At 24-25. March were agreed at the EU summit profound changes the architecture of the monetary union. Stable should be the euro. It begins with the assertion that it needed joint efforts to overcome the “euro crisis”. There is no euro crisis. On the contrary, the euro against the U.S. dollar are even overvalued.
What pollutes the monetary union a debt crisis and growth in individual Member States? This difference is not semantic, but fundamental. He does state clearly that the problems are homemade and, consequently, to treat the affected countries themselves must be operated. With the establishment of the now permanent crisis mechanism (ESM), the EU is entering on fragile terrain. Anyone who believes that the ESM is an adequate regulatory framework for crisis prevention and management must unfortunately be disappointed.
The fundamental condition for an auxiliary grant is the indispensability for maintaining stability in the euro area as a whole. It comes to the solid states, which are government blackmailed by the governments with unsound budgetary policies. They only have to extend the debt so that they to be relevant to the system. For the award of grants is needed a “unanimous” decision.
The guiding principle would be to automate the decision-making process for the activation of the ESM, i.e. award to an independent institution so. The problem is also used to determine the loan interest rate to be generous by the ESM. The desired steering function of interest rate spreads in the capital market is undermined.
Interest subsidies for governments to create disincentives to borrow yet again excessively, while private investors / banks will have to miss it again to a rigorous risk assessment, the purchase of government debt. The question remains open for a reasonable insolvency code for countries within the euro zone. In addition, the usefulness of monitoring of the so-called current account imbalances in the member countries is not economically comprehensible.
The European Council has failed in their duty to ensure the primacy of economic self-reliance. Instead, he follows the mistaken belief that interventionism and Community liability give a solid foundation for the desired stability within the euro zone.