The link to the article is here -
http://www.washingtonpost.com/world/europe/merkel-warns-solution-to-europes-crisis-will-take-years/2011/12/02/gIQA3mH6JO_story.html
1. Chancellor Merkel is advocating what kind of pace for seeing an end to Europe's financial crisis? Who (or what) is arguing for something quicker?
2. The article refers to the European Union. Using external research, identify this and how is it different than the countries who use the Euro?
3. Why has the ECB (European Central Bank), "held back from using more financial firepower to fight the debt crisis?"
4. What are the two "other measures" referred to in the article to assist Europe?
Chancellor Merkel is advocating a very slow, long and drawn out pace to solving Europe’s financial crisis where as Greece seems to be hoping for a quick fix for their economic woes. Merkel has also faced backlash within Germany itself as there have been calls to help Germany’s profligate neighbors. The European Union is an economic and political partnership between 27 European countries. These countries use the euro as its common currency, and have built a single market in which people, goods, services and capital move among the Member States as freely as within one country. However, only 17 of the 27 countries use the euro as its currency which allows for easy trading between those countries. The ECB has held back from using more financial fire power because it fears that if it does too much, then indebted countries like Greece and Italy would still not have an incentive to change their profligate ways. One measure that could be taken to assist Europe would be to call for a European Union treaty change or a whole new treaty all together. Another measure would be to ask German tax payers to buy “eurobounds” from the ECB.
ReplyDeleteGerman Chancellor Angela Merkel suggested that there is no quick fix to the region’s debt problems. She says that the only solution to Europe’s debt crisis is a drawn-out effort that will take years. Greece along with investors, are asking for an immediate fix to the crisis. The European Union is a unique economic and political partnership between 27 European countries. It has launched a single European currency, and is progressively building a single Europe-wide market in which people, goods, services, and capital move among Member States as freely as within one country. Only 17 of the 27 countries in the EU use the currency using euros, allowing easy trade between those countries. The ECB is afraid that if it does too much, then indebted countries like Greece and Italy would still not have an incentive to change their profligate ways. One measure that can be taken is for an accelerated European integration through a fiscal union, or a pact that could ultimately have Italy, Spain, France, and Germany effectively forfeit full independence over national budgets and potentially give their neighbors the right to slap penalties on over spenders. Although until this can happen Merkel says there is another measure that can be taken: the notion that German taxpayers could be asked to stand behind nations such as Greece and Italy if the ECB were to sell “eurobonds,” similar to U.S. Treasuries.
ReplyDeleteGerman Chancellor Merkel suggests that they should take it slow and steady to meet a solution for their debt crisis, whereas Greece on the other hand wants an immediate resolution to this problem. The European Union is an economic/political partnership between 27 different countries in Europe, 17 of which have made the Euro their general form of currency. This allows for easy trade between these countries. The ECB has held back held back from using financial firepower because they are afraid that if they do too much, then indebted countries such as Greece and Italy would not have an incentive to change their profligate ways. One measure they could take is to revise or even rewrite a whole new treaty for the European Union. What Merkel suggests that we should just get the ECB to sell "eurobonds" to German taxpayers.
ReplyDeleteGerman Chancellor Merkel is advocating a long term process as a solution for seeking an end to Europe's financial crisis. She has advised that the only real solution to Europe’s debt crisis was a drawn-out effort, a process that will take years. However other nations such as Greece has been hoping for a more quick fix sort of method. She has also recieved some backlash from fisically conservative Germany to prop up its more profligate neighbors. The European Union is a unique economic and political partnership between 27 European countries.It has delivered half a century of peace, stability, and prosperity, helped raise living standards, launched a single European currency, and is progressively building a single Europe-wide market in which people, goods, services, and capital move among Member States as freely as within one country. Only 17 of the 27 countries use the euro as their form of currency making it easy for them to trade. The ECB has held back from using more financial firepower to fight the debt crisis because it is afraid that if they do too much then contries in debt like Greece and Italy would have no reason to change their squandering ways. One measure that could be taken is an accelerated European integration through a fiscal union, or a pact that could ultimately have Italy, Spain, France, and Germany effectively forfeit full independence over national budgets and potentially give their neighbors the right to slap penalties on overspenders. Merkel and Sarkozy are expected to unveil a Franco-German plan for such a pact but until such a pact is up and running, she suggested, Germany would resist calls for at least one possible solution to the crisis. The notion that German taxpayers could be asked stand behind shaky nations such as Greece and Italy if the ECB were to sell “eurobonds,” similar to U.S. Treasuries.
