A term that emerged around 2010 in connection with the Greek and Irish crises, meaning that the European unification process planned for the long term must take precedence over the current difficulties of individual countries. In this sense, Article 122 TFEU – which provides for a bailout only in the event of “natural disasters or exceptional occurrences” – has been interpreted generously, putting the EU on the road toward a transfer union despite many misgivings. In this context, it contradicts all experience that a country that accumulates high government debts will then change its behavior if it is granted access to the money of other states if necessary. – See purchases, central bank, bail-out, blame game, ClubMed, euro bonds, common, European Financial Market Stabilization Facility, European Monetary Union, fundamental error, Eurostat, exit, ECB fall from grace, Greece crisis, Ireland crisis, moral hazard, Plan C, policy default, stabilization mechanism, European, sovereign debt repatriation, Stability and Growth Pact, fundamental error, debt club, sovereign debt, southern front, transfer community, effects, statistics authority, wealth levy, debt-productivity linkage, growth-debt fact, historical, forced expropriation, two-way option.
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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/