Merkel + Sarkozy for 2012 : Focus on Growth + faster Stabilisation, (while keeping an eye on Greece)

*Berlin/BundesKanzlerAmt/Angelo Marcopolo/- A German Government Spokesman, briefing Journalists waiting for Chancelor Merkel - President Sarkozy's 1st 2012 Berlin summit as "EuroFora", observed that "Growth" started to play an important role now, even in the case of Greece, thus, a fortiori for the entire €urorarea, whose Franco-German and Italian leaders are due to meet these days also with IMF's new Head, Christine Lagarde. 

New Measures for "Growth" and Acceleration of Stability mecanisms decided recently, are, indeed, a "Priority" part of the Franco-German €uroArea motor's larger political Will to "Invent" all necessary "New", "Ambitious"and "Efficient", concrete actions "for Europe's Future", able to advance well beyond the Horizon of the present Global Crisis, as both Sarkozy and Merkel strongly stressed today in Berlin :

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On GROWTH :

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 - "We ...need a 2nd Pilar of the Future, i.e. Economic Growth, Employmenté", together with "the Budgetary Consolidation, (and) Financial austerity, which are  (also) Pilars of the Future", stressed from the outset German Chancellor Angie Merkel, speaking after "the 1st time that (she) met, since the beginning of the year", with Sarkozy, together with whom "we made a profound analysis of the situation, as it stands at the beginning of 2012", as she said.

- "We, French and Germans, are very much involved in Growth, thinking (f.ex.) to the Pact EURO PLUS, and (also) very committed on Employment",  Merkel added.

=> In consequence, in fact, "France and Germany have proposed to make a Comparative Study of the various Rules currently applicable in Germany's Labour Market, in order to see which are the Best Practices".

+ "We have (also) asked the (EU) Commission to use the Funds available in Europe for the benefit of Employment, mainly in order to support SMEs, and in order to ameliorate Europe's Innovation force, develop Networks, etc", the German Chancelor highlighted. "We are going to make relevant Proposals to the (E) Commission and to (EU) Council's President", she anounced.

=> "It's with these Combinations between Healthy Finances and Growth Incitations, that we want to express our Commitment in the service of the €uro, of its Stability and equaly of our Will to have a Strong, Competitive Europe", she underlined.

Already, "Everybody is Ready to do whatever necessary on the National level. We have spoken with a lot of Intensity, and I believe in a lot of Success", the German Chancellor concluded.

In fact, "we've just spoken about Employment and Competitiveness. That was the Good Solution...... We must practice Budgetary Consolidation, must make Innovations, must make Competitiveness, we have to push on Employement, Diversify our Industry, etc.", concretely added later-on Merkel. (See infra).
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- "We have the same Analysis", agreed French President Nicolas Sarkozy from the outset :

> "Both the (German) Chancelor, and myself, we are absolutely conscious of the fact that the Priority, Today, is Growth, Employment and the Competitivity of our Continent".  

=> Therefore, "we are going to take Initiatives, in the European framework, on Employment and Training of unemployed people, on the use of EU Funds for Growth and Competitivity, and on Fiscal convergence", Sarkozy confirmed on Merkel's anouncement.

+ Moreover, "we agreed to ask from the ECB to make all its possible for the EFSF to operate more Efficiently". "There is, indeed, something very Important, in what mentioned the (German) Chancellor : - "The Demand made to the ECB to make proposals so that  EFSF works better", the French President noted. "We are conscious of the pressure exerted on some €uroZone Countries the level of Interest Rates today", and "all our work is to bring back Trust, to lower those Interest Rates, so that we can Focus on Growth", he observed.                                                                                                                                                                                                                                                                                         -------------------------

+ ACCELERATING :
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+ Meanwhile, in addition, "we spoke about the European Stabilization Mechanism (ESM) and the possibility to Accelerate its implementation, examining how we could Anticipate on the instalments of its various parts, as another concrete and visible Proof of our Commitment in the service of €uro", the German Chancellor anounced.

For the time being, it's being clarified in Brussels if the ESM could start working "1 Year Earlier" than what had been initially scheduled, i.e. from this Summer, f.ex. by bringing 80 Billions € initially, but all that should be clarified soon, Merkel's spokesman, Seibert, replied to Press questions earlier today.