ReplyDeleteMerkel is warning that the only real solution to Europe's debt crisis is one that will take years, it is one to alter or create new European Union treaties. Merkel has faced growing resentment from Greece as well as Germany. The European union is both an economic and political union joining 27 independent member states located primarily in Europe. The EU has been used to increase economies and spread human rights advances since its start in 1993, it acts to unite Europe toward common goals. To become a member of the EU, a nation must be in conformance with standards referred to as the Copenhagen criteria. The EU has been able to establish a single market economy as well as adopt a common currency, the Euro. Between these member nations, trade is unrestricted. Without an incentive for indebted countries to change their profligate ways, the ECB feels that they should hold back from using all their financial power. The two other measures in the article include an accelerated Euro integration through a fiscal union, another would be to ask German taxpayers to buy eurobonds from the ECB.
ReplyDeleteChancellor Merkel believes that the only real solution to the European debt crisis is a drawn out effort to create a new European Union which would take years. However nations more seriously affected such a Greece believe that a more immediate solution is needed. The European Union is an economic and political union of 27 independent nations. Its members share a single market in which the Euro is the common currency. Additionally most of the members have open borders making it easy to travel and work in other countries. The E.U. aims to ensure the free movement of people, goods, services, and capital, to enact legislation in justice and home affairs, and maintain common policies on trade, agriculture, fisheries and regional development. The ECB has held back from using more financial firepower to fight the debt because they feared that if they did, the nations of the E.U. would not have learned their lesson and wouldn’t change their habits. One measure is to amend or completely rewrite the E.U. treaty but this could take years and result in many problems. Another measure would be for the ECB to sell Eurobonds similar to the U.S Treasury. However Germany is not in favor of this option.
ReplyDeleteChancellor Merkel is advocating a long term process as a solution for finding an end to Europe's financial crisis. However other countries such as Greece have been hoping for a quicker method. The European Union is an economic and political partnership between twenty seven countries in Europe. These countries have launched a single European currency, which is the euro, and are progressively building a single Europe-wide market. It has delivered peace, stability, and raised living standards. Easy trading between seventeen of these countries is created because of their use of the euro. The European Central Bank has held back from using more financial fire power because it fears that if it does too much, then countries like Greece and Italy would still not have an incentive to change their reckless ways. One measure that could be taken to assist Europe would be to call for a European Union treaty change, or to create a whole new treaty. Another measure would be to ask German tax payers to buy eurobounds from the ECB, similar to the United States Treasury.
ReplyDeleteMerkel is advocating a slow, drawn-out process to alter or creat new European Union treaties that will punish big-spending nations. Other countries, such as Greece, are hoping to find a much quicker method. The European Union is an economic and political partnership between 27 European countries. These states use the Euro as their common currency and allow citizens to move about throught the different participating countries as freely as if they were all one nation. Only 17 of the 27 countries use the Euro, allowing for easy trading between those members. The ECB has held back from doing too much because doing so might not encourage countries like Greece to change their profligate ways. Two other measures are to change the European Union treaty or to ask German taxpayers to buy Eurobonds from the ECB.
ReplyDeleteGerman Chancellor Angela Merkel is advocating a rather slow, long, and drawn out process to fix Europe’s financial crisis, a process which in her eyes could take years to complete. However countries like Greece, who are on the brink of financial catastrophe, are looking for a very quick solution to Europe’s economy. The European Union is an economic and political union between 27 countries in Europe. The EU actively promotes human rights and has a very ambitious policy for reducing emissions and fighting climate change. It has also developed into a huge single market with the euro as its currency. However only 17 of the 27 members use the euro as its national currency, but it allows for easier and unrestricted trading if both the trading countries use the euro. The ECB has held back because it feels that if it does too much, then there would be no reason for countries like Greece and Italy, who face catastrophic debt crisis, to change their overspending ways. Two other measures offered in this article are accelerated Euro integration through a fiscal union, as well as to ask German taxpayers to buy Eurobonds from the ECB.
ReplyDeleteMerkel advocates a long-term approach to the crisis, but the European Central Bank, and struggling countries such as Greece, are pushing a shorter, faster solution. The European Central Bank is apart of the European Union (EU), which is an economic and political union of 27 European states. The Euro is not different from the EU, in fact, the Euro is used by 17 of the 27 states that are apart of the EU. The European Central Bank, an entity of the EU, has held back from assisting because they see "bailing out" countries such as Greece and Italy as foolish, if they (the ECB) receive no sort of commitment from these countries to change. The article also mentions two other solutions: to either revise the EU treaty, or to have the ECB begin selling "eurobonds," which would be similar to bonds sold by the U.S. Treasury.
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