German Chancellor Angela Merkel's suggestion that the countries failing to meet their financial commitments should be expelled from the Euro-zone has sparked off a storm of emotions in the united Europe and on the world markets.
Angela Merkel feels that the Euro-zone needs a mechanism to expel from the monetary union the countries that fail to stick to budget discipline. She added that she saw the measure only as the last resort. The German Chancellor made no mention of Greece and the Greek debt of 300 billion Euros. Nonetheless the swipe was so thinly veiled that provoked flash-like reaction from the Greek Prime Minister George Papandreou, who said again that his country was not about to pull out of the Euro-zone. Conversely, efforts are in full swing in Greece to ensure economic recovery to make the national economy viable. Athens, besides, is looking to assistance from Europe and has threatened to borrow from the International Monetary Union, unless the EU adopts a clear-cut position during its summit meeting on March 23rd. This would deliver a most powerful blow at the Euro-zone's prestige and the authority of the Euro.
Small wonder that the more pessimistic experts point out in their comments on Angela Merkel's statement that this is the beginning of the end of the entire European Union. They allege that the EU will succumb to the burden of economic contradictions and break up in the foreseeable future just as the Soviet Union did. But no less emotional POLITICAL analysts are certain that this kind of danger is non-existent, if only because the Euro-zone comprises 16 countries, while the EU is made up of 27 nations, says the head of the Centre for German Studies of the Russian Academy of Sciences' Institute of Europe Vladislav Belov, and elaborates.
"The issue of EU membership is not on the agenda, Valdislav Belov says. But it is probable that the Euro-zone may shrink at the expense of countries that fail to meet the existing criteria; even though this would result in major spending. The Euro would have to be taken out of circulation in such countries, while their national currency, re-introduced. But this will not cause a break-up of the European Union. This is just a move to tighten financial discipline".
Meanwhile it's obvious that Angela Merkel's statement reflects the growing financial contradictions both in the Euro-zone and the European Union in general. It seems that given the situation, the best guarantee of the European Union's stability is its aggregate economic potential, says a Russian political analyst Yelena Ponomaryova, and elaborates.
"A likely break-up of the Euro-zone and the Soviet Union's collapse are absolutely incomparable, says Yelena Ponomaryova. The collapse of the USSR was largely artificial; it was an act of deliberate destruction. Now, the European Union basically emerged as an economic area, so its transformation is but an economic process. It was a big mistake of the poor economies to believe that once they formed part of the Euro-zone, they would have their living standards boosted overnight".
Greece is by no means the only weak chain of the European Union. Spain, Portugal and Ireland are currently in a similarly involved economic situation. Brussels will obviously have to introduce tougher financial accounting mechanisms for the EU member-states. The measures in question are expected to be considered during next Tuesday's EU summit as part of a package to provide financial relief for Greece, since the situation calls for more than just strengthening the Euro, but for saving the reputation of the currency.
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