Wait a minute – To join or not to join
… That is the question, or at least it should be. Last Friday most of the member of the EU-member stats signed a declaration of intent to follow the new and “improved” euro plus pact. And calling the new version of the Euro plus pact an improvement is really a stretch. What could have been the chance to redraw the Euro plus agreement and fix some of the dilemma inherent in the monetary union. Ended as not being the version 2.0 that everyone where hoping for, but in reality just a small patch. Instead of going back to the drawing board what the European heads of stats finished with an accordant that now limits the member states budget deficit to 0.5% instead of the earlier 3%.
I am not pretending to know what would be the right solution to the current crises. But, if we look at how the market has reacted to the solutions that the different European institutions have come up with doing the last year, well they are not impressed. And to quote Mr Rahm Emanuel: “One should never let a good crisis go to waist.“ Meaning that this would have been the perfect situation for the European member stats to show their votes, and the market, that they are being serious about solving not only the current crises but also the inherent political problems within the monetary union. The dilemma is not an economical problem but a political problem. In a welfare state the politicians survives by reallocate funds in a way such as it satisfies as many voters as possible. Reallocating more funds to some voters, would normally mean that other voters would get less but with the lack of real sanctions in the Euro plus pact it has become opportune for politicians to borrow the money from outside of the economy, and this has not chance with the latest patch. Especially since that United Kingdom already have declared that they are not willing to sign the declaration presented last Friday, with effectively makes it impossible for the rest of European member stats to use the EU court or other EU Institution, should the want to actually utilizes any sanctions.
Let me be clear, I am not advocating at stronger political union, and should the question about Denmark’s position regarding this “new” euro plus pact be put through a referendum, I would properly want Denmark to join the UK and vote no. But on the other side, every European economy is depended the economical development of the other European economies; therefor we all need the European Monetary Union to be fixed, and it properly needs to be fixed in a big way.
Let me end with a video with one of my personal heroes Nigel Farage, and a link (in Danish sorry) to a paper written by Torben Mark Pedersen that does present such a solution that Mr. Farage is point to.
I am not pretending to know what would be the right solution to the current crises. But, if we look at how the market has reacted to the solutions that the different European institutions have come up with doing the last year, well they are not impressed. And to quote Mr Rahm Emanuel: “One should never let a good crisis go to waist.“ Meaning that this would have been the perfect situation for the European member stats to show their votes, and the market, that they are being serious about solving not only the current crises but also the inherent political problems within the monetary union. The dilemma is not an economical problem but a political problem. In a welfare state the politicians survives by reallocate funds in a way such as it satisfies as many voters as possible. Reallocating more funds to some voters, would normally mean that other voters would get less but with the lack of real sanctions in the Euro plus pact it has become opportune for politicians to borrow the money from outside of the economy, and this has not chance with the latest patch. Especially since that United Kingdom already have declared that they are not willing to sign the declaration presented last Friday, with effectively makes it impossible for the rest of European member stats to use the EU court or other EU Institution, should the want to actually utilizes any sanctions.
Let me be clear, I am not advocating at stronger political union, and should the question about Denmark’s position regarding this “new” euro plus pact be put through a referendum, I would properly want Denmark to join the UK and vote no. But on the other side, every European economy is depended the economical development of the other European economies; therefor we all need the European Monetary Union to be fixed, and it properly needs to be fixed in a big way.
Let me end with a video with one of my personal heroes Nigel Farage, and a link (in Danish sorry) to a paper written by Torben Mark Pedersen that does present such a solution that Mr. Farage is point to.
