Tuesday, 2 June 2015

EU AND EUROZONE : BOTH NEED MORE FLEXIBILITY


The 9 NON-EURO countries have 9 different currencies to manage and to do this as partners in the EU they need more flexibility in EU rules.

The 19 EUROZONE countries have 1 currency to manage but they also need more flexibility in EU rules and EURO rules to solve the problems  which arise when the economy of one or more member countries does not perform and endangers the parity of the EURO. 

This underlines the fact that there are two sectors in the EU, - the single currency Group and the multi-currency Group.  This must be recognised because each Group can encounter problems which need different solutions !

Emmanuel Macron, the French Minister of the Economy,  envisages a EUROPE advancing into the future at different speeds, which is not quite the same thing.  He also said that this was his private vision of the future, not the official French point of view (interview published in the "Journal du Dimanche" on May 31, 2015).

Basically setting standards and making rules for countries in the EU can only be guidelines to cover future problems.  Countries have activities which vary widely !  For example, how can you compare EURO countries like Germany and Cyprus with non-EURO Poland and the UK ? 

The European Central Bank (ECB) ensures that the parity of the EURO remains stable but is doing this at present with a plan to invest a trillion EUROS to galvanize Employment in the EUROZONE !  This same method cannot be undertaken by the 9 Non-Euroarea countries !  Nor can the Non-Euroarea let the parities of its currencies decline just to make its products more competitive on world markets !

These are just evident observations which confirm that there are two sections in the EU which need separate Solutions and Rules.  Should the EU not recognise this fact ?
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