+ Also, "we are Glad that that negotiations on the Fiscal Pact make Satisfactory Progres", so that "the Golden Rule, and whatever is related to that, could reach an Agreement to be signed before the end of January" 2012.

+ "Moreover, we have also exchanged on the way to Enhance the Efficiency of €uro-Safeguarding Instruments : This concerns, at first, the EFSM, which must not only accompagny Ireland and Portugal, but also, in the future, Greece, thanks to the Flexibility of its Instruments, and must be able to eventually intervene on Primary Markets".That's why "we asked from the ECB to help bring all its know-how in order to enhance EFSM's Efficiency, and we are Glad to see the ECB's Involvement and Commitment in this direction"

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>>>"The will of the (German) Chancelor, as well as of myself is that EU must learn to Decide Faster and to Implement its Decisions", French President Nicolas Sarkozy stressed from the outset. In particular :

- "First of all, we must keep our Commitments in terms of Deficit Reduction, and, from this point of view, I'm Glad to confirm ..that ... the French State's Budget for 2011, will have an Inferior Deficit for -4 Billions € less than what had been initially scheduled and agreed. I.e., France not only will meet and respect its Commitments, but will certainly make even Better", Sarkozy enthousiastically anounced.

- On €uroArea, "We (France and Germany) agreed to Anticipate the European Stability Mechanism's setting up for July 2012, and we are Ready to Accelerate (also) its Capitalisation", he added.

- "We (also) wish that the InterGovernemental Treaty (on the creation of €uroArea+'s Governance) is taken during the Next Days, that the Negotiations are concluded during the next days, and that the Treaty is signed on the 1st of March", the French President pointed out.
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+"Social" VAT against OutSourcing/Unfair Competition at next EU/€uroarea Summit ?
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But finding New, Efficient, Just and Competitive ways to contribute into Funding Social Security standards, (including, f.ex., by Fighting against Social Dumping and Unfair Competition by some Foreign Countries which blatantly commit Gross Violations even of Elementary Social and Human Rights : See earlier relevant "EuroFora"s NewsAlert), might become one of the main, landmark issues at the forthcoming, January 30 EU/€uroArea Summit :

+ Questioned if it was "Timely to introduce a Social VAT at a moment when UE faces Growth and Employment issues", Sarkozy replied that, even if there is no decision taken yet on that, before the meeting planned with Social Partners (on January 18thin France), nevertheless, it's a fact that "our German Friends have themselves, already some Years earlier, used that arm in order to alleviate Labour Costs and Reduce their Deficit". "Moreover, the issue raised in France is "extremely Important : It's that of OutSourcing", he revealed.

- "France must stop being emptied from its Industrial Blood ! That's why we shall find ways to reduce Labour Costs and allow France to remain a great Land of Production", taking also for "Example, what our German Friends have already done with their Industry", as he said.

+ "In general, we (EU) are facing the same Challenges, raised by Globalisation : I.e., from one side, States need Revenues in order to fullfil their Tasks, provide the necessary services, etc.". But, "from anOther side, we must also be Competitive on Labour Costs, in order to avoid, precisely, Outsourcings", went on to agree also German Chancellor Angie Merkel.

- "It's a Challenge that we (EU) all face, and that's why, during the Next (EU/€uroarea) Summit, we want, precisely, to speak about all that, examine the Lessons that we can take from that, and that's why I expect with Interest, a great Interest, the Decisions that France is going to take. As for us, in Germany,  naturally, we take Care so that Indirect Labour Costs remain as Reasonable as possible, in order to avoid, precisely, these OutSourcings and Job losses", Merkel clarified.

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+ Financial Transactions' Tax, (tabled by EU Commission in EU Parliament + Council from Jan. 2012)

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+ Moreover, speaking to Journalists, including "EuroFora", on his alleged "Precipitation", as someone found, "to advance so Fast .. in setting up a Financial Transactions' Tax, as a matter of Urgency", Sarkozy found "amusing" this change, from the year 2011's complaints to "delay", to the year 2012 question about "going too Fast", and clearly stressed that, both the German Chancelor "Mrs Merkel, and myself, we've always said that we Believe in the Principle of this Tax", and "we've strongly Fought" for it, "at the G20, G8, and EU Summits".

