Europeans are trying to turn the page on the debt crisis

Group of 20 defuse 'currency war'

Europeans hope to start the day to turn the page of the debt crisis in spite of continuing difficulties for Greece, through the adoption of the Treaty of strict financial discipline and the pursuit of the foundations to move the stagnant growth. The Heads of State and Government of the 27 countries in the European Union today in Brussels. On their agenda and put the finishing touches on financial pursued at any cost Germany, which makes it a prerequisite for-solidarity with the struggling countries.

And the ratification of this Treaty the new financial negotiated by 26 countries in the European Union with Britain’s refusal to join them, will be necessary in the future so that any European country to benefit from financial assistance from its partners. The treaty would impose on all Member States to apply the rules on gold to return to balance budgets, and the inclusion of semi-automatic sanctions against the public accounts that exceed the balance lines.

Controversial points

However there are still some points of contention that need to be resolved. One of these points is very sensitive politically, addressing the volume peaks of the euro area for the future. Poland stresses that receive the invitation to it, even if it is not a member of the monetary union, has tightened its stance toward France, which refuses to be the call methodology.

The second point related to the new system of semi-automatic sanctions to punish the custom thresholds exceeded the overall deficit or debt.

Several countries and hopes to lead this Treaty to reassure the European Central Bank and encourages him to intensify its work in the face of the debt crisis.

May accept Germany also later in the increase of resources of the Fund rescue Permanent euro area, which will be put on the track during the summit Monday, including between 500 to 750 billion euros, while refusing it today despite calls by the International Monetary Fund and France. And shortened senior European diplomat this situation by saying that the treaty could “lead to some vital.”

Growth and employment

But the main objective of the summit is in practice elsewhere. Leaders want to embark on research and development work, the two themes Hjpthma long debt crisis and austerity plans that receive its burdens on the population.

Expected to organize a public demonstration in Belgium in conjunction with the summit.

In the minds of leaders, especially the message of optimism to guide public opinion in their countries. The idea is to turn the page after two years of the crisis by trying to put issues of social dimensions, such as unemployment among the youth. The diplomat said that “it is just political propaganda.” The Prime Minister of Luxembourg Jean-Claude Juncker warned of “there would be no number is an important decision.”


The Europeans think of forwarding the budgets of some European funds to address unemployment among young people and help small and medium enterprises. And mainly, the task seems daunting because countries Auria do not like recipes themselves to encourage the growth of Britain, which does not undertake, but liberation and the European single market, and Germany, which talks about fiscal discipline and reforms, and France, want to get down well to study the convergence of tax policies to avoid “flooding” the market .

Development of Greece

Although the heads of state want to address the issues on the short and medium term, it still must concern the emergency situation in Greece, to which the determination of the negotiations with creditors in the private sector to cancel about 100 billion euros of debt.Based on this agreement, which is being examined in three weeks, depending launch second rescue plan for Greece’s $ 130 billion euros. It may be possible to increase to 145 billion euros due to the deterioration of the country’s economy, according to EU sources.

The agreement being negotiated by Greece with the banks will not be allowed to re-guaranteed debt of the country to 120% of GDP from now until the end of 2020. This goal is impossible for the International Monetary Fund, one of the main creditors of Greece.

In these circumstances, it was considered that Juncker, the donor countries of Greece (Eurozone and the European Central Bank) “would give up part of the Greek debt,” such as private banks.

In this context, requests the number of countries in the euro zone, including Germany and the imposition of strict tutelage of the country with the financial decisions subjected to European control. This is flatly rejected by Athens.