Friday, November 9, 2012

Euro Crisis


Germany's two strongest post-war commitments have been to democracy and European integration. Up until recently it was always assumed that the two could be pursued simultaneously, but the recent euro crisis has caused quite a few Germans to be concerned that preserving Europe and preserving German sovereignty and democracy has turned into a zero-sum game. An article I found from the economist, which is worth reading for a better understanding of the logistics of these two ideals, describes exactly how. The main issue recently was something called the European Stability Mechanism, which is a more permanent version of the temporary rescue funds that have been used for bailouts. The ESM has been negotiated between euro zone governments and will have 700 billion euros (190 billion pledged by Germany) ready to lend in return for the promise of austerity measures and impose budget disciplines on countries that have racked up more debt than they handle. Although met with resistance from German from the left to the right, the constitutional court gave a (qualified) go ahead to the fund. Germany in general envisions a more integrated Europe with more national powers passed upwards, meaning creditor countries pledging their money without their constituents really having any say. For some this is reminiscent of the well known american maxim 'no taxation without representation'.


-Dane 

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