblical proportions which we won't escape if we don't act immediately. We watch on as words and threats inflate, one fateful summit after another produces ever new solutions, all of which fail - and meanwhile the monetary union is melting away like the glaciers. ... We have to ask ourselves whether all the fears - as with the environmental problems - are pure speculation. One simply refuses to believe that the accumulated global intelligence of the 21st century can't find a solution to the problem it itself refers to as the debt crisis of the Eurozone."
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Süddeutsche Zeitung - Germany | Wednesday, 1. August 2012
Leading Eurozone countries like France and Italy want the ESM bailout fund to be endowed with a banking licence so that it can take out unlimited loans with the European Central Bank and use them to purchase even more government bonds, according to a report in the Süddeutsche Zeitung. In an opinion piece the left-liberal daily tries to assuage Germany's fears: » more
Leading Eurozone countries like France and Italy want the ESM bailout fund to be endowed with a banking licence so that it can take out unlimited loans with the European Central Bank and use them to purchase even more government bonds, according to a report in the Süddeutsche Zeitung. In an opinion piece the left-liberal daily tries to assuage Germany's fears: "The fund is intended to provide security. The aim is to put an end the fierce discussion rounds about whether there is enough money to bailout this or that country. If the fund is granted unlimited credit it will end all the speculation about whether 300, 500 or 700 billion euros in guarantees is enough to finance euro countries over a limited period. The time limit remains an incentive for crisis-stricken states to sort out their labour markets, pension systems and budgets. … In this respect it is even a step forwards if the ECB is allowed to intervene in the markets in the name of the ESM fund. Because so far the Central Bank has purchased [government bonds] on its own account - which meant no conditions were imposed on the countries in question. In the future governments will have to deliver reform and austerity measures in exchange for assistance."
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All available articles from » Cerstin Gammelin
La Repubblica - Italy | Wednesday, 1. August 2012
The European Central Bank is expected to take an important step in saving the euro on Thursday. Economic Nobel Prize laureate Paul Krugman voices his support in the left-liberal daily La Repubblica for ECB President Mario Draghi and his proposal to purchase government bonds: » more
The European Central Bank is expected to take an important step in saving the euro on Thursday. Economic Nobel Prize laureate Paul Krugman voices his support in the left-liberal daily La Repubblica for ECB President Mario Draghi and his proposal to purchase government bonds: "[P]olicymakers would have to (a) do something to bring southern Europe's borrowing costs down and (b) give Europe's debtors the same kind of opportunity to export their way out of trouble that Germany received during the good years. ... Draghi - who I suspect understands all of this - basically floated the idea of having the central bank buy lots of southern European bonds to bring those borrowing costs down. But over the next two days German officials appeared to throw cold water on that idea. ... The euro can't be saved unless Germany is also willing to accept substantially higher inflation over the next few years - and so far I have seen no sign that German officials are even willing to discuss this issue, let alone accept what's necessary. Instead, they're still insisting, despite failure after failure - remember when Ireland was supposedly on the road to rapid recovery? - that everything will be fine if debtors just stick to their austerity programs. ... For failure of the euro wouldn't just cause economic disruption; it would be a giant blow to the wider European project, which has brought peace and democracy to a continent with a tragic history."
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Corriere della Sera - Italy | Wednesday, 1. August 2012
In the run-up to the meeting of the governing council of the European Central Bank this Thursday, the crisis states are expecting not just further cuts in interest rates but also a signal that in future the ECB will purchase the bonds of struggling states. Italy is also putting its hopes in this form of support - which in the liberal-conservative daily Corriere della Sera, economists Alberto Arlesina and Francesco Giavazzi describe as entirely inappropriate: » more
In the run-up to the meeting of the governing council of the European Central Bank this Thursday, the crisis states are expecting not just further cuts in interest rates but also a signal that in future the ECB will purchase the bonds of struggling states. Italy is also putting its hopes in this form of support - which in the liberal-conservative daily Corriere della Sera, economists Alberto Arlesina and Francesco Giavazzi describe as entirely inappropriate: "Central banks can lower interest rates in an effort to ease the credit crunch. But then their task is done. It would be a mistake for them to take the place of governments and buy government bonds for budgetary reasons. Budgetary policies and monetary policy must remain separate. ... Moreover the Central Bank should not forget the lessons of last summer when it began to buy up Italian bonds: the yields on the bonds went down but unfortunately this also destroyed the good reform intentions of the government at the time. ... Our only alternative is to get ourselves out of the mess. We can do it, but it will require resolve on the part of government and parliament."
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Jornal de Negócios - Portugal | Tuesday, 31. July 2012
The criticism levelled by Euro Group boss Jean-Claude Juncker against Berlin's conduct in the euro crisis has provoked a series of fierce counterattacks among the ruling coalition in Germany. This is a dangerous dispute that will only increase doubts about the euro, the business paper Jornal de Negócios warns. "Juncker accused Germany of treating the Eurozone as its subsidiary. … The response was not long in coming: » more
The criticism levelled by Euro Group boss Jean-Claude Juncker against Berlin's conduct in the euro crisis has provoked a series of fierce counterattacks among the ruling coalition in Germany. This is a dangerous dispute that will only increase doubts about the euro, the business paper Jornal de Negócios warns. "Juncker accused Germany of treating the Eurozone as its subsidiary. … The response was not long in coming: Christian social CSU secretary general Alexander Dobrindt described the remark as the height of impertinence. … His party colleague Hans Michelbach criticised ECB chief Draghi, who announced that he would do whatever was necessary to save the euro. … This barrage of public nonsense points to a dangerous trend in the Euro Group. It is reigniting old animosities that the EU project is there to prevent. … The Germans must finally understand that the euro is a now political project, not just a monetary one: the survival of Europe depends upon it. … As things stand now distrust of the euro is only being spurred, and with it the collapse of the EU's economy."
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Main focus of Friday, 27. July 2012
The head of the ECB Mario Draghi has signalised that the Central Bank will take stronger action in the debt crisis and provide further support ... » more
The head of the ECB Mario Draghi has signalised that the Central Bank will take stronger action in the debt crisis and provide further support to crisis-stricken states. His statement on Thursday that the ECB will do whatever it takes to preserve the euro is being interpreted as a move towards buying government bonds. Some commentators express relief at hearing these words while others find them alarming and warn against indirect financing of sovereign debt.
