After last weeks crazed, money-throwing panic over the European economy was addressed with an every-man-for-himself attitude, Germany is showing a little more cooperation. Despite the fact that Merkel bailed out a bank or two last week, she is now willing to share the burden with the rest of Europe in an effort to come up with a joint response. More specifically Germany and France, the two largest economies of the Eurozone, have decided to take the bull by the horns and work together step by step to overcome the issue. Gordon Brown, along with the fifteen leaders of the eurozone economy, met today in Paris and discussed the idea of using a British-style bailout technique characterized by private banks going semi-national. This seems to be the most favored plan at this point. Merkel said that Germany and France are "on the same path as regards putting in place a concerted and coherent reaction for the eurozone." Though this may be the case, Merkel also made sure to mention the fact that the rules over this project also clearly state that countries have some flexibility in dealing with the subject on a simply national level.
At this point Merkel and Sarkozy have announced that the two governments will participate via total coordination of new measures to beat down the issues presented by the crumbling world economy. The two country leaders have been working hand in hand and telephoning daily. A joint statement was just released welcoming interest rate cuts by the world’s leading central banks. If all else fails, at least we can be rested knowing that Germany and France are getting along very well with each other. Provided, Merkel sticks to the plan.
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Welcome to our blog. Here McDaniel, Budapest students from the four corners of the globe post stories and commentary on today's political happenings in Europe, from Dublin to the Danube.
1 comment:
It seems to me that the German and French government, and all other parties involved are doing this with the hope of reassuring investors but when or if things get really tough economically, we may begin to see each member state having to tackle their nations economic problems first on a national level like Merkel said.
The sad reality is that irrespective of which countries gain or loose in terms of the economic policies being designed to tackle the gobal financial crisis, all European governments must work together as it is the only guarantee to effectively reassuring investors.
Jenai T.
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