Fiscal union is instead advanced as a technical solution to the failure of the single currency project, not as a political objective to be justified on its own terms. insistence that the monetary union will fail unless fiscal union is superimposed, an essentially technical argument and not one that is universally accepted. Greater European integration (fiscal union) is to be ursued in response to the failure of an ambitious integration project in the form of the single currency whose design flaws have been cruelly exposed, which has crippled the banking system across Europe and destroyed one-half of Europe's sovereign bond market. integration, results not in an admission of the need for policy reform but in strident calls for the intensification and extension of the policy which has failed. “There is a high risk that this crisis further escalates and broadens,” German Finance Minister Wolfgang Schaeuble told German paper Frankfurter Allgemeine Sonntagszeitung in an interview released in advance of publication on Sunday.
The absence of democratic consent for the associated loss of sovereignty is addressed only through
It is extraordinary how often the failure of a policy, in this case a poorly-designed monetary
snip
Regulators worry that forcing a raft of major lenders to take state aid would not be the best use of Europe’s limited capital resources, while banks fear than singling out only some lenders for extra support could heighten market worries about weaknesses at individual banks.
German newspaper Frankfurter Allgemeine Zeitung on Saturday cited financial sources as saying France’s five-biggest lenders would agree to take 10-15 billion euros in funding from the state but also wanted to see Germany’s No. 1 lender Deutsche Bank DBKGn.DE plump its capital cushion.
But a senior French banking source shot down the idea that French banks could be pushing for state aid, saying the Frankfurter Allgemeine Zeitung report was baseless.
“I don’t know what game the Germans are playing… This is wishful thinking,” the source told Reuters, asking not to be named.
Sunday, 9 October 2011
Franck: Yes, indeed, crises have this kind of effect on time which means that
changes that people are thinking could take very, very long, can happen in a
matter of moments, or years. Right now, what we can see and we can anticipate
for the coming years, I think, is very clear. We are going to see, in the coming 2,
3, 4 years, first of all, a complete reshuffle of the international monetary
system. Whether it will be an orderly one, or disorderly one, is something
which will be decided by the leaders in the coming 2 or 3 years, but one thing is
certain in our opinion is that by 2015, or 2014 even, the way the international
monetary system has been shaped since 1945, and especially since 1971, based
on the dollar only, is something which is going to vanish in the coming 2-3 years
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