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Naftemporiki - Greece | Friday, 27. July 2012
Following Mario Draghi's statement the ECB would do whatever it takes to resolve the euro crisis and his vague hints regarding the bank's purchase of government bonds the conservative daily Naftemporiki hopes that he will keep his promise: » more
Following Mario Draghi's statement the ECB would do whatever it takes to resolve the euro crisis and his vague hints regarding the bank's purchase of government bonds the conservative daily Naftemporiki hopes that he will keep his promise: "Draghi has acted as one would expect of a banker of his calibre. … Yesterday can be described as a victory for the defenders of the euro, but in the next few days the markets will test whether Draghi will really make good on his promise. … If the president of the European Central Bank doesn't have the courage and the resolve to either go against the will of leading European politicians or simply act alone, … the dark days will make a surprisingly quick and fulminating comeback and the European Central Bank will lose its credibility and also its ability to change the mood on the markets with a statement."
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La Repubblica - Italy | Friday, 27. July 2012
An independent intervention by the ECB would allow for a solution to the euro crisis that goes against Angela Merkel without her losing face, the ... » more
An independent intervention by the ECB would allow for a solution to the euro crisis that goes against Angela Merkel without her losing face, the left-liberal daily La Repubblica concludes. "Draghi has apparently received the silent consent of the German leadership, which he can use to break the resistance of the hawks [the hardliners in the euro debate who take the German line]. If the ECB acts independently to deescalate the crisis, which even in Germany no one wants, it allows the chancellor to stick to her principles. This will enable the chancellor to prevent the conflict over how to save the common currency from turning into a full-on clash of governments, someting which was starting to seem inevitable at the last summit and which would mean a loss of face for her."
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Blog EUROPP - United Kingdom | Friday, 27. July 2012
Michelle Everson, a professor of law, questions the sense of establishing a centralised European bank supervisory authority. It would only increase the European Union's democratic deficit and bolster technocratic structures, she argues in the blog of the London School of Economics: » more
Michelle Everson, a professor of law, questions the sense of establishing a centralised European bank supervisory authority. It would only increase the European Union's democratic deficit and bolster technocratic structures, she argues in the blog of the London School of Economics: "In the face of heightening sovereign and financial debt crises and loudly expressed fears of contagion within the Eurozone, its members, together with the European Commission, have drawn yet one more rabbit from their hat, committing themselves to the creation of a banking union by the end of this year. Certainly, this time around, remedial proposals designed to save the Euro and Union have been set in a broader political context, whereby immediate crisis-busting measures, so we are promised, will be complemented by a decade-spanning roadmap for deeper political integration within Europe. Nevertheless, given the currently rather sketchy nature of existing political-integration proposals - or, more importantly, their inherently 'commissarial' or technocratic nature - this rabbit, too, ... is also predicated upon a radical expansion in the technocratic governance structures of the EU."
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Neue Zürcher Zeitung - Switzerland | Wednesday, 25. July 2012
What Moody's is really saying is that Germany will be footing the bill for the Eurozone problems, no matter what it does, explains the liberal-conservative Neue Zürcher Zeitung: » more
What Moody's is really saying is that Germany will be footing the bill for the Eurozone problems, no matter what it does, explains the liberal-conservative Neue Zürcher Zeitung: "If the euro partners don't help countries like Greece, Spain and Italy it will be expensive for Germany, because a new wave of financial crises could break over Europe. If they do help, it will still be costly, because Germany and the other Northern European countries will have to shoulder the lion's share of the burden. The very Anglo-Saxon-sounding message from Moody's that the mess stems from the failure of the politicians to act quickly and that everything would be ok if everyone would just throw some real cash at the problem, is misguided. If Germany were to assume wide-scale liability for other EU states, then fears really would escalate about over-stretching German state finances. The trust in bond markets could dissipate at a worrying speed. None of this looks good for Germany. Whatever it does the German state and its citizens are going to have to pay to correct the errors and negligences committed in the Eurozone. This is the painful message from Moody's."
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Diário de Notícias - Portugal | Tuesday, 24. July 2012
In view of the recent turbulence on Europe's stock markets the daily newspaper Diário de Notícias criticises Berlin's obstructive behaviour: » more
In view of the recent turbulence on Europe's stock markets the daily newspaper Diário de Notícias criticises Berlin's obstructive behaviour: "The risk premiums on Spanish (and Italian) bonds are climbing to record levels - despite the horrifying austerity package Berlin and Brussels have foisted on Madrid in exchange for approving assistance for Spain's banks. Regions like Valencia are bankrupt and need help from the central government. At the same time [Jens] Weidmann, the cynic who heads the Bundesbank, is pushing for Spain to apply for a complete bailout. What terrible cruelty! The EFSF has been reduced to small change, and the new euro bailout fund [the ESM] will be subject to the scrutiny of Germany's Constitutional Court at least until September 12. Meanwhile the ECB is still refusing to buy government bonds on the secondary market. To promise something that doesn't exist is the worst insult to those who need it. The silence of the cowards continues in most of Europe's capitals."
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All available articles from » Viriato Soromenho-Marques
Kathimerini - Greece | Friday, 20. July 2012
The 100 year agreement with which the island of Ikaria in the North Aegean obtained its independence from the Ottoman Empire and joined Greece in 1912 expired on Tuesday. The Italian daily Libero used the occasion to publish a humorous piece on Monday according to which the islanders are now considering leaving Greece and joining Austria. The daily Kathimerini is surprised at the violent reactions the article sparked in Athens: » more
The 100 year agreement with which the island of Ikaria in the North Aegean obtained its independence from the Ottoman Empire and joined Greece in 1912 expired on Tuesday. The Italian daily Libero used the occasion to publish a humorous piece on Monday according to which the islanders are now considering leaving Greece and joining Austria. The daily Kathimerini is surprised at the violent reactions the article sparked in Athens: "This is further proof of the complete lack of humour on the one hand, and of the completely hysterical reflexes that kick in at the slightest hint that we might relinquish part of our sovereignty on the other. ... And this whole spectacle is taking place while the rest of Europe engages in a serious discussion about the transfer of sovereignty of the euro countries and the construction of a political union. So it's not just Greece's inability to introduce economic reforms that is forcing us from the Eurozone. It is also the deep-seated complexes making us cling to conspiracy theories and infantile nationalism that prevent us from modernising our country and following global developments."
