The building of the EU and the establishment of peace in Europe for all time is an exciting project full of crises, disagreements and ultimately progress.
Those that, with the Maastricht treaty, established the euro knew that they were advancing us down the track to a federal Europe. For the euro will only stand if there is an EU wide economic govt to coordinate tax and to redisitribute income between nations. That is ultimately what the Greek affair has been over and for which three people have sadly sacrificed their lives.
France as always has been the lead nation, with others notably Germany not wishing to advance too far. But the process was ineviable. The hedge funds based in London and new York would bet against the euro if they saw a chance of making money. And they have, massively. The only way to counter this speculative movement beyond our borders is by coordinated govt action in the Eurozone.
So this weekend France and Brussels announce a 750 million euros Eurozone fund to assist nations to resist speculation of their govt bonds. A fund that, if the annoucement is correct will be a major step forward towards federal Europe. But let us be cautious, so often what has been announced by the dynamic French president has been watered down by subsequent announcements from Berlin.
But if it is true we can finally thank the hedge funds based in US and the UK for making this historic step possible. Irony there is.
The EU’s monetary affairs commissioner, Olli Rehn, said the agreement “proves that we shall defend the euro whatever it takes.”
As I have always said, test us, the European union is stronger than you think.