KI a INESS v spolupráci s ďalšími partnermi organizovali medzinárodnú
konferenciu v rámci Free Market Road Show 2012 na tému Európa na ceste do
nevoľníctva?, ktorá sa konala dňa 27. apríla 2012 v Bratislave. Pozrite si
prezentáciu Daneila Mitchella. Viac informácií na
www.konzervativizmus.sk.
Money Deficits and Inflation Evidence and Policy Issues of Euro Zone during D...paperpublications3
Abstract: An important lesson from the euro area sovereign debt crisis is that the need for sound economic policies does not end once a country has adopted the euro. There are no automatic mechanisms to ensure that the process of nominal convergence which occurs before adoption of the euro produces sustainable real convergence there after. The global financial crisis that started in 2008 has showed that some countries participating in Economic and Monetary Union (EMU) had severe weaknesses in their structural and institutional set-up. This has resulted in a large and protracted fall in real per capita income levels in these countries since 2008. While there has been real convergence in the European Union (EU) as a whole since 1999 owing to the catching up of central and eastern European (CEE) economies, there has been no process of real convergence among the 12 countries that adopted the euro in 1999 and 2001. This lack of convergence is related to several factors, notably weak institutions, structural rigidities, weak productivity growth and in sufficient policies to address asset price booms. Against this background, several factors appear crucial for ensuring real convergence in EMU: macroeconomic stability, and sound fiscal policy in particular; a high degree of flexibility in product and labor markets; favorable conditions for an efficient use of capital and labor in the economy, supporting total factor productivity (TFP) growth; economic integration within the euro area; and a more active use of national policy tools to prevent asset price and credit boom-bust cycles.
Keywords: Money Deficits, Inflation, Policy, Euro Zone,Sustainability, Monetary Policy, Investments.
Jel codes: H62, H68, H6, E41, E42
Title: Money Deficits and Inflation Evidence and Policy Issues of Euro Zone during Debt Crisis
Author: Dr. Stamatis Kontsas
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications
The European debt crisis (often also referred to as the eurozone crisis or the European sovereign debt crisis) is a multi-year debt crisis that has been taking place in the European Union since the end of 2009. Several eurozone member states (Greece, Portugal, Ireland, Spain and Cyprus) were unable to repay or refinance their government debt or to bail out over-indebted banks under their national supervision without the assistance of third parties like other eurozone countries, the European Central Bank (ECB), or the International Monetary Fund (IMF).
The eurozone crisis was caused by a balance-of-payments crisis (a sudden stop of foreign capital into countries that had substantial deficits and were dependent on foreign lending). The crisis was worsened by the inability of states to resort to devaluation (reductions in the value of the national currency).
Money Deficits and Inflation Evidence and Policy Issues of Euro Zone during D...paperpublications3
Abstract: An important lesson from the euro area sovereign debt crisis is that the need for sound economic policies does not end once a country has adopted the euro. There are no automatic mechanisms to ensure that the process of nominal convergence which occurs before adoption of the euro produces sustainable real convergence there after. The global financial crisis that started in 2008 has showed that some countries participating in Economic and Monetary Union (EMU) had severe weaknesses in their structural and institutional set-up. This has resulted in a large and protracted fall in real per capita income levels in these countries since 2008. While there has been real convergence in the European Union (EU) as a whole since 1999 owing to the catching up of central and eastern European (CEE) economies, there has been no process of real convergence among the 12 countries that adopted the euro in 1999 and 2001. This lack of convergence is related to several factors, notably weak institutions, structural rigidities, weak productivity growth and in sufficient policies to address asset price booms. Against this background, several factors appear crucial for ensuring real convergence in EMU: macroeconomic stability, and sound fiscal policy in particular; a high degree of flexibility in product and labor markets; favorable conditions for an efficient use of capital and labor in the economy, supporting total factor productivity (TFP) growth; economic integration within the euro area; and a more active use of national policy tools to prevent asset price and credit boom-bust cycles.
Keywords: Money Deficits, Inflation, Policy, Euro Zone,Sustainability, Monetary Policy, Investments.
Jel codes: H62, H68, H6, E41, E42
Title: Money Deficits and Inflation Evidence and Policy Issues of Euro Zone during Debt Crisis
Author: Dr. Stamatis Kontsas
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications
The European debt crisis (often also referred to as the eurozone crisis or the European sovereign debt crisis) is a multi-year debt crisis that has been taking place in the European Union since the end of 2009. Several eurozone member states (Greece, Portugal, Ireland, Spain and Cyprus) were unable to repay or refinance their government debt or to bail out over-indebted banks under their national supervision without the assistance of third parties like other eurozone countries, the European Central Bank (ECB), or the International Monetary Fund (IMF).
