Small
Slovakia EU has set the bandwagon, becoming the only country in the
eurozone, are not supported the enlargement of the European Foundation
for Financial Stability (EFFS), and endangering the economic rescue plan
for Greece. Serious consequences Slovak move likely will not - EU officials will find a way to push the right decision. But,
as experts believe, an unfortunate incident only proves the existence
of serious problems in the economy of the eurozone, the solutions are
unavailable.Money down the drainOn
the night of October 12, Slovak parliament blocked the expansion of
powers EFFS and increase the fund with 250 billion euros to 440 billion
euros, as the leaders of euro zone countries agreed in July this year.Slovaks
can understand their country - one of the outsiders of the EU GDP per
capita (about 16 thousand euros), and they do not really want to help
Greece, where the level of GDP per capita is around 22 thousand euros. "Poor
countries do not want to help one that was subsidized by a much more
generous - says Managing Director of" Troika Dialog "Gavrilenkov. -
Aside from the rhetoric on the theme of solidarity, the question of why
the poor should support the rich, remains unanswered ".
In this reality, according to many economists, is that the allocated EU financial assistance will not be able to reverse the negative trends in the economy of Greece. "The country will never be able to service its debt - 350 billion euros, the Greek economy can not afford - believes director of the Center for Macroeconomic Research Unicon Helen Matrosov. - Slovakia, like others, sees the creation of a fund - is not the solution, but an attempt to pull time ". Points of the Greek economy growth can not be found, and throw good money after bad hurt doubly.Despite this, many experts believe that European officials will find a way to push through the necessary decision Shrew Slovaks. "There will be another vote, as long as any agreement not be reached", - considers Gavrilenkov.Leading European politicians do not intend to depart: German Chancellor Angela Merkel has already said that, despite the failure of election in Slovakia, empowerment EFFS will be ratified before the EU summit to be held on October 23.Why waste timeThe situation around EFFS reveals serious problems within the EU. One of them - an imperfect model of governance. EU member states, as noted Gavrilenkov, have created the most democratic decision-making model that tries to take into account the interests of small states, but this system does not quickly and effectively make decisions in complex non-standard situations. Because of this, the European Union, according to deputy director of the Institute of International Studies, Moscow State Institute of Viktor Mizin, sometimes compared to the clumsy fat man that is poorly oriented in space, can not bend over and do not know where to go.There is a problem and more serious - as long as no one really knows what to do with Greece and other troubled economies of the EU. RIA Novosti interviewed experts believe that financial aid to Greece may delay, but does not solve the economic problems of the European Union. In addition, Greece - not the only sore point in Europe. "Some of the former Eastern Bloc countries, like Romania, are entirely dependent on EU subsidies. It is unclear what will happen to them if this assistance is to cease," - says Viktor Mizin.A possible solution of economic problems the EU can be extremely painful. Even leaving aside the option of decay and return to the euro zone national currencies. Exit from the current impasse Helen Matrosov sees the monetization of debt through a massive issue. "I'll have to print two trillion - says expert Unicon - is valueless debt, but in parallel will lead to hyperinflation and the devaluation of the euro."This solution is particularly do not like the leading economies, say the same of Germany. Not only does she have to pull on his troubled countries of the EU as a reward for all the labors of the Germans will get higher prices and depreciation savings. By the way, dependent on imports from the EU economy of Russia, such a scenario is also facing big troubles.While the pocket is not emptyHypothetical decay eurozone, which increasingly use experts will also be very painful. "The world is not ready for the disappearance of the euro and the dollar's recovery monopoly - believes Gavrilenkov. - Go to the national currencies will cause shock to financial markets."To delay the search for radical solutions may be another reason that the resources for the so-called quantitative easing - stabilizing the economy through cash injections - has not yet been exhausted. Even if Greece did not save, money the European economy will need. "No one doubts that money will be thrown, and quite a lot - from 200 billion to 1.5 trillion euros - says Mr. Gavrilenkov of" Troika Dialog ". - In case of default of Greece EU member states will need to support their banks."The expert is confident that the main argument will unfold not on the quantitative easing, but about who and how will they implement it. Whether this task will fall mainly on EFFS together with national governments, or, as Germany maintains, certain obligations will take on the private sector.Russian economy, raw materials such developments on the hand. Experts believe that in the event of massive bailouts, expect a noticeable reduction in price of oil is not worth it.The maximum that can be - short-term fall in prices on the background of the general panic. Similar happened in 2008, but shortly after that barrel through cash injection will go up again.
