At least, European leaders finally reached a consensus that If there is exaggeration in this statement is suspected before, and now the German long-term treasury bonds over the Anglo-American poor and the first class rate bonds, certificates along is bring disaster to the euro zone debt crisis has been the core countries, and take a reality, to say.
few days ago, French President Nicolas Sarkozy and German Chancellor Angela Merkel on European debt crisis were addressed, both for the actual launch of the Sarkozy said that Europe should create a more disciplined, more united and more responsible to the people, a real economic government. Merkel is a clear declaration to resolve the debt crisis of the idea is to create a fiscal union. To this end all euro area member states to implement Merkel and Nicolas Sarkozy in Paris once again coordinate their positions, no accident, then, strong in the EU summit will launch the
aside Although experts from government officials to recognize that this is caused by the root causes of the debt crisis, but to promote financial integration would mean transferring part of national fiscal sovereignty to the EU, at the technical level to modify the EU treaties, at the political level To obtain the agreement of the EU-27, which is considered difficult to operate and difficult to go beyond the step. If the debt crisis did not spread to the core countries of the euro area, I am afraid it is difficult to Germany determined to promote the establishment of a fiscal union.
according to German ideas, the first German to fight for the establishment of 17 member countries in the euro area financial stability alliance, or a smaller step pattern in accordance with the Schengen Agreement, some euro zone countries in the coalition. In short, as soon as practicable, promote financial integration.
If everything goes according to Merkel’s plan, then the euro-zone member states should implement strict economic austerity policies to drastically reduce the national debt, efforts to improve economic competitiveness. This means that the strong labor market reform, a substantial increase in the retirement age, a significant reduction in social welfare. This requires not only determination, but also take time. Merkel also said that to solve the debt crisis will take several years. The problem is that Europeans have no time for several years. German government bonds in the market freeze and Italian bond yields high, indicating that investors are growing distrust of Europe. The negative rating agencies has also been issued a warning, forcing the euro zone leaders and the European Central Bank to take timely and decisive action.
Thus, while Merkel resolutely refused to implement a fiscal union in the European euro bond issue before, and reiterated to respect the ECB’s independence, but in order to gain time, to prevent the total loss of market confidence, Germany or Europe, by default debtor central bank continue to buy government bonds. Even so, the