"I am sure the euro will oblige us to introduce a new set of economic policy
instruments. It is politically impossible to propose that now. But some day
there will be a crisis and new instruments will be created."Romano Prodi, EU Commission President, 2001. The quote comes from a
interview Prodi had with Martin Wolf of the Financial Times which was published
on December 4th, 2001
Create a rainy day fund?
Look outside, its pouring down!
In a move that puts it on a collision course with Germany, the IMF discussion
note said that at a minimum, deeper fiscal integration required increased
policing of member states and the swift completion of a banking union with a
"common backstop" for eurozone lenders.
The report, titled: Toward a fiscal union for the euro area, said
forcing countries to endure repeated rounds of austerity to resolve future
crises would plunge weaker countries into a deflation spiral and drag the whole
region into a "prolonged period of stagnation."
It suggested that policymakers create a "rainy day fund", where governments
contributed up to €200bn (£168bn) a year to help weaker countries "ex-ante", and
avoid a systemic crisis.
The IMF economists also backed European Commission plans for a Single
Resolution Mechanism (SRM), which would hand a powerful central executioner the
power to wind down failing banks.
Germany has questioned the legality of the plans, which would hand sweeping
powers to Brussels, while none of the 28 EU member states have explicitly backed
them.
4 comments:
Reading the Art of War, this past week, it struck me just how easy it is stating to become, to reach a point where a govt like Italy or Greece, or even Spain, with just one or two judicious assassinations, a little shifting of blame, a few pointed fingers and a filthy craven depraved mob in Brussels who are rank amateurs, having only the conscience of a gutter fly, and being thoroughly corrupt and criminal in nature, that could now set off the Europe spring.
Trawling the names, it and adding to my list, it soon starts to become obvious who is likely to be the targets and who will can shift blame and who will benefit.
Of course the assassination in Greece was just a taster, a clear govt assassination, but the opposition there already knows that, and plans are well under way to retaliate, except of course this time it will be someone who has a little more to lose and who can inflame and pour petrol on the fire.
Reading up on the early stages of the Bosnian war it was amazing how closely you can see history repeating itself here.
Not that such pathetic scum like Barusto and his nefarious sidekick the Rumpy would have the intellect to understand that
The europhanatics will still be in an utterly delusional state, saying the economy is booming even as their children are being butchered.
Don't believe that.
SB has still many supporters, not by chance got an astoundingly high amount of votes past elections ! Plus, he was so shameless to protest with the Minister of Justice and many other politics and ministers in front of the judges who legally condemned him. Noone had the bravery to contest such an act ! The real loser here isn't Berlusconi that we really hope is at the end of his ride, rather the democratic party who supported him until now despite they always said it was the Evil in person. My opinion is that next time the match will be between Berlusconi's party (whatever will be) and the 5-star movement. PD is only good for faffing, if you know what I mean. Bla-bla-bla-bla.
Italy's president is considering ways out of an acute political crisis after ex-PM Silvio Berlusconi's ministers left the coalition government.
Giorgio Napolitano hinted that he would try to oversee the formation of a new coalition without calling elections.
This follows weeks of worsening ties between Berlusconi's party and PM Enrico Letta's centre-left grouping.
Berlusconi had already threatened to withdraw his ministers if he was expelled from the Senate for tax fraud.
Continue reading the main story
Analysis
image of Alan Johnston
Alan Johnston
BBC News
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Prime Minister Enrico Letta is among the most mild-mannered of Italy's politicians.
And that makes the ferocity of his response to Mr Berlusconi's manoeuvre all the more striking.
Mr Letta described the reasons given for the resignation of the ministers as a "huge lie".
So there's no going back. This most awkward and unhappy of coalition governments is finished.
Now President Napolitano will become a key player.
Constitutionally it is down to him to decide whether Parliament should be dissolved.
And fresh elections are a possibility.
But President Napolitano would probably do all that he could to avoid the protracted instability of an election campaign - and the prospect of another inconclusive result.
So there may well now be a major effort to try to stitch together some new coalition from within the existing parliament.
The current coalition government was put together after inconclusive elections in February, and the latest developments cast a further shadow over Italy's struggling economy, the eurozone's third-largest.
It is feared that the crisis could hamper efforts to enact badly-needed reforms to tackle Italy's economic problems, including debt, recession and high youth unemployment.
The International Monetary Fund has warned that coalition tensions represent a risk to the Italian economy.
Centre-right ministers Saturday resigned from Italy's fragile coalition government, unleashing a fresh political crisis after what Prime Minister Enrico Letta called a "crazy act" of encouragement by their leader Silvio Berlusconi.
All five ministers of the People of Freedom (PDL) party took the decision at Berlusconi's urging, said Angelino Alfano, Italy's deputy premier and PDL party secretary.
The flamboyant former prime minister had dismissed as "unacceptable" a demand by Letta on Friday for parliament to express support for the government next week, in a bid to end a crisis that has driven the bickering ruling coalition to the brink of collapse.
Letta's government was cobbled together following a two-month stand-off after an inconclusive general election in February, and while the government has launched major reforms, it has been hobbled by the tensions.
Letta of the centre-left Democratic Party (PD) has won the confidence of financial markets by managing to keep together the improbable right-left coalition.
But a brewing revolt among Berlusconi's backers boiled over on Thursday when they threatened to resign over the media mogul's legal problems.
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