Not So Isolated

Friday, December 9th, 2011

It’s the make-or-break EU summit, going on now within the cavernous Justus Lipsius European Council building in the Brussels European Quarter. Will what issues from this conference be enough to save the euro?

The answer to that remains up in the air, as the summit continues into the weekend. What we do already know, however, is that an important split has occurred within the EU, resulting from the failure of German Chancellor Merkel and French President Sarkozy to have accepted by all 27 member-states their proposals for greater national budget control and coordination. Now the action on that front has shifted to the group of 17 member-states who actually use the euro.

The excellent “Charlemagne” commentator from the Economist has already termed this development Europe’s great divorce, in an article (in English, of course) featuring at its head a picture of the defiant-looking British PM David Cameron pointing an aggressive finger towards the camera. And indeed, this one and many other press reports from the summit would have their readers believe that the UK is isolated in its stand of resistance against those “Merkozy” proposals for greater EU power over national budgets. That is certainly also the message from the authoritative German newspaper Süddeutsche Zeitung, where an analytical piece from Michael König is rather dramatically entitled Bulldog Cameron bites the British into isolation.

But such observers should be careful about rushing into any over-hasty conclusions. They should remember that a number of other member-states share an attitude towards the EU rather closer to that of the UK than Germany or France. The Czech Republic, for instance:

iDnes: Klaus a Telička schvalují rozvážnost v Bruselu, ČSSD varuje před izolací: Prezident Václav Klaus označil … http://t.co/Qh043Qmm

@Zpravy

Zpravy


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Greek Problems, German Concerns

Thursday, March 25th, 2010

Today is the day EU heads-of-government convene in Brussels for yet another summit. There will be an elephant in the room, a problem that needs to be handled – Greece, of course – but which some (mainly, but not only, Germany) don’t want to handle just now. So, bizarrely, the summit meeting itself will not have Greece on its agenda; rather, there will be a meeting called of all Eurozone heads of government (16 of them) just prior to the main summit event to address the Greek problem.

I learn this from the preparatory blogpost to the summit provided by the Economist’s “Charlegmagne” correspondent, and I have to admit that, here, that source (in English, of course) is the best provider of information and analysis that I have been able to find. Among other things, his main insight (as embodied in his column’s title, “Why Greece is not suffering enough yet”) that Greece will only be bailed out after it has been forced to suffer considerable economic pain – namely to set an example to other potential fiscal miscreants – is spot-on. And he also reports (although indirectly, from FT sources) the very valuable information of what Germany is demanding to help Greece: 1) Greece must first exhaust all other sources of finance from the markets; 2) It must then get as much as it can from the IMF; and 3) Then Germany will help, but will at the same time demand “tough new rules on debts and deficits that will impose more budgetary discipline than before, even if that involves changing the treaties.” (more…)

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