The euro-zone countries remain in a dangerous illusion
Michael Fleischhacker (The Press)
There are two possibilities: Either you are a member and € emits economic sovereignty, or it has sovereign over its own currency.
Everything will be fine. The agreement of the Heads of State and Government of the EU on a new Greece-aid package is now widely praised. The financial markets reacted relieved of € became hopeful. The establishment of a European rating agency, from which one expects to whatever seems to be something became more realistic, and the Austrian Chancellor will continue to advocate for the introduction of a financial transaction tax. Well then.
One must assume that everything will not be very long have been good. Because the leaders have done what they have done in past years always bought time. This time, the note must be in their favor, they bought significantly more time than the previous special sessions.
That means, first, that the absolute calm summer, which the Union is not begrudge every year in August, should be affected, and secondly, that the financing is secured in Greece for a decade.
The experience that we bring to everyday life in the assessment of the political economy teaches us that the shift of a problem makes for a longer time before its actual solution is not always. Sometimes even the opposite is the case.
In Greece for example. The time, which is now accounted for, turns into a total loss if it fails to solve the structural problems of Greece and the euro zone. Greece must, if it is to be able to service its debt on more favorable terms even in a decade, succeed in a radical restructuring of its economy. And the European Union must succeed to make up for what they would actually have on the road to the single currency must establish: a common economic policy, which allows you to leave now, facti not created via a transfer union to be a bottomless pit.
The first taste of it will give at all times earnings, even in the coming weeks. For the currently presented calculations on the phased funding requirements based on conditions in Greece, whose performance can not be taken for granted. Remain as the Greek privatization proceeds among the rather optimistic assumptions, increases the need for financing. One need not be anti-conspiracy theorists-rating agencies such as the Austrian Chancellor, to suppose that it then with the rest of the financial markets rather back over.
The circulating for some time been a panacea for a structural solution of the euro issue has some merit: "take out of the way the rating agencies" Yes, the introduction of euro bonds would the departure of the individual states mean the financial markets and, as they say. However, at the expense of stability-oriented countries, which must expect substantially higher borrowing costs. For it is naive to think that for such Bonds € same interest would be payable as a current German government bond. And it is absurd to criminal to suggest that the existence of a European rating agency could change that.
A rating is, by whomsoever made, on the economic fundamentals based assessment of the likelihood that the issuer of a bond can pay it back at the end of their term. If the issuer is a transfer union, in Germany without any intervention can rely on is that Greece by structural reforms to a path of growth and stability returns, which simply means a higher risk.
The control of a currency needs economic sovereignty. That means: Either one is € member, or one is economically sovereign. The members remain in the current € fatal illusion that both are possible. One can only hope to disappointment as quickly as possible.
E-mail to: @ michael.fleischhacker diepresse.com
("Die Presse", print edition, 07/23/2011)
Comments to the above article is stated over and over:
Yes, it has bought time so that one's vacation in August should not be disturbed. Whether this bill comes up, is another question. It never lasts for 10 years, highest duties a few months. Then, the bond market will certainly stir when Spain or Italy-PIG.
[14:30] Confirmation of an insider source: it was at this summit, just about to come on the holiday of August. In September will tell whether that's through their parliaments. It has also afraid of a downgrade by FR, can be pulped because the chickens to their rescue.
OK hard at times to understand what german say but the EU agreement put a bandaid on Greece so that everybody could go on "holiday in August" BUT if "whatever they are waiting on" does not happen when they come back in September they will Down grade France and explored the whole Eurozone.
Question is: What are they waiting on to happen???
Michael Fleischhacker (The Press)
There are two possibilities: Either you are a member and € emits economic sovereignty, or it has sovereign over its own currency.
Everything will be fine. The agreement of the Heads of State and Government of the EU on a new Greece-aid package is now widely praised. The financial markets reacted relieved of € became hopeful. The establishment of a European rating agency, from which one expects to whatever seems to be something became more realistic, and the Austrian Chancellor will continue to advocate for the introduction of a financial transaction tax. Well then.
One must assume that everything will not be very long have been good. Because the leaders have done what they have done in past years always bought time. This time, the note must be in their favor, they bought significantly more time than the previous special sessions.
That means, first, that the absolute calm summer, which the Union is not begrudge every year in August, should be affected, and secondly, that the financing is secured in Greece for a decade.
The experience that we bring to everyday life in the assessment of the political economy teaches us that the shift of a problem makes for a longer time before its actual solution is not always. Sometimes even the opposite is the case.
In Greece for example. The time, which is now accounted for, turns into a total loss if it fails to solve the structural problems of Greece and the euro zone. Greece must, if it is to be able to service its debt on more favorable terms even in a decade, succeed in a radical restructuring of its economy. And the European Union must succeed to make up for what they would actually have on the road to the single currency must establish: a common economic policy, which allows you to leave now, facti not created via a transfer union to be a bottomless pit.
The first taste of it will give at all times earnings, even in the coming weeks. For the currently presented calculations on the phased funding requirements based on conditions in Greece, whose performance can not be taken for granted. Remain as the Greek privatization proceeds among the rather optimistic assumptions, increases the need for financing. One need not be anti-conspiracy theorists-rating agencies such as the Austrian Chancellor, to suppose that it then with the rest of the financial markets rather back over.
The circulating for some time been a panacea for a structural solution of the euro issue has some merit: "take out of the way the rating agencies" Yes, the introduction of euro bonds would the departure of the individual states mean the financial markets and, as they say. However, at the expense of stability-oriented countries, which must expect substantially higher borrowing costs. For it is naive to think that for such Bonds € same interest would be payable as a current German government bond. And it is absurd to criminal to suggest that the existence of a European rating agency could change that.
A rating is, by whomsoever made, on the economic fundamentals based assessment of the likelihood that the issuer of a bond can pay it back at the end of their term. If the issuer is a transfer union, in Germany without any intervention can rely on is that Greece by structural reforms to a path of growth and stability returns, which simply means a higher risk.
The control of a currency needs economic sovereignty. That means: Either one is € member, or one is economically sovereign. The members remain in the current € fatal illusion that both are possible. One can only hope to disappointment as quickly as possible.
E-mail to: @ michael.fleischhacker diepresse.com
("Die Presse", print edition, 07/23/2011)
Comments to the above article is stated over and over:
Yes, it has bought time so that one's vacation in August should not be disturbed. Whether this bill comes up, is another question. It never lasts for 10 years, highest duties a few months. Then, the bond market will certainly stir when Spain or Italy-PIG.
[14:30] Confirmation of an insider source: it was at this summit, just about to come on the holiday of August. In September will tell whether that's through their parliaments. It has also afraid of a downgrade by FR, can be pulped because the chickens to their rescue.
OK hard at times to understand what german say but the EU agreement put a bandaid on Greece so that everybody could go on "holiday in August" BUT if "whatever they are waiting on" does not happen when they come back in September they will Down grade France and explored the whole Eurozone.
Question is: What are they waiting on to happen???