Another big step forward?

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.

12 thoughts on “Another big step forward?”

  1. MoO,

    I hope you are wrong, there is no way our gubmint will let us out of the EUSSR so the only other option is for the whole thing to disappear up it’s own exhaust.

    I would shed no tears to see the back of it. 😉

  2. Ferret as I have always said the UK does not understand the climate in Europe. There is no way that the EU will collapse and there is no way it will become a ‘free trade’ area.So you have to choose, be part of something which is exciting but different to what you are used to or leave. Of course you are increasingly a semi detached member, because of opt outs. You see you had practically no influence over this latest decision which will however have big, and positive, repercussions for the UK.

  3. FEEG certainly the German voters have been the most reluctant to accept the need for economic management of the Eurozone. Merkel has said this morning that the package is necessaary. The extent of the speculation made a political decision essntial. Hopefully the German nation will understand that we couldn’t allow the hedgefunds tod estroy the euro unopposed. Also that the less disciplind nations accept to make more financial efforts. I see this moprning that Spain has announced further budget cuts. It looks like a win lose situation. The nations of europe win the hedge funds lose.

  4. That is because the Germans, unlike the rest of the bunch, are capable of looking after their own finances and do not see why they should have to prop up the basket cases.

  5. “France as always has been the lead nation”! I can think of several who disagree. .

  6. After reflection and as the European share and bond markets started to take a dive, the Germans realised they were in the same boat as the irresponsible Club Medders and if the boat sank they would go down with it.So they have agreed to put up some cash along with the rest of us. Everybody will have to make an effort and I am sure we all will.

  7. Janus the fact that the English disagree doesn’t mean they are right. I feel there is a little bit of jealousy in their attitude towards the EU.

  8. Another pie-in-the-sky piece from madoforleans. Get real! The German people don’t want to support Greece with their hard-earned money and have just given this very clear message to Markel in Nord-Rhein-Westfalen, so she has lost her majority in the Upper House and is even facing a leadership challenge. The newspaper headlines in Austria over the last few days have all been on the theme of “Why should we send our money to Greece? When will we get it back?” Everyone knows the attitude of President Klaus of the Czech Republic towards the euro, and the Prime Minister of Slovakia has said Slovakia won’t give any money because it doesn’t trust Greece. The Netherlands seems to feel pretty much the same as Germany – and there’s an election coming up.

    So stop rabbiting on about hedge funds, as if they were the root of the problem, and acknowledge that the eurozone was established on very shaky foundations, with Greece lying in its teeth about its finances. The blame lies squarely with those European politicians who, not being economists, were convinced it would all turn out OK. Now they’re too vain to admit it.

  9. Merkel lost to the SDP who are likely be be more coperative in building a Federal Europe than the right of Merkel’s party, so I see no dangeer there.
    The fact is the German ruling class saw the European economy heading for a recession if they didn’t support a European economic govt. Much as they may regret it they had more to lose by refusing, what has been the French proposal from the very beginning, than going along with our proposals.
    Let’s not forget that the money flooding out of Spanish, Greek and Portugese bonds has largely been flooding into German and French bonds. Consequently both France and Germany were profiting from the misery of the club med nations. It would take an AS nation, which Germany thankfully is not, to turn a blind eye and not offer help.

  10. madeoforleans :

    Janus the fact that the English disagree doesn’t mean they are right. I feel there is a little bit of jealousy in their attitude towards the EU.

    Of course we are right, always have been. If you mean ‘envy’, there is Carla, I suppose. Otherwise, anything France can do………

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