Euro: political will is back. Joseph Daul MEP, Chairman of the EPP Group

"Creating a currency without giving it the necessary governance was a political error. We must admit this and, above all, correct it" - Joseph Daul in the debate on economic governance with Presidents Barroso, Juncker and Van Rompuy.

For the Chairman of the EPP Group, the economic and financial crisis has changed the rules of the game. "We are witnessing impressive changes: changes in Greece and Italy, with the formation of national unity governments, which I welcome; changes in Germany with the extraordinary pro-European position of the CDU, with which I firmly agree."

All the influential players in the EU acknowledge it: the answer to our problems is not less, but more Europe. A Europe which has to be transformed, in the sense of integration, as we should have done when the Euro was created."

The Chairman of the biggest Group in the European Parliament highlighted how important it is that the management of the crisis doesn't become a source of new divisions in Europe.

For more: Euro: political will is back. Joseph Daul MEP, Chairman of the EPP Group - 16/11/2011 - EPP Group

Europe Must Fight Back Against US-UK Speculative Attacks - by Webster G. Tarpley,

The speculative attack by Wall Street and City of London banks and hedge funds against European countries, European banks, and the euro is now reaching a crescendo. The current European crisis does not derive primarily from economic fundamentals, but rather represents a cynically planned assault carried out by Anglo-American financiers, whose philosophy is the traditional Beggar My Neighbor. The goal is to shift the epicenter of the world economic and financial depression from London and New York onto the continent of Europe, and this operation has already partially succeeded. London and New York are exporting their own derivatives depression into the EU, using credit default swaps, corrupt credit ratings agencies, and their entire panoply of financial dirty tricks. We are not dealing here with the normal functioning of markets; we are dealing with all-out economic warfare.

The Wall Street zombie bankers are aiming at a chaotic breakup of the euro with the intention of buying up the old continent at bargain-basement prices. The jackals of the City of London are seeking to smash the euro as a means of breathing new life into the moribund British pound, thereby masking the fact that Britain is more bankrupt than the vast majority of EU member states. The Anglo Americans are also acting to destroy the euro as a possible competitor for the dollar in the role of world reserve currency for the pricing of oil, the activities of international lending institutions, and other functions. The dollar is now so weak and unstable that it can only survive through the downfall of all the alternative currencies.

Because of the arrogance and stupidity of the Eurocrats and Eurogarchs who are running Brussels today, and especially because of the monetarist incompetence of Trichet and the other officials of the European Central Bank, resentment against the euro and the ECB is rising in a number of European states. But those who are being swept up in the anti-Euro hysteria need to ask themselves why they have chosen to advance the destruction of the euro, when this project coincides so totally with the intentions of the Anglo-American financiers, who are clearly the biggest enemies of Europe and of civilized humanity in general. Many of the anti-Euro agitators have not thought concretely about where the successful accomplishment of their current campaign would actually leave them. It is certainly reckless and irresponsible to propose the destruction of the euro without having a viable and concrete alternative in mind.


For more: Europe Must Fight Back Against US-UK Speculative Attacks « TARPLEY.net

G20: World leaders gather around Europe's sickbed "from a Wall Street virus"

With a Greek economic crisis matched only by its internal political turmoil, leaders from the world's 20 leading nations scrambled yesterday (3 November) in Cannes to insulate themselves from the next most European vulnerable economy, Italy.

French President Nicolas Sarkozy, the host of the G20 meeting, made no secret that the problems of the eurozone had taken centre stage at the summit, initially planned to identify solutions to boost the world economy.

With a scenario of Greek bankruptcy no longer seen as taboo, Italy became a prime concern at the summit.

In Cannes, Italian Prime Minister Silvio Berlusconi was urged to take urgent steps to reassure markets and slash its crippling debt mountain. The Italian leader was set to leave the summit early on Friday, facing mounting calls to quit and a rebellion within his own centre-right party.

For more: World leaders gather around Europe's sickbed | EurActiv

George Soros talks down euro again. But why now? - by Paul R. La Monica

Legendary financier George Soros is at it again, talking over the weekend about a potential euro collapse. But don't bust out your old Greek drachmas, Portuguese escudos, Italian lira or Spanish pesetas just yet.

Soros spoke at a conference in Vienna on Sunday. According to several reports, he said Europe was "on the verge of economic collapse" and that the likelihood of countries leaving the euro currency "is probably inevitable."

But some market experts think Soros is, at best, a bit premature with this gloomy prediction.
"Soros has obviously gained a lot of credibility on calling currencies that he thought would decline, devalue or go away," said Rob Stein, senior portfolio manager with Astor Asset Management in Chicago. "But I don't think the euro is going away. I don't see how that would benefit Greece, Portugal or others."Stein said that Greece leaving the euro would be like a teenager who runs away from home thinking that they can support themselves -- and comes sheepishly back once they realize that a roof over their head and three square meals a day is worth putting up with their parents.

"Greece would become a Third World country very quickly if it left the euro," Stein claimed.

For more: George Soros talks down euro again. But why now? - The Buzz - Jun. 27, 2011

France, Germany Defend Separate Euro Zone Summits

French President Nicolas Sarkozy and German Chancellor Angela Merkel Monday defended the plan for closer coordination of economic policy within the euro zone that would result in the euro group meeting for summits without other European Union members who use national currencies. They also recognized that Poland, a country particularly sour about their plan, is already playing by some of the rules they proposed for the euro zone.

