Tuesday, 16 August 2011

No expected solutions for Euro crisis; no Euro bond

I guess some of you folks maybe anticipating the outcome of the dialogue between German Chancellor Angela Merkel and French President Nicolas Sarkozy will including the creation of Euro Bond backed by all Euro members. The conclusion was quite disappointing as they firmly disregard the creation of Euro Bond. German Chancellor Angela Merkel noted that the Euro Bond idea will be 'last resort'. That is quite sad to hear.

In addition, the EFSF bailout fund may not be big enough to cover any future unforeseen crisis, and risk moving the sovereign crisis into the banking system.

Below are some of the key points;

  • France and Germany propose European Union President Herman Van Rompuy to head a “Euro-council.”
  • France and Germany will propose a financial transaction tax in September.
  • Aim is to reduce debts and deficits among Euro-area member states.
  • France and Germany aim to harmonize corporate taxes from 2013.
  • Stronger Euro needs stronger economic ties among member states.
  • Debt brake to be anchored in French, German law.
  • European Union debt rules must take priority.
  • European Union structural funds must focus on boosting growth.
  • Euro Bond idea is good but not for the moment.
Guess we have live with these measures for the time been.

Renomic

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