More on the Germany-EU conflict

[Sven R Larson <larson@xxxxxx>]

Friends,

Here's some interesting news from the Ergodic Union:

> ***** EUobserver.com - 04.02.2002 ******************************************
>
> Weekly Headline News from the EUobserver. Also available Headline News delivered daily on e-mail
>
> ***** CONTENTS **************************************************************
> 2. Germany intends to block budget warning (published on: 04-02-2002 09:58:06)
> ----------------------------------------------------------------------------
> The German government may try to block an official reprimand from being issued by European Union finance ministers over the country's budget deficit. Germany has admitted that it will not be able to respect the budgetary balance in 2004 and postponed the objective of the Pact of Stability to 2006. This came out during the economic and financial Committee (CEF) that prepared the session of the Ecofin for the 12 of February.
>
> Link to article:
> http://EUobserver.com/index.phtml?selected_topic=9&action=view&article_id=5051

This can escalate, although I personally doubt it. The risk if the
Germans don't cave in is that other euro-zone states will defy the
Maastricht treaty as well (which of course is a good thing,
macroeconomically). If more countries join actively the institutional
structure of the monetary untion will, down the road, be jeopardized.
This is not something they want. But in the meantime the very conflict
itself is interesting and a sign that the tensions built in to the
integration process in Europe are tangible and significant.

Here's one to illustrate how you turn defeat into victory:

> 50. Sweden's  Minister of Finance says No to EMU (published on: 31-01-2002 10:56:29)
> ----------------------------------------------------------------------------
> "I would vote no if we had a referendum today," said Leif Pagrotsky, Swedens' Minister of Trade, at an IT fair i Göteborg this week. He is one of now four Swedish Social Democrats with a sceptical attitude towards the euro holdng high posts in the Swedish government.
>
> Link to article:
> http://EUobserver.com/index.phtml?selected_topic=9&action=view&article_id=4991

Sweden is the only EU country that is disqualified from joining the
currency union, a fact that has been made very clear from Brussels. Now
the Swedish social democratic prime minister (a modern iteration of
Louis XIV, though with notably more bone from the neck up) is sending
his ministers out to declare that the country actually has the choice
not to enter the union.

Best Keynesian,

/srl

--
Sven R Larson
Ph.D.; Assistant professor of economics
Department of Social Sciences, 22.2
Roskilde University
PB 260
DK-4000 Roskilde, Denmark
http://www.ruc.dk/english/