Cultural Differences Between France and Germany

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The European Union is an amazing attempt at merge many governments and economies that are not only seperated by religion, politics and social reforms, but also by cultural differnces. All 17 members of the Euro agree there are major economic and political pressures facing each individual government. They all agree that radical changes need to be instituted. They all agree that they need to help the countries facing economic problems. They all agree that each country should maintain independence. They all agree that they need to work together for the common good. They all agree that government debt must be lowered, government services need to be move to private sectors. They all agree they need to be competitive in the global markets.

What they can not agree on is how ?

The problems facing the EU is as old as the problems in the middle east. The cultural differences, the way the people think and the way they deal with issues.

Split Decision

Germany and France still divided on healing euro woes

Merkel

Wants automatic sanctions against budget sinners

  • Rejects issuing euro bonds to help alleviate crisis

Sarkozy

  • Grudgingly accepts ‘more automatic’ sanctions
  • Favors issuing euro bonds to protect market access

The Arabs and the Nomads, the Christians and the Jews, the Islamics and the Secular have been fighting for years, the reason that peace is not easily obtainable is because they view the problems and the solutions differently because of their culture and history. Palestine and Israel will most never find peace, not because the people actually hate each other, not because the sides want war and not because of land, it is their cultural difference, it is their viewpoint and their perspective that is different.

This has become very evident recently in the battle between President Sakozy and Chancellor Merkel. They can ageed on the problems, they can agree on the solutions, but when it comes to the fine points and the decisions, they bump heads.

Surrendering sovereign powers, including the Parliament’s mastery of the budget process, would amount to a risky political gamble for Mr. Sarkozy five months ahead of France’s presidential election next spring. For its part, France has insisted that deeper integration also should yield increased solidarity.

The chancellor wants to focus on what she sees as the root causes of the crisis by creating a long-term regime of fiscal discipline, while changing the European Union’s treaty to give European authorities new powers of enforcement.

In a speech to Germany’s parliament on Friday, she warned that euro members would have to accept a loss of national sovereignty, and that there is no quick fix to the crisis.

In the past week, we have heard from the President of the ECB, from the Director of the IMF, from Chairman of the Bank of England. Everyone is prepared to assist to find solutions and offer assistance. The IMF was able to get pledges from most of the G20 nations. China has decided to assist the IMF. Central Banks from around the globe joined forces this week to aid the EU banks to maintain liquidity until the December 9the EU summit.

Towards the end of the week, there was rumor and announcements, statements and press that Merkel and Sarkozy were able to find a path. David Cameron from the UK met with the leaders on Friday and insisted that they find a way to resolve the EU debt crisis. And to discuss the possiblitly of rewriting the EU treaty that covers each country as a member of the EU. Mr. Cameron was there to represent the UK and other nations that are part of the EU but are not part of euro currency, to make sure they were not pushed to second place. There are pressures on the EU from all directions.

But the most powerful leaders of the EU are still at odds. On Friday Chancellor Merkels speech and the statements from President Sarkozy seemed to take almost opposite positions.

On Monday the markets will react to this new uncertainty. Markets soared from midweek on the news of agreements, understanding and road-maps. But it seems that the news was premature, as the IMF and the ECB can not act without the EU.

This is plan number 12.. its their last chance to get things right.

 

 

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About: FX Empire Analyst - Barry Norman

Barry produces a private Daily Market Review newsletter that is distributed around the globe to over 25,000 subscribers and recently published a book on Options Trading that is available from amazon.com

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