# Solidarity, financial solidarity

- Canonical URL: https://www.gerhardmerk.de/solidarity-financial-solidarity-2
- Post ID: 589490
- Modified: 2023-07-25T21:13:43+00:00
- Language: en

## Definition

A demand that has arisen in the wake of the Greek crisis, above all in Greece, for member states with good competitiveness within EMU to voluntarily cede part of their social product to "weaker" member states. In some cases, countries with a lower standard of living than the potential recipients could also be considered as payers. - Such a demand must be countered by the fact that the EMU was deliberately not designed as a transfer union. Each member must ensure that it keeps its national budget in balance. In the Stability and Growth Pact, which is binding under international law, the participating states have expressly undertaken to do so. If the "richer" members of EMU were to support the "poorer" participants in the required manner, there would be little incentive for them to reduce their national debt and increase their competitiveness. - To be sure, it has become increasingly clear since about 2010 that the large debts piled up by some euro area member states are being communitized in one way or another via the monetary track. - See devaluation, fiscal, bail-out, balance sheet adjustment, blame game, deficit hawk, blackmail potential, European Monetary Union, fundamental error, Europayer, EMU blow-up, ECB sin-fall, gold sacrifice, Greece crisis, default, Ireland crisis, moral hazard, Murphy's law, Policy Bracket, Policy Default, Bailout, Return Ideology, Shadow State, Debt Club, Debt Drug, Semester, European, Sensitivity Analysis, Budgetary, Special Drawing Right, Sovereign Debt Pressure, Stability and Growth Pact, Fundamental Error, TARGET Abuse, Transfer union, constitutional article one, wealth levy, debt-productivity linkage, treaty fidelity, growth-debt fact, historical, monetary union 2nd - Cf. ECB Monthly Bulletin of September 2013, p. 113 ff. (results of strengthening the Stability and Growth Pact; further improvements needed). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! 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/

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