The eurozone crisis was caused by a balance-of-payments crisis (a sudden stop of foreign capital into countries that had substantial deficits and were dependent on foreign lending). The crisis was worsened by the inability of states to resort to devaluation (reductions in the value of the national currency).
As the global financial crisis entered its most dramatic phase, in the second half of 2008, the International Monetary Fund (IMF), many governments and several distinguished scholars advocated expansionary fiscal olicy as the second most effective tool (after monetary stimulus) to fight deep recession and deflation. Now, more than a year later, the previous excitement surrounding the supposed power of fiscal stimulus largely disappeared and instead has been replaced by ising concerns over the sustainability of public finances in many countries. Unfortunately, the previous enthusiasts of the active counter‐cyclical fiscal policy have not always realized the causality between the two.
Authored by: Marek Dąbrowski
Published in 2009
POSITION PAPER: Euro Zone Crisis. Diagnosis and Likely Solutions (ESADEgeo)ESADE
Author: Fernando Ballabriga
ESADEgeo - February 2014
Southern euro countries are in a situation of vulnerability due to three factors: their high debt levels, their eroded competitiveness and their difficulties to restart growth. Together, these factors generate a vicious circle which is difficult to exit and which can even degenerate into a self-fulfilling economic downward spiral. This policy brief provides a short guiding tour to the euro zone crisis. It looks at the current situation, the full context conditioning the solutions to the situation, how we got here, and the possible way out. The latter section outlines a set of minimum steps required to make the euro sustainable.
Chief Economist of BNP Paribas Fortis, explains how economics need to evolve after the financial crisis has proven the prevailing economic paradigm is no longer valid
Nástroj na ochranu verejného záujmu máme, ale potrebujeme k tomu ešte vôľu ho využiť, odvahu čeliť následným atakom priaznivcov starostu ako aj jeho
samotného. Čo všetko to môže znamenať, je veľmi ťažko popísať, lebo kreativita dotknutých starostov často prevyšuje našu predstavivosť. Preto ešte predtým, než
začnete podrobne študovať text zákona, či vybrané príklady z praxe, ktoré obsahuje táto príručka, si treba uvedomiť, že nikto neprijíma ľahko akúkoľvek sankciu voči
sebe samému a využije všetky zákonné, ale často aj nezákonné prostriedky na to, aby sa akejkoľvek sankcii z titulu uplatnenia Zákona o ochrane verejného záujmu
úspešne vyhol. Ale ak pôjdete do riešenia porušovania zásad dodržiavania verejného záujmu pripravení a psychicky odolní, máte šancu na úspech a nápravu veci
v celospoločenskom záujme. Viac na samosprava.institute.sk
Wannabefriends is een website voor vrouwen die op zoek zijn naar nieuwe vriendinnen. Aan de hand van verschillende kenmerken kun je op zoek gaan naar iemand bij jou in de buurt en die dezelfde interesses heeft. Daarnaast verkoopt Wannabefriends woonaccessoires. Dit is een presentatie over hoe deze website werkt.
As the global financial crisis entered its most dramatic phase, in the second half of 2008, the International Monetary Fund (IMF), many governments and several distinguished scholars advocated expansionary fiscal olicy as the second most effective tool (after monetary stimulus) to fight deep recession and deflation. Now, more than a year later, the previous excitement surrounding the supposed power of fiscal stimulus largely disappeared and instead has been replaced by ising concerns over the sustainability of public finances in many countries. Unfortunately, the previous enthusiasts of the active counter‐cyclical fiscal policy have not always realized the causality between the two.
Authored by: Marek Dąbrowski
Published in 2009
POSITION PAPER: Euro Zone Crisis. Diagnosis and Likely Solutions (ESADEgeo)ESADE
Author: Fernando Ballabriga
ESADEgeo - February 2014
Southern euro countries are in a situation of vulnerability due to three factors: their high debt levels, their eroded competitiveness and their difficulties to restart growth. Together, these factors generate a vicious circle which is difficult to exit and which can even degenerate into a self-fulfilling economic downward spiral. This policy brief provides a short guiding tour to the euro zone crisis. It looks at the current situation, the full context conditioning the solutions to the situation, how we got here, and the possible way out. The latter section outlines a set of minimum steps required to make the euro sustainable.
