|Barrier of protection|
|Written by Marisa Matias|
|Saturday, 31 March 2012 17:13|
During this weekend there will be another meeting of the Euro Zone Finance minister, in Copenhagen. At stake is the Euro so called "barrier protection". The proposal on top of the table says this mist ascend to one billion euros,
adding to what the European Financial Stability Facility (EFSF) still has, to what the new European Stabilization Mechanism, expected to come into force in July. In a time when the governments speak of "calming the markets", the fear is kept that Spain or Italy have come to "financed", if the crisis deepens. Furthermore, it was this idea that the "safe than sorry" that took Germany to admit this combination, without meaning being available to open the wallet. But we will go there.
The new Mechanism, create to "answer" to "new problems" will not have to dedicate one cent to the old problems, Greece, Ireland and Portugal of its name. It seems a fundamental change, doesn't it? But it will not be. First, the increase of liquidity is valid only for one year, being already predicted that the EFSF concludes its function in July 2013. After this date, the amount available again is the 500 million Euros, that is the amount attributed to the Mechanism. Second, Germany's change of position presupposes that the "old problems" will really be solved without new bailouts. In other words, there will be no surprises. But, without investment, without growth, without jobs creation, will it really be so? Third, this discussion is done at the same time that, in slow motion, the governments address the future of the European budget, where the pressure is for its reduction. Seems ironic, but it is not. The increase of the European Union budget would probably be the safest "barrier to protect the euro", but the boss does not think the same.