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Germany Pushing for a Two-Speed Europe

September 5, 2011, 1:00 PM
Wikicommons_gold_euro_symbol

What's the Latest Development?

German Chancellor Angela Merkel envisions a tight alliance of the 17 euro-zone members—one which would unify their fiscal, budgetary and social policies. This would create a two-class club, raising questions like: What happens to the European Commission? Will it still be responsible for economic matters in the euro zone, or will there be a new organization? The same questions apply to the European Parliament and the European Court of Justice in Luxembourg.

What's the Big Idea?

These ideas amount to the euro countries gradually giving up parts of their national sovereignty. It wasn't until the crisis came along that a willingness to move in this direction began to emerge. Ironically, it is the countries most deeply affected by the crisis that serve as a model for this new approach. Greece, Ireland and Portugal have already overcome some obstacles when it comes to relinquishing sovereignty. Now the countries whose government finances are still healthy will be expected to give up some of their independence as well.

 

Germany Pushing for a Two-S...

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