Chief Economist of BNP Paribas Fortis, explains how economics need to evolve after the financial crisis has proven the prevailing economic paradigm is no longer valid
Nástroj na ochranu verejného záujmu máme, ale potrebujeme k tomu ešte vôľu ho využiť, odvahu čeliť následným atakom priaznivcov starostu ako aj jeho
samotného. Čo všetko to môže znamenať, je veľmi ťažko popísať, lebo kreativita dotknutých starostov často prevyšuje našu predstavivosť. Preto ešte predtým, než
začnete podrobne študovať text zákona, či vybrané príklady z praxe, ktoré obsahuje táto príručka, si treba uvedomiť, že nikto neprijíma ľahko akúkoľvek sankciu voči
sebe samému a využije všetky zákonné, ale často aj nezákonné prostriedky na to, aby sa akejkoľvek sankcii z titulu uplatnenia Zákona o ochrane verejného záujmu
úspešne vyhol. Ale ak pôjdete do riešenia porušovania zásad dodržiavania verejného záujmu pripravení a psychicky odolní, máte šancu na úspech a nápravu veci
v celospoločenskom záujme. Viac na samosprava.institute.sk
Wannabefriends is een website voor vrouwen die op zoek zijn naar nieuwe vriendinnen. Aan de hand van verschillende kenmerken kun je op zoek gaan naar iemand bij jou in de buurt en die dezelfde interesses heeft. Daarnaast verkoopt Wannabefriends woonaccessoires. Dit is een presentatie over hoe deze website werkt.
Nontransparent allocation and thefts within procurement procedures. Holding back of the information. Non-compliance with the senseless goal of regional disparities reduction. Politicians' prattles on the utilization. Doubtful efficiency and incredible wasting. This is also a way to perceive our first more than seven years of experience with the eurofunds. More at www.institute.sk
V decembrovom vydaní Konzervatívnych listov nájdete:
Obsah
Dušan Sloboda Ďalšie župné voľby bez žúp
Diana Motúzová Dominik Tatarka a sloboda v neslobodnom a slobodnom svete
Peter Spáč Tichý hlas voličov
PF 2014
Viac na www.konzervativizmus.sk
KI organizoval dňa 4. júna 2012 v Bratislave diskusiu v rámci cyklu Reformné fórum na tému Súboj s deficitom: dane vs. úspory. Našimi hosťami boli Daniel Hannan, Dušan Chrenek, Jozef Kollár, Igor Vida, Jozef Špirko, Ronald Ižip, Vladimír Dvořáček, Radovan Ďurana a Peter Gonda. Viac informácií a prezentácie panelistov nájdete na www.konzervativizmus.sk
KI organizoval dňa 4. júna 2012 v Bratislave diskusiu v rámci cyklu Reformné fórum na tému Súboj s deficitom: dane vs. úspory. Našimi hosťami boli Daniel Hannan, Dušan Chrenek, Jozef Kollár, Igor Vida, Jozef Špirko, Ronald Ižip, Vladimír Dvořáček, Radovan Ďurana a Peter Gonda. Viac informácií a prezentácie panelistov nájdete na www.konzervativizmus.sk
Konzervatívny inštitút M. R. Štefánika s podporou Nadácie Tatra banky a v spolupráci s ďalšími partnermi organizovali dňa 18. septembra 2012 v Ivanke pri Dunaji špeciálnu prednášku v rámci cyklu prednášok CEQLS. Našim hosťom bol Alejandro A. Chafuen, prezident Atlas Economic Research Foundation (USA). Viac informácií nájdete na www.konzervativizmus.sk.
Conservative Institute organized another of the CEQLS Lectures: Alejandro A. Chafuen, President of The Atlas Economic Research Foundation (USA), was our guest on September 18, 2012 in Ivanka pri Dunaji. More information is available at www.institute.sk.
Energie-portal.sk a Konzervatívny inštitút M. R. Štefánika organizovali dňa 21. októbra 2013 v Pálffyho paláci v Bratislave diskusiu na tému Solárna daň. Videozáznam nájdete na www.konzervativizmus.sk
It’s good to understand Europe’s debt crisis and why it’s affecting
U.S. markets. Here’s an overview of how the European Union
operates, why the euro is in danger, and what the crisis could mean
to American investors.
