Entries Tagged as 'Merkel'

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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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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