Posted on 03/05/2011 5:39:05 PM PST by bruinbirdman
A few days ahead of the 11 March Eurozone summit that should prove crucial for the the future of the single currency and the union's most indebted members, Angela Merkel is piling the pressure on her EU partners to accept the Competitivness Pact concocted along with French president Nicolas Sarkozy.
When in October the Portuguese Minister of Economy, Fernando Teixeira dos Santos, said that if Portugal’s bonds went through the ceiling of seven percent the country would have to be rescued by the EU, like Ireland, the noose was already dangling a little closer. For weeks now, Portuguese ten-year bonds have hovered above that seven percent mark.
When after the last Ecofin the same Teixeira complained on 15 February of "the delays and doubts", especially those of Germany, over the widespread request to expand and make more flexible the current temporary rescue fund, he was absolutely right. Portugal, as with Greece, is doing its part with the austerity programme. Like Greece, it’s paying a high price for the tardiness of Berlin in coming to a decision. And for suggesting in January that Berlin pick up the pace.
This pact is not a bad idea The go-slow is calculated. Chancellor Merkel also has her reasons. She’s being squeezed by the upcoming German elections and a near-unanimity across society on the ultra-orthodox/nationalist view of the monetary union: strict deficit reduction, nothing doing with Eurobonds, no new common commitments... That’s why she’s urging a "global package" on her European partners, with a little something in return for her support of the single currency: the Competitiveness Pact.
This pact, with its six points, is not a bad idea. But it was tabled on 4 February as an accession agreement, as a “diktat” from the Merkel-Sarkozy duo, and it landed like a bull in a china shop. Rightly, it stirred up a rebellion among the shopkeepers.
President Van Rompuy has trimmed its horns. He has cut down on its intergovernmental nature and swung the reins back towards the common institutions, for without those there are just two member states in the saddle. And he has watered down the absurdity of imposing a zero deficit on constitutions.
But the other points – linking wages to productivity, if social dialogue is respected; mutually recognising diplomas and degrees; harmonising the corporate tax bases of the EU27 (it is more crucial to unify the bases, since multitudes of obscure deductions proliferate, than to pool the rates); coordinating retirement ages; or agreeing on a plan to resolve future bank crisis – are not merely agreeable. They are necessary. They should be an essential fixture in a true economic union.
Or Europe will be dragged along the road to Calvary If this plan is adopted, Berlin will have no choice but to play its part. How? Some are betting on back-door agreements, on a compromise that will come in useful at this month’s summits. The current Rescue Fund will be expanded to 500 billion euros (with the support of more solvent countries); or it may issue Eurobonds (the right dream, but still a dream); or buy bonds from countries in distress (resisted by many Germans, not just the Chancellor); or make loans to those affected to let them buy their bonds back at a higher price. The economic effects of the latter two initiatives would be equivalent to issuing Eurobonds.
And in return, Berlin would get what it craves: that the banks will pay a chunk of the bailout bill. How? By buying back the not-so-good bonds at their secondary market price, well below the nominal price. The result would be partly achieved: some private debt would be removed without a country having to declare a suspension of payments. Or something similar will be cobbled together. Or Europe will be dragged along the road to Calvary. Or there will be a train wreck.
we're all living in America...
Yes, my great uncle was killed in France in September 1918
teaching those Germans a lesson!
Du hast mich gefragt Du hast mich gefragt und ich hab nichts gesagt?
Saw Rammstein st Madison Square Garden in December & have tickets to see them in New Jersey in May. If you can, see them live. Fantastic show!!
Smoking hot German men in lederhosen
Ain’t nothing wrong with that!!
Right now, watching Mutter video
What ere they use, it sends a wall of heat. Saw them in December & I was amazed at the heat from the pyrotechnics!!
Fantastic show. Going again in May
Amerika ist wunderbar!!
You are very lucky. They said people had to be carried out due to the heat. And from what I saw on videos - they use it all through the concert and the fire is huge. Germans go crazy with fireworks too.
I read what they used it was like wheat or pollen. I read back in East Germany when they were starting out they poured gas on the floor at a club or something and people freaked out. The club banned them and they go in trouble.
Did they play in the USA? I have watched the concert videos and they are insane. I love they melodies that Flake creates on some songs like “Sonne”, their remake of Depeche Mode’s “Stripped” and others using synthesizers and samplers.
I think the medium of music videos is largely garbage but not their videos. They are like little movies. “Ich Will” - I think is one of the best videos made. It was shot at the old DDR main govt building in Berlin.
“I’m as happy as a little girl.”
“we’re all living in America...”
Coca Cola...wunderbar.
Hey Chode - you know who my favorite German is after Claudia Schiffer. The wunderkinder - Baby Schumi!
It should be a great battle between Vettel (Red Bull Renault) and Alonso (Ferrari).
Best concert I ever saw.....and I have seen a few.
Never forget the first time I heard “Autobahn”, totally unlike anything I ever heard, it was absolutely mesmerizing.
They really were the godfathers of Techno.
Well hopefully co-stars will include Poland, Italy, Austria and a few others. They fought em many many times....Vienna, Lepanto, Tours, the lists go on and on. The Spaniards and Greeks also knew how to deal with Islam.
Native Germans need to raise their birthrate in the next 20 years or so if they want to remain influential in the E.U.
No doubt about it.
Made possible in large part by the efforts of American Dr. Robert Moog.
Autobahn so much has Moog’s trademark filter sound. Kraftwerk later made their own stuff and kept Moog equipment plus some great German companies like PPG, Doepfer and a few others.
So many bands and groups were influenced by Kraftwerk and their stuff was sampled for other songs.
gonna be a good year...
“Germany was having troubles, what a sad, sad story,
“Needing a new leader to restore their former glory,
“Where oh where was he, where could that man be,
“We looked around, and then we found, the man for you and me! And now....it’s...
(Sorry, I can’t go on; you know the rest...)
But I’ll tell you one thing: the day that Bundeskanzlerin Merkel declares, “Schluss jetzt! Musselmanen raus!” will be the day that ALL Europe stands alongside Germany!
Yep, it would be nice to see Poland and Germany on the same side for once.
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