The two central powers of Europe have conflicting ideas about EU control over national budgets but, if France and Germany are in unity, the rest of the EU might follow.
This is the fourth summit of the year and the twenty-second crisis summit since 2010. It has the potential to move markets significantly because of all that is up for discussion.
“President Francois Hollande will meet Chancellor Angela Merkel before the beginning of the summit,” according to a French source. The meeting was confirmed by a German source also.
Germany wants quality over time and France says there is not much time.
Germany and France are the economic power houses in the euro zone and they both have visions for the EU. With Hollande and Merkel meeting today, maybe they are ironing out some of their differences.
“We are of the opinion — and I speak for the whole German government on this — that we could go a step further by giving Europe real rights of intervention in national budgets,” Mrs. Merkel said on Thursday. While budget control views and other issues may separate European leaders, the EU may pull together and move forward on their issues this week.
I think the challenge for leader’s of these 27 EU countries will be managing their time to actually make progress on issues.
Some of the issues include, the banking union, common euro zone budget, Spanish aid, and fiscal integration.
The summit could strengthen economic and monetary union in the euro zone. One way that is possible is through aiding Spain. Recent developments would signify that Spain will not be asking for aid this week. Spain denies reports of bailout requesting in the near future. On the other hand, other’s are convinced Spain is soon to be ready to seek a bailout using the ESM.
Let’s head about 1800 miles south from Brussels to Athen’s Greece.
Greece has lit up the news across the world today as protests break out in Athens and Thessaloniki. Some 25,000 protesters have covered the streets with their violent anti-austerity protests.
Greece is in it’s 5th year of recession, unemployment has risen to 25%, and the people are demanding that Greek government calls off plans to appease international creditors by implementing spending cuts and raising Greek taxes.
The topic of Greece and additional aid for them doesn’t appear to be on the agenda for the EU summit but could surely be discussed.
Today is only the first day of the Summit. Economists and investors will have their eyes on upcoming summit news releases. There is chance they could affect the market. If we do see progress made, the Euro could react in a bullish manner.
The releases, speeches, interviews, and stataments of the Euro leader’s could drive the Euro through the end of the trading week.
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