The budget deficits of the so-called Pigs countries are increasing. The EU wants to create a European Monetary Fund to prevent sovereign defaults within the EU.In view of the worsening financial crisis in Greece, but possibly elsewhere, the policy seeks for ways to prevent the most damage, first in Germany and France.
The rescue by the IMF is not opportune, because you think that in Europe you do not need paternalism from the outside. This would give the impression that you cannot make it yourself! The impression is correct.A monetary fund at European level would work just as the Stability and Growth Pact. An EMF would have the same financial basis that governments are not prepared to give up using a strict set of rules binding (apparent) fiscal sovereignty in Europe.
Why would a once failed sanction mechanism in the new guise work? Who would believe him?
Potential crisis countries would also have a say in the fund sanctions in case of crisis, from which they later could even be affected. Regulatory policy sinner’s countries would be exempted from the liability principle, which can only lead to moral hazard! EWF is probably not the solution but the problem! Greece is just the beginning!Of course, not only economically, but also socio-political EWF is an absurd idea! In addition, once it is established, the European Commission will want to use this instrument of redistribution also welcome.
They could then use the reference to the Greeks or the Spanish or the Germans to revive the process of integration and to overcome prejudices again. The EWF carries explosives for the EMU and thus for the entire European integration.
More money to save the Hellenic Republic
“We will not let Greece to fall,” said Finance Minister Schäuble. According to the current situation is likely the budget already be passé again. It must be allocating more money to save the Hellenic Republic a total loss. Minister Brüderle expects up to 135 billion euros. Huge sums of money, with huge risk, especially for the German taxpayer. Why? Why should the ordinary tax-paying workers, artisans and professionals to shell out the rescue package from her purse?
It would be unjust to the lender, so private and institutional investors, completely removing it from the responsibilities and liabilities. Without debt restructuring, the Greek government will hardly find its consolidation course. Today avenges one thing and it is the fear of his own courage.