Europe Debates Political Integration To Save The Euro

By ⋅ June 5, 2012 ⋅ Post a comment
The European Central Bank: Germany wants its powers strengthened, along with other federal European institutions. (Photo: Wiki Commons)

The European Central Bank: Germany wants its powers strengthened, along with other federal European institutions. (Photo: Wiki Commons)

The fiscal crisis in Europe is threatening to become an economic crisis, and that’s alarming Washington and governments across the world.

Finance Ministers from the world’s G7 countries held an emergency tele-conference on Tuesday to discuss what to do.

At stake is the future of the pan-European currency, the Euro.

Financier George Soros made a speech at the weekend in which he said Europe’s leaders have only three months to prevent the collapse of the Euro.

A collapse would create chaos in Europe’s financial markets, and threaten the destruction of big banks.

That fear alone is already cramping economic activity as many businesses pull in their horns, anticipating a slow-down.

The key to saving the Euro lies with some grand bargain involving the wealthy and solvent core countries in Europe – like Germany and the Netherlands – in sharing the debt burden of the poorer peripheral nations.

But the Germans are demanding a high price in exchange: greater federal integration of Europe.

Discussion

One comment for “Europe Debates Political Integration To Save The Euro”

  • Shrdlu42

    To Americans this sounds very familiar.  Our first attempt at forming a “Union” was pretty dismal too.  Eventually we scrapped the idea of a weak national government (created by the Articles of Confederation), and replaced it with a much stronger Federal government (through our Constitution).

    Of course, there are obvious differences.  America was a nation which by and large had a common language (English) and a common heritage.  While there were plenty of rivalries and jealousies between the States (and fear of increased Federal power), it’s nothing compared to what Europe faces.  Still, we managed to overcome what set us apart from each other, and create a lasting Union, by compromise, and by recognizing (once again) that: “United we stand.  Divided we fall.”

    Hopefully, Europe can do the same.