Even during current conditions that are very tough, very complicated, and when the risk of the eurozone break-up - or at least of its very problematic functioning - is very realWhat with the contagion spreading to Belgium, who without a Government is ill placed to deal with it things are beggining to look just a tad ropey.
Thursday, November 25, 2010
More panic in the Eurozone
The EU Observer has picked up what might be called in Brussels unhelpful comments by Slovak finance minister Ivan Miklos,
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The risk of the Eurozone breakup is indeed very real as sovereign crises exist.
Ireland’s Prime Minister Brian Cowen, in accepting seigniorage aid from the UK, the IMF, and the EU, waived Ireland’s national sovereignty. The aid package melds the UK, the IMF, and the EU into a new sovereign Supra Government with David Cameron, Dominique Strauss Kahn and Olli Rehn as Ireland’s Sovereigns and Seigniors, the latter is an Old English word meaning top dog banker who takes a cut.
The sovereign crisis presented by IMF Chief Dominique Strauss-Kahn, has not be abated, it is only held in abeyance. Philip Aldrick, Economics Editor of The Telegraph in November 19, 2010 article IMF Chief Urges Leaders To Cede More Sovereignty To EU, writes European nations need to cede more of their sovereignty and hand greater powers to the centre to avoid future sovereign crises, the head of the International Monetary Fund has said.
Open Europe in November 25, 2010 Press Summary reports: “Meanwhile, the Irish government released a new budget which sets out plans to cut public spending by 20%. The plan aims to reduce public spending by €10bn and to raise an extra €5bn in taxes by 2014, reports the Irish Times. Welfare spending will be hardest hit, pensions will lose tax exemption, university fees will rise and taxation will increase, leading to up to 25,000 public sector job cuts.
The Irish Department of Finance confirmed that the IMF and the European Commission will have the authority to recommend changes or alterations to the four-year plan during negotiations.
Noah Barkin in Reuters’s Breaking Views writes: “Unthinkable only a few weeks ago, a small but growing number of experts now believe some version of this nightmare scenario could become a reality for the eurozone.”
One nightmare scenario is the risk of Götterdämmerung, that is a world-wide investment flame-out, and resulting stroke to the institution of banking, lending, finance, commerce and trade.
Given that risk, I ask in blog article: Might A Sovereign And A Seignior Arise Out Of Europe’s Sovereign Crisis To Secure The Euro The Euro As A Currency And Provide Stability To All Nations Involved?
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