A new two-speed European Union

A few days ago, Edward explored the gap between the Eurozone’s monetary and political architecture (and the lack of the latter) as a potential risk to the Eurozone itself.   But in what looks likely to be a weekend of rapidly changing events, here is a new wrinkle: Nicolas Sarkozy has convened an emergency heads of state/government summit for the Eurozone countries, along with the ECB and EU Commission presidents, at 5pm in the Elysee Palace on Sunday.  Since it is a Eurozone and not EU summit, neither Gordon Brown or most of the eastern European EU heads will be present; thus the outcome at best will be a coordinated initiative among the euro countries rather than the EU as a whole.  Which is still better than nothing, but it does raise the question of how any spillover from a new initiative (e.g. a Eurozone interbank liability guarantee) would be handled.   It also puts a new spanner in the works of the G7 and G20 finance/central bank meetings in Washington this weekend, since the outcome of the Paris summit won’t yet be known when they meet.   About the only statement we can make with certainty is that the bankers and politicians better keep their Blackberries charged.

This entry was posted on Friday, October 10th, 2008 at 8:42 pm and is filed under Economics and demography. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. peter Says:
   October 10th, 2008 at 8:59 pm

   England OUT of the EU!!!!!!!!

2. Thomas Vand Says:
   October 10th, 2008 at 9:37 pm

   Either completely out or completely in.

   Anyway, what’s the signal Sarkozy is sending? That the G7/G20 is losing value in a quickly reorganizing world? Is he trying to solidify the Eurozone as a powerfactor? Interesting!

3. P O Neill Says:
   October 10th, 2008 at 10:29 pm

   Definitely the 2nd if not implicitly the 1st, Thomas, I think. He wants a political pillar to match the monetary pillar of the ECB.

4. Thomas Vand Says:
   October 10th, 2008 at 10:53 pm

   To match or to replace? Or is this an even bigger thing? Could it be Europe attempting to re-assert itself as a major powerfactor in lieu of the US and the G20? Are we to expect more of such under-the-belt-type signals and hints? Will it cause an American response? Will it work? I hope so!

   PS: was Canada opting for an EU trade agreement a sign of success for this course? Will other major powers such as China and india join in?

5. Waldo Says:
   October 13th, 2008 at 8:36 pm

   Don’t look it too far ppl as the semi-participation of Gordon Brown proved. Having one currency is more than just sharing the same coins, it requires coordination. It has been said over and over: there will not be a European reaction and it is still the answer if a European action is really in each member states’ interest.

   It is merely a reaction to a need, not to a desire for more integration. In the current political climate such is impossible.

   Tho my dreams also direct myself to a eurozone-integration…