But where there is a will there is a way

In a recent column, Professor j. Bradford Delong deplored that "the euro protects bad students". He observed that today ' hui "even if the countries (the eurozone) can no longer count on inflation to resolve the imbalance of their finances, the single currency allows them to use the debt capacity belonging to other members of the European Union to extend their boom". He regretted that the ECB, "in dealing with undifferentiated manner of public debt from countries with very different financial situations, leaves market opportunities to reward more efficient States and penalize the high rollers..." "If nothing changes, the ground could eventually hide under the euro".

This is not the ECB but Europe must protect the euro from its poor students. It is difficult indeed how the ECB may, on its own, establish significant rating differences between the signatures of the various States. It would be soon charged to interfere in the control of the budgetary policies of the States that are within the jurisdiction of the Commission and the Council of Ministers. Only the signing of the European Union considered to be superior to that of States would establish an indisputable reference to the market. The ECB could reserve its repo to the public debt of the Union, leaving the market freedom to depreciate the value of the signature of States which it would consider adventurous policy.

If we stick to the monetary aspect, it would suffice that the debt has deadlines admitted pension by the ECB. Could conceive that the European Union resume on his own account a part of the debt in the short term of debtor States, they agreeing with its agenda of non-negotiable notes rates and maturity comparable to the debt recovery. The European Union should be clear as the only debtor of the debt so transferred, without assignment as security for the tickets in order for the benefit of the creditor, nor use it against the debtor of origin. In the absence of a mandatory conversion, a public securities exchange operation could be put in place. But this initial transaction would have no next day, or the renewal of the deposits of the loan, if the European Union does not become a regular issuer.

The use of the borrowing capacity of the European Union, on all bills accepted by the market, could usefully contribute to the funding of projects for the future. The list is long of strategic actions that the Union could result in better conditions than the Member States or in support of the policies initiated by them. The report prepared in September 1991, under the direction of Jérôme Monod, by European industry met within European Economic Round Table, under the title "Reshape Europe ("Reshaping Europe")", in the "Lisbon agenda" arrested by the heads of State and Government in March 2000, that of opportunities missed!

Such projects would be an opportunity to implement the necessary solidarity between Member States with different levels of development: less-advantaged people find there way to catch up with, if necessary, of specific aid. Thus would be strengthened the cohesion of Europe. The financing of the aid could be provided that if the European Union own resources more abundant than those that measure cautiously the heads of State and Government. Otherwise, it is the single currency which would be at risk, because, "nolens volens", some countries would refuse to bear the yoke of excessive monetary discipline for them without adequate consideration. Similarly, cyclical or structural impact severe, affecting all or part of the Member countries, a Union devoid of means of action could explode. Finally, strategically, the European Union should be able to provide massive assistance to the African continent, deposit of miseries of all kinds, but also of human and economic resources which value would be source of shared prosperity. VAT would be the best basis for the Europe of the necessary fiscal resources after, possibly harmonization of its terms of attitude and perception. States remain free to set the rate of VAT applicable on their territory within the limits of the current ranges or revised ranges. On this national rate, a number of points, the same for each State, would be assigned to the Union.

"The United States show that growth to be strong, need to combine the management of the currency and in budget." However, Europe box: its monetary leg is European; its budgetary leg remains national. "If being arrested on the way, the States of the euro area have not completed the device which would have enabled them to strengthen their monetary union despite the level of different development of the acceding countries. Conduct from a purely monetary and very technical starting point, the reflection on the tracks of progress to borrow quickly takes a tour economic and political. It is indeed policy is, as did the founding fathers of Europe at the end of the 1940s, to the Europeans, with ambition and belief, the impetus to ensure their prosperity in solidarity between Member States and third countries. The rejection of the European Constitution does not make the easy road. But where there is a will, there is a way!".