France planning Eurozone breakaway
Paris, France (AHN) – The current European Union is under threat no longer just from the debt contagion caused by weaker members, but also by plans of more prosperous members to form a breakaway group.
Reports add to the growing speculation that following the instability created by the political situation in Greece and Italy on top of the two countries’ debt problems, France will form another organization of eurozone members.
The new union, which would likely count France and Germany as members, want a stronger group with new measures and legal measures to stop members from borrowing and spending excessively in the future.
Not surprisingly, weaker nations that caused the current debt crisis such as Greece, are not welcome to the planned new union.
The planned breakaway group places pressure on Britain to accept unconditional changes to the Lisbon Treaty which would isolate Britain and make it a voting minority within the weaker EU should France and Germany succeed in forming a breakaway group.
German Chancellor Angela Merkel had warned British Prime Minister David Cameron of the scenario unless he agrees to the changes in the treaty.
Besides tracking the breakaway group, the EU is monitoring the Friday vote in Italy on reduction in public spending and delay in retirement. The measures, if approved, would pave the way for the replacement of Silvio Berlusconi as Italian prime minister.
Italy’s Senate is scheduled to debate on the package on Friday morning and expects an outcome later in the day. The law is expected to pass after the Upper House Budget Committee approved the measure on Thursday.
Among those who will vote for the first time in the Italian Senate is former European Commissioner Mario Monti, who is touted as the favorite to replace Berlusconi. The speculations of Monti’s ascent to power were fueled by Italian President Giorgio Napolitano’s appointment of Monti on Wednesday as senator for life.
View full post on Finance Stories
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