It’s good to understand Europe’s debt crisis and why it’s affecting
U.S. markets. Here’s an overview of how the European Union
operates, why the euro is in danger, and what the crisis could mean
to American investors.
It’s good to understand Europe’s debt crisis and why it’s affecting
U.S. markets. Here’s an overview of how the European Union
operates, why the euro is in danger, and what the crisis could mean
to American investors.
It’s good to understand Europe’s debt crisis and why it’s affecting
U.S. markets. Here’s an overview of how the European Union
operates, why the euro is in danger, and what the crisis could mean
to American investors.
It's good to understand Europe's debt crisis and why it's affecting U.S. markets. Here's an overview of how the European Union operates, why the euro is in danger, and what the crisis could mean to American investors.
It’s good to understand Europe’s debt crisis and why it’s affecting
U.S. markets. Here’s an overview of how the European Union
operates, why the euro is in danger, and what the crisis could mean
to American investors.
Snakes and ladders of europe - Amartya SenElena Colli
Here are some slides about the article written by the economist Amartya Sen («The Economic System We Need», 10 May 2012), in which he argues about the economic and political crisis of the European Union comparing it to a very popular board game: snakes and ladders. SO what are the snakes that Europe is faceing right now, and what are the potentially available ladders?
Debate on europe - How did Europe react to the economic and financial crisisAndrea Danni
How did Europe react to the economic and
financial crisis - Debate held at European College of Parma with the participation of Prof. Alfonso Mattera and Prof. Mario Monti
A very balanced presentation covering each and every aspect of eurozone economic crisis. A thorough analysis from the start of European Union formation and the further development of the problem of crisis. Also, effect on Indian Economy is pondered upon to make it good piece of word.
I hope it will fulfil everyone's need.
Konzervatívny inštitút M. R. Štefánika organizoval ďalšiu z cyklu prednášok CEQLS. Naším hosťom bol Daniel Klein, profesor ekonómie na George Mason University (USA), ktorý pri príležitosti 300-tého výročia narodenia Adama Smitha prednášal o jeho odkaze pre súčasnosť.
Kniha Konzervatívneho inštitútu M. R. Štefánika a Liberálního institutu Na obranu slobodného trhu (2007) pozostáva z trinástich prednášok renomovaných a vo svete uznávaných osobností, ktoré odzneli na pozvanie Konzervatívneho inštitútu v Bratislave a na pozvanie Liberálního institutu v Prahe. V knihe si možno prečítať napríklad príspevky nositeľa Nobelovej ceny za ekonómiu v roku 1986 Jamesa M. Buchanana, prezidenta ČR Václava Klausa a prezidenta Cato Institute Williama A. Niskanena.
Na pozvanie Konzervatívneho inštitútu M. R. Štefánika (KI) a Slovak Students for Liberty (SSFL) prišiel na Slovensko výnimočný hosť: renomovaný americký ekonóm a právny teoretik David Friedman a v Bratislave dňa 26. apríla 2022 prednášal v rámci cyklu CEQLS na tému Ekonómia, právo a sloboda. Viac na www.konzervativizmus.sk
Konzervatívny inštitút M. R. Štefánika organizoval v Bratislave dňa 20. apríla 2022 ďalšiu z cyklu prednášok Conservative Economic Quarterly Lecture Series /CEQLS/. Viac na www.konzervativizmus.sk
हम आग्रह करते हैं कि जो भी सत्ता में आए, वह संविधान का पालन करे, उसकी रक्षा करे और उसे बनाए रखे।" प्रस्ताव में कुल तीन प्रमुख हस्तक्षेप और उनके तंत्र भी प्रस्तुत किए गए। पहला हस्तक्षेप स्वतंत्र मीडिया को प्रोत्साहित करके, वास्तविकता पर आधारित काउंटर नैरेटिव का निर्माण करके और सत्तारूढ़ सरकार द्वारा नियोजित मनोवैज्ञानिक हेरफेर की रणनीति का मुकाबला करके लोगों द्वारा निर्धारित कथा को बनाए रखना और उस पर कार्यकरना था।
31052024_First India Newspaper Jaipur.pdfFIRST INDIA
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In a May 9, 2024 paper, Juri Opitz from the University of Zurich, along with Shira Wein and Nathan Schneider form Georgetown University, discussed the importance of linguistic expertise in natural language processing (NLP) in an era dominated by large language models (LLMs).
