Eurozone Crisis: Sarkozy Calls For 'Refounding' Of Europe

Sarkozy

The Huffington Post UK   First Posted: 01/12/11 19:45 GMT Updated: 01/12/11 20:26 GMT

French President Nicolas Sarkozy has called for greater integration between France and Germany to save the euro, including changing the terms of the 1999 Maastricht Treaty.

Speaking in Toulon, Sarkozy said he would meet with his German counterpart, Angela Merkel, on Monday to discuss further measures to save the beleaguered economic zone, to lift Europe out of its debt crisis and to "guarantee" its future.

The eurozone economies cannot survive without coming together, he said, while emphasising that France would not give up its sovereignty.

"France will push with Germany for a new European treaty refounding and rethinking the organization of Europe," Sarkozy said. "The Maastricht Treaty has revealed itself to be imperfect."

"There can be no common currency without economic convergence without which the euro will be too strong for some, too weak for others, and the eurozone will break up," said the French president, adding that greater financial discipline is required with penalties for those countries that do not meet their responsibilities.

Altering the 1999 Maastricht Treaty will take the agreement of all 27 signatories, despite the fact that only 17 of those countries use the euro.

The process of reforming the treaty "will be long and difficult", he said, while admitting that the eurozone’s response to the current crisis was not quick enough.

“The crisis has not finished,” he warned.

Sarkozy is due to meet with David Cameron on Friday.

The speech came amid a stark warning from the governor of the Bank of England, Mervyn King, that British banks should look to increase their capital buffers to guard against the "exceptionally threatening" current market crisis.

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French President Nicolas Sarkozy has called for greater integration between France and Germany to save the euro, including changing the terms of the 1999 Maastricht Treaty. Speaking in Toulon, Sar...
French President Nicolas Sarkozy has called for greater integration between France and Germany to save the euro, including changing the terms of the 1999 Maastricht Treaty. Speaking in Toulon, Sar...
 
 
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06:51 PM on 12/04/2011
The Eorozone is dead. Unless the member states give up their sovereignty there is no way it can work. End it now or the price will only get steeper.
11:11 PM on 12/02/2011
the trouble with the CEE is it was churchills idea to have a unitd states of europe but de gaule would not have it because he hated churchill
the money wasted in brussells is amazing i sat on a european computer committee foe 2 years
it was impossible to spend the expenses the canteen food was the best the wine (free) the most expensive
it was a gravy train
europe would save billions if it was run as per winstone
08:23 PM on 12/02/2011
Looks to me like the Eurozone countries better learn to speak German.
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HUFFPOST BLOGGER
Lawyer13
retired Lawyer, General and Psychiatric Nurse, wit
09:37 AM on 12/02/2011
Quit a few of the countries that joined the Euro did so by cheating and disguising the real state of their true economic state, and thank heaven we did not join this ridiculous venture to ruin. If the EU had remained as the EEU, as boosting trade in Europe I could live with that, but to think that 27 countries with differing cultures and economies can all function as one is a bridge too far, We should actively seek to leave the EU NOW.
09:27 AM on 12/02/2011
they will not alter the Maastricht Treaty because it would need the support of all 27 EU Member States. My guess: it will be an interstate negotiation within the Eurozone. Faster, easier, and you can bypass Cameron!
09:15 AM on 12/02/2011
Make your mind up time folks. Sitting on the Euro fence is a pain in the backside. We cannot continue to stand on the sideline whingeing and wringing our hands and calling names whilst Germany and France re-model the Eurozone. We're either in there contributing seriously or we're out. It's nearly 40 years since we joined the Common Market and we've always given mixed signals towards it with our Politicians saying one thing and then doing something else. Time for a referendum methinks to clearly signal our intentions to ensure our Politicials follow the will of the people. This is neither a pro nor anti-EC post by the way.
06:10 AM on 12/02/2011
Why dont the french and germans start by admitting that the Eurozone was the biggest mistake ever.

Yet another treaty change in the mission creep that is the EU. I am a strong believer in the EU as a trading block of nations co operating, where it all went wrong was the gradual movement towards political integration. I hate EU law simply from the viewpoint that I have never had a chance to have a say on whether or not I want Brussels to dictate a large proprtion of what goes on in my life.

I didnt get to vote in the 70s on joining and what was voted for is completely different to what we have now.

NO TREATY CHANGES WITHOUT A REFERENDUM. I THOUGHT WE LIVE IN A DEMOCRACY!!
Michael II
Neither the one, nor the only
11:12 AM on 12/03/2011
There are elections for the European parliament every 5 years.
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IgnoranceIsStrength
Don't ask me, Google it yourself !
05:13 AM on 12/02/2011
Maginot Line Treaty !
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Chef Typhoid Mary
Taxes are what we pay for civilized society.
06:24 AM on 12/02/2011
2
02:30 AM on 12/02/2011
Background:

For the past decade Britain has outstripped France as the major diplomatic and military voice in the world community emanating from the EU block. Britain's voice on the global stage has been a country mile ahead of France's.

