No to the EWF!

The European Monetary Fund was actually on the table. Nevertheless, since last Friday the idea is gaining the upper hand again after deliberations in Madrid, the chairperson of euro finance ministers, Jean-Claude Juncker, announced that a bailout fund for euro-strapped states is fast approaching. Here, the science regarding a bailout is agreed as rare. Overwhelmingly reject Germany’s economists from the creation of a European Monetary Fund. Of 91 economists surveyed said 64 out against such a rescue package for euro countries.

EWF had a credibility problem – because the Member States would decide the appropriate sanctions jointly. In addition, those countries such as Italy and Portugal would express in his own considering the budget situation for profound sanctions is unlikely. On top of that, the anger of the sanctioned country would work against the EU, which would weaken the European Community and its currency.

It would be better to call in a threat of national bankruptcy to the IMF to help and to make their political independence to benefit. However, it must be made ​​sure that he takes the lead role – as has happened in Latvia and Hungary. The IMF would have the necessary expertise, credibility and authority – all properties where there is a lack of the EU.

The bailout of Greece

The bailout of Greece would burden Germany with 8.4 billion euros. Germany pays it the largest share of the Greek bailout. The threat of state bankruptcy seems prevented for now. After weeks of anxiety Athens can now breathe easy: Last weekend the euro countries Greece opened in 2010 bilateral loans totalling 30 billion euros. This would allow Helene almost their entire financial needs – about 32 billion euros – cover for this year. This assurance has calmed the markets for now.

If so the worst is over, however, cannot say definitely. Given the weak Greek economy and the huge debt, scepticism is still. The rate of interest for possible emergency loans to Greece in the EU countries is 5 percent. On the open market would have about 7 percent are applied. Greece is subsidized by low interest rates – to the detriment of the European Community.

The solution could have been much easier. Strict compliance with the rules of the euro would have helped the most. The rules prohibit a European aid. In a pinch, the IMF would have to stand. Instead, the policy has squandered and searched too long for an attitude. Especially for Germany that can now be expensive.

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Stamp duty: liquidity risk

A financial transaction tax would lead to huge revenue for the state. Nevertheless, the burden would probably passed. G20 Finance Ministers on Friday will try to find answers to these questions in Washington. Discussed is a stock transfer tax. However, that would be the wrong way, because the cost of such a tax shoulder the wrong people, says Prof. Kaserer. James Tobin’s hot in the crisis.

The Americans proposed in 1972, to impose a currency transactions tax. The Tobin tax was born. Now, in some countries is thinking about a new instrument. A stock transfer tax, or more generally, a financial transaction tax to curb speculation in the financial market But why should the state restrict a new general tax “speculation”? In fact, the questions arise. Who makes such a tax?

In addition, what it does? If no exceptions are defined, what happened in the past when such a tax usually, especially the trading of institutional investors would be punished. Because that would reduce the liquidity of the markets and the volatility increase. The resulting costs are ultimately the private investors in the form of higher risks. Should not be excluded that institutional investors can shift part of the economic cost of the tax to the customer (as well as the private savers), which then diminishes but their net returns significantly.

A debt ceiling for the euro countries

Greece’s financial situation has been stabilized. It clearly shows that the financial turmoil in Greece were not unique. To be to be bailed out Greece, the Maastricht Treaty was bypassed. In no way should this be the norm. Rather, the EU must find ways to cope against such recurrences.

However, where to start it? The deep concern for the controllability of the public finances and the debate about the possibilities of sovereign defaults show that the rules of the Maastricht Treaty and the Stability and Growth Pact is not sufficient. States must be reliable and self-discipline.

One answer is the introduction of constitutionally enshrined debt brakes. It may be the refinement of the German debt brake argue, but their value is undoubtedly the particular credibility by enshrining in the Constitution.

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Rescue package for Greece

Greece has in the coming years an enormous capital needs. The sum of maturing bonds and interest payments on outstanding debt will total about 274 billion euros in 2015. With regard to so-called rescue package for Greece on Friday will not be reached agreement. Why? Because we fundamentally with this kind of assistance violated the market economy in Germany.

An important principle of the social market economy is that the one who takes risks must be in doubt for them. In addition, who bought Greek bonds in this case, which the taxpayer may now not box out. The agreements between Greece and the euro area and the IMF will not contribute to the Hellenic Republic to solve the main problem. The cause of the crisis lies in the high level of debt. With the proposed bailout of Greece’s debt is expected to rise in 2014. The issue of public debt is not smaller but larger. The euro remains stable only sustainable if everyone adheres to this principle.

Fewer engineers, less wealth

For years, labor market experts had pointed out that Germany was threatening the future skills shortages. The bitter reality is that in 2009 were missing more than 34,000 engineers. The mean value losses are around EUR 3.4 billion, as a recently published study of the German Engineers Association and the Institute of the German Economy in Cologne shows.

Reason for this development is primarily the demographic change. Foreign students after graduation, the German labor market were not available Overall, this is still not enough time to compensate for the 36,000 retirees, let alone to meet the expansion needs additionally present.

In addition, future demand for skilled professionals will continue to increase dramatically. From 2013 annual 33,800, then 44,100 in 2018 and finally from 2023 even needed 48,300 new engineers to replace the retiring. Without significant efforts of schools and universities, from industry and government will not succeed.

A massive loss of prosperity would result. Of course, there are other opinions on this issue. For example, that the so-called “shortage of engineers” is actually a lack of willingness of employers to pay fair market salaries.

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