EWF as a foundation for exploitation

Before the introduction of the Euro, the EU states debated intensely as the fiscal discipline of the Euro members cannot be guaranteed in the long term. The Advisory Council had always pointed out that only those who fulfil the Maastricht criteria should be included in the monetary union.

In the case of Greece was not looking “right”. This confusion in the past does not justify that the Hellenes future may take a special claim for themselves. Greece has a huge budget deficit. It is a fact. Therefore right to demand the capital markets an appropriate risk premium. Now acted as if this was an unpleasant surprise. What should it be surprising? Greece / and nobody else/ must be responsible for its shortcomings.

The disclaimer is part of the business base of the monetary union. Only by different credit ratings of the financial markets, the lack of fiscal discipline in individual countries are largely suppressed. Those who questioned the liability assumed by the higher risk premiums harms everyone. Financing through small contributions could the members in a crisis buy the support of the other.

Bank levy in the market economy approach

The Cabinet decided the first vertex today. The aim should be to contribute to the financial institutions in future crises. All German banks to pay into the fund crisis. 1.2 billion would come together every year. Also, the concept for new instruments in order to rehabilitate ailing banks or to break in case of emergency. Even more important is that the banks for the risks they impose on the taxpayer continue to pay a price.

This is a very market-based solution. It is clear that it will take at an annual volume of 1.2 billion decades before the accumulated funds are sufficient to deny them the burden of a financial market crisis. Given the continued poor profitability of a number of systemically important banks, it is not possible to collect larger amounts.

Finally, it makes no sense, as soon as possible to accumulate a bulging pot: The great danger is that in a few years the tax is suspended in view of the high reserves. Then so is the control function to have such a duty on the risk behaviour of the banks lost.

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