THE FUTURE UNITED STATES OF EUROPE ?

In their joint televised verbal report on August 16, 2011, after their meeting in Paris, Angela Merkel and Nicholas Sarkozy proposed three measures which could ultimately, if later adopted by the EU member countries, lead to the creation of the United States of Europe (USE).

The problem of the repayment of the loans already made to Greece (110 billion Euros), to Portugal (78) and to Ireland (85), was not covered, nor was the next loan to Greece of 120 billion Euros.  This will be discussed shortly.

The three measures proposed are:
    1) The creation of an Economic Government in the EURO Zone;
    2) The adoption of the golden rule to ensure balanced budgets by all 17 member countries in the EURO Zone;
    3) The introduction of a tax on financial transactions.

In total there are at present 27 member countries in the EU. Of the 10 which have a local currency other than the EURO, all but three countries are expected to be able to adopt the EURO when they have conformed with certain preconditions.  The three countries, which at present have opted not to adopt the EURO, are The United Kingdom, Sweden and Denmark. 

Before the three measures proposed are put to the vote many discussions will take place.  One cannot be sure how much time this will take.  Before a vote much more detail will have to be made available. 
          
The Achilles Heel in the creation of the USE are the bail out loans already made to Greece, Portugal and Ireland, and the current delicate financial condition of Italy and Spain, both of which may need help in the very near future.  From this point of view the creation of the USE may not be possible during the next ten years.

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