In the wake of the Greek debt crisis, some, like the French, have called for a European economic government, while others, like German Finance Minister Wolfgang Schauble, have called for an IMF-style European Monetary Fund. But saving the euro really requires a return to the fiscal discipline demanded by the EU's Stability and Growth Pact before the French and Germans abandoned it.
LONDON – The Greek debt problem has been poorly handled by Europe’s decision-makers. European Union heads of government, and the European Central Bank, initially rejected the idea of involving the International Monetary Fund, but without a fall-back plan. It is hard to avoid the conclusion that part of the motivation for this was French President Nicolas Sarkozy’s reluctance to see Dominique Strauss-Kahn, the IMF’s managing director, ride in from Washington to the rescue of the eurozone. Strauss-Kahn is, of course, likely to be Sarkozy’s Socialist rival in the next French presidential election.
LONDON – The Greek debt problem has been poorly handled by Europe’s decision-makers. European Union heads of government, and the European Central Bank, initially rejected the idea of involving the International Monetary Fund, but without a fall-back plan. It is hard to avoid the conclusion that part of the motivation for this was French President Nicolas Sarkozy’s reluctance to see Dominique Strauss-Kahn, the IMF’s managing director, ride in from Washington to the rescue of the eurozone. Strauss-Kahn is, of course, likely to be Sarkozy’s Socialist rival in the next French presidential election.