Wednesday, November 9, 2011

Reuters — Germany and France discuss "core EZ"


German and French officials have discussed plans for a radical overhaul of the European Union that would involve establishing a more integrated and potentially smaller euro zone, EU sources say.
Read the rest at Reuters
French, Germans explore idea of core euro zone

(h/t Zero Hedge)

Throwing in the towel on a sub-optimal currency union gone bad?

4 comments:

Matt Franko said...

Tom,

Looks like maybe, based on Merkels statements I posted below, they are looking at integrating the Euro currency countries first, then the other countries that are not in the current currency union later...

Pretty fluid though. Italy has huge amounts of govt "debt" securities out there, and they are now above 7% I believe which may be the straw that breaks the camels back and forces them toward proposing further fiscal union for the current countries that use the common currency. But the way they will probably propose to do it, democracy will suffer needlessly...

Resp,

Tom Hickey said...

Matt, sounds to me like a floater idea. They'll see what the reaction is and go from there.

Ryan Harris said...

Apparently the Germans want to ramp up their war industries again, according to der spiegel. One Europe, under Germany, ruled by Germany, a bad sequel.

Tom Hickey said...

Good find, TomatoBasil

In a position paper delivered to the European Commission on Oct. 27, which SPIEGEL has seen, the German government argues that, when it comes to export controls, "The effort to prevent proliferation and destabilizing arms accumulations should not unreasonably hinder or impede legal trade, particularly when it comes to economic relations with new regional powers."

The document focuses on so-called "dual-use goods" which have both military and civilian applications. Both "foreign and security policy considerations" as well as "economic interests" should be "adequately considered," the position paper states. German arms exports amounted to €15.1 billion between 2005 and 2010, making it the world's third leading weapons exporter.


Double-speak