Thursday, August 18, 2011

Eurobonds..Nein, danke !!

At last, with the crisis in Europe and the Euro-zone reaching a critical turning point, two of Europe's leaders Mr. Sarkozy and Mrs. Merkel decided to do something about it. But why just the two of them took such important decisions and some long delayed ones too?

I do not understand any hesitance on the issue of finding a common solution on our common problems: we have a common market and currency, it is only natural that we need common financial policies to make the Euro-zone work.

Until now, we had 17 members states using the Euro, but 17 different economic policies and economies, that meant that each country could borrow independently from the Markets. That led of course to a fine mess.

After so many talks, there have been calls to bring in the Euro-bonds and bound all Euro-zone member states tighter. But Germany is "kicking" and I do not understand their attitude. You see it is quite simple: you either go all the way with the project that you so much supported, or you keep having booms and busts of the "peripheral" economies and you will have to keep bailing them out.

They just want their cake and eat it. They want the independence to manage their own affairs, the first say in the Euro-zone and other countries to follow their lead. It does not work like that in the hearts and minds of the voters of the other states though.

Since you have created the common currency and you insist on keeping it to the expense of the ordinary citizens, then you need to cope on and do what must be done: bring on the Euro-bonds, proceed to a fully integrated European economy and yes take a cut in your AAA rating. The "peripheral" economies' ratings were reduced to junk status for the survival of the euro, it is the least you can do from your part.

And speaking about "peripheral" economies, doesn't this sound a bit like those states and their citizens are just of a second class? In fact they are becoming more and more like the outer unimportant regions of a rich core of European countries. And they expect the EU to succeed and progress?

Why do you want to keep bailing out Greece instead of allowing to prosper, progress and become as wealthy as Germany? Yes the rich nations will lose some of their wealth but the whole Continent will gain in stability.

The Europe I am dreaming of has equal opportunities for prosperity, stability, employment and progress from Iceland to Ukraine, Portugal to Cyprus and Norway to Malta. All states will be equal and will have opportunities to develop and exploit their natural resources for the betterment of their people first, but for the whole Continent in extend. Both eastern and western states, or southern and northern. We had enough divisions in Europe!

Mr Sarkozy and Mrs Merkel, by rejecting the Euro-bonds and not taking this much needed step to solve once and for all the problems within the Euro-zone, they have just acted irresponsibly and prolonged the suffering of the ordinary people of Europe. Both of the troubled economies like Greece and Ireland, but of course their own citizens as well.

Because while the Greeks are suffering vicious austerity cuts for a loan that they should not have been forced to take in the first place, the Germans are also seeing their taxes being given away for the greed and incompetence of their politicians.

Instead of investing in European countries, creating jobs and allowing those nations in need to become more industrialized like their richer counterparts, they think it is better to put them literally on social welfare. Because that is what they are doing.

Greece and Ireland will be always receiving help from the richer states unless we create a stable and sustainable European economy. Begin with the creation of the Euro-bonds and perhaps even European rating agencies. It is time for us to take control of our economies and work together in solving the faults, or just abandon the whole project of the Euro.

Yes to the euro, but only if our leaders commit fully to it and stop brushing the rubbish under the carpet. Allow a European economy to exist. We are half way there, so what is the problem?