However, in the single currency euro established builders, they share the currency risks of a disaster that will only encourage those who disregard the consequences of reckless behavior, or even deliberate arson. This moral hazard than the bear, it is better for countries to control their own destiny. Why should people who live in the building where, to save those who live in a log cabin in the irresponsible people?
Now it has hit a financial fire, facing the euro zone as a time in 1666, only to fight, or under fire, no one is immune.
Now the time should not be helpless
Thanks to the gift of a single monetary system, the fire just down the road as flammable burn that building this block of flats. Greece and Ireland have been filled with fireworks, fires in Portugal and Spain are to be licking, Italy and Belgium will be worried about the fire and consume it. While loudly for help affected countries, but Germany's aristocratic euro, but not lost their desire to spend more money to save his neighbors, and it is the German bond yields rise.
"We must stop this bush turned into a wildfire forest fire throughout Europe." EU Economic Commissioner Olli? Rehn (Olli Rehn) said. This stall will only make matters worse, the euro area and extremely hesitant to act freely.
This spring, they tried to extinguish the fire when the Greek to be delayed, and later to raise 750 billion euros as a rescue fund, which now spend the Irish body. EU urges States to cut budget deficit to protect themselves, and plans to take a more rigorous review of the national budget process and more stringent measures against them, but a future program is not put out the fire the fire today.
German Chancellor Angela Merkel condemned the escape of investors said, and threatened to let them pay the price. However, she's such a deterrent will enable investors to run faster. Causing investors to panic just because they are worried that some countries can not repay the debt, but also because they are politicians in those countries the ability to take action to solve the problem expressed doubts. Can almost hear the cries of the Mayor of London in 1666: "Lord, ah, how can I do? I have no way, people will not obey me. I've been burning the house down faster, but always better than the spread of fire our actions to be fast. "
Juncker of Luxembourg (and Euro-group chairman) presiding over the end December 6 meeting of eurozone finance ministers seem to have been at his wits end after, he said "no new decision" announced. Just hours before, Juncker also surprisingly the Italian Finance Minister in an article co-authored the euro zone members to urge the United eurobonds issued (Eurobonds). This "Euro Bonds" may be the final circulation of the euro zone GDP up to 40% of the total.
This method is in May in Brussels think tank Bruegel variant of the proposed scheme, the scheme proposed to the euro zone does not exceed 60% of its GDP, that part of the debt are combined to form the "blue notes", these bonds will be significantly blue reduce the debt burden of countries with higher interest rates, debt burden of countries from the greater liquidity and better benefit the bond market. More than the debt that is referred to as "red bonds", the risks of such bonds, which can make countries maintain strict fiscal discipline to prevent the complete collapse occurs.
Mr Juncker said they plan to "global market and the European public will send a clear message that a European economic and monetary coalition of political commitment and the euro is irreversible." However, Germany, the Netherlands and Austria have expressed their opposition , the credibility of the best countries in Europe do not want to stir their debt, the largest credit risk.
Another approach is to expand neglected relief fund size, which the International Monetary Fund IMF to remain silent, Belgium'd speak out. "We can not every week to debate a new approach." German Finance Minister Wolfgang (Wolfgang Sch? Uble) complained that the measures do better handle head, see if you can work. However, Kahn, president of the International Monetary Fund seems so fragmented initiatives is dangerous, needs a "comprehensive solution."