=> Now, EU "Commission endorsed our Idea, and tabled at EU Parliament and in EU Council's Heads of States/Governments, a Draft  Directive which provides a Definition of a Tax on Financial Transactions", so that "there is not any precipitation from me, since it's at the Begininng of January (2012) that  (EU) Parliament and Council will be involved. he simply observed.    

- On the Substance of the issue, Sarkozy stressed that he is "Personally i favor of the Principle of such a Tax", because, "If we are where we are" in the Global Crisis, "it's because of Scandalous and Inadmissible Errors committed by the Financial sector, and it's absolutely Normal that those who contributed into placing us in the situation in which we are since 3 Years, (i.e since the 2009 Global Financial Crisis), also contribute to is settlement".

But, "if we don't give an Example, it won't be done. Therefore, France's idea is to simply apply the (EU) Directive draft, ....convinced that we'll Help trigger a timely Movement inside €urozone". ..."Then , it will be throughout the whole World that Public Opinions in all Countries will say :  - "Why do you exonerate the Financial sector from a Tax that €uroArea had the Wisdom to create ?", the French President explained.

Sarkozy brushed away Questions on where will be affected the Revenue of such a Tax on Financial Transactions, but already gave an Idea, by pointing out that, "we shall have an opportunity to talk about that mainly at the End of January (2012), when I'll present to the People .. the Conclusions of the Summit on the Crisis that I'll hold on January 18" with Socio-Economic Partners in France, so that "Decisions won't be taken before Hearing what have to say all Social Partners", as he promissed. Indeed, this 1/2012 move is due to include also New Solutions about how to Fund Social Security's budget in the Future, without affecting Production's Competitiveness...

    + Merkel's positive stance on the introduction of a Financial Transaction's Tax starting at first by €uroArea Countries is strongly supported also by experienced Finance Minister Schauble,  as Journalists' questions to Goverment Spokesman Seibert reminded earlier today, even if  government coalition partners, Liberals, reportedly seem rather "sceptical" about it, (at least for the moment).
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=> "Invent" "Ambitious", "New"+"Efficient" actions "for Europe's Future"
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= Replying to Questions in an overall Conclusion, the German Chancellor made it clear that "as Political Leaders, we are doing what we think Important for Europe's Future" :

-"That's the reason of our meeting : The Fiscal Pact, the Financial Consolidation, EFSF's efficiency, ESM's anticipation, Growth, the Fight against Unemployment", etc., she reminded. "Because we ate convinced that we have to show that we've understood our Times, and that we are Ready for the Lessons of the Past, and Politically Decided to do anything in order to achieve that. This is the Message that we bring everywhere in the World ", Merkel stressed.

- "Our Ambitious but entirely achievable Aim is to Consolidate the €uro, because it's the Right Choice at the era of Globalization", she reiterated later-on.

- But "things will settle Progressively", so that "we are due to meet anew", since "the one Salvation - Summit does not exist :"

- " There is not any Unique Solution, but" a series of "Battlefields in which we must advance, and I'm glad that we are doing that together with France" a.o. €uroarea key countries, the German Chancellor  concluded positively, with resolution.

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+ "Never before in Europe's History, Heads of State/Government hadn't faced such a situation, which incited us to set in motion an (EU/€uroZone) Economic Governance, make efforts with Mrs Merkel for more Convergence, reiterated Calls for more Competitiviness, prove Creativity into finding simple Solutions, so that Markets can anew lend to certain €uroZone States. ..... We believe in €uro, we believe in Europe, we know what are our Responsibilities, and we work to bring the most Efficient Replies,  in the framework of the (EU) Treaties, and also of Democratic Principles,....That's why, "we have to Invent New Concepts, take Decisions, respect our Democratic beliefs. ..

