What 'The Daily Show' Did to Kamala Harris Was Brutal and Accurate
Another Fake News Story About Trump and the Third Reich Just Imploded
Yes, This Actually Happened on Wheel of Fortune
Democrats Getting Rich Off of Child Trafficking, Border Crisis
Loose Talk About the End of Everything
The Latest Climate Grift: ‘Carbon-Free’ Human Composting
In 'Stunning Rebuke,' Chicago City Council Backs Effort to Block Mayor From Canceling...
IDF Announces the Bodies of Three More Hostages Have Been Recovered
'What Are They Trying to Hide?': Lawmakers Skewer ATF Over Fatal Arkansas Raid
Laughing at Brian Stelter's MAGA-Fascist Fiction
Only Trump Can Launch and Win a War Against the DEI Army
You and What Army, ICC?
Biden Not Fooling Voters on Economy
How Should We Respond to European Recognition of a Palestinian State?
Palestinians and Israelis: A Loathe Story
Tipsheet

World to Europe: Get it Together

The verdict is in: The European Union's fiscal irresponsibility is negatively affecting the rest of the world, and people want it to stop.

From the Indian rupee to the fledgling tourist industry in the Atlantic island chain of Cape Verde, more hangs on this week's European Union summit than the future of the euro single currency project alone.

While no one believes the 27-nation bloc can find a quick fix to a debt mountain that was years in the making and which may stunt its economies for years to come, EU leaders are under growing pressure to show they can at least stop the rot.

"We're not expecting a sudden change in sentiment or a dramatic end to the problem at the EU summit," a senior Japanese policymaker told Reuters.

"But we also don't expect zero results. There should at least be some progress in how they hope to get their house in order," said the policymaker, who for reasons of diplomacy spoke on condition of anonymity.

Advertisement

And yet again, who is coming to the rescue? American taxpayers with downgrade Timothy Geithner at the helm.

Before this week's summit, U.S. Treasury Secretary Timothy Geithner was touring euro zone capitals with a message that it is time to act.

Speaking after talks in Berlin on Tuesday, Geithner urged reforms to "create the architecture of fiscal union", citing the "central role" to be played by the European Central Bank.

"There is concern among corporate leaders, both in the United States and Europe, about the uncertainty bred of lack of political consensus on how to move the economy forward," U.S. ambassador to the EU William Kennard said before the trip.

"And that certainly is weighing on the world economy. It's a factor both in Europe and the United States," he said, suggesting the two were "in the same boat" with over-borrowed economies and expensive welfare states.

Yet while the United States can turn to the Federal Reserve as a lender of last resort, euro zone states have no such recourse to the Frankfurt-based European Central Bank - and EU heavyweight Germany is determined to keep it that way.

Advertisement

Time to act? Who will be doing the acting? Americans or European leaders? It's time for Europe to pay "it's fair share."

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos

Advertisement
Advertisement
Advertisement