The authors explained that while machine translation (MT) previously relied heavily on linguists, the landscape has shifted. “Linguistics is no longer front and center in the way we build NLP systems,” they said. With the emergence of LLMs, which can generate fluent text without the need for specialized modules to handle grammar or semantic coherence, the need for linguistic expertise in NLP is being questioned.
‘वोटर्स विल मस्ट प्रीवेल’ (मतदाताओं को जीतना होगा) अभियान द्वारा जारी हेल्पलाइन नंबर, 4 जून को सुबह 7 बजे से दोपहर 12 बजे तक मतगणना प्रक्रिया में कहीं भी किसी भी तरह के उल्लंघन की रिपोर्ट करने के लिए खुला रहेगा।
role of women and girls in various terror groupssadiakorobi2
Women have three distinct types of involvement: direct involvement in terrorist acts; enabling of others to commit such acts; and facilitating the disengagement of others from violent or extremist groups.
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Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
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Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
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1. Free Market Road Show
European Stability Mechanism ESM
April 27th 2012
Assoc. Prof. Dr. Barbara Kolm
Austrian Economics Center
A-1010 Wien, Jasomirgottstr.3/4
office@austriancenter.com
1
2. Structure
An Experiment of Thought: All Europeans are equally the same
Reality Check: Europe means and is Diversity
Combating the Crisis by ESM, EPP and a “European Economic
Government” – other fire brigade ideas and recent developments
A Solution and a Vision of the Future
2
3. „What is prudence in the conduct of every private family
can scare be folly in that of a great kingdom.“
Adam Smith (1776)
3
4. How Does Europe Fit In?
We See Europe as One of the Key Members of the New G7
Sub-
South East
US Europe China India Saharan
Asia
Africa
Middle East
Brazil Russia Japan & North
Africa
Europe Together is the Largest Economy in the World –
apart it is Irrelevant
7. Who Deserves the Blame?
In Europe, besides having been affected by the U.S. recession, the crisis is
basically a debt crisis.
The “hidden liabilities” of welfare states within the EU are now obvious and finally
need to be dealt with.
“Socialist governments traditionally do make a financial mess. They always run
out of other people’s money”. (Margaret Thatcher)
Erosion of Creditworthiness of the Euro Member States (Rating Agencies)
7
8. Who deserves the blame?
PIGS-countries have spent more funds in the past decade (thanks to the common
currency of the Euro and cheap money) than Northern and Central regions of
Europe countries which have acted more responsibly.
This drift has created a Europe of two paces.
Economic and Currency Union created a dependency among the players in the
Euro area such that a disturbance or bankruptcy of any could pose a systematic
risk for the entire EU.
Thus, PIGS countries lead to a bank crisis in all Europe.
8
10. A free society is the form of social organization that best provides prosperity and
economic growth.
The same principles that enable a market economy to prosper could also work when
applied in a company.
Market economies are highly effective at communicating what people value and how
best so satisfy those values, needs and demands.
10
12. The “Age of Hayek” – started the late 1970s
1983, Reagan and Hayek
Dr. Laurence Hayek is receives this award on behalf of
his father from President George Bush and Mrs Bush,
1991
“The Times” in May 1978
12
13. The Europe Crisis
Attempt to make a common currency zone out of extremely diverse
countries
Stability Pact has not been complied with; violations were not sanctioned
Moral hazard, tragedy of the commons
The Euro = Monopolistic and unsound money
Expansive monetary policy (low interest rates)
In the peripheral countries result bubbles are developed
Since 2007: Bursting bubbles, bank losses are socialized
No corrections are allowed, instead, expensive time is bought
Inflationary monetary policy to burden the lower income level of the
population;
"Race to the Bottom"
16. Problems and Causes
Violation of the Commission against the “No Bail-Out" clause (Article 125
of the Treaty of Lisbon
The Commission infringed the prohibition on the purchase of debt
securities (Article 123 of the Treaty of Lisbon)
Consequently new contracts and regulations are urgently needed (leaving
the EU must be a possibility) as well as the possibility of bankruptcy of a
government (at a local level as it is possible in Leukerbad (CH), Marseille
(F), NY).
This would lead to an automatic withdrawal from the Euro and a monetary
reform in this country.
17. Problems and Causes
The problem in terms of competitiveness in Europe is the gap between
two large regions in Europe (North/South). Neither ESM nor EPP solve
the competition problem, apart from the fact that both plans draw massive
deficits.
The differences in unit labor costs continue to grow (N-S).
Unit labor costs are too high and productivity is too low.