Sarkozy has been attempting to claw back France's lost ground. He has succeeded in some areas, such as in the UK-France lead on Libya. Now he wants France to be the centre of a new direction for Europe. That's the background.

The Reality:

A collapse of the Euro would do far more damage to French exports than to British exports. Britain retains full control of its interest rates and has no need to play games over the Maastricht Treaty when Cameron knows the overwhelming majority of the British electorate has pretty much had enough of the EU.

Net Result: Germany and France will continue to force the poorer, southern nations of the Eurozone to adhere to fiscal targets that neither France nor Germany has ever stuck to. There is no democracy in the European Commission nor the European Central Bank; the Commission in particular is a shockingly powerful committee with federal powers well beyond the remit of the EEC over yesteryear's vision.

If France wants a Euro that works, it will have to pay for it itself.
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Yank in France
Rien se cree tout se transforme
06:03 AM on 12/02/2011
Enough of the nationalistic verbiage! Nobel laureate Paul Krugman has got it right on the "money":

"The story so far: In the years leading up to the 2008 crisis, Europe, like America, had a runaway banking system and a rapid buildup of debt. In Europe’s case, however, much of the lending was across borders, as funds from Germany flowed into southern Europe. This lending was perceived as low risk. Hey, the recipients were all on the euro, so what could go wrong?
For the most part, by the way, this lending went to the private sector, not to governments. Only Greece ran large budget deficits during the good years; Spain actually had a surplus on the eve of the crisis.
Then the bubble burst. Private spending in the debtor nations fell sharply. And the question European leaders should have been asking was how to keep those spending cuts from causing a Europe-wide downturn.
Instead, however, they responded to the inevitable, recession-driven rise in deficits by demanding that all governments — not just those of the debtor nations — slash spending and raise taxes. Warnings that this would deepen the slump were waved away. “The idea that austerity measures could trigger stagnation is incorrect,” declared Jean-Claude Trichet, then the president of the European Central Bank. Why? Because “confidence-inspiring policies will foster and not hamper economic recovery.”
But the confidence fairy was a no-show.
Wait, there’s more. During the years of easy money, wages and prices in southern Europe rose substantially faster than in northern Europe. This divergence now needs to be reversed, either through falling prices in the south or through rising prices in the north. And it matters which: If southern Europe is forced to deflate its way to competitiveness, it will both pay a heavy price in employment and worsen its debt problems. The chances of success would be much greater if the gap were closed via rising prices in the north.
But to close the gap through rising prices in the north, policy makers would have to accept temporarily higher inflation for the euro area as a whole. And they’ve made it clear that they won’t. Last April, in fact, the European Central Bank began raising interest rates, even though it was obvious to most observers that underlying inflation was, if anything, too low."

http://www.nytimes.com/2011/12/02/opinion/krugman-killing-the-euro.html?hp
06:25 AM on 12/02/2011
Actually, I'm not really a nationalist so much as an inter-nationalist.

But that apart, France never implemented a far-reaching currency zone and neither did Germany. That's why it fell on its rump during the first major scare.

I love France; I lived there for a year, my friend. Place des Vosges, pres du Marais. Je n'ai aucun problème avec la France, mais si je ne peux pas parler honnêtement, à quoi sert-il à parler?

I think Sarkozy is getting a bit Louis XVI about it all - "L'Etat? C'est moi!"
Michael II
Neither the one, nor the only
11:22 AM on 12/03/2011
"For the past decade Britain has outstrippe­d France as the major diplomatic and military voice in the world community emanating from the EU block"

In what way? The only thing that springs to mind is Iraq and Afghanistan - hardly a flattering reference.
02:15 AM on 12/02/2011
To think that individual states can act as single entities or as "individuals" in a corporate grouping such as the EU is pure "pie in the sky". Only a politician would have us believe that. Was it not a Frenchman who said something to the effect "[long] live the difference"?
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HUFFPOST SUPER USER
Norma Ward
02:06 AM on 12/02/2011
As shown here, a Federal Reserve President, James Bullard, admitted in 2010 that it was highly likely that Fed policies were going to lead to a Japanese-style "Lost Decade" as shown here:

http://viableopposition.blogspot.com/2011/09/will-federal-reserve-policy-create-lost.html

Here's a brief quote from his conclusions:

"Of course, we can hope that we do not encounter such shocks (i.e. deflation), and that further recovery turns out to be robust but hope is not a strategy. The U.S. is closer to a Japanese-style outcome today than at any time in recent history."