In this reality, according to many economists, is that the allocated EU financial assistance will not be able to reverse the negative trends in the economy of Greece. "The country will never be able to service its debt - 350 billion euros, the Greek economy can not afford - believes director of the Center for Macroeconomic Research Unicon Helen Matrosov. - Slovakia, like others, sees the creation of a fund - is not the solution, but an attempt to pull time ". Points of the Greek economy growth can not be found, and throw good money after bad hurt doubly.Despite this, many experts believe that European officials will find a way to push through the necessary decision Shrew Slovaks. "There will be another vote, as long as any agreement not be reached", - considers Gavrilenkov.Leading European politicians do not intend to depart: German Chancellor Angela Merkel has already said that, despite the failure of election in Slovakia, empowerment EFFS will be ratified before the EU summit to be held on October 23.Why waste timeThe situation around EFFS reveals serious problems within the EU. One of them - an imperfect model of governance. EU member states, as noted Gavrilenkov, have created the most democratic decision-making model that tries to take into account the interests of small states, but this system does not quickly and effectively make decisions in complex non-standard situations. Because of this, the European Union, according to deputy director of the Institute of International Studies, Moscow State Institute of Viktor Mizin, sometimes compared to the clumsy fat man that is poorly oriented in space, can not bend over and do not know where to go.There is a problem and more serious - as long as no one really knows what to do with Greece and other troubled economies of the EU. RIA Novosti interviewed experts believe that financial aid to Greece may delay, but does not solve the economic problems of the European Union. In addition, Greece - not the only sore point in Europe. "Some of the former Eastern Bloc countries, like Romania, are entirely dependent on EU subsidies. It is unclear what will happen to them if this assistance is to cease," - says Viktor Mizin.A possible solution of economic problems the EU can be extremely painful. Even leaving aside the option of decay and return to the euro zone national currencies. Exit from the current impasse Helen Matrosov sees the monetization of debt through a massive issue. "I'll have to print two trillion - says expert Unicon - is valueless debt, but in parallel will lead to hyperinflation and the devaluation of the euro."This solution is particularly do not like the leading economies, say the same of Germany. Not only does she have to pull on his troubled countries of the EU as a reward for all the labors of the Germans will get higher prices and depreciation savings. By the way, dependent on imports from the EU economy of Russia, such a scenario is also facing big troubles.While the pocket is not emptyHypothetical decay eurozone, which increasingly use experts will also be very painful. "The world is not ready for the disappearance of the euro and the dollar's recovery monopoly - believes Gavrilenkov. - Go to the national currencies will cause shock to financial markets."To delay the search for radical solutions may be another reason that the resources for the so-called quantitative easing - stabilizing the economy through cash injections - has not yet been exhausted. Even if Greece did not save, money the European economy will need. "No one doubts that money will be thrown, and quite a lot - from 200 billion to 1.5 trillion euros - says Mr. Gavrilenkov of" Troika Dialog ". - In case of default of Greece EU member states will need to support their banks."The expert is confident that the main argument will unfold not on the quantitative easing, but about who and how will they implement it. Whether this task will fall mainly on EFFS together with national governments, or, as Germany maintains, certain obligations will take on the private sector.Russian economy, raw materials such developments on the hand. Experts believe that in the event of massive bailouts, expect a noticeable reduction in price of oil is not worth it.The maximum that can be - short-term fall in prices on the background of the general panic. Similar happened in 2008, but shortly after that barrel through cash injection will go up again.
