Merkel sees changing the EU constitution as solution – not eurobonds


I don’t know about the rest of you – I’m going shopping
Daylife/Getty Images used by permission

German Chancellor Angela Merkel has said that EU treaty changes rather than eurobonds will help solve the eurozone debt crisis.

Ahead of European Commission proposals for bonds backed by all 17 eurozone states, she said what was really needed was a political response. Mrs Merkel argued if there was to be a debate on eurobonds, it should be at the end, not the middle of the crisis…

The eurobond plans, due to be presented by the commission on Wednesday, are attracting increasing support, despite Germany’s opposition. Greece’s new Prime Minister, Lucas Papademos, said on Tuesday that eurobonds “or similar tools could provide the means to overcome the crisis”.

Addressing Germany’s confederation of employers in Berlin on Tuesday, the German chancellor said that if changing treaties proved too difficult on an EU level, they would be dealt with instead by the 17 members of the eurozone.

“We have to change the construction of the euro area,” she said. “Treaty changes are for me an immediate part of solving the crisis, the political response to a politically derived confidence crisis.”

Reports on Monday suggested that Britain would accept a “narrow” amendment of the EU’s Lisbon Treaty covering the eurozone in return for a deal on the EU’s working time directive.

Although full details of the commission’s proposals are not yet known, a leaked draft document indicates they would involve three options

An extensive scheme that would completely replace national bonds and would require each eurozone government to guarantee the debt of other countries

A lesser scheme that would see national bonds partially replaced with eurobonds up to a limit that could relate to how closely a country adhered to strict rules.

The replacement of some national bond issues with a limit on guarantees

Flip-flopping hardly describes the way this crisis is going down to the wire. And maybe beyond.

The core countries in the EU – moved heaven and earth and quasi-legitimate accounting practices to extend their newfound domain. The convenience and security of a common currency was moved as quickly as possible in the direction of fiscal and political union with little thought of potential disasters. As far as I can see from this side of the pond.

Now, the lies accepted to justify sleazy economic practices is haunting the politicians who hoped to benefit. Except an increase in risk supersedes an increase in power. It’s looks more likely to me they will have to shrink the European Union back to the nations which can deal responsibly with each other on debt and currency. That’s a single-digit number.

One thought on “Merkel sees changing the EU constitution as solution – not eurobonds

  1. Cures Riches says:

    I think the main reason governments run such large debt loads is so voters with mortgages and other debts will sympathize with the governments position. Consider looking at the link for method options for a reduction in the crazy racy of democracy. The inverse proportion of protection and benefit with the minus table of maximal avarice. The poorest person you can think of is 130,000 times closer to middle rich. Also included in the link is { title verity for credit from banks as “dollars original creation” ] I like Ms. Merkel

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