- "But we are sure that there is No Alternative for our Continent than the European Unity, and that we must Save €uro, that we must all get back to work, that we have to reach our targets", strongly stresssed the French President. "The great Trust existing among Germany and France, and the Idea we make of it, is that our two Countries must Help eachother to get €urozone out of this Crisis", Sarkozy energetically concluded.
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+ On 1999-2001 early GREECE's €uro entry in exchange of Turkey's EU bid :

(Comp. earlier, relevant "EuroFora"s NewsReports)
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- Meanwhile, "We spoke also about Greece : The Decisions taken on October (2011) must be implemented, i.e. the Voluntary Restructuration of the "Greek" Debt must advance", (concerning Negotiations with Private Investors), "so that the 2nd Program in favor of Greece, including Restructuration, can be Raidly applied. Otherwise, it won't be possible to Unblock the Next (Financial; i.e. Loan) Package for Greece. But, that's what we want,  (because) we want for Greece to remain inside €uroZone", Merkel warned.      

     
- "We've naturally said that this Restructuration must serve the sustainability of the "Greek" Debt, but Greece must, of course, implement the Commitments it has undertaken vis a vis the Troika. Next week,  I'll have the opportunity to speeak about that with the Greek Prime Minister (Papademos, former EZCB vice-President during 2002-2008), who has committed himself on that, and, Tomorrow, (Tuesday Evening in Berlin); my conversation with IMF's Director General, Mrs Lagarde, will bear, obviously, also on the case of Greece", Merkel revealed.

- "Our analysis on Greece is identical : We had negotiated a PSI. We said that the PSI would be applied only on Greece's (particular) case, exclusively. Now, our Greek Friends must keep their commitments, and, together with the IMF, we shall set in motion what has been scheduled by the Brusssels' Agreement" of October 2011, Sarkozy resumed in fine.
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+ Replying later to Journalists' questions on whether there were already "sufficient" safeguards to avoid a bancruptcy in Greece and/or "any contagion" to other €urozone Countries, German Chancellor Merkel stressed from the outset that "Greece is, and will remain a special case".

- "What we want is to avoid that any Country, whatever, might be obliged to quit €uroArea", replied Merkel.

- "Greece is a special case, (and) when we see the (recent) Data, it's obvious that the participation of the Private sector (into wiping out Debt) was necessary, but not enough to put Greece back on a Good track", observed the German Chancellor.

=> That's why, "are added to that, also the Measures negotiated with  the Troika in Greece. All that must be implemented and translated into real facts",  Merkel added. "It's a Voluntary Restructuring, decided with the Banks", and "I think that we have well prepared"it, "we've taken the necessary decisions for the  Message to be clear" : "Greece must be given a Chance, but is and will remain a special case", the German Chancellor concluded.
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+ Meanwhile,"the situation is complicated", that's why we have to use Imagination", being conscious of the existing tension"; in order to "bring back Trust". "..We have the Duty to be Lucid, without dramatizing". ....We know what are our Responsibilities, and we work to bring the most Efficient Replies,  in the framework of the (EU) Treaties, and also of Democratic Principles, according to which, Mrs Merkel has a mandate for Germany, I have a mandate for France, but we don't have a Mandate for the 15 other €uroZone Countries", (as Greece, which obviously needs a real Change of policy based also on a Democratic movement from inside the Country). That's why, "we have to Invent New Concepts, take Decisions, respect our Democratic beliefs. .. We are not yet at the end of the road, and that's why we continue", added after that question also Sarkozy.

+ "There are (still) Efforts to be made, which should have been made already a long time ago", but were delayed" in the Past, so that "we are working to Fix all that", Sarkozy concluded, (apparently pointing at the serious Responsibilities of several former "Socialist" Governments of the Past, which had, f.ex. notoriously closed their eyes on a growing Debt in Greece, back on 1999-2001, due to an excessive number of counter-productive cushy job holders and/or abusive or corrupted/criminal political lackeys scandalously hired mainly by PASOK's Clientelism and/or Nepotism from the Decade of the 1980ies, in exchange of Turkey's controversial and unpopular EU bid, provoking a Financial "Time-Bomb" which exploded during the 2009 Global, USA-made Financial Crisis.... An obviously posssible issue for 2012, 2013 and/or 2014 French, German , EU a.o. forthcoming Elections)...
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Earlier today, Journalists' questions to German Government Spokesman Seibert about rumours, speculations and Press reports concerning a reportedly lower than expected Growth in Greece, which would oblige either to extend the "Haircut" of voluntary Private investors' loans (known as PSI), and/or add a new EU supplementary aid, were dismissed, until further notice, waiting for a full "Official" report on all verified facts, probably "next week".
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In fact, it had been both predictable and predicted, indeed, that the methods used by the 2 last, exclusively or predominantly PASOK '("Socialist") Governments in Greece, by heavily Taxing the Productive Businesses and by strictly Reducing Social support to Poor People, in order to continue paying a notoriously excessive number of counter-productive cushy job holders and/or abusive, corrupted or even criminal Political Lackeys scandalously appointed to the State-controlled sector during the last 30 Years (1980-2010) by Clientelist/Nepotist previous, mainly PASOK, Governments, would inevitably aggravate Debt and lead to Recession and Popular Revolts, as it started to happen since last Summer/Autumn 2011.

