Franco-German Proposal Disappoints

[Ghost Dog]

Source: Wall Street Journal

...Among the measures outlined by the two leaders were more frequent meetings of euro-zone heads of government, balanced-budget rules enshrined in the constitutions of all euro-zone member nations, and coordinated French and German corporate-tax regimes. "We want France and Germany to move closer in terms of fiscal integration," Ms. Merkel said.

Also, finance ministers from both countries will get together twice a year to make sure the hypotheses underlying the presentations of their respective budgets are consistent. "France and Germany must converge; the status quo is impossible," said Mr. Sarkozy.

The French and German leaders said they would try to give renewed impetus to a proposal for a tax on financial transactions, an idea that has been floated regularly in recent years but faces strong opposition in the U.K., Europe's main financial hub.

The Franco-German proposals will be included in a letter to be sent to European Council President Herman Van Rompuy—whom the leaders recommended be the new euro-zone chief—on Wednesday. In turn, Mr. Van Rompuy will consult other euro-zone members...



Read more: http://online.wsj.com/article/SB10001424053111904253204576512393965316496.html?mod=WSJ_article_MoreIn_World

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See News Conference Video with (difficult, clearly) simultaneous translation & transcript here.

[Ghost Dog]

1. Progressive Germans want Eurobonds, greater integration

(Reuters) - Germany's opposition Social Democrats (SPD) on Wednesday criticised the Franco-German summit for rejecting common euro zone bonds and for failing to offer an adequate solution to the debt crisis.

SPD parliamentary leader Frank-Walter Steinmeier said the proposals made on Tuesday evening by French President Nicolas Sarkozy and Chancellor Angela Merkel were on the right track but did not offer a solution...

...Steinmeier said Merkel was just catering to the junior partners in her centre-right coalition, the Free Democrats (FDP), while Sarkozy was clearly more amenable to the idea.

FDP finance expert Daniel Volk warned on Monday that the coalition could break up if Merkel's conservatives insisted on euro bonds.

/... http://uk.reuters.com/article/2011/08/17/uk-eurozone-idUKTRE77E1IR20110817

[eppur_se_muova]

2. Franco-German call for 'true euro economic governance'

Source: BBC

The French and German leaders have called for "true economic governance" for the eurozone in response to the euro debt crisis.

Speaking at a joint news conference, German Chancellor Angela Merkel and French President Nicolas Sarkozy urged much closer economic and fiscal policy in the eurozone.

Ms Merkel said that further integration would be a "step-by-step" process.

They also advocated a tax on financial transactions to raise more revenues.



Read more: http://www.bbc.co.uk/news/business-14549358

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Merkel wants balanced budget amendments to each country's constitution ... :puke:

[Kelvin Mace]

3. Sure,

as soon as they add amendments that FORBID public funds from being used to prop up failing businesses and eliminate ALL tax credits and subsidies.

[pampango]

4. Conservative eurosceptics will surely oppose "closer economic and fiscal policy in the eurozone".

Will be interesting to see if Europeans liberals support this closer economic integration. They probably will.

"Even a partial breakup of the eurozone could be damaging to the European economy, and it would be a significant retreat from the political vision that has inspired Europeans for many years and redefined the political identities of German youth.

"They pass part of their studies at European universities abroad, or they take an internship with a French-based enterprise, but work in London, so they understand how Europe works," says Gerhard Schick, a member of the German parliament representing the Green Party. He says any step back from European integration would cause an "upheaval" in the younger German generation.

"Markus Kerber is representing a group of German enterprises in a case before Germany's Constitutional Court, where he will argue that a bailout of indebted eurozone countries would violate the German constitution. He has outlined his argument in a pamphlet, "Wake Up, Citizens! Against the Expropriation of the German People in the Name of Europe."

"The bailout mechanism is a way to deprive Germany – and the Netherlands and Austria and Finland – of the citizens' right to dispose of their own taxes and defend their nation's rating," Kerber says. He likens the campaign to the US "Tea Party" movement. "We are defending the prerogative of fiscal sovereignty," he says, "against the European bureaucrats.""

[Ghost Dog]

10. "Against the Expropriation of the German People in the Name of Europe."

Note the "anti-multicultural" echoes of the whacko Norwegian Knight's 'prospectus'. This is all part of the dark side of Europe.

Perhaps 'liberal' discourse could suggest that the choices are or European integration or to end up paying taxes to the New Caliphate (ha ha) or to the People's Republic or to the American Oligarchs.

[harmonicon]

5. It may not be popular here, but I think balanced budget amendments are a good idea. nt.

[fasttense]

8. Except in times of emergencies.

Suppose you get yet another irresponsible President like bush or Raygun, who runs up such a huge debt that it far exceeds the total debt of all previous years and then you go to war. Or suppose you get presidents like that and then there is huge volcano or hurricane? What do you do then? Just give up because you can't spend the money by your own laws?

Look what is happening in the states because they have that problem of balanced budgets.

The problem with stupid amendments like these is that they purposely hamstring government so that in times of crisis corporations and the idle rich may plunder the nation and its people.

[harmonicon]

9. Step one is to first have a balanced budget.

If we'd had such an amendment after Clinton left office, I'm sure the surplus would be squandered, but we wouldn't be adding to the debt like we are now.

Maybe congress wouldn't be so chicken-shit about raising taxes if they actually had to by law.

The times of crisis argument, again, I think is a sort of red herring. This is about budgeting, not necessarily about spending. You can add extra spending at any point, so long as you add extra revenue in the plan. If it doesn't pan out, that's too bad, but it's not the end of the world. You make adjustments to your next budget once the crisis has been dealt with.

This is how people and businesses work, and it's quite alright. I certainly think it's better than the "just put it on the credit card until we win the lotto mentality" that was done by Bush II and his ilk.

[xchrom]

6. Recommend

[Ghost Dog]

7. The full 15-minute news conference video is very interesting if you're interested in Europe