After China-cancellation: EU begging letter writes to the G-20 countries

After China-cancellation: EU begging letter writes to the G-20 countries

German SME news | Published: 30.10.11, 21:41 | Updated: 10/31/11, 09:09


José Manuel Barroso and Herman Van Rompuy have asked in a letter to the
G-20 countries for help in the euro crisis: Europe can not manage to
cope alone. Naturally: The secret weapon is still missing EFSF € 560 billion.

The Chinese have made ​​clear to Europe that they will not be the "savior" of the euro ( details here ). Now try the EU leaders to raise money for the extended EFSF at the G-20.


Apparently they were given the bad news from the realism of the Chinese
delivered on Saturday by EFSF chief Klaus Regling, who had tried in
Beijing to bring the Chinese on board (although the EU had these travel
costs can save if they occasionally read newspaper or warnings were
taken seriously - more here and here for the rebuke to Van Rompuy by the Chinese ).




Subsequently, the EU Council President Herman Van Rompuy and European
Commission President Jose Manuel Barroso a letter to the G-20 countries
have written (complete letter here , English). The contents of the letter is alarming.
Because while Angela Merkel and Nicolas Sarkozy had said after the EU
summit to the public that Europe is now saved more or less, the two EU
representatives ask almost pleading for help: Sub-task of each
nation-state sovereignty promises Barroso and Van Rompuy that the EU
states will "do all to implement the measures rigorously and promptly." This would "help" secure solution to the crisis - the solution are obviously not even the harshest austerity programs.


In the core set to give the two, that these measures "alone can not ensure the global recovery and balanced growth." Therefore ask Barroso and Van Rompuy the "Working" from Brazil to Russia ( all of which are very skeptical - more here
) to help: "There is a continued need for a common action of all G-20
partners in a spirit of shared responsibility for a common goal. "


So the Europeans hope to create a global transfer union. It is precisely these terms, the EU has always chosen when it came to motivate the Germans to pay the debts of other states.
Having already has an intra-European transfer union have failed to
really work, are open to doubt the success of this new EU export hit.

HERE IS THE LETTER TO THE G20!! YA JUST CAN'T MAKE THIS STUFF UP! ROFL!!!!

Joint Letter of European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy to their partners ahead of the G20, G20 Summit in Cannes (France), 3-4 November 2011

Reference: MEMO/11/750 Date: 30/10/2011

HTML: EN PDF: EN DOC: EN

MEMO/11/750
Brussels, 30 October 2011



Joint Letter of European Commission President Jose Manuel Barroso and
European Council President Herman Van Rompuy to their partners ahead of
the G20, G20 Summit in Cannes (France), 3-4 November 2011



Last night, on 29 October, European Commission President Jose Manuel
Barroso and European Council President Herman Van Rompuy have sent a
letter to their G20 partners in order to summarize and explain Europe's
comprehensive crisis response upcoming G20 ahead of the summit in Cannes
on 3-4 November 2011.




The letter states:. 'We will rigorously implement these measures and in
a timely manner, and we are confident that they will contribute to the
swift resolution of the crisis whilst However, we in Europe want to play
our part, this can not alone Ensure global recovery rebalanced and
growth. There is a continued need for joint action by all G20 partners
in a spirit of common responsibility and common purpose. " They call in this context for a renewed collective spirit G20.


The two Presidents also outline the EU's priorities for the G20 summit
and stress that the Union's overall objective would be "to help restore
global confidence, support sustainable growth and job creation, and
maintain financial stability."


Full text of the letter:


"Dear Colleagues G20,



The decisions we have taken into our G20 Summits to date have been
crucial in steering us through the global financial and economic crisis. We have acted firmly and decisively with a sense of urgency and common purpose.
In the current economic situation, with world growth slowing and the
deteriorating global economic outlook, we need to renew this collective
spirit G20.
Sun our overall objectives for the G20 Summit should be in Cannes to
help restore global confidence, support sustainable growth and job
creation, and maintain financial stability.


Within the EU, we are taking all Necessary Steps to Ensure the stability and growth of the euro area. € The project is at the core of our United States.
On 26 October we agreed on a comprehensive set of measures to restore
confidence and address the current tensions in financial markets. These measures include:

• a sustainable solution for Greece. Our agreement puts Greece on track to reach a public debt ratio of 120 percent of GDP in 2020. The solution includes a voluntary agreement for a nominal discount of 50 percent of Greek debt held by private investors. This will ease market pressure on Greece and allow the country to continue its program of reforms. We aim at concluding work on a second financial assistance programs by the end of the year.
  
• 
  a significant further Strengthening of the resources of the European
  Financial Stability Facility (EFSF), Which Depending on the specific is
  expected to leverage up to around one trillion euros set-up.
  The subsequent ratification of the new European Stability Mechanism
  (ESM) Treaty Will Provide the euro area with a permanent instrument to
  support financial stability.
  
• 
  a coordinated plan to reinforce Europe's banking system We approved a
  coordinated scheme to recapitalise banks across Europe and we are
  working to design to approach for medium and long-term funding of banks.
  Banks will be required to temporarily increase the ratio of highest
  quality capital to 9% after taking account of sovereign debt exposures.
  Ensure that supervisors want banks' recapitalization plans for DO NOT
  lead to excessive or undue pressure on deleveraging sovereign debt
  markets.
  
