The president of the European Economic and social committee has warned that Thursday’s meeting of EU leaders could prove decisive for the single currencies future.
EESC president Staffan Nilsson believes that the moment of truth has come for the Euro. In a press release issued by the EESC Nilsson said: “This is the final round for the euro and European integration; this time it cannot be just one more European summit because people have lost faith. Either the Eurozone – with Europe in its wake – will make the quantum leap in integration or it will break apart.”
Like many investors and observers who have become frustrated over the lack of action carried out by Europe’s leaders, Nilsson believes that more political vision and resolve is required if an end to the crisis is to be found. Consumer confidence and the populations of the European member nations have been getting increasingly angry over the lack of action and petty squabbling from their leaders and politicians. The rest of the world has gone from looking at Europe as a home of security and wealth to a ticking time bomb and wildcard.
Nilsson has called on all the EU nations to unite in order to save the currency stating that there must be only one united Europe, not two, a possible gripe at the suggestion of the region being split in two via the wealthier northern nations and the poorer southern states. He goes on to say;
“Eurozone members in particular must agree on a fiscal union based on joint debt instruments such as Eurobonds. A practical road map for introducing these instruments must be adopted and a change in rhetoric is needed: at this summit, all Eurozone members must clearly agree to enough Europeanization of national debt to end any speculation about the future path that the Eurozone will take. And with this commitment, the future political architecture of the Eurozone and Europe must be reformed. We need Eurobonds to end the sovereign debt crisis, and we need more political integration to have Eurobonds. One cannot go without the other. What we really need is to take democracy to a new level. Now.”
Investors will be hoping that Europe’s leaders will heed Nilsson’s words as the Euro continues to suffer in the exchange markets and the risk of contagion continues to grow. Both Cyprus and Spain have officially asked for bailouts of their indebted banking systems taking the number of nations taking a bailout to five.
All eyes will be on the Germans and Angela Merkel as the key to ending the Euro crisis rests upon their shoulders, will they cede defeat and agree to Eurobonds?, most importantly though, will the member nations agree to full scale financial integration.
The Pound to Euro exchange rate is currently trading at 1.251
The Pound to US Dollar exchange rate is currently trading at 1.563
The Euro to Australian Dollar exchange rate is currently trading at 1.243
The Euro to US Dollar exchange rate is currently trading at 1.249
The Euro to Pound exchange rate is currently trading at 0.799
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