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Frankfurter Rundschau - Germany | Tuesday, 17. July 2012
The German Constitutional Court in Karlsruhe announced on Monday the date on which it will deliver its ruling on the ESM euro bailout fund. The judgement on the corresponding urgent appeals can be expected for September 12. According to the left-liberal Frankfurter Rundschau it's good that the judges are taking their time to examine the case despite the euro crisis: » more
The German Constitutional Court in Karlsruhe announced on Monday the date on which it will deliver its ruling on the ESM euro bailout fund. The judgement on the corresponding urgent appeals can be expected for September 12. According to the left-liberal Frankfurter Rundschau it's good that the judges are taking their time to examine the case despite the euro crisis: "By setting a date, and above all by announcing it this early, the judges are making it clear that they are not indifferent to the consequences of their actions. They are availing themselves of the right to thoroughly scrutinise a serious issue. But they are not ignoring warnings that haste is called for. … Chancellor Merkel would have liked to have had more time. She is urging everyone in Europe to implement the promised reforms and cutbacks swiftly. But when it comes to the most crucial rescue operation, the construction of the permanent ESM euro stability fund, Germany is lagging behind. This is embarrassing for her. However the judges' approach has two advantages: firstly, everyone knows now when things will finally be clear. And secondly Karlsruhe will use the summary proceedings to establish its position on the main issue. ... On September 12 the world will know whether this euro bailout is compatible with Germany's Basic Law and can proceed."
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Blog Lse Europp - United Kingdom | Wednesday, 11. July 2012
Despite the ongoing debt crisis, the euro could have a brilliant future as a new reserve currency, writes Alexander Görlach, chief editor of the magazine The European, in the blog of the London School of Economics: » more
Despite the ongoing debt crisis, the euro could have a brilliant future as a new reserve currency, writes Alexander Görlach, chief editor of the magazine The European, in the blog of the London School of Economics: "Should we succeed in establishing common financial policies, common supervision of banks and a European Minister of Finance, it will be possible to create the necessary structures to organize future debt within a common European framework. Over time, the current differences of the European economies - which paradoxically already subside within a common economic zone - will balance themselves out. … These steps will also succeed in regaining the trust of the infamous financial markets: In Europe, problems are addressed at the root and not overplayed by starting the money presses at the European Central Bank. ... Europe is well on its way in the right direction. If the heads of states now embark on the path towards more integration and sacrifice some national sovereignty for common financial policies, the Euro will be the next global reserve currency. And nobody will even remember this crisis."
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Main focus of Wednesday, 11. July 2012
At their meeting in Brussels the Euro Group finance ministers have initiated the expansion of the ESM, paving the way for the bailout mechanism to ... » more
At their meeting in Brussels the Euro Group finance ministers have initiated the expansion of the ESM, paving the way for the bailout mechanism to purchase government bonds in future. Euro Group chief Jean-Claude Juncker also sees the direct recapitalisation of ailing banks as a possibility. This development of the ESM is precisely what the struggling states need, commentators write, evoking an experiment with Spain as the guinea pig.
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Cinco Días - Spain | Wednesday, 11. July 2012
The agreement on the bank bailout in Spain could serve as a model for bank supervision throughout the Eurozone, the business paper Cinco Días writes: » more
The agreement on the bank bailout in Spain could serve as a model for bank supervision throughout the Eurozone, the business paper Cinco Días writes: "The memorandum regulating the EU's conditions for saving the struggling Spanish banks is the best guideline for the future common bank supervisory authority. This mechanism will facilitate the recapitalisation of banks in difficulties without the need to apply to the states, isolate the banks' risk so it doesn't contaminate government bonds, and harmonise the solvency and credit conditions for all financial institutes on the continent. Spain has been used as a guinea pig for taking the first steps towards something the northern countries had resisted, namely a European banking union and centralised supervision, as a precondition for the rescue of ailing Spanish banks, in particular the already nationalised savings banks."
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Il Sole 24 Ore - Italy | Wednesday, 11. July 2012
After the first day of hearing on Tuesday the German Constitutional Court plans to spend several weeks examining the urgent appeals against the fiscal compact and ESM bailout fund, which have already been approved by the German parliament. A risky delay in the name of democracy, writes the liberal-conservative business paper Il Sole 24 Ore, and hopes that the result will be worth waiting for: » more
After the first day of hearing on Tuesday the German Constitutional Court plans to spend several weeks examining the urgent appeals against the fiscal compact and ESM bailout fund, which have already been approved by the German parliament. A risky delay in the name of democracy, writes the liberal-conservative business paper Il Sole 24 Ore, and hopes that the result will be worth waiting for: "The idea that the euro countries are financially interdependent, that the very existence of the EU is under threat and that sovereignty is relative obviously hasn't yet got through to Karlsruhe [where the Constitutional Court is based]. The Constitutional Court allows the principle of democracy to apply only within the confines of a politically homogeneous community. … The tug of war is understandable given that Germany and all the countries of the Eurozone have come to a crossroads, faced with the choice between national democracy with its increasingly obvious limits and Europe's political unity. A well deliberated decision from the constitutional judges in favour of the euro would be a decisive testimony to political and institutional maturity. Such a decision would be well worth the wait."
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La Stampa - Italy | Wednesday, 11. July 2012
At their meeting in Brussels, the finance ministers of the Euro Group have taken further steps towards enabling the ESM to purchase the government bonds of countries encountering difficulties. Italy and Spain had pushed through this expansion of the euro bailout fund's powers at the EU summit at the end of June. The liberal daily La Stampa is delighted to see that Italian Prime Minister Mario Monti's efforts have evidently borne fruit: » more
At their meeting in Brussels, the finance ministers of the Euro Group have taken further steps towards enabling the ESM to purchase the government bonds of countries encountering difficulties. Italy and Spain had pushed through this expansion of the euro bailout fund's powers at the EU summit at the end of June. The liberal daily La Stampa is delighted to see that Italian Prime Minister Mario Monti's efforts have evidently borne fruit: "This is a bailout mechanism that can be applied in the interest of the Eurozone to mitigate problems caused by third parties. For this reason the mechanism has two main features: it is not the country in question that asks for assistance, but rather the fund responsible for the Eurozone's systemic stability that decides when this help is necessary. Moreover the mechanism does not depend on the fulfilment of austerity requirements because it is used by countries that adhere to the EU Stability Pact. … Monti's attempt to persuade his European colleagues to interpret the EU treaties in such a way that makes this new form of assistance possible appears to have been successful."