Only serious, drastic Structural Changes, including to Fire (and/or ask them to pay back part or all of excessive salaries, early retireremnts and other advantages, if they had been abusively perceived from the State for Years or Decades) at least the most useless, and/or counter-productive cushy job holders hired by such Clientelism of PASOK, etc.,  and/or to impose Sanctions at least to the most  Abusive, Corrupted and/or Criminals among such notorious Political Lackeys of PASOK's Nepotism, could have a Real Chance to diminish the Debt, while also letting Production free to create Growth and satisfying Poor and other People's thirst for Justice with a necessary Anti-Corruption Purge. (See relevant "EuroFora"s analysis and Facts, since +12/2009).

Recently, it seems that some among IMF's a.o. Experts might have started to realize at least part of what should and could have been done in this particular case of Greece, and reportedly raised questions about laying off some among those PASOK-hired, counter-productive cushy-job holders and/or abusive, corrupted and/or criminal political lackeys, but reportedly faced silence, Oppositions, Refusal and/or Diversion manoeuvers, etc.  As, f.ex., that scandalous PASOK proposal to make Poor People starve and Productive Businesses close down, in order just to pay ...20 Years more of "Early Retirement" lazy Holidays to such  cushy-job holders and/or Political Lackeys, in addition to some 30 Years of heavy Debt-provoking Salaries and various other, in fact, undue Financial advantages (sometimes, even ... "15th Salary" !) already paid throughout the 1980-2010 period which notoriously provoked that huge Debt, (scandalousmy Hidden during Greece's Earlier than normal entry into €uroZone, even without doing previously necessary Reforms, in exchange of Turkey's controversial and unpopular EU bid, back on 1999-2001, exploited politicaly then by various former "Socialist" Governments in several EU Countries in the Past.

However, IMF and its EU Partners have approached, but, apparently, not reached yet the point where Economic Efficiency would meet elementary Social Justice : F.ex. thanks to a massive Anti-Corruption campaign, able to win the support of a dynamic Popular movement, notoriously fed up by 30 Years of Nepotism, Abuses, Discrimination, Corruption and even Crimes (1980-2010), that only an Hungarian-like or Argentinian-like opening of Legal possibilities of Purge without bureaucratic Time-Deadlines (which may cover up scandalous impunity of corrupted and in some cases even dangerous criminals).

Indeed, even if IMF's new Head, the experienced Christine Lagarde, was just anounced Today, by Merkel's Spokesman, to visit Berlin for meetings with the German Chancelor, tomorrow evening, as well as with the Italian Prime Minister Monti, probably followed also by an equivalent meeting with French President Sarkozy, nevertheless, a tight-liped Seibert avoided to reply to any question about the concrete issues which would be discussed by Lagarde, at the eve of IMF's Experts' new, crucial visit to Greece next week...
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However, the fact that alleged problems with USA representatives of Private Investors seem to emerge in Greece just at the eve of an exceptionally crucial UNO  Top Level meeting with its Secretary General Ban Ki Moon in New York on Cyprus' issue, of well known significance for Turkey's controversal and unpopular EU bid, (a matter of notorious Geo-Political controversy between real pro-Europeans and Globalists), threatening to provoke also an eventually abusive lowering of France's a.o. EU Countries' rating by Anglo-American Agencies, (etc), seems to indicate the probable presence, inside the overall equation, of also various other, non-economic, but GeoPolitical factors ...