The export performance fluctuates greatly between countries (e.g.
Greece 60 to 70% of all exports, while less than 10% in the U.S.)
18. Problems and Causes
Change in current account balances of some countries (Greece, Italy,
Portugal, and Spain) are negative in contrast to other countries
(Germany)
Lack of competition leads to problems for economic growth
Standards of market integration are still not met (labor mobility and
manpower, etc.)
Population anxiety is not counteracted with reliable and solid information
19. Rescue Packages 2010 1.0
Germany: 500 Bn. Euro
US: 700 Bn. Euro
Austria: 100 Bn. Euro
UK: 500 Bn. Pounds
France: 360 Bn Euro
International Monetary Fund (IMF) suspects more than
3 Tr. Euro losses (overdue loans, a.s.o)
High risk of additional losses due to State Liabilities
(not only banks, also Sectors Industry, Insurance, a.s.o.)
19
20. Rescue Package for the €-crisis: 1.0
EU and IMF together 750 billion € (guarantees)
That means for all EU countries an extra fiscal-political burden:
- Austria (1,9%)
- Germany (19%)
- France (14%)
20
23. Reality
EU financial rescue funds, the European Stability Mechanism (ESM) and Euro
Plus Pact (EPP) do not offer solutions to the current structural imbalances.
Neither of them solve the competition problem while both plans bear massive
deficits.
They simply move the date on which policy makers will have to deal with the
inevitable financial truths and declare bankruptcy.
Meanwhile, European tax payers must bear the burden.
23
24. Reality
March 23rd 2011 officially made the EU a tranfser union
European Stability Mechanism ESM basically allows governments to request
financial aid
Neither of them solve the competition problem while both plans bear massive
deficits.
They simply move the date on which policy makers will have to deal with the
inevitable financial truths and declare bankruptcy.
Meanwhile, European tax payers must bear the burden.
24
25. Problem of ESM
Targeted to (national) governm. Deb when credibility and the ability ot refinance
on the market is not given anymore
In a normal market process you would go bust (like any business)
Reforms are only forced on gov. When it is too late
It actually incentives not to solve the problems and get structural reforms on track
25
26. Problem of ESM
Like more governments (and the bigger they are) make use of ESM the least
effectively and the smaller it is and the consequences are penalties for gov.
Problems that ESM is provided even if IFM decides not to
No private creditors are held responsible
A regular check by federal ministry of finance whether the 500 billions are
sufficient and the outcome is big enough they are checking themselves
26
29. Reform of the EFSF
Unenthustiastic – Member states will still finance their speding via debts
Preventive and corrective component – past experience
Macro-economic tools as warning system
Sanctions if:
- Stuctural deficit higher than 0.5% of GDP
- Must use higher income to reduce deficits
29
30. Problems with the new rules
Will not prevent violations
Sanctions remain without consequences
Impossibility to identify imbalances – Lack of knowledge (Hayek)
Imbalances are politically motivated & can be directly infuenced
Political bargaining
Commission can stop deficit procedure by qualified majority
Early warning system should identify imbalances at early stages
30
35. Freedom– social Responsibility
- Long-term consequences of the damage, now caused to combat the
recession: Who will pay or be responsible for this debt?
- Budget deficit forecast for EU countries in 2012 an average of 3.9%
(For comparison: 2008: 2.4% 2009: 6.9% 2010: 6.6% 2011: 4.7%)
- Self-interest in the 21 Century is, to care for one another "(Horst Köhler)
38. Crash Course
The transfer payments by the EFSF strengthen the current
crisis by reducing the pressure for reform on the recipient
countries. These painful, but necessary and unavoidable
reforms are delayed.
The willingness to reform is very limited, due to the fact that
countries which already refer to the help of EFSF could
codetermine about the payments to other countries.
Moreover, the willingness to reform is reduced by the purchase
of government bonds and further changes nothing in the
fundamental data of the country.
In the event of a loss of the AAA rating of a country, the possible
additional payments into the fund could lead to uncontrolled
costs for the national budget.
39. Crash Course
Only free markets and real structural reform can solve the
current crisis - more bureaucracy and transfer payments
have never worked!
41. Europe Believes in Responsibility
Living within your means
— Limited government debt
— Limited individual debt
— Limited government Future Obligations
— Individual responsibility
Maintaining Competitiveness
— Single Market for Goods and labour
— Tax Competiveness
— Limited government regulation
— Quality education
Rule of Law
41