Exciting Weeks behind us and probably before. The current status of the national debt of some € states still poses threats to the common currency and for the European Union. That there are no alternatives to the rescue programs and lever-supported fund would be temporary and permanent nature, may be doubted.It true, however, if the short-term crisis-oriented and is declared the summit hectic program. Then it fits that are knitted into a grueling all-night sessions of State and Government “solutions” together in a hurry to be a consensus by the various mechanisms of persuasion but in the early morning hours, but have short half-lives. Why not to ask the true roots of the crisis and then pull the consequences?
Loss of trust and credibility
Behind the current problems is a crisis of confidence and credibility with many facets. It is made of an information crisis, emerged an institutional crisis and a crisis of crisis management. To their causes is recognized if the current problems will be solved permanently.
Information crisis
It has been shown that significant lack of information passed over the status of relevant actors such as states and banks and there. This lack is made possible by including a strong network of actors and the resulting complexity of market relations. Despite stability reports and bank stress tests, there are still great lack of information about the risk allocation in the euro currency union. There also exists a lack of information about the economic and political reform potential in the affected economies. A look to Greece should demonstrate this. Lack of information also exist on the reactions by creditors, investors and rating agencies agreed on political measures. However, the effects of alternative reform measures are uncertain, unclear responsibilities.
Uncertainty
As a result, a marked uncertainty in the monetary union emerged, which is fueled not only by the short life of the individual reforms. Thus, the lack of information can be signaled by a systematic underestimation of needs correction. Uncertainty also arises from the threat of “horror stories” as well as through the “Talk ban” a state of insolvency. The situation will not improve even if the emergency is used opportunistically for the launch of a transaction tax or euro bonds. Against this background suffers the credibility of most of the measures agreed.
Institutional crisis I
Negative on the credibility of the current summit decisions affect the existence of an institutional crisis. In this regard, two aspects are distinguished. First, the design and management failures of the monetary union, which form the background of the debt crisis, and secondly, the attempt at crisis management. The institutional deficits of the first category are well known: his term political decision for a heterogeneous monetary union with members of the divergences in economic development levels, economic policy preferences, the union-oriented behavior and generally fidelity exhibited, an inconsistent monetary policy, the monetary factors and their determinants in different levels are established, an inconsistent Union regulations with national political responsibility and decision-making structures and a supranational monetary order. In addition there were numerous violations tolerated and the unexplained finality of the European Union. Arise when the “United States of Europe” to the current steps towards greater pooling of fiscal policy to be assessed differently if this is not the case.
Institutions Crisis II
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