Tuesday, January 11, 2011

FELIPE GONZALES ''HOW TO CALM THE E.U.'s TURMOIL''

''Federalizing economic and fiscal policies. The various countries should agree to common balance of payments requirements and harmonized minimum taxation. Such a move would make self-evident the need within individual countries to adopt deep structural reforms — for example, more flexibility in rigid labor markets — to help promote competitiveness.
I am convinced that sharing sovereignty through a federal structure is not objectionable to most Europeans. What they find unacceptable is being subject to reforms that appear to question social rights acquired over decades as a short-term response to a financial crisis they did not cause.
Europe’s citizens want and deserve a long-term solution to their real challenges, not a price dictated by markets that seem to rule over their governments.'' N.Y, TIMES

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