ECONOMY - EUROPEAN UNION
ALL CONCERNED
"The end of free Europe", as expert March 15, 2010, indicating a subtitle: "The failure of the Common European Home". "Before the crisis in Greece," says business magazine with the Kremlin, "we could still dream of a pan-European super-state governed by universal rules applying to all, after the Greek crisis, it has become impossible ... When the EU has opted to extend a forced march, its key argument was that integration would allow backward countries to catch up with developed countries. The crisis has shown that this was not the case. In Europe there are countries second category, and therefore second-class citizens. " All concerned
Before long, other countries that Greece could face difficulties in finding funds on international markets. So says the rating agency Moody's, in a report released March 15. Even the best rated, displaying an AAA (Great Britain, the United States, France and Germany), are under scrutiny because of their debt poidscroissant.
Finland's Olli Rehn is aware of its power. It would take a phrase from the European Commissioner for Economic and monetary increases pressure on the euro. Suffice to say that his statements so far were weighted.
The severity of its criticism of fiscal policy in several Member States of the Union, following a roundtable routine of Commissioners, March 17, is even more surprising: The main risks to fiscal consolidation resulting in very optimistic macroeconomic assumptions and the absence of specific measures of sanitation. "Saying this, Olli Rehn was not Greece, Italy or Ireland. This statement was addressed to Germany, France and the Netherlands. For the South are not the only ones to have erred on the side of optimism during the crisis. The debt of Germany stood at the end of 2009 more than 72% of gross domestic product. Or 12 points higher than what the permit criteria of Maastricht. It will be years before the country begins to decrease below 60%. And how the German government respond? Building on strong economic growth, expected tax revenues increase mechanically into the coffers of the state, the Länder and municipalities. But the Commission considers the calculation too risky. The budgetary outcomes could "turn out worse than expected," warned the Brussels officials, who accuse the federal government among others for not having announced austerity plan specific to the post-2010. Germany must balance the budget cuts with tax cuts announced.
The German example shows that politicians continue to rely blindly on future cash instead of reducing the expenses of the day. Before the elections to the regional parliament of North Rhine-Westphalia [May 9], such reasoning may seem expedient. But it is misleading. The reduction in VAT in the hotel - to cite only the number one reason for discontent in recent weeks - is both indecent and record debt of the country. Expenditure control is registered not only in European law, but under German law. The Commission rightly demands of "concrete measures" so that the "debt brake" recently adopted is respected in practice. Especially since Germany is the country that should have less trouble returning within the Stability Pact, and thus to contain the fiscal deficit below 3 percentage points. The federal government expects a deficit of 5.5% in 2010.
Commissioner Olli Rehn has to take drastic measures
In fact, in 2009, the situation was far more worrying in Spain (with a deficit of 11.2% of GDP), France (over 8%) and Britain (12.1%). Certainly, it is not yet a member of the eurozone, but it is nevertheless closely linked. In each of these countries, cosmetic measures will not suffice. A welfare reform, reducing tax and increasing taxes for state benefits are inevitable. It is a lighter version of the fiscal consolidation plan Greek expects the entire eurozone.
If the European Commission wants to remain credible, Olli Rehn has to take drastic measures. In recent months, the debate focused on Greece. What other countries could find nothing wrong. But now, Athens has become an example. The efforts of the country can inspire France and Spain but also Germany. If these countries do not follow this model, Olli Rehn will choose from a variety of pressure tactics. Which, ultimately, a fine imposed on the country refractories. But if he shows the same firmness as in the Greek case, there will be no need to get there. Olli Rehn has only to remain true to himself.
ECONOMY - EUROPEAN UNION
ALL CONCERNED
"The end of free Europe", as expert March 15, 2010, indicating a subtitle: "The failure of the Common European Home". "Before the crisis in Greece," says business magazine with the Kremlin, "we could still dream of a pan-European super-state governed by universal rules applying to all, after the Greek crisis, it has become impossible ... When the EU has opted to extend a forced march, its key argument was that integration would allow backward countries to catch up with developed countries. The crisis has shown that this was not the case. In Europe there are countries second category, and therefore second-class citizens. " All concerned
Before long, other countries that Greece could face difficulties in finding funds on international markets. So says the rating agency Moody's, in a report released March 15. Even the best rated, displaying an AAA (Great Britain, the United States, France and Germany), are under scrutiny because of their debt poidscroissant.
Finland's Olli Rehn is aware of its power. It would take a phrase from the European Commissioner for Economic and monetary increases pressure on the euro. Suffice to say that his statements so far were weighted.
The severity of its criticism of fiscal policy in several Member States of the Union, following a roundtable routine of Commissioners, March 17, is even more surprising: The main risks to fiscal consolidation resulting in very optimistic macroeconomic assumptions and the absence of specific measures of sanitation. "Saying this, Olli Rehn was not Greece, Italy or Ireland. This statement was addressed to Germany, France and the Netherlands. For the South are not the only ones to have erred on the side of optimism during the crisis. The debt of Germany stood at the end of 2009 more than 72% of gross domestic product. Or 12 points higher than what the permit criteria of Maastricht. It will be years before the country begins to decrease below 60%. And how the German government respond? Building on strong economic growth, expected tax revenues increase mechanically into the coffers of the state, the Länder and municipalities. But the Commission considers the calculation too risky. The budgetary outcomes could "turn out worse than expected," warned the Brussels officials, who accuse the federal government among others for not having announced austerity plan specific to the post-2010. Germany must balance the budget cuts with tax cuts announced.
The German example shows that politicians continue to rely blindly on future cash instead of reducing the expenses of the day. Before the elections to the regional parliament of North Rhine-Westphalia [May 9], such reasoning may seem expedient. But it is misleading. The reduction in VAT in the hotel - to cite only the number one reason for discontent in recent weeks - is both indecent and record debt of the country. Expenditure control is registered not only in European law, but under German law. The Commission rightly demands of "concrete measures" so that the "debt brake" recently adopted is respected in practice. Especially since Germany is the country that should have less trouble returning within the Stability Pact, and thus to contain the fiscal deficit below 3 percentage points. The federal government expects a deficit of 5.5% in 2010.
Commissioner Olli Rehn has to take drastic measures
In fact, in 2009, the situation was far more worrying in Spain (with a deficit of 11.2% of GDP), France (over 8%) and Britain (12.1%). Certainly, it is not yet a member of the eurozone, but it is nevertheless closely linked. In each of these countries, cosmetic measures will not suffice. A welfare reform, reducing tax and increasing taxes for state benefits are inevitable. It is a lighter version of the fiscal consolidation plan Greek expects the entire eurozone.
If the European Commission wants to remain credible, Olli Rehn has to take drastic measures. In recent months, the debate focused on Greece. What other countries could find nothing wrong. But now, Athens has become an example. The efforts of the country can inspire France and Spain but also Germany. If these countries do not follow this model, Olli Rehn will choose from a variety of pressure tactics. Which, ultimately, a fine imposed on the country refractories. But if he shows the same firmness as in the Greek case, there will be no need to get there. Olli Rehn has only to remain true to himself.
ECONOMY - EUROPEAN UNION
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