NationStates Jolt Archive

Click here for story (http://edition.cnn.com/2005/BUSINESS/03/21/eu.pact.reut/index.html)

The pact is under review, what i would like to know is your opinions.. do you think the pact is a mindless dictatorship on each nation finances, or a necessary measure to preserve the credibility of the Euro? Do you think that the exceptions for its violation that are being created are excessive, or necessary, just and justifiable?

There has to be some kind of overall fiscal policy for the Eurozone, so that the CEB can make decisions on interest rates applied to the Euro etc. This was always going to be the first really big internal problem for the EU. When EU policy and requirements enters into conflict with National policies and requirements.
It would be interesting to learn how the USA deals with states that contravene federal fiscal guidelines, if they do. In Brazil, another federation of states, there are laws that enablew the Federal government to withold money from states if they are outside of the national guidelines.
This could be done if taxation was centralised in the EU (Ugh, wait for the "protect our sovreignty" crowd to give their knee jerk reactions), but it is not. All that can be done is to fine countries or to expel them.

Should there be allowances for circumstances? Yes. But these have to be carefully examined and justified. Why does the ex East Germany justify Germany breaking the rules, when Poland, which does not have the good bit, is not allowed to? etc.
France is a serious case of financial mismanagement, and the argument that they are in recession is laughable. They are always in recession.

A lot here depends upon your personal views about runing defecit budgets. I believe that these are the underlying cause of recessions, and they should not occur ever. (Hi there USA, yes I am referring to you as well). Others, however see no problem with them.

It sounds like the EU is just as fiscally irresponsible as the US. I do not know much about the Stability and Growth Pact, but this does seem to set a precedent of larger member nations having more value that the whole.

If the EU expels Germany and/or France, then it kills off itself. That would be pretty silly.

Click here for story (http://edition.cnn.com/2005/BUSINESS/03/21/eu.pact.reut/index.html)

The pact is under review, what i would like to know is your opinions.. do you think the pact is a mindless dictatorship on each nation finances, or a necessary measure to preserve the credibility of the Euro? Do you think that the exceptions for its violation that are being created are excessive, or necessary, just and justifiable?
The pact is a good thing but changing the rules every now and then because some countries can't keep their budgets in order is certainly damaging the credibility of euro.

and Greece should have been kicked out of EU Parliament for few years.