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Der Standard - Austria | Wednesday, 11. July 2012
Luxembourg's Prime Minister Jean-Claude Juncker will remain the head of the Euro Group for the time being. The fact that the finance ministers couldn't agree on a replacement although Juncker wants to step down shows how at odds the Eurozone countries are, the left-liberal daily Der Standard comments: » more
Luxembourg's Prime Minister Jean-Claude Juncker will remain the head of the Euro Group for the time being. The fact that the finance ministers couldn't agree on a replacement although Juncker wants to step down shows how at odds the Eurozone countries are, the left-liberal daily Der Standard comments: "The weary Junker is involuntarily becoming the symbol for what is most lacking in the countries of the Eurozone: mutual trust. But if a supposedly powerful Monetary Union can't manage to solve a simple personnel problem, how are its members supposed to agree on all the complex and horrifically expensive technical decisions required to master the crisis? ... The Eurozone comes across as a quarrelling, drifting community with leaders who show no backbone when it comes to making decisions. As long as things remain that way, you can fork out as many billions in bailout funds as you like - it'll hardly help at all."
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Frankfurter Rundschau - Germany | Tuesday, 10. July 2012
German Chancellor Angela Merkel's European policy is based on one-sided political interests, author Stephan Hebel writes in the left-liberal daily Frankfurter Rundschau: » more
German Chancellor Angela Merkel's European policy is based on one-sided political interests, author Stephan Hebel writes in the left-liberal daily Frankfurter Rundschau: "The euro crisis tells us one thing above all, and that's precisely what the German chancellor does not tell us: the common currency has always borne the traits of an imperialist, primarily nationally-oriented policy on the part of the German government. And it is exactly this German dominance that Merkel is attempting to salvage when she says she's bailing out the euro. ... If what she wanted was to implement a policy that she can explain in all honesty, she'd have to start working right away on a Europe that can withstand the passage of time, a Europe of solidarity. She would have to represent those who are developing strategies and democratic institutions for a true common economic policy. For a Europe in which the battle for balanced budgets and against profligacy have a firmly established place. And one where the strongest cannot enrich themselves at the expense of the weakest. But she has decided on a different course. Merkel's policy is based on special interests - without regard for losses and for as long as she can get away with it, until France or the Federal Constitutional Court slow her down somewhat. And she tells us that this playing with fire is in the interest of Germany. That is Angela Merkel's lie."
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Corriere del Ticino - Switzerland | Tuesday, 10. July 2012
At their meeting in Brussels the finance ministers of the Euro Group passed an emergency rescue package of 30 billion euros for Spain's banks, with help for Greece and Cyprus soon to follow. However this assistance does not relieve the governments of the task of implementing drastic austerity measures, the liberal daily Corriere del Ticino writes: » more
At their meeting in Brussels the finance ministers of the Euro Group passed an emergency rescue package of 30 billion euros for Spain's banks, with help for Greece and Cyprus soon to follow. However this assistance does not relieve the governments of the task of implementing drastic austerity measures, the liberal daily Corriere del Ticino writes: "It is still up to the governments of the individual states to implement the summit's resolutions, especially as regards balancing their budgets. And precisely here there are problems. Because unfortunately some governments still have taboos about this, including about drastic cuts in spending. The emerging intention of the Euro Group to use the bailout fund for buying government bonds and helping banks directly doesn't change the fact that balancing budgets must be a national priority. Nor does it justify the postponement of such measures."
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Il Sole 24 Ore - Italy | Tuesday, 10. July 2012
Despite the immediate help for Spain's banks the yield on Spanish bonds reached a critical level at over seven percent on Monday. On the same day Germany benefited from negative interest rates on its own government bonds. Obviously the crisis is not hurting everyone, and this is why the meeting's basic agenda has been postponed, the liberal-conservative Il Sole 24 Ore concludes: » more
Despite the immediate help for Spain's banks the yield on Spanish bonds reached a critical level at over seven percent on Monday. On the same day Germany benefited from negative interest rates on its own government bonds. Obviously the crisis is not hurting everyone, and this is why the meeting's basic agenda has been postponed, the liberal-conservative Il Sole 24 Ore concludes: "In the week that passed between the EU summit in Brussels and yesterday's meeting of the Euro Group, the markets have once again gone on the offensive. This is because the impact of the positive and encouraging signals the heads of government gave on the subjects of a banking union, recapitalisation of the banks, ECB, bank supervision and bailout funds was immediately cancelled out by the objections from Finland, the Netherlands and Germany. The current accumulation of summits is also having a negative effect. Instead of putting the resolutions taken by the heads of government into concrete terms, the Euro Group has convened yet another summit for July 20 and there is even talk of another EU summit on the 25th. The growing indecision is fuelling doubts that the EU will manage to jointly overcome the crisis."
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Sme - Slovakia | Tuesday, 10. July 2012
The German Constitutional Court will start examining the question of whether the ESM euro bailout fund and the fiscal compact for budgetary discipline are compatible with Germany's Basic Law today, Tuesday. A decision is expected in a few weeks. The liberal daily Sme talks of the approach of a "predetermined breaking point" for the euro: » more
The German Constitutional Court will start examining the question of whether the ESM euro bailout fund and the fiscal compact for budgetary discipline are compatible with Germany's Basic Law today, Tuesday. A decision is expected in a few weeks. The liberal daily Sme talks of the approach of a "predetermined breaking point" for the euro: "We have reached the point where Germany must declare whether it agrees with the joint approach to solving the crisis. By gradually presenting her voters with the long-term vision of a banking union that develops into a fiscal union and then a political union, Chancellor Merkel has secured her popularity in her own country. But the south of Europe needs something more than long-term projects. It needs to be relieved of its debts - urgently. … Even if the Constitutional Court does vote in favour of the euro rescue, changes to the Basic Law and a referendum to that effect will be inevitable. We'll know more at the end of July."
