A term that emerged at the latest after the Greek crisis became known in the sense that, contrary to the clear provisions of the European Treaties, a bailout would have to be provided in any case for EMU members that got into difficulties. This should be done primarily through Eurobonds issued by European authorities, i.e. bonds of individual EMU member states for which all are jointly liable. – Such a measure would reduce the creditworthiness of the hitherto solid EMU states on the financial market. The higher interest rates that would inevitably have to be paid for German government bonds, for example, would be a transfer of money from German taxpayers to those countries that would benefit from the lower interest rates. This would be done without the consent of the electorate (without political legitimation), which runs completely counter to the constitutional principle of “no taxation without the consent of the people’s representatives” (no taxation without representation). – All other proposals, such as a debt repayment pact, also lead to a politically undesirable transfer union. To the extent that the ECB is involved in financial solidarity measures in the aforementioned sense, its reputation and thus confidence in the euro are also at stake. The so-called “struggling euro-zone countries” must return to the common level of all EMU members by securing internal stability: there is no way around it. — see buyouts, central bank, balance sheet adjustment, blame game, blood toll, deficit financing ban, deficit ratio, European debt agency, European
Monetary Union, fundamental error, European Treasury, Europayer, EMU explosive, ECB independence, fiscal pact, Friedman thesis, early warning law, monetary policy, peer pressure, budget pre-vote, European, crisis, central bank induced, moral hazard, policy default, shadow state, debt club, debt drug, debt ratio, solidarity, financial, government debt reduction, government debt pressures, stability and growth pact, fundamental flaws, solidarity, financial, governance framework, structural reforms, fiscal sustainability, transfer union, imbalances, EMU internal, competitive status, international, monetary union 2, economic policy, european.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/