Quote:
Originally Posted by Penguin
(Post 1518915)
Sky, what do you mean by giving in to Sakorzy? I can't remember what she did with the dwarf.
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http://www.spiegel.de/international/...723937,00.html
Quote:
Europe's attempt to adopt strict new budget rules to prevent a repeat of the euro debt crisis has suffered a setback because Germany has given in to France on the key issue of imposing automatic sanctions against deficit wrongdoers, German commentators say.
Following talks between France and Germany, EU finance ministers meeting in Luxembourg on Monday agreed on a compromise under which ministers from member states will continue to have a say in whether fines should be imposed -- a level of political involvement that commentators fear could leave the reformed pact almost as toothless as the old one.
Germany had backed a proposal by the European Commission for an automatic process of sanctions to kick in at a certain point if countries persistently exceed the EU's budget deficit ceiling of 3 percent of GDP. France opposed that change, and got its way. In return, France agreed to a medium-term amendment of the EU treaty to allow the bloc to withdraw voting rights from member states that break the rules. But it will take years for the amendment to be agreed and ratified.
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That planned amendement is nothing else but just a
declaration of intent. An dit will become nothing more than that, becasue it needs a majority for chnaging the European trteaties - those treaties that nobody wants to fiddle wiuth again because last time it took them years and several attempts to et it pushed through.
The French, howebver, since long seek to increase the influence of politics - French politics, that is - on the EU's currency and economy polciies, and the finance markets, that way gainingdominance over these areas that by economic weight they cannot hope to ever acchieve all by themselves.
Merkel got nothing, and Sarkozy got everyting he wanted.
Also, deficit violators will continue to have a say on the sanctions for there offences. That way, the fox again has been put in charge of the henhouse. Who will need to pay for that the most money of all? Right, Germany. Once again Merkel has agreed to let the Euro-union become a pure financial transfer union.
I do not see a realsitic chnce for it bcoming ture, but I wish Germjany would skip this damn Eurpo and leave the currency union, and at best the whole EU as well. It would do damage to German economy, yes., But I think the longrun staying within the EU and the Euro union costs Germany even more - much more. And while currently it seems that Germany has made it better than any other Western nation through the crisis of the past 2 or 3 years, the cost has been high: our budget is highly defiictary (3 years ago we hoped to acchiuece a
balanced budget in 2010, mind you), and the state debts have exploded to a level that does not make us trail far behind the US anymore.
Merkel seems to think that Germany still can afford what as a matter of fact already is destroying us. She either overestimates us - or she has no idea of what else to do, that desperate things are.