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Kainuun Sanomat - Finland | Tuesday, 10. July 2012
The Finnish Finance Minister Jutta Urpilainen declared in an interview in the run-up to the meeting with her European colleagues that Finland would rather quit the Eurozone than pay for the debts of other countries. Although Helsinki is unlikely to carry out its threats unilaterally, the fact is that Finland and Germany will have trouble tolerating the next steps planned for solving the crisis, the liberal daily Kainuun Sanomat argues: » more
The Finnish Finance Minister Jutta Urpilainen declared in an interview in the run-up to the meeting with her European colleagues that Finland would rather quit the Eurozone than pay for the debts of other countries. Although Helsinki is unlikely to carry out its threats unilaterally, the fact is that Finland and Germany will have trouble tolerating the next steps planned for solving the crisis, the liberal daily Kainuun Sanomat argues: "Finland will certainly not attempt to dissolve the Eurozone on its own, but once the process starts, Finland will have to go along with it. So much political and economic capital has been invested in the euro over the decades that the Monetary Union won't be so easy to abolish. Its failure would lead to discord in Europe, to competition between states and would deal a powerful blow to the entire global economy that would reverberate for a long time to come. The people of the debtor states would suffer the most. ... It is also problematic that the internationalisation of the world of finance demands such urgent and convincing solutions for the economic and banking union that they are almost impossible politically. Especially for the Finns and Germans."
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Profil - Austria | Monday, 9. July 2012
The rescue programme of up to 100 billion euros for Spain's banks agreed by the finance ministers of the Eurozone on Monday is a sensible ... » more
The rescue programme of up to 100 billion euros for Spain's banks agreed by the finance ministers of the Eurozone on Monday is a sensible step, according to the liberal weekly Profil, which notes that billions were spent on bailing out German banks in 2009 "while Spain's banks didn't need to be rescued back then because they had bought hardly any toxic papers from the US. … That Spanish banks deemed too big to fail will receive money from the ESM is objectively no less justified than the cash injections for major banks in Germany. Anyone who sees the Eurozone as an economic unit cannot act otherwise. Only if the ESM was used to 'rescue' Spain's many small and superfluous financial institutes would this be as foolish as the rescue of the 'co-operative credit banks' was here in Austria. Essentially, the ESM and the fiscal compact are constructed in such a way that they offer the possibility to prevent such pointless bailouts."
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Corriere della Sera - Italy | Monday, 9. July 2012
German Chancellor Angela Merkel and French President François Hollande are working towards the same goal, saving the euro, but they have different priorities, the liberal-conservative daily Corriere della Sera concludes, and puts its hopes in Angela Merkel's powers as a leader: » more
German Chancellor Angela Merkel and French President François Hollande are working towards the same goal, saving the euro, but they have different priorities, the liberal-conservative daily Corriere della Sera concludes, and puts its hopes in Angela Merkel's powers as a leader: "More than moving at two different speeds, Europe's problem is that it has two different timetables. But unfortunately the wrong timetable for this patient's course of treatment could be fatal. At the most recent Brussels EU summit the two fronts were broken up. The timetables were brought a little closer to each other and a major step forwards was taken, which others must now follow. Angela Merkel plays a key role here. After the summit it was said that she had 'yielded too much'. … At the same time she and her Europe policy are gaining more and more support in the polls. A contradiction? No, more a trusting call for leadership, for the far-sightedness of a statesman that Merkel has not always possessed and which is urgently needed to bring the two timetables into harmony so that they don't land in history's wastepaper basket."
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Il Sole 24 Ore - Italy | Thursday, 5. July 2012
The demonstrative consensus between German Chancellor Angela Merkel and Italian Prime Minister Mario Monti at a meeting in Rome on Wednesday can't conceal the many differences that separate the two countries, the liberal-conservative business paper Il Sole 24 Ore fears: » more
The demonstrative consensus between German Chancellor Angela Merkel and Italian Prime Minister Mario Monti at a meeting in Rome on Wednesday can't conceal the many differences that separate the two countries, the liberal-conservative business paper Il Sole 24 Ore fears: "At a linguistic and cultural level there is great harmony. But unfortunately this doesn't mean there is a consensus on approaches and goals in a Eurozone where there is neither joint political responsibility nor a just distribution of the burden among the individual states. Indeed this harmony only magnifies the frustration at the inability to bridge the gaps. We can imagine how awkwardly the main subject of yesterday's talks was broached in Rome: the euro bailout fund and the possibility of it being used to purchase government bonds. Monti is running out of time while Merkel's hands are tied. … On July 10 the German Constitutional Court will examine the urgent appeals against the ESM. It's unlikely that the court will uphold the appeals, but it will no doubt drastically limit the bailout fund's goals and areas of application."
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Kurier - Austria | Thursday, 5. July 2012
The Austrian parliament voted in favour of the ESM bailout fund and the fiscal compact on Wednesday. But the heated debate in the National Assembly and above all the speeches made by right-wing populist Karl Heinz Strache of the FPÖ were shameful, writes the liberal daily Kurier: » more
The Austrian parliament voted in favour of the ESM bailout fund and the fiscal compact on Wednesday. But the heated debate in the National Assembly and above all the speeches made by right-wing populist Karl Heinz Strache of the FPÖ were shameful, writes the liberal daily Kurier: "Terms with negative historical connotations were misused. Hitler consolidated his dictatorship in Germany with enabling acts (Strache). Dollfuß [Austrian chancellor from 1932 to 1934] eliminated parliament in the same way in Austria. If Strache is comparing the attempt to stabilise Europe's financial architecture with the 1930s he has fully disqualified himself from holding any responsible position. … The politicians and the people need to ask the following question: are we prepared to live in solidarity with other nations as part of a European community? This could bring many advantages but will cost us money and sovereignty. The Austrians need to be informed about this and a majority must really want it. We need a clear Yes from the Austrians to more Europe. The government must promote this."