The Fed and other central banks to the rescue of Europe? Hardly.
05:33 AM on 12/02/2011
Before you quote to many presidents of branches of the Federal reserve, remember the Cain served on the board of a Fed branch, so economice knowledge is not a requirement. Als be honest an admit that the words and link were taken out of contex.
12:54 AM on 12/02/2011
with what is said to be 10 days left to save the euro... the worlds top 6 central banks have come together to create a rescue package... or at least that's the news' response to these banks coming together to make a deal...
it's interesting to recognise that the family of world central banks held interest rates low after 911 which highlighted the failures of enron a massive insurance compnay and eventually brought down the american housing market...
now on the 8th of oct 2008 around the start of the world's greatest financial crisis being revealed and in full knowledge of the us housing market crash... after a short period of rallying world central banks again kept their intrest rates low...
and was it this that brought about the setting off of the ticking time bomb that was greece and of course seriously worried all those living in portugal irelang and spain, the PIGS..?
was it these financial constraints that caused such starvation in tunisa and egypt that brought about such regime changing national revolts over there..? which has now become a crippling curse on the east and its autocratic rule..!
following this the heads of greece and now italy have now gone and financiers have been put in their places and in just 10 days the eurozone could now be firmly in the hands of the family of central bankers that are all connected, linked by blood...
01:01 AM on 12/02/2011
so, were these interest rates manipulated to take control of a europe that was intentionally made financially unstable for the world's central banks to then come in and save them..?

mervyn king head of the bank of england is also the chief head of all the world's central banks...

and now that the u.s. is moving out of iraq by the end of december the u.s. can now focus on their moves in iran a nation that the u.k. has just broken all banking and political ties with..!
can we see how financial powers can manipulate nations politically and where that doesn't work can do so militarily..? so who are these people that seem to own the world...
Michael II
Neither the one, nor the only
11:17 AM on 12/03/2011
The low interest rates were also the undoing of Spain and Ireland, who very rashly started a property bubble. If it were not for this, the Spanish government was actually reasonably good on the economic front.
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HUFFPOST SUPER USER
floodberg
Attorney (ret.)
12:42 AM on 12/02/2011
Sarkozy is the new Pétain.

I hope France honours him appropriately. 
02:33 AM on 12/02/2011
Dude, you can't say things like that. In the states it's pretty common to compare politicians to hate-figures but in Europe (where tens of millions died) it's still not really the done thing.

Just letting you know.
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HUFFPOST SUPER USER
floodberg
Attorney (ret.)
02:48 AM on 12/02/2011
He was very well-honoured after WWI.  Collaborating with a foreign power against the best interests of one's citizens should carry a penalty.  ('Dude?' Is this the 1990s?)
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HUFFPOST SUPER USER
floodberg
Attorney (ret.)
06:26 AM on 12/03/2011
Geez, I've reported some garbage postings and haven't seen anyone banned for ages: is there a trick to it of which I'm unaware?  UPUS got so uncivil I moved over to UK boards (I write on UK econ anyway) and HPUK gave me the ability to post in a better format. Are you an Expat living in the US, or an Expat living in UK??
09:16 AM on 12/02/2011
he was a pro-nazi politician, it's not acceptable to make such comparisons
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HUFFPOST SUPER USER
floodberg
Attorney (ret.)
07:11 PM on 12/02/2011
The europolls in both FR and DE report a very large proportion of their populations want out of Eurozone and a slightly smaller proportion want out of EU. (online, google it.  DE reported their own poll numbers in a Der Spiegel untranslated article, which were even worse.)  Despite their 'best' efforts, this eurozone may drag on for years, but there's a very high probability it will fail in the end; and the pro-Eurozone group may well be seen as their previous DE politicans; like Chamberlain.
concodtob
16 stone athlete and intellectual
12:13 AM on 12/02/2011
AHH,he's so cute isn't he?Merkel's little lapdog.What he is actually saying is that he will do anything possible to maintain the German/French axis running the EU.It's also about preserving his and Merkel's future top jobs in the EU which is what this whole EU project is about,top jobs for certain people.

Don't count on our politicions to demand major repatriation of powers let alone a referendum.Cameron,Clegg,Hague,Osborne,are all lining up to get a nice cushy seat on the EU gravytrain.
11:54 PM on 12/01/2011
Lets re - mobilise Major Sharpe and the South Essex - they know how to deal with little Frenchmen with ideas above their station - and we could again oblige our old oldest ally Portugal !!!!
02:43 AM on 12/02/2011
Never worn a uniform in a combat zone, right? The last quote probably answer you best:

"A fanatic is one who can't change his mind and won't change the subject." -- Churchill.
"I know war as few other men now living know it, and nothing to me is more revolting." -- Gen. Douglas MacArthur
"War is a quarrel between two thieves too cowardly to fight their own battle; therefore they take boys from one village and another village, stick them into uniforms, equip them with guns, and let them loose like wild beasts against each other."-- Thomas Carlyle