I am posting the entire article this time because it is of great importance and I want it archived on this thread.
All Eyes On Sarkozy Speech As Euro Zone Pushes For Grand Plan
For President Nicolas Sarkozy, the place is rich with symbolism--a large concert arena in the southern French town of Toulon where he gave a major policy speech about the perils of the global economy after the collapse of Lehman Brothers.
On Thursday evening, Mr. Sarkozy will return to the same spot in Toulon's Zenith, a 8.875-place concert venue, this time to address the concerns of French voters, worried about the economic slowdown and rising unemployment. His speech will be closely watched in European capitals, from Berlin to London and Brussels to Rome as policy makers seek further clues on the French position on euro-zone fiscal integration and potential plans to change European Union treaties ahead of the EU summit next Friday in Brussels.
Many see that meeting as the very last chance for Europeans to prevent the implosion of their currency zone.
On Sept. 25, 2008, just 10 days after the fall of the U.S. investment bank, Mr. Sarkozy last delivered a speech on the economy in the southern port city. Then, he pledged to protect the French from the financial crisis' fallout, to reset the whole financial and monetary system, to regulate banks and to punish those responsible for the disaster. The crisis, he said, marked "the end of financial capitalism."
This time, soothing words to reassure his electorate won't be enough.
Time is running short. European Commissioner for Economic and Monetary Affairs Olli Rehn said Wednesday the euro zone is entering a "critical" 10-day period and must focus on building a "convincing" financial firewall and tightening economic governance.
Apparently mindful of the urgency of the situation, France and Germany are leading negotiations on a new fiscal pact among the euro zone's 17 members, aimed at preventing the currency bloc from fracturing. Analysts will be seeking clues from Mr. Sarkozy on how firm this plan is.
The French president may also spell out his view on changing EU treaties to ultimately enshrine greater fiscal responsibility. But changing treaties has a considerable downside: it will do little to satisfy calls for urgent action to solve the deepening crisis.
Mr. Sarkozy's speech is set to be the starting shot for a week-long quest for the elusive "comprehensive solution" Europeans have been seeking to end the nearly two-year-old crisis.
On Friday, the French president will host U.K. Prime Minister David Cameron, who's worried that deeper euro-zone integration will leave the U.K. further on the sidelines in the wider EU. Earlier in the day, German Chancellor Angela Merkel is slated to give a speech at the Bundestag to outline the government's European policies ahead of the EU summit.
In the end, European hyper activism may reap the kind of fruit France and other nations are longing for: bold action from the European Central Bank.
ECB President Mario Draghi signaled in a speech Thursday that, if euro-zone governments can quickly craft a "new fiscal compact" to restore credibility on the markets, the central bank is open to boosting its efforts to battle the crisis.
His words were interpreted by ECB watchers as a suggestion that the bank could expand its intervention on the bond market, which has so far been limited to bond purchases of between EUR5 billion and EUR10 billion each week, if there are new rules that make budget discipline legally binding and automatically enforceable.
Mr. Sarkozy's speech will be closely analyzed for hints on how far France is willing to go.
All Eyes On Sarkozy Speech As Euro Zone Pushes For Grand Plan
For President Nicolas Sarkozy, the place is rich with symbolism--a large concert arena in the southern French town of Toulon where he gave a major policy speech about the perils of the global economy after the collapse of Lehman Brothers.
On Thursday evening, Mr. Sarkozy will return to the same spot in Toulon's Zenith, a 8.875-place concert venue, this time to address the concerns of French voters, worried about the economic slowdown and rising unemployment. His speech will be closely watched in European capitals, from Berlin to London and Brussels to Rome as policy makers seek further clues on the French position on euro-zone fiscal integration and potential plans to change European Union treaties ahead of the EU summit next Friday in Brussels.
Many see that meeting as the very last chance for Europeans to prevent the implosion of their currency zone.
On Sept. 25, 2008, just 10 days after the fall of the U.S. investment bank, Mr. Sarkozy last delivered a speech on the economy in the southern port city. Then, he pledged to protect the French from the financial crisis' fallout, to reset the whole financial and monetary system, to regulate banks and to punish those responsible for the disaster. The crisis, he said, marked "the end of financial capitalism."
This time, soothing words to reassure his electorate won't be enough.
Time is running short. European Commissioner for Economic and Monetary Affairs Olli Rehn said Wednesday the euro zone is entering a "critical" 10-day period and must focus on building a "convincing" financial firewall and tightening economic governance.
Apparently mindful of the urgency of the situation, France and Germany are leading negotiations on a new fiscal pact among the euro zone's 17 members, aimed at preventing the currency bloc from fracturing. Analysts will be seeking clues from Mr. Sarkozy on how firm this plan is.
The French president may also spell out his view on changing EU treaties to ultimately enshrine greater fiscal responsibility. But changing treaties has a considerable downside: it will do little to satisfy calls for urgent action to solve the deepening crisis.
Mr. Sarkozy's speech is set to be the starting shot for a week-long quest for the elusive "comprehensive solution" Europeans have been seeking to end the nearly two-year-old crisis.
On Friday, the French president will host U.K. Prime Minister David Cameron, who's worried that deeper euro-zone integration will leave the U.K. further on the sidelines in the wider EU. Earlier in the day, German Chancellor Angela Merkel is slated to give a speech at the Bundestag to outline the government's European policies ahead of the EU summit.
In the end, European hyper activism may reap the kind of fruit France and other nations are longing for: bold action from the European Central Bank.
ECB President Mario Draghi signaled in a speech Thursday that, if euro-zone governments can quickly craft a "new fiscal compact" to restore credibility on the markets, the central bank is open to boosting its efforts to battle the crisis.
His words were interpreted by ECB watchers as a suggestion that the bank could expand its intervention on the bond market, which has so far been limited to bond purchases of between EUR5 billion and EUR10 billion each week, if there are new rules that make budget discipline legally binding and automatically enforceable.
Mr. Sarkozy's speech will be closely analyzed for hints on how far France is willing to go.
Those who say it cannot be done should not interrupt those who are doing it