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La Repubblica - Italy | Tuesday, 3. July 2012
The Finnish government announced on Monday that it plans to veto the purchase of government bonds by the ESM European bailout fund agreed at last week's EU summit. The Dutch government also expressed criticism of the move. The reservations of the two countries show that the resolutions reached at the summit are not ready to be put into practice, the left-liberal daily La Repubblica writes: » more
The Finnish government announced on Monday that it plans to veto the purchase of government bonds by the ESM European bailout fund agreed at last week's EU summit. The Dutch government also expressed criticism of the move. The reservations of the two countries show that the resolutions reached at the summit are not ready to be put into practice, the left-liberal daily La Repubblica writes: "Prime Minister Jyrki Katainen's threat not to approve the strategy for sinking borrowing costs needn't be taken literally. But it makes clear how hotly disputed the details of the bailout mechanism will be. ... For example the contents of the memorandum which the debtor countries must sign in exchange for the purchase of their bonds haven't yet been clarified. Nor is it clear whether these purchases will be a one-off or a permanent measure. Neither has the role of the ECB as the 'agent' of the ESM been defined. All these apparent technicalities are nonetheless vital details and must be dealt with at the summit of the Euro Group ministers on July 9. It's foreseeable that Germany will play a key role here. And it could be that Berlin is the addressee of the messages from Finland and the Netherlands."
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Financial Times - United Kingdom | Sunday, 1. July 2012
Without the introduction of joint bonds the future of Europe hangs by a thread, writes the liberal business paper Financial Times with an eye to the EU summit: » more
Without the introduction of joint bonds the future of Europe hangs by a thread, writes the liberal business paper Financial Times with an eye to the EU summit: "The most important event last week was probably not the agreement at the summit anyway, but the statement by Ms Merkel that there will be no Eurozone bonds 'for as long as I live'. My belief is that this statement reveals she is not serious about political union, to which she has been paying lip-service over the past few weeks. ... If Ms Merkel is right and there are no Eurozone bonds in her lifetime, the Eurozone will not survive. Without Eurozone bonds or a change in ECB policy, Italy's and Spain's debt - and Eurozone membership - is not sustainable. That was as true on Wednesday as it is today."
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Il Sole 24 Ore - Italy | Sunday, 1. July 2012
According to media reports German Chancellor Angela Merkel was virtually blackmailed into making concessions by the heads of government of Italy and Spain at the EU crisis summit at the end of last week. In truth Merkel relented only on formal, unimportant points while secretly scoring a major victory, the liberal-conservative business paper Il Sole 24 Ore writes: » more
According to media reports German Chancellor Angela Merkel was virtually blackmailed into making concessions by the heads of government of Italy and Spain at the EU crisis summit at the end of last week. In truth Merkel relented only on formal, unimportant points while secretly scoring a major victory, the liberal-conservative business paper Il Sole 24 Ore writes: "The Brussels summit was unanimously hailed as a triumph of European common sense over Germany's arrogant pigheadedness. Yet Merkel only made a couple of concessions and achieved more than generally believed. … Because in exchange for her allowances Merkel has pushed through the principle of a European supervisory authority. In the grips of a storm of Euro enthusiasm evderyone rejoiced. But more Europe means less sovereignty. That looks simple on paper but the problems will emerge in the coming months when it becomes clear that - de facto - it's not about yielding sovereignty to Luxembourg or Cyprus but to Germany."
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Handelsblatt - Germany | Friday, 29. June 2012
Italy's Prime Minister Mario Monti and his Spanish counterpart Mariano Rajoy have managed to secure easier access to the ESFS and ESM bailout funds for states that need to lower the interest rates on their government bonds. But this summit, too, has fallen short of a true breakthrough, the business paper Handelsblatt laments: » more
Italy's Prime Minister Mario Monti and his Spanish counterpart Mariano Rajoy have managed to secure easier access to the ESFS and ESM bailout funds for states that need to lower the interest rates on their government bonds. But this summit, too, has fallen short of a true breakthrough, the business paper Handelsblatt laments: "To sum up last night: the default risk for Europe's taxpayers in saving the euro has once again increased. To what extent we don't know, because the decisions made last night haven't been laid out in detail yet. … This latest marathon of negotiations also shows that the euro rescuers still don't have a grip on the crisis three years after it began. Once again the interests of the two camps - on the one hand the financially strong countries led by Angela Merkel; on the other the struggling states led by Mario Monti - clashed resoundingly. The Chancellor and EU Council President Herman Van Rompuy obviously weren't prepared for the southern Europeans' rebellion."
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La Repubblica - Italy | Friday, 29. June 2012
The EU is trailing from one summit to the next without really tackling the rescue of the euro, the left-liberald daily La Repubblica writes: » more
The EU is trailing from one summit to the next without really tackling the rescue of the euro, the left-liberald daily La Repubblica writes: "If no one knows the answer they skip the question and move on to the next - after all, there's plenty of them. European summits are governed by this principle above all when the summit in question is regarded as crucial. Yet again, the protagonists of the umpteenth Brussels therapy have no answer to the central question of how to save the euro. Not because saving the euro is impossible. On the contrary, it would suffice to complement the currency with a political union - right now, not later. But no European leader dares to try and sell a Euro state to his or her voters. Neither today nor tomorrow. ... So each euro summit ends up simply bringing things down to the lowest common denominator. The top priority now is to save the mechanism that justifies their existence. In other words: the goal of each summit is simply to have an excuse to hold another one."
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To Vima Online - Greece | Friday, 29. June 2012
Germany won't change its stance even if the euro collapses, the left-liberal online paper To Vima laments, commenting on the EU summit in Brussels: » more
Germany won't change its stance even if the euro collapses, the left-liberal online paper To Vima laments, commenting on the EU summit in Brussels: "We must finally realise that what many countries in Europe, as well as the international economy, perceive as a highly dangerous crisis, Berlin sees as a chance to increase its political, economic and institutional clout. We must finally stop underestimating the German leadership by claiming that it doesn't really know what it's doing. It knows perfectly well what it's doing, but we don't want to admit it. ... The Germans are incapable of governing their own strength. They have always been blinded by it. And now they are blinded by the 'dream' of a Europe under Germany's leadership. ... They won't give up this dream, even in the last moments of the downfall. … We will all pay for this intoxication with their own power. Europe will pay, and in the end the Germans will pay, too."
