At this moment in time, it’s too early to dismiss the Euro or claim failure of the Eurozone or EU in general. It might be counter-intuitive to believe the EU will succeed but the EU has many options on the table. That’s not to say I believe it will indefinitely or forever be here to stay, but rather that it’s making one final push towards a superstate and world power that will be a flash in the pan of world history. The EU was a project that was bound to fail as one cohesive unit. There are too many different cultures and too many uneven economies varying in degree. Throw in each member state’s political interests (and even imperial interests) and you’ll see why it just won’t continue to work forever.
Options in this new push include such tools as Eurobonds, even though Merkel has slapped down the notion twice already the measure keeps coming back — and China would love to invest in Eurobonds and divest their US bonds, essentially sinking the American economy as it has wanted in its “peaceful rise”. An additional option is further integration of the strongest economies within the EU. Furthermore, although a bit more complicated, this would entail a two-tier EU system with the weaker countries still being a player but marginalized due to their usefulness/effectiveness among the pack and put in a “Class B” unit as opposed to the “Class A” unit containing stronger members such as Germany or France.
Lastly, Germany could even go as far as reverting back to the Deutsche Mark. Think that isn’t possible? Then it might be wise to consider what former George W Bush economic advisor and Deutsche Bank advisor, Dr. Pippa Malmgren, had to say a few months back. Although it didn’t transpire within the time frame, the crisis is not going away anytime soon and without any serious measures being taken. With someone holding a position within a US President’s cabinet such as she did, they’re bound to know a little more than the average Joe — and no offense to Joe, of course. Not only that, but most Germans do in fact want the Deutsche Mark back — and even some are speculating that notes are even currently being printed as we speak.
So, for now… It could very well be a mistake to count the European project out.
The European Commission presented its proposed solution to the eurozone crisis on November 23: more integration. Under the proposal, eurozone members would have to submit their budgets to the European Union for approval in the autumn, before they are submitted to national parliaments. The Commission would also be able to send inspectors to nations “experiencing severe difficulties”—even if the nation hasn’t asked for them.
“National parliaments should know that when they take a decision they are also responsible for the consequences of these decisions on others …. In a monetary union we need to acknowledge this level of interdependence,” said Commission President José Manuel Barroso.
Under the proposals, the European Commission would not be able to veto any nation’s budget, but it could criticize it publicly. And, the Wall Street Journal writes, out-of-line nations “could be locked out of European Union budget funding, which can amount to billions of euros a year.”
European Economic and Monetary Affairs Commissioner Olli Rehn looks forward to having the power the new plans would give him. “Rest assured, I will make full use of all these new instruments from day one of their entry into force,” he said.
The Commission also proposed that the EU issue “stability bonds”—common European debt. Germany vehemently opposed this, but there are indications it will go along with the plan if it’s given enough power over other nations’ budgets.
Continue reading article: European Commission Plans for Greater Integration (The Trumpet)