• Determined action to Ensure Sustainable public finances and enhance growth.
  Euro area Member States that are experiencing tensions in sovereign
  debt markets will make a Particular effort in terms of fiscal
  consolidation and structural reforms and we will accelerate our growth
  strategy by using the full potential Notably of our single market of 500
  million citizens.
  
• Strengthening governance € area.
  We agreed to put in place a set of concrete measures to Strengthen
  economic and fiscal surveillance and coordination within the euro area,
  going above and beyond the recently adopted package on economic
  governance.
  

We will implement these measures rigorously and in a timely manner, and
we are confident that they will contribute to the swift resolution of
the crisis. However whilst, in Europe we will play our part, this can not alone Ensure rebalanced global recovery and growth. There is a continued need for joint action by all G20 partners in a spirit of common responsibility and common purpose.


In Cannes, we should aim for ambitious outcomes on eight priorities:


1) Restoring growth and tackling global macroeconomic imbalances. The EU's main contribution to Cannes is the above-mentioned package to Ensure the stability of the euro area. But more needs to be done at the global level. Many
of the distortions underlying the large pre-crisis imbalances are still
to be addressed - including undervalued exchange rates in key emerging
surplus economies, and insufficient domestic savings in some advanced
economies. In
Cannes, we need to adopt an ambitious action plan to address the
short-term vulnerabilities the global economy is facing, and to
rebalance global growth Strength and over the medium-term. The discussion of the various risks to the global economy must be balanced, and all countries must take action. Given
the ongoing tensions in global markets, so we need to continue to
Ensure sufficient resources for the International Monetary Fund to address crisis situations in a coordinated and comprehensive manner.


2) Making tangible progress on implementing the financial market reform agenda. Our
internationally agreed financial market reforms must be implemented in
full while Ensuring a level playing field among all G20 partners. The EU is honoring its commitments and G20 has already launched the legal process for Implementing the Basel III agreement. We
look to all other G20 partners to deliver in this area and together we
should accelerate work to advance on other agreed reforms, such as
Over-The-Counter and commodity derivatives - where the EU is already
moving - and bank crisis prevention and resolution on Which proposals
are currently being finalized. And
further work is needed to extend the framework agreed on Global Banks
to all systemically systemically Important Important Financial
Institutions, effectively regulate shadow banking, and quickly move
towards a single set of high quality globally accepted accounting
standards. It
is therefore time to make The Necessary Changes to the governance of
the Financial Stability Board, So as to underpin its monitoring
function. At Cannes So we should make a clear commitment in support of the Global Forum's work on non-cooperative jurisdictions. The European Commission has recently presented a legislative proposal for a financial transaction tax in the EU. The introduction of a global financial transaction tax should be explored and developed further.


3) Making the International Monetary System more resilient. The
current international monetary system, despite certain shortcomings
identified, on balance has more than proved its worth in terms of global
economic and financial integration. But there is scope for improvement and reform To strengthen economic surveillance by the International Monetary Fund. We
should agree principles to guide G20 members in the management of
capital flows and a roadmap for broadening the IMF Special Drawing
Rights to Facilitate the internationalization of key emerging market
currencies. Improving
the cooperation between Regional Financing Arrangements and the IMF
developing the Fund's toolkit to support countries during systemic
stress are among the measures that we now need to address as a matter of
priority.


4) Boosting trade as the most effective way to support global growth. We
together with some of our partners have worked very intensively on the
WTO Doha Round, but it is clear that the Round will not be Concluded in
2011. This is depriving the global economy of a significant boost, and risks encouraging protectionist measures. Therefore
we want the G20 to commit to a roadmap for an active WTO negotiating
agenda, in particular for least developed countries, as well as on
broadening the scope of issues being considered by the WTO in order to
address new global challenges. The G20 should renew its anti-protectionism commitment taken in Toronto and agree to Ensure a global market and open trading system for raw materials that is sustainable and transparent and free from distortion. Cannes should also send a strong message to the WTO Ministerial December to finalize Russia's WTO accession by the end of this year.


5) Enhancing the social dimension of globalization. As
reaffirmed by G20 Labour and Employment Minister of the Cannes Summit
should underline that employment and poverty reduction are at the center
of global economic policy coordination. Youth and female employment must feature among our top priorities.


6) Ensuring Food Security and Promoting the Development Agenda G20 and Innovative Financing. We need to address the global food security challenge by fully endorsing
the Action Plan on Food Price Volatility and Agriculture Agriculture
Minister agreed by G20. The
G20 Development Agenda has become an important part of the G20 and we
welcome this year's focus on food security and infrastructure. We look forward to discussing the report by Bill Gates on Financing for Development.


7) The G20 needs to further tackle the global climate and energy challenge and continue its fight against corruption. The
G20 Summit will be an important opportunity to push for a successful
outcome of the Durban Climate Conference (COP 17) and we welcome the
initiative taken by the G20 to conduct further work on Mobilising
resources for climate change finance.


Improving global governance. Finally, we look forward to discussing the report on global governance by Prime Minister David Cameron.
The stakes are high for Cannes - for the credibility of the G20 and for each of its members. In the EU we have our demo strated commitment to do everything to restore confidence and growth Necessary.
We look forward to a very constructive discussions with our round of
G20 partners next week as together we take the decisions Necessary to
make a step change on the path of global economic recovery.


Yours faithfully.


Herman Van Rompuy, José Manuel Barroso


Further information on the EU at the G20, including in online flip book with facts and figures: http://ec.europa.eu/commission_2010-2014/president/g20/index_en.htm

have they run out of bandaides yet