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Financial Times - United Kingdom | Sunday, 1. July 2012
Without the introduction of joint bonds the future of Europe hangs by a thread, writes the liberal business paper Financial Times with an eye to the EU summit: » more
Without the introduction of joint bonds the future of Europe hangs by a thread, writes the liberal business paper Financial Times with an eye to the EU summit: "The most important event last week was probably not the agreement at the summit anyway, but the statement by Ms Merkel that there will be no Eurozone bonds 'for as long as I live'. My belief is that this statement reveals she is not serious about political union, to which she has been paying lip-service over the past few weeks. ... If Ms Merkel is right and there are no Eurozone bonds in her lifetime, the Eurozone will not survive. Without Eurozone bonds or a change in ECB policy, Italy's and Spain's debt - and Eurozone membership - is not sustainable. That was as true on Wednesday as it is today."
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Sme - Slovakia | Thursday, 28. June 2012
The EU heads of state and government meet to discuss a reform of the Monetary Union in Brussels today. Merkel's unambiguous rejection of euro bonds in advance of the meeting is only logical, writes the liberal daily Sme: » more
The EU heads of state and government meet to discuss a reform of the Monetary Union in Brussels today. Merkel's unambiguous rejection of euro bonds in advance of the meeting is only logical, writes the liberal daily Sme: "Merkel is first and foremost a German, and then a European. She formulated her refusal in drastic terms: As long as she lives, there will be no euro bonds; Germany won't be harmed for the sake of rescuing Europe. … For Merkel, euro bonds are unconstitutional both in Germany and in Europe. This makes any discussion redundant. If the euro bonds do eventually come it would only be if Brussels has the national budgets under its control. Only then would the chancellor be happy."
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Spiegel Online - Germany | Monday, 25. June 2012
German Chancellor Angela Merkel must show at the EU summit at the end of the week that she has confidence in Europe, writes the news portal Spiegel Online, predicting that a common European government is inevitable: » more
German Chancellor Angela Merkel must show at the EU summit at the end of the week that she has confidence in Europe, writes the news portal Spiegel Online, predicting that a common European government is inevitable: "If the Germans voted today they would drop Europe cold. Merkel must woo the people - even if at the end of the day it could cost her her job. ... There will be no getting around a referendum [on the changes to the German Basic Law to allow for an extension of the competences of the EU]. ... The banking union and euro bonds are merely emergency measures with which the smouldering flames of the crisis can be smothered. After that the Germans will have a new Basic Law and the continent will have a common government, a common policy and a common destiny. That is the consequence of the entire European integration process since the Treaties of Rome. It's too late to turn back now."
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taz - Germany | Monday, 25. June 2012
The heads of state and government of the four major euro states Germany, France, Italy and Spain convened in Rome on Friday for a crisis meeting. But they failed to tackle the burning issues in their talks, the leftist daily taz criticises: » more
The heads of state and government of the four major euro states Germany, France, Italy and Spain convened in Rome on Friday for a crisis meeting. But they failed to tackle the burning issues in their talks, the leftist daily taz criticises: "The [financial markets] won't be swayed by either the growth programme, the transaction tax or any envisaged steps towards greater integration. For them the only thing that counts is how the governments of the Eurozone react if in the next few days once again Spanish - followed by Italian - bonds come under mounting pressure. This is the question where the arduous show of unity at the four-way summit ended. … Euro bonds, euro bills, the role of the ECB: all these highly charged terms were left unmentioned and the major questions unanswered. Instead the Europeans can rejoice that perhaps very soon a banking union will be formed, followed by the fiscal union in another couple of years and political union. But will there still be a euro by then?"
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Spiegel Online - Germany | Thursday, 21. June 2012
German Chancellor Angela Merkel's crisis policies will lead straight to the biggest bankruptcy the world has ever seen, columnist Wolfgang Münchau fears in the news portal Spiegel Online: » more
German Chancellor Angela Merkel's crisis policies will lead straight to the biggest bankruptcy the world has ever seen, columnist Wolfgang Münchau fears in the news portal Spiegel Online: "A sudden end to the euro would be ruinous, particularly for Germany. First off, the European single market would not survive a return to fluctuating exchange rates. The German export industry could not recover from such a change. Add to that the threat of financial collapse. ... Angela Merkel's policy of procrastination is even more ruinous. With every month the burden on Germany's system increases. … If Spain and Italy now also seek the aid of the bailout fund, then Germany and France together would stand surety for more than four billion euros of debt. That's more than the annual income of both countries put together. We are heading straight for the biggest bankruptcy in history. I know only two solutions by which this scenario can be avoided: either the European Central Bank takes over the debts, or they are partially mutualised through euro bonds and a banking union. Merkel's policy leads us into Dante's Inferno. 'Abandon all hope, ye who enter here.'"
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De Volkskrant - Netherlands | Thursday, 21. June 2012
At the G20 summit in Mexico several heads of government have called on Europe to quickly resolve the euro crisis by establishing a political union. Such expectations are unrealistic, the left-liberal daily De Volkskrant objects: » more
At the G20 summit in Mexico several heads of government have called on Europe to quickly resolve the euro crisis by establishing a political union. Such expectations are unrealistic, the left-liberal daily De Volkskrant objects: "European integration, a European leadership and euro bonds are supposed to put a quick end to the crisis. That heads of government like Obama (US), Singh (India) and Calderón (Mexico) are calling for a European political union testifies to a lack of realism on their part. Not only is this political union unachievable, it is also unnecessary. With a package of measures Europe has already established a system for dealing with future crises. … Now it's just a question of how Europe can buy the time needed for Italy and Spain to reform their economies and get their finances in order. Because we're talking about a lot of money here, there are major doubts that this can be achieved. But futuristic visions of a political union won't fill the gap."
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Público - Portugal | Thursday, 21. June 2012
Italian Prime Minister Mario Monti called at the G20 summit in Mexico for the EFSF bailout fund or its successor, the ESM, to be allowed to purchase the bonds of crisis-stricken states as a means of lowering their borrowing costs. Germany, too, should realise that this is a sensible strategy, writes the liberal daily Público: » more
Italian Prime Minister Mario Monti called at the G20 summit in Mexico for the EFSF bailout fund or its successor, the ESM, to be allowed to purchase the bonds of crisis-stricken states as a means of lowering their borrowing costs. Germany, too, should realise that this is a sensible strategy, writes the liberal daily Público: "It's still too early to tell whether Berlin will approve this plan, but the mere expectation of such an option was enough to reduce the pressure on Spanish bonds. For the first time in weeks there seems to be more on the horizon than just vague expressions of commitment to a fiscal union, banking union or euro bonds. This progress is probably owing to the fact that Germany seems to have realised that it must make some compromise to prevent a chaos scenario which could also damage its own economy. … Merkel and Germany symbolise the struggling crisis management. … It's one thing to be the target of criticism from Greece or Spain - but it's quite another to have to admit one's own faults to Washington or Beijing."