“Euro-zone countries can meet separately to discuss matters relating to the euro, which only the euro group can discuss,” Ms. Merkel said at a joint press conference with Mr. Sarkozy and Polish President Bronislaw Komorowski during the recent EU summit over the weekend.

“We told President Komorowski that since the 17 states in the euro zone have a common currency, it’s normal they should meet to discuss matters related to that currency,” Mr. Sarkozy said.

Note EU-Digest: They probably have a good point for trying to get faster results within the EMU.

For more: France, Germany Defend Separate Euro Zone Summits - New Europe - WSJ

Euro too strong against dollar says Sarkozy

France's President Nicolas Sarkozy said Thursday that the euro is still too strong against the dollar and the exchange rate is hurting French and European exports .
"Today it's better because we are at a euro-dollar rate of 1.29 to 1.30, but it is still too much," he told workers at a plant of the plane-maker Airbus in southwestern France.
"I know perfectly well that 0.1 points more on the euro is a billion in costs for the company," he said.

For more: Euro too strong against dollar: Sarkozy - The Economic Times

Baltic minnow is first former Soviet state to join eurozone -

Estonia, the small Baltic state of 1.3 million people became the 17th eurozone country at midnight, beginning a switch from the kroon, and is the first former Soviet state to adopt the euro.

 

Prime Minister Andrus Ansip was the first to withdraw euros from a specially installed cash machine outside a theatre where a ball had been held to celebrate the switchover and the new year. “It is a small step for the eurozone and a big step for Estonia,” he said, holding the notes.

“We are proud to be a eurozone member state.” 

For more: Baltic minnow is first former Soviet state to join eurozone - Herald Scotland | News | World News

Euro licks wounds, finds support for now - by Hideyuki Sano

 The common currency ticked up on light buying back after Europe's inability to contain Ireland's debt woes had knocked it down 1.9 percent to as low as $1.3359 on electronic platform EBS.

German Chancellor Angela Merkel said the euro was in an "exceptionally serious" situation. Investors took aim at Spanish government bonds on Tuesday, driving the premium over German benchmarks to a euro lifetime high after Madrid was forced to pay a high cost to sell short-term bills.

 For more: Euro licks wounds, finds support for now | Reuters

Euro-Zone Inflation Rises on Higher Energy Prices ( 1.7% annual rate) - by Jack Ewing

Higher energy prices drove inflation in the euro area to an annual rate of 1.7 percent in July, the highest level in 20 months but still within the range considered acceptable by the European Central Bank, according to data released Monday.


The rise in prices, from a rate of 1.4 percent in June, was not considered alarming by economists, who expect price pressures to remain in check as growth slows in most of Europe. Excluding energy prices, inflation was 1.1 percent in July, up from 0.9 percent in June, according to Eurostat, the European Union’s statistics office.
“We need to see convincing signs of an upturn in domestic demand and we’re not seeing that just yet,” said Nick Matthews, an economist at Royal Bank of Scotland. “Underlying domestic price pressures are still quite contained.”

For more: Euro-Zone Inflation Rises on Higher Energy Prices - NYTimes.com

A look at global economic developments

Chinese shares rose after weaker July manufacturing data eased concern that the government might tighten credit curbs to keep the economy from overheating. The benchmark Shanghai Composite Index jumped 1.3 percent, adding to July's 10 percent gain.

A group representing Germany's machinery industry says orders rose 62 percent on the year in June as the global economy improved. Germany is Europe's largest economy. Meanwhile, a monthly manufacturing purchasing managers' index for the 16 countries that use the euro was revised up to 56.7 in July from the previous estimate if 56.5. Anything above 50 means the sector is expanding.
It was further evidence that economic activity in the 16 countries using the euro is recovering far stronger than most investors had thought earlier this year, when the government debt crisis was threatening the single currency zone.

For more: The Associated Press: A look at global economic developments

Times Online: A United Europe takes Charge: Germany and France lead €1 trillion European bailout - by Charles Bremner and David Charter

For the complete report from the Times Online click on this link

A United Europe Takes Charge: Germany and France lead €1 trillion European bailout - by Charles Bremner and David Charter"

Germany and France put mountains of cash on the table today as they led continental Europe in an offensive to rebuild trust in banks with state guarantees worth over €1trillion (US dollars 1.36 trillion). Chancellor Angela Merkel and President Sarkozy, chiefs of the two big euro-zone economies, also joined Gordon Brown in calling for a deep reform of the global financial system after the dust settles from the autumn earthquake. “When calm returns, those who have sinned will be punished,” Mr Sarkozy said.

Mr Sarkozy was gratified, he said, that “United Europe has done more than the United States in terms of the sums committed” to tackling the crisis. Europe must now convince the United States of the need to “rebuild the foundations of capitalism”. France wanted to support entrepreneurs and not speculators, he said. Like Mr Brown, Mr Sarkozy has been praised at home and abroad for his handling of the crisis. “Super-Sarko”, a politician who thrives as a crisis-manager, landed the role of chief European fixer because France holds the rotating six-month Union presidency until next January.Both Mrs Merkel and Mr Sarkozy said that banks receiving capital would have to comply with conditions, including limits on management pay and requirements to keep credit moving to small and medium-sized business.“We have today laid the first foundation stone for a new financial market constitution,” Mrs Merkel said after her Cabinet settled the plan, which should be passed by both houses of Parliament by Friday.

Note EU-Digest: If there was any better example for proving that a United Europe works and has what it takes, then this financial crises is the proof. Euro Sceptics eat your heart out.