Thursday, 8 December 2011
The Pain of the Euro
The German-French plan is based on the following key provisions:
- the European Commission to have the power to impose penalties for nations that run excessive budget deficits
- all 17 eurozone nations should amend their national legislation to require balanced budgets
- the eurozone countries to have common corporation and financial transaction taxes
- any future bailouts would not require private investors to absorb part of the costs, as happened in the Greece case"
Translated this means:
- Germany will not allow anyone else to invest in their economy or try and alleviate economic difficulties in any other way than domestic austerity
- see above point, multiply by 2
- Ireland and other countries trying to grow through either competitive tax rates or in financial services can go hang - All tax rates will be aligned with Germany and France to help their economies.
- German and French banks are very weak and are not able to suffer any more haircuts, therefore we want these outlawed.
Not a recipe for success so far, where is the discussion of assitance to the Countires on the brink of insolvency?