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La Tribune - France | Thursday, 21. June 2012
France wants to introduce euro bonds, Germany wants to strengthen budget discipline. The two positions should be reconciled with the introduction of "euro bills", write the financial experts Christian Hellwig and Thomas Philippon in the liberal business paper La Tribune: » more
France wants to introduce euro bonds, Germany wants to strengthen budget discipline. The two positions should be reconciled with the introduction of "euro bills", write the financial experts Christian Hellwig and Thomas Philippon in the liberal business paper La Tribune: "Politicians should view euro bonds and austerity measures as complementary components of a global strategy. For that reason we recently proposed the introduction of 'euro bills', that is common short-term debt securities for the Eurozone countries, through which long-term discipline and short-term stability may be reconciled. They would resemble the Treasury Bills issued by US Treasury Department. The market for safe and easily accessible capital in euros created in this way would enable the states to refinance part of their debts, for example ten percent of GDP, in the short term through a fixed interest rate. Nevertheless the states would have to finance the rest of their debts in the long term and without a common protection. And the renewal of debt guarantees could be made contingent on the implementation of a sustainable financial policy."
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Corriere della Sera - Italy | Wednesday, 20. June 2012
The interest rates on Spanish and Italian government bonds rose again at the beginning of the week. To prevent the crisis from spreading further the EU must tap its gold reserves, economist Alberto Quadrio Curzio writes in the liberal-conservative daily Corriere della Sera: » more
The interest rates on Spanish and Italian government bonds rose again at the beginning of the week. To prevent the crisis from spreading further the EU must tap its gold reserves, economist Alberto Quadrio Curzio writes in the liberal-conservative daily Corriere della Sera: "Given the threat of the crisis spreading like wildfire, the goal now is to stop the panic and promote growth. In both cases, using the Eurozone's gold reserves, which amount to 347 million ounces, could help. At the current gold price and dollar value they are worth around 433 billion euros. … The original proposal to use the gold reserves as collateral for a common European financial fund for the introduction of European government bonds failed owing to Germany's opposition to euro bonds. But one could consider using the gold reserves as a guarantee for the rescue fund of the debtor countries. … Because the objections to this are more psychological than economic in nature, the time seems to have come to rebut them before it's too late."
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Il Sole 24 Ore - Italy | Thursday, 14. June 2012
The interest rate on Italian government bonds rose again considerably on Wednesday. Because Italy is coming under increasing financial pressure its Prime Minister Mario Monti needs to campaign for the trust of his EU partners, the liberal-conservative business paper Il Sole 24 Ore demands: » more
The interest rate on Italian government bonds rose again considerably on Wednesday. Because Italy is coming under increasing financial pressure its Prime Minister Mario Monti needs to campaign for the trust of his EU partners, the liberal-conservative business paper Il Sole 24 Ore demands: "Hopefully our prime minister will be as victorious during his European tour as our legendary cyclist Fausto Coppi once was. … Germany yesterday once again reiterated its no to euro bonds through its finance minister Schäuble and also resisted Monti's idea of factoring investments out of the deficit. If the euro bonds remain just a dream and the path to a new European Central Bank with more room for manoeuvre remains blocked, other solutions must be sought, including a European bank guarantee and direct access for banks to the bailout fund for indebted countries."
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Il Sole 24 Ore - Italy | Friday, 8. June 2012
German Chancellor Angela Merkel and British Prime Minister David Cameron called for stronger integration of the Eurozone at a bilateral meeting on Thursday in Berlin. It's all very well for London since it's only protecting its own interests, writes the liberal-conservative business paper Il Sole 24 Ore: » more
German Chancellor Angela Merkel and British Prime Minister David Cameron called for stronger integration of the Eurozone at a bilateral meeting on Thursday in Berlin. It's all very well for London since it's only protecting its own interests, writes the liberal-conservative business paper Il Sole 24 Ore: "David Cameron is campaigning for Europe and the euro as he has never done before. The British prime minister spoke out in favour of euro bonds, a banking union and closer political cohesion yesterday. He charted out the path to save the euro, meaning the path others should take, but not London. … He urged Merkel to follow to the proposals of her euro partners above all because the fate of the British economy depends on the rescue of the currency. But while London urges others to take action it is sealing itself off for its own safety. The most recent example: while David Cameron was extolling the virtues of a banking union, his finance minister George Osborne was busy explaining that London would adopt special protective measures for British financial institutes should such a union come into being."
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Süddeutsche Zeitung - Germany | Wednesday, 6. June 2012
In the discussion about solutions to the banking crisis in Spain the country's Prime Minister Mariano Rajoy for the first time spoke out in favour of introducing euro bonds on Tuesday in Madrid. But for this project to go ahead France and Germany would have to sacrifice their most precious treasures, the left-liberal daily Süddeutsche Zeitung explains: » more
In the discussion about solutions to the banking crisis in Spain the country's Prime Minister Mariano Rajoy for the first time spoke out in favour of introducing euro bonds on Tuesday in Madrid. But for this project to go ahead France and Germany would have to sacrifice their most precious treasures, the left-liberal daily Süddeutsche Zeitung explains: "Without stronger unity and democratisation in Europe … there should be no euro bonds for financing sovereign debt. Why should the Germans be liable for the debts of other states if they can't have a say in the fiscal, economic and structural policies of those states? To put it rather drastically: If the French have a 35-hour working week, retire at 60 and appoint tens of thousands of new civil servants, should the Germans have to pay for the resulting deficits? Neither the German constitutional court nor the German voters will go along with this. … If the euro and the unprecedented project of a united Europe are to be saved, its two strongest states must sacrifice their most precious assets: Germany its money and France its sovereignty."
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