Obama's Entry Into The Euro Debate: Too Little, Too Late and Wrong - Forbes
President Obama has finally decided to sound statesman-like about the problems of the Euro and European economy. I asked earlier in the week why there was no visible US diplomacy on Europe and now it has arrived, my take is: too little, too late, and wrong.
This is what Obama said:
The second proposition is debatable. This is not just Europe's decision. It affects everyone. Leaving Euro leaders to make decisions is the root of the tragedy that the Euro crisis has become. Europeans are divided about what will work, what is necessary and what is desirable. In all that they have failed to take account of their responsibilities to the global economy – including America's. Obama's administration seems not to understand diplomatic pressure.
The third proposition – the reference to integration – is just plain wrong. It reads like Obama is appeasing Angela Merkel. The reality is most Europeans do not want integration. They blame it for their problems. Integration is a political class kinda thing – motivated originally by good intentions it has now become an extreme dogma. Integration needs to be powered by a demographic desire for unity, not as a solution to a crisis.
Where the US can help is to validate a break up of the Euro for at least a period of time. Broker a five year Euro holiday for Greece, Ireland, Portugal and Spain so they can devalue a currency and find their own level for prices, particularly labor.
There are European countries that are now locked out of any real capability to innovate their way to growth. They are in the dog house and will be for a decade because they cannot make decisions that are good for them. If you think that is the basis for unity and integration then, brother, you have some work to do.
President Obama has finally decided to sound statesman-like about the problems of the Euro and European economy. I asked earlier in the week why there was no visible US diplomacy on Europe and now it has arrived, my take is: too little, too late, and wrong.
This is what Obama said:
The first of those propositions is undoubtedly true and makes the lack of US diplomacy, to date, a real puzzle. Why speak up only when the problem is already dragging on the US economy?
The second proposition is debatable. This is not just Europe's decision. It affects everyone. Leaving Euro leaders to make decisions is the root of the tragedy that the Euro crisis has become. Europeans are divided about what will work, what is necessary and what is desirable. In all that they have failed to take account of their responsibilities to the global economy – including America's. Obama's administration seems not to understand diplomatic pressure.
The third proposition – the reference to integration – is just plain wrong. It reads like Obama is appeasing Angela Merkel. The reality is most Europeans do not want integration. They blame it for their problems. Integration is a political class kinda thing – motivated originally by good intentions it has now become an extreme dogma. Integration needs to be powered by a demographic desire for unity, not as a solution to a crisis.
Where the US can help is to validate a break up of the Euro for at least a period of time. Broker a five year Euro holiday for Greece, Ireland, Portugal and Spain so they can devalue a currency and find their own level for prices, particularly labor.
There are European countries that are now locked out of any real capability to innovate their way to growth. They are in the dog house and will be for a decade because they cannot make decisions that are good for them. If you think that is the basis for unity and integration then, brother, you have some work to do.
