Sunday, December 15, 2013

Germany and the European Union

The idea of Euro bonding is tested by the Europe sovereign debt crisis. Germany-France’s proposal of treaty changing which would ask participation from all European Union members has been failed to be agreed during 10 hours meeting in Brussels. Unfortunately, finding the debt solution as quick as possible and keeping the spirit of the European Union could not be done at the same time. Germany, as the richest country in Europe, wants to control the EU while another EU power, Great Britain opposes this idea. In fact, the intergovernmental agreement of applying fiscal pact is the proof of Germany’s winning of being the EU leader.
Europe treaty, which was signed in Maastricht 20 years ago, was designed not only to integrate and unite Europe but might be as the Germany’s way to control Europe. The result of the EU head of states meeting this week about the agreement of applying tighter fiscal discipline for their national budget is one step forward to solve the crisis. The leaders believe it is more effective than changing treaty because the pact can be ratified quickly by the parliament than treaty amendment. There’s also an agreement to provide additional funds from International Monetary Fund to cover the bailout of Spain and Italy.
A bold action has been taken by the EU leaders under the leadership of Germany. As the biggest economic power in Europe, this country has responsibility to save other Euro zone members from the turmoil. The decision can be considered as how successful Germany in pressing the European Union members to find the solution. This solution is expected to increase the markets’ trust to Euro and force the EU members to be stricter on financial budget. One more thing, people around the world are waiting for what happen next in Europe after this intergovernmental agreement has been decided.