Calls for a European Economic Government

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Said New York Times and Los Angeles Times that German Chancellor Angela Merkel and French President Nicolas Sarkozy, except in the summit mini yesterday in Paris to take concrete steps toward political unity and economic larger euro zone countries, and called for the establishment of an economic government for the euro area will be responsible for economic policies to avoid future problems such as thoseoccurred for Greece and Ireland.

The papers said it was not clear whether these actions will be sufficient to meet the speed or the European markets jittery because of the debt crisis and a slowing economy.

The New York Times, said that Sarkozy and Merkel called on all countries in the euro area to install the golden rule in their constitutions in order to work to achieve balanced budgets and debt reduction, and achieve the level of discipline is better than the status quo, and confirm the absolute obligation to cooperate.

The two leaders also pledged to press for a new tax on financial transactions and the organization of a regular summit of the countries in the region headed by Herman Van Rompuy, who heads the Council of Europe.

Sarkozy said, “We certainly are moving towards greater economic integration of the euro-zone countries.”

The newspaper pointed out that it does not seem that the two leaders’ meeting succeeded in calming the markets that has increased concern that the slowdown in Germany and France will overcome the debt crisis of the European difficult task.

Has been ruled out of both Sarkozy and Merkel issued a joint bonds, known as European bonds, in order to share the responsibility of government debt in the Member States, and also offering a further increase in the rescue fund, which will not put in execution until late September / September next at the earliest.

Merkel reiterated saying that there are no magic solutions to the problems of the euro, and stressed that it should be met over time with improved competitiveness and financial discipline and economic growth among the weaker nations.

For its part, said the Los Angeles Times that the European leaders proposed the establishment of a genuine economic government for the euro-zone countries, and pledged to also coordinated fiscal policies among its members.

On the subject of bonds, the newspaper said he is not popular on a large scale in Germany, it is likely to raise interest rates to borrow, and fear that lead to the bombing of her government, Merkel said that she resisted the need to euro bonds in the past.

The paper said that this mini-summit to try to silence critical voices and by showing that France and Germany, known as the as “engine of Europe”, are committed to the defense of the single currency.
 

 
Source: New York Times + Los Angeles Times