PRESS REVIEW | 17.08.2011

German press review: Eurozone integration 'a step in the right direction'

 

Eurozone plans point in the right direction, says the press

German newspaper editorials on Wednesday were mostly in favor of plans by the French and German leaders for closer eurozone integration, calling them "a step in the right direction."

 

Following a meeting by Chancellor Angela Merkel and President Nicolas Sarkozy, France and Germany have called for closer coordination on economic policy in the eurozone. German newspaper editorials on Wednesday called the proposal "a step in the right direction."

Cautiously optimistic, the Westdeutsche Allgemeine Zeitung writes that the proposals agreed to by Sarkozy and Merkel do not solve the gigantic euro crisis - but they point in the right direction. The paper concludes that Europe's engine - France plus Germany - is up and running. But: "While that's good news, a plan is just that: a plan. It remains to be seen whether the two leading eurozone states can convince the other members."

The Rheinische Post calls the outcome of Tuesday's Franco-German talks "a mix of declarations of intent, goodwill and a pledge of closer cooperation." The paper concluded that for the time being, "the crisis has at best been postponed."

The eurozone nations have tended their national egos for far too long, the Neue Osnabrücker Zeitung writes, and thus have needlessly given speculators opportunities. "A common currency for 17 very different nations requires close cooperation and even closer controls. Otherwise, individual problematic states endanger the entire currency union," the paper writes. The editorial concludes that pushing European integration and giving the eurozone a common governing body is the right move: "It would be a signal of strength to financial markets, and would be heard across the globe."

The Ostsee-Zeitung agrees that the Franco-German plan is a strong signal telling the world that the eurozone's two leading nations are serious about saving their currency. But are their pledges enough to defuse the debt crisis? "Only putting the plan into action will show whether it can succeed," the paper comments, adding that Merkel in particular faces rough times, managing the crisis and calming markets without giving up German interests. At the same time, the paper writes, Merkel has to placate the euroskeptics within her own party and throughout Germany.

Time is of the essence in the current euro and state debt crisis, the Südwest Pressecomments. "What is important now is to regain political credibility. The proposal in Paris on Tuesday to introduce a debt ceiling in the eurozone nations' constitutions can only be a first step. "

Meanwhile, Die Welt ponders a related issue: the weak German economic growth data also released Tuesday. "As long as the eurozone states don't have a grip on their debt crisis, it will hang over their further economic development like the proverbial sword of Damocles," the paper said, warning that the turbulences on the financial markets these past weeks have shown how strong reaction can be to crisis news and how quickly the ensuing decline can get out of hand.

Compiled by Dagmar Breitenbach
Editor: Martin Kuebler

 

 

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