Angela Merkel wants to export the German #economic model to the rest of the Eurozone and beyond (other EU members). But how many Germans like this model in the first place?
Which economic model is suitable for the Eurozone? IMO a single but diversity & pluralism based one! Not a static - simplistic one!
In other words, an economic model for the Eurozone is possible as long as it is based on understanding of all parts of the Eurozone, not mainly a few.
The conclusions of today's (March 11) Eurozone Summit (heads of state and government of the 17 Eurozone members) - see the text and my initial comments in another post on this blog - IMO fall short of what the Eurozone and the EU need:
Economic and Political Union! Either at EU (minus UK and Czech Rep.?) or Eurozone17+ level.
Because Tthe fundamental flaw in the Euro was/is that there is no Economic and more importantly, Political Union among its members
IMO most political leaders, opinion leaders and other thinkers in EUrope and around the world realise that a United States of Europe or a Federal Republic of Europe is the inevitable endgame of the EU (minus a few members maybe). Yet today's Summit of the Eurozone 17 was very timid re this goal.
Unless the 17 are dragging their feet until the inevitabilty is undisputable (because many do not have the grit to propose it (now) to their public opinions?)
With the current Japanese tragedy heightening risk aversion in the markets, there would be little chance that ECB will raise rates in the short run. Spain the least exposed to the debt problems in the PIGS category. At govt yield of 4.2%, they seem to be able to make it out of the crisis in whole.
ReplyDeleteEuropean outlook:Intrinsic Value