News, Politics

13 economists write to the EU

13 economists write to the EU
July 21st, 2011
Author: Jeff Taylor

An open letter has been written to the leaders of the European Union by thirteen economists saying that action is needed this week or we face the end of the Eurozone.

The open letter says that the debt crisis has now reached the core of the Eurozone and that both Italy and Spain are now firmly in the frame.

They say that with a third of the zone on the credit black list the survival of the Euro is now at stake.

The letter published in the Telegraph starts ‘The eurozone crisis is coming to a head. This column is an open letter to European leaders imploring them to take decisive action this week. Any more delays could mark the end of the Eurozone as we know it’

The solution put forward for the EU leaders to consider is the expansion of the European Financial Stability Fund (EFSF) by making it sturdy enough to withstand a Greek default as well as giving it operational independence and allowing it to operate in the secondary bond markets.

The EC President Jose Manuel Barroso has also taken the EU leaders to task by saying that ‘the time to act is now’. His words are being seen as a swipe at the German Chancellor Angela Merkel who seems to be increasingly isolated over the debt crisis, being one of the few countries that now want to see the taxpayers’ burden being relieved by private sector involvement, possibly by taxing the banks.

A third of the Eurozone needs the help of the other two thirds to ensure their own needs are met and for the Euro to survive. The countries with the possible will and wherewithal to help are now shying away due to the potential internal economic and political cost. And the EU establishment is shouting from the sidelines to help ensure its own survival.

So here we have on show the major stumbling block for the Euro. When push really comes to shove what comes first? Your own country’s national interests (and for the politicians those of the voters who put you in power)? Or the idealistic European dream where national interests come second for the good of the European whole?

A choice will have to be made.

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3 Responses to “13 economists write to the EU”

  1. Brian Gilbert says:

    The Euro problem/ Greek Default problem requires a solution that:-

    1. Does not cause a drop in the credit ratings of the PIIIGS…
    2. Does not impose new liabilities on other Eurozone members.

    This is only one solution that does that.

    The Euro floats individually for all Eurozone member countries.. Their
    current liabilities under their law at the floating rate can be met
    by printing money etc just as before they joined the Euro.

    1. The PIIGS credit ratings will improve compared to now.

    2. No new liabilities are imposed on other EU countries, in fact they
    have a better chance of being repaid.

    Please excuse the multiple addressees, this is an emergency

  2. Jim says:

    Here is the solution to end ALL countries financial problems, the latest country to carry this out is Iceland.

    Bankers, Bradburys, Carnage And Slaughter On The Western Front.

    A Simple Solution To End This Madness – The Greenback:
    The Great War And The Debt-free Bradbury Treasury Note:
    Three weeks ago, as part of my ongoing research into the banking elite, I came across a fascinating book entitled The Financiers and the Nation by the Rt. Hon. Thomas Johnston, P.C., ex-Lord Privy Seal. It was written in 1934 and republished in 1994 by Ossian Publishers Ltd.

    The text of this quite remarkable and rare book is available here.

    In Chapter 6, entitled ‘Usury on the Great War’, I’ve selected the following paragraphs which I believe are both shocking and self-explanatory:

  3. Jim says:

    Further to the above story.

    Iceland’s On-going Revolution.

    Posted on January 31, 2012
    Editor’s note:
    see related articles here, here, here and here.

    by Deena Stryker
    Copyright © 2004 – 2011 Positive News
    pubished on Positive News
    re-published here under the term of “Fair Use”

    We may remember that, at the start of the 2008 financial crisis, Iceland literally went bankrupt. The reasons were mentioned only in passing, and since then, this little-known member of the European Union seemed to drop out of the news.

    As one European country after another faces near bankruptcy, imperiling the Euro, Iceland becomes a beacon of hope for choosing people over profit. Here’s why:
    Five years of a neo-liberal regime led to a privatization of all banks in Iceland, (population 320 thousand, no army). In order to attract foreign investors, these banks offered on-line banking whose minimal costs allowed them to provide relatively high rates of return.

    The accounts, called IceSave, attracted many English and Dutch small investors. As investments grew, so did the banks’ foreign debt. In 2003 Iceland’s debt was equal to 200 times its GNP, and in 2007, it was 900 percent.

    The 2008 world financial crisis became the coup de grace. The three main Icelandic bankswent belly up and were nationalized, while the Kroner (Iceland’s currency) lost much of its value with respect to the Euro. At the end of that year, the country declared bankruptcy.