Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By I Am Sparticus
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

Two-Tier Euro On The Way

Thursday, June 21, 2012 7:42

% of readers think this story is Fact. Add your two cents.

The creation of a two-tier euro would serve the political wish to continue with the EU’s ambitions while allowing its member states the flexibility they required individually to deal with their respective deficits. ”The difficulties of this proposal might be far more palatable to the electorate in all countries than the more rigid solution facing us today: reducing our budget deficits through draconian measures while limiting the borrowing of the indebted countries to more moderate levels.

“It is worth noting that, whatever political costs might be incurred, the economic and social costs would be less severe this way.”

Recognising that the creation of a two-tier euro could be viewed by the markets as yet another “deferral strategy”, the EU could alternatively consider adopting measures similar to those employed by Germany in 2008 to clear its banks of €500bn of toxic debt.

”An alternative to such drastic measures would be an enforced debt-to-GDP ratio on each member state with effect from, say, January 2013. In the case of Ireland, it may be assessed we could manage our economy with a 60 per cent debt-to-GDP ratio. What the troika might determine is that it will ringfence the total amount in excess of 55 per cent debt to GDP for Ireland, thus giving it some breathing space for room and growth.

“The amount ringfenced could be marked to market and put with an investment vehicle, which would be held to maturity, say 20 years — much the same process Germany initiated in November 2008 to clear its banks of €500bn of toxic debt. These assets can be funded by a long-term facility, funded by the troika or some variation of this group.” The same process could be repeated for each member state across the EU with the creation of a debt-to-GDP ratio that would be enshrined in all fiscal treaties.

However, that the burden on the richer nations could be deemed excessive by their own electorates, and in turn deemed to be too big a price for the creation of united Europe and a strong euro. But he said the restoration of confidence and financial stability had to be considered the “ultimate goal”.

“Unless the fundamental dysfunctional economic measures are changed, it will be a long time before financial stability and confidence is restored,”

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).

Comments

Online:
Visits:	1,602,802,564
Stories:	8,147,974