Posted on 01/26/2012 11:29:57 PM PST by Olog-hai
BRUSSELS—German Chancellor Angela Merkel has said transferring more powers to EU institutions rather than increasing the size of the eurozone's future bailout fund is the way to overcome the euro crisis.
"We have said right from the start that we want to stand up for the euro, but what we don't want is a situation where we are forced to promise something that we will not be able to fulfil," Merkel said Wednesday (25 January) in the opening speech of the World Economic Forum, an informal gathering of leaders and business magnates held every year in Davos, a Swiss mountain resort.
Merkel resisted calls made by the International Monetary Fund and the Italian Prime Minister to increase contributions to the European Stability Mechanism, set to come into force in July with a firepower of €500 billion and aimed at lowering the borrowing costs of large euro-economies such as Italy and Spain. …
Instead, her solution is more 'integration', by transferring more powers from a national level to EU institutions such as the European Court of Justice, so that the continent is “turned into a Europe that works.”
"We have taken some steps closer to a fiscal union, but we can get faster, gain speed and become more decisive," she added, in reference to the intergovernmental treaty on fiscal discipline currently being negotiated among 26 member states, except Britain. …
(Excerpt) Read more at euobserver.com ...
europe is doomed again
If one didn’t know better, one would think the Eurocrats wanted this crisis in order to push greater integration. Statists are the same everywhere. It always comes down to more power in fewer hands. These folks have wanted a single European nation state for a long, long time. Why let a perfect crisis go to waste, eh?
The European Commission's top economists warned the politicians in the 1990s that the euro might not survive a crisis, at least in its current form. There is no EU treasury or debt union to back it up. The one-size-fits-all regime of interest rates caters badly to the different needs of Club Med and the German bloc. The euro fathers did not dispute this. But they saw EMU as an instrument to force the pace of political union. They welcomed the idea of a "beneficial crisis". As ex-Commission chief Romano Prodi remarked, it would allow Brussels to break taboos and accelerate the move to a full-fledged EU economic government. …They certainly aren't letting this perfect "beneficial crisis" go to waste, as you say.
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