Log in

View Full Version : Eurozone must 'resist alarmism', Olli Rehn says



Kiev Communard
16th November 2010, 22:53
It seems something interesting is brewing... I would advise the West European left to henceforth take the possibility of the EU breakup seriously. The so-called "PIIGS" economic collapse is just the beginning.





The European Union's (EU) economic affairs commissioner has said Europe must "resist alarmism" amid the latest fears over the Irish Republic's debts.

Olli Rehn said he was "concerned" about public debate on the eurozone.

Late on Tuesday a meeting of eurozone ministers meeting in Brussels broke up with no concrete plan of action.

But speaking after the talks finished, Mr Rehn said the EU would, however, step up work on support for Ireland "with an accent" on its banks.

Earlier, the Irish Prime Minister, Brian Cowen, reiterated that the Republic of Ireland had not asked for bail-out money and that the Irish economy was well funded until next year.

He said his country was working with European partners to deal with the debt issue, but that his country was neither "immune or unique" amid the recent economic crisis.

The Irish government, the European Commission, the European Central Bank and the IMF have also met to discuss the country's "serious banking problems".

Mr Cowen tried to play down the growing sense of crisis across the eurozone, telling the Irish parliament that these were just a continuation of ongoing discussions it had been having with European institutions for some time.

'Survival crisis'

Earlier, the EU Council president, Herman Van Rompuy, warned that the European Union was in a "survival crisis" over eurozone debt problems, as the economic health of members such as the Republic of Ireland and Portugal came under fresh scrutiny.

Mr Van Rompuy said that if the euro failed, so too would the EU.

However, he added he was "very confident" the problems could be overcome.

Uncertainty has caused the cost of Irish, Portuguese and Spanish government borrowing to rise significantly over recent weeks.

Rising yields are not an immediate concern for the Irish Republic, as it does not need to borrow money on the markets this year.

But it is for countries such as Spain, which held an auction of government bonds earlier, and other countries facing large deficits.

The Spanish treasury secretary called on the Republic to act quickly to end market uncertainties.

Portugal's finance minister Fernando Teixeira dos Santos has urged Dublin to do the right thing for the euro and accept a bail-out.

http://www.bbc.co.uk/news/business-11762500

Q
16th November 2010, 23:06
Mr Van Rompuy said that if the euro failed, so too would the EU.

I agree. But given the long term ideal of a "unified Europe" (that is, "unified" on a capitalist basis, with all the contradictions it entails) by the bourgeoisie against the American, Japanese, Chinese and, in the future, Russian, Indian and Brazilian powers, will make a failure only an option if they simply have no other way out. So basically: either we go bankrupt or nationalist tensions rise within the memberstates (possibly both) before the Euro fails. Germany holding a dominating position in the European constellation because of the Euro doesn't help things either of course. Despite this, I expect more pressures towards a stronger federalist structures (federal taxes are being proposed), more power to the transnational institutes, etc. This has been the behaviour of the memberstates steering the EU project for the past 50+ years against any crisis it faced, so I'm not expecting much else this time.

~Spectre
17th November 2010, 00:26
Essentially the big catch is that the members can't simply inflate themselves through the worst troubles.

Rusty Shackleford
17th November 2010, 15:38
World capitalism is spiraling out of control. Europe seems to by flying apart as if it were a centrifuge, the US economy is stagnated, and china is actually the only one that seems to be doing alright.


If the euro failed, that would probably skyrocket the value of the US dollar and work against the economic plans of the US. It would probably hasten the collapse of the US economy, because to counter that, they would have to pump even MORE money into the economy.

So, what happens if the Italian government collapses and Spain and Portugal require EU bailouts as well?

manic expression
17th November 2010, 16:56
So, what happens if the Italian government collapses and Spain and Portugal require EU bailouts as well?
If Spain and Portugal go under, it's on. Simply put, no one has the money to bail them out, the EU would be in a full-fledged economic and political crisis on its best day. Ireland's economy, too, is on the ropes. Combine all that with what's happening in Greece, France and elsewhere and it's anyone's ballgame.

RadioRaheem84
17th November 2010, 19:16
If Spain and Portugal go under, it's on. Simply put, no one has the money to bail them out, the EU would be in a full-fledged economic and political crisis on its best day. Ireland's economy, too, is on the ropes. Combine all that with what's happening in Greece, France and elsewhere and it's anyone's ballgame.

Let's hope this actually awakens the European community to fight against capitalism.

punisa
17th November 2010, 19:40
If Spain and Portugal go under, it's on. Simply put, no one has the money to bail them out, the EU would be in a full-fledged economic and political crisis on its best day. Ireland's economy, too, is on the ropes. Combine all that with what's happening in Greece, France and elsewhere and it's anyone's ballgame.

How likely is this to happen actually?

Btw
One more thing I'm curious about. I live in Croatia and Croatia is supposed to join the EU within 24 months.
I have a bad feeling that this is not a club membership we should be looking forward to :bored:
Country such as Croatia has put all of its eggs into a single basket. If EU would indeed collapse, we would become a financial and economic wasteland.
:(

ckaihatsu
18th November 2010, 10:54
If Spain and Portugal go under, it's on. Simply put, no one has the money to bail them out, the EU would be in a full-fledged economic and political crisis on its best day. Ireland's economy, too, is on the ropes. Combine all that with what's happening in Greece, France and elsewhere and it's anyone's ballgame.


Not to worry -- my artwork *may* be used as an international reserve currency...!


Political (educational) diagrams, for revolutionaries

http://www.revleft.com/vb/political-educational-diagrams-t111586/index.html


x D