euro|topics - Europe goes its own way

Main focus of Tuesday, October 14, 2008

Europe goes its own way

The European press praises the joint action by the 15 Eurogroup states in the global financial crisis. Commentators applaud Europe's strong stance with regard to the US, and say Europe should go on forging its own way - that of a "social market economy" - in the future. But there are also those who warn of an imminent recession.

Les Echos - France

The business paper Les Echos praises the European Union for its initiative in the financial crisis. "The most important event of the weekend took place not in Washington but in Paris. The Eurozone states may have taken their time; after all, its states often have egoistic reflexes. But this makes them all the more deserving of praise. The best thought-out proposals for a way out of the crisis, and even more importantly for constructing a healthier financial system, came from Europe and particularly from the UK. ... Acute tensions have often been felt between France and Germany, the UK and Ireland, Paris and Madrid. But ultimately, and this is what counts, things have happened. ... The departing Bush government has left a leadership void. ... it is now the task of the somewhat more united Europe ... to lay the groundwork for a better-regulated financial system. And there's much work to be done." (13/10/2008)

Népszabadság - Hungary

In the opinion of the liberal left-wing daily Népszabadság the EU has the choice between moving closer together or splitting up: "It is significant that it was the eurosceptic British Prime Minister Gordon Brown, of all people, who had to show the 15 countries of the Eurozone what course to take: pumping public money into banks; revitalising lending among banks in order to stimulate the economy and providing state guarantees to cover bank loans with the aim of winning back the diminished confidence of borrowers. ... What would have happened if the European economies didn't have the double protective shield of EU institutions and the euro doesn't bear thinking about. ... The past few weeks have given us the following insight: without genuine political union Europe is not in a position to find answers to crises other than those it recently managed to produce only after immense efforts." (14/10/2008)

El País - Spain

El País newspaper argues for strengthening the social market economy in Europe. "With the support of the Eurozone and the European Central Bank, the European Union has a double advantage. First of all it is not at the origin of the crisis, which shows that its market is better regulated. And secondly - even if this may sound insulting to British ears - it has its own model. We have heard Angela Merkel refer to the social market economy, a concept better suited to Europe than the unregulated market. ... Especially in these times when the role of the state and the redefinition of social democracy are gaining ground, Europe should follow the call to bolster the social market economy. And we need have no complexes vis-à-vis Anglo-American finance capitalism, whose collapse we are all now bearing the brunt of." (14/10/2008)

Financial Times Deutschland - Germany

The Financial Times Deutschland states that the financial crisis has been overcome in the short term but it nonetheless fears Europe could slip into a recession: "The policymakers ... can enjoy the feeling of not being hopelessly unable to cope in the role of saviour. No one ... can say at this point whether ... confidence will be restored and the danger of the banking system collapsing averted. ... Given the ... magnitude of the crisis the rescue action was ... inevitable. ... [But] even if they have managed to ... control the financial crisis, a vital question still remains unanswered: What can be done to prevent Europe slipping into a deep depression? Struggling with high energy prices, the strength of the euro and flagging export markets, the Eurozone economy had already taken a downturn a few months ago - largely independently of the current financial crisis. ... But to encourage the subsidies spiral and supply one sector after another with public funding would be to send a fatal message." (14/10/2008)

» To the complete press review of Tuesday, October 14, 2008

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