Entries Tagged as 'Euro'

Why Cameron’s EU Veto Made Sense

December 16th, 2011 at 1:32 pm 4 Comments

Last week in Brussels, pharmacy the United Kingdom for the first time in a long time refused to be dictated to by continental elites. David Cameron, ailment under enormous pressure from the Commission, other “core” Union members, and the (then) sotto voce pro-Europe disposition of his LibDem coalition members, refused to agree to the “fiscal compact” to include all 27 member states. By doing so, he has shaped the battlefield over all financial regulation in the Union, which remains very much in play, and very important to the British financial industry.

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A Permanent EU “Crisis”?

December 8th, 2011 at 4:44 pm 4 Comments

On December 7th, sovaldi French President Nicolas Sarkozy and German Chancellor Angela Merkel presented a pilule 0, medical 5384220.story”>letter to the European Council President Herman Van Rompuy with their proposals for how to solve the current EU crisis. Except their letter was not really a proposal, in that it did not consist of a draft treaty amendment but only broad principles.

But it is clear that the plan they have in mind is creating a state of perpetual “crisis” — and permanent powers to deal with it — inside the eurozone and any other non-euro countries that would be bafflingly inclined to join it.

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The EU’s New Budget Motto: “Mother May I?”

December 7th, 2011 at 4:00 pm 2 Comments

European Council President Herman Van Rompuy has just floated a proposal to subject all EU members – not just eurozone members – to more rigorous budget scrutiny by Union organs. The proposal is so contrary to the Union treaties and its scope so overreaching to the current eurozone debt crisis that it is doomed to fail.

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One Continent, Under France and Germany

December 7th, 2011 at 12:00 am 7 Comments

Looks like the EU has found an alternative to German domination of everybody else. It’s French-German domination of everybody else.

The grand “deal” announced earlier this week has something for both France and Germany. For the Germans, France will temporarily stop talking about eurobonds and will agree to automatic sanctions for violation of new budget rules. For the French, those automatic sanctions can be cancelled by a supermajority vote of unknown quantum, but very likely guaranteeing that France will never be sanctioned for its serial ambivalence toward budget rules, whether their own or anyone else’s.

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The Man Who Invented the Euro

David Frum December 3rd, 2011 at 12:06 pm 8 Comments

The Telegraph today posts an interview of Jacques Delors by Charles Moore.

I ask the man who prides himself on being an architect of European Union whether he got it all wrong. Unhesitatingly, cheap he denies it. It is a fault in the execution, medical not of the architects, which he claimed to have pointed out in 1997 when the plans for introducing the euro finally came together. At the time, he says, the best of the eurosceptic economists, whom he refers to as “the Anglo-Saxons”, raised the simple objection that if you have an independent central bank, you must also have a state.

Mr Delors thinks “they had a point”, but the way round this problem was to insist on the economic bit of the union as much as the monetary. As well as creating a single currency, you also had to create common economic policies “founded on the co-operation of the member states”.

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A `New Europe’ Plan to Save the Euro

David Frum November 28th, 2011 at 11:01 am 18 Comments

Polish foreign minister Radek Sikorski will deliver an outline of a plan to save the euro currency in a speech today in Berlin.

Poland, remember, has not yet joined the Euro, and has escaped the crisis that has engulfed other Central European countries whose memberships have already taken effect. (The effect on the Baltic republics was especially devastating.)

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What’s Germany Thinking?

David Frum November 16th, 2011 at 8:49 am 4 Comments

A friend involved in the Euro crisis writes this about the most recent German actions to rescue the Euro:

This is a selfless act on Germany’s part actually. A reversion to the drachma would lead to a massive devaluation & hurt the competitiveness of German exports (and it’s tourism sector – everything tradable). As more countries leave the eurozone, the German competitive situation deteriorates further, especially as the Euro itself would likely rise.

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Merkel’s Plan to End the Euro

November 14th, 2011 at 12:18 pm 12 Comments

Whatever political settlement the Lisbon Treaty created to allow for the permanence of the euro is about to change. Chancellor Merkel will propose a significant change in the existing treaties, which will finally allow Greece and perhaps others to leave the euro but not the EU, and likely bestow on the eurozone effective authority to negotiate those exits without a vote of the entire EU.

(Update: Merkel’s party, the CDU, has voted to allow member states to voluntarily leave the euro.)

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The Euro? Um, Next Question Please

David Frum November 10th, 2011 at 8:32 am 69 Comments

Last night, the CNBC anchors addressed the most urgent economic question of the moment – the fate of the euro – to four of the Republican presidential candidates: Herman Cain, Mitt Romney, Ron Paul and Jon Huntsman.

I want to begin with what we saw today, another rough day for our money, for our 401(k)s. Once again, we were all impacted by the news that the Dow Jones Industrial Average dropped 400 points today. The reason, Italy is on the brink of financial disaster.

It is the world’s seventh largest economy. As president, what will you do to make sure that their problems do not take down the U.S. Financial system? It is the world’s seventh largest economy.

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Will Britain Pay to Save the Euro?

November 3rd, 2011 at 5:34 pm 7 Comments

David Cameron also has a referendum problem. Britain’s current government uneasily combines euro-skeptics and euro-enthusiasts. Two weeks ago, shop 81 Conservative backbenchers broke with party leaders to vote in favor of a new referendum on Britain’s EU membership.

Cameron had promised such a referendum when he was in opposition, case but he has abandoned that commitment in his coalition with the euro-enthusiast Liberal Democrats.

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