Re:Italy’s teetering banks will be Europe’s next crisis
by eli_gottlieb on Tuesday July 12, 2016 @10:34PM
(#12083587)
Well, nothing written in that massive quote you've given mentions unemployment as a problem to be managed using fiscal policy, so I think that predicts how well it will really work out.
Re:Italy’s teetering banks will be Europe’s next crisis
by ZenoArrow on Wednesday July 13, 2016 @03:24AM
(#12084472)
Aside from employing some public sector workers, governments don't fix high unemployment directly, they can only do so indirectly (by promoting stronger competition in the marketplace). Therefore, I don't find it surprising that unemployment isn't directly named in the summary I provided (though it may be mentioned in the full Five Presidents report, I haven't read the whole thing).
There's a plan from the leaders of the EU for creating a Eurozone Treasury by 2025.
http://europa.eu/rapid/press-release_IP-15-5240_en.htm
"Today, the five Presidents – European Commission President Jean-Claude Juncker, together with the President of the Euro Summit, Donald Tusk, the President of the Eurogroup, Jeroen Dijsselbloem, the President of the European Central Bank, Mario Draghi, and the President of the European Parliament, Martin Schulz – have revealed ambitious plans on how to deepen the Economic and Monetary Union (EMU) as of 1 July 2015 and how to complete it by latest 2025. To turn their vision for the future of EMU into reality, they put forward concrete measures to be implemented during three Stages: while some of the actions need to be frontloaded already in the coming years, such as introducing a European Deposit Insurance Scheme, others go further as regards sharing of sovereignty among the Member States that have the euro as their currency, such as creating a future euro area treasury. This is part of the Five Presidents’ vision according to which the focus needs to move beyond rules to institutions in order to guarantee a rock-solid and transparent architecture of EMU. Delivering a Deeper and Fairer Economic and Monetary Union has been one of the top 10 priorities of President Juncker in his Political Guidelines."
"Unsustainable fiscal policies not only endanger price stability in the Union, they also harm financial stability. In the short run (Stage 1), the five Presidents propose the creation of an advisory European Fiscal Board which would coordinate and complement already existing national fiscal councils (see Annex 3). It would provide an independent analysis, at European level, of how budgets perform against the economic objectives set out in the EU fiscal governance framework. In the longer term (Stage 2), a common macroeconomic stabilisation function should be set up to better deal with shocks that cannot be managed at the national level alone. It would improve the cushioning of large macroeconomic shocks and make EMU more resilient. Such a stabilisation function could build on the European Fund for Strategic Investments as a first step, by identifying a pool of financing sources and investment projects specific to the euro area, to be tapped into."
"Finally, while euro area Member States will continue to decide on taxation and the allocation of budgetary expenditures along national political choices, some decisions will increasingly need to be made collectively while ensuring democratic accountability and legitimacy. A future euro area treasury could be the place for such collective decision-making."
The suggested Eurozone Treasury is meant to require changes to EU treaties. The question is, if the Euro continues to cause economic problems in its current form, will governments go along with the creation of a Eurozone Treasury or will they move away from greater economic integration?