German Chancellor Angela Merkel wants to implement “a Fiscal Union with strict rules” to address the root causes of the widening financial crisis in Europe. Devote 3 minutes to learn more about her views on sorting out the problems in the Eurozone:
It will, according to her, take years to sort out the problems but EU treaty changes are needed to introduce greater European powers. She dismissed criticism that Germany wants to dominate Europe as misleading.
Merkel told the Bundestag that the creation of Eurobonds will not contribute to overcoming the crisis and warned that saving the Euro will take years and that Europeans face a marathon to restore lost credibility.
Flawed from the beginning
Many of us knew that the Euro mechanism was flawed from the beginning and it’s now obvious just how flawed it is. How can you have one central bank for economies as diverse as Greece and Germany? A currency without a “state” unfortunately complicates the concept of a single currency. Even Jaques Delors now admits it was “a fault in execution”. That Europe face an economic downturn is now not just a maybe but a definite. Just a quesion of for how long and which is the best way forward to make Europe grow again.
Some experts believe austerity is the wrong way to solve the crisis and instead advocate increased spending. Or maybe Russia joining the Euro? Vladimir Putin expressed an interest of joining a year ago and adding a well performing economy like Russia would make economic sense. But unfortunately it’s not as simple as that. Maybe Russia will join in the future?
There is also speculation that Euro member states with healthy economies will leave the single currency. Many believe Finland could be the first one to opt out.
Do you agree with Angela Merkel that it will take years to sort out the Eurozone’s troubles? Are her views on how to work out the problems with the single currency correct? Or do you believe that increased spending would be a better, and faster, way forward? Or maybe Russia joining would do the trick? Is the Euro actually worth saving? Maybe it would be better to dissolve it and face the hardship it entails now, instead of in the future? Will countries with well performing economies leave the Euro? If so, do you believe Finland will be the first one out? Do you believe the Euro will survive long term or will member states go back to their old currencies again?