Austria's leaders reject Juncker's vision for euro expansion

[webfact]

Austria's leaders reject Juncker's vision for euro expansion

 

Austria's Chancellor Christian Kern of the SPOe attends his party's official start of the election campaign in Graz, Austria, September 7, 2017. REUTERS/Heinz-Peter Bader

 

VIENNA (Reuters) - Austria's Social Democrat Chancellor Christian Kern and conservative Foreign Minister Sebastian Kurz on Thursday rejected European Commission chief Jean-Claude Juncker's vision to expand eastward the euro and a border control free zone.

 

In his annual State of the European Union speech, Juncker sketched out a vision of a post-2019 EU where some 30 countries would be using the euro, with an EU finance minister running key budgets to help states in trouble.

 

French, German and eastern European officials have made positive comments about the speech.

 

Kern, who is running against Kurz in parliamentary elections on Oct. 15, told ORF radio there was no point in expanding the euro and Schengen zone as long as tax fraud, the practice of contracting out work to lower-cost eastern European firms and breaches of limits for government debt had not been vanquished.

 

"It simply makes no sense to enlarge the euro zone before this has not been dealt with, because (otherwise) problems would get bigger," Kern said, pointing to Greece's struggle for years on the verge of bankruptcy as a prime example of such problems.

 

"If you like this is an expansion of the problems at the end of the day and not a plus in European cooperation. I think this concept is not thought through."

 

Kurz also pointed to Greece as a bad example of including countries which do not fulfil the conditions for public finances the EU has set for itself.

 

"The euro and the Schengen zone is open for everybody, but only for those that fulfil the criteria... We must avoid another situation like the one in Greece," Kurz said.

 

(Reporting By Shadia Nasralla; Editing by Shri Navaratnam)

 

-- © Copyright Reuters 2017-09-14

[observer90210]

In other words, how to make the EU mess even bigger!!!

[ilostmypassword]

Is Poland one of those eastern european nations? Because they haven't adopted the euro yet despite a promise to do so one day. If greeece weren't a member of the eurozone, it would have had a really bad depression - maybe even as bad as the one they're still suffering from - but it would have been a lot shorter.

[terryw]

Two European politicians talking sensibly. A pity that the majority, like Junker, are in political dreamland.

[BuaBS]

The farther east you go in the EU , the better the governments get.

Austria is just on that borderline.

[hugh2121]

5 hours ago, ilostmypassword said:

Is Poland one of those eastern european nations? Because they haven't adopted the euro yet despite a promise to do so one day. If greeece weren't a member of the eurozone, it would have had a really bad depression - maybe even as bad as the one they're still suffering from - but it would have been a lot shorter.

The problems in Greece were exacerbated by the Euro. If they still used the drachma they could have devalued it and relieved a lot of pressure.

[ilostmypassword]

Just now, hugh2121 said:

The problems in Greece were exacerbated by the Euro. If they still used the drachma they could have devalued it and relieved a lot of pressure.

So we agree. The Euro is a bizarre idea. American economists from left to right were puzzled by why anyone would think it was a good idea. It seems to have been driven more by emotion than reason. 

[BuaBS]

5 hours ago, ilostmypassword said:

So we agree. The Euro is a bizarre idea. American economists from left to right were puzzled by why anyone would think it was a good idea. It seems to have been driven more by emotion than reason. 

Central Bankers.

[hugh2121]

4 minutes ago, ilostmypassword said:

So we agree. The Euro is a bizarre idea. American economists from left to right were puzzled by why anyone would think it was a good idea. It seems to have been driven more by emotion than reason. 

American economists aside, to have a single currency you need a single economy. Euroland has many economies and all are trying to keep up with Germany. Not driven by emotion but by unelected power hungry bureaucrats. 

Edited September 14, 2017 by hugh2121

[ilostmypassword]

Just now, hugh2121 said:

American economists aside, to have a single currency you need a single economy. Euroland has many economies and all are trying to keep up with Germany.

Yes, without a fiscal union, a currency union makes no sense. And we can see the results in the painfully slow and still ongoing recovery of the Eurozone from the Great Recession.

[Joedoebarinio]

Junckers thinks he's had a vision, but it's a message in a bottle. 

[lamyai3]

Juncker is nuts. 

[nausea]

 

10 hours ago, hugh2121 said:

Euroland has many economies and all are trying to keep up with Germany.

Sums it up nicely.

 

[Rancid]

Makes sense to me, if any entity be it corporation, country or zone is in massive financial difficulties then the obvious move would be to expand it. Why actually fix all the problems, especially if its the structure itself that actually causes many of the problems. There again there would be a lot of bureaucratic snouts and their 5 star lifestyles at risk if they actually admitted there were problems. As such the Titanic sails on raising its speed...

[Sydebolle]

Unlike Junckers everybody else needs to be elected.

Tell Junckers to look for the bottle opener and disappear into Luxembourg's home for retired boozers rather than making the EU mess worse than it already is. 

[robertson468]

Junckers has only one interest, as a self serving bureaucrate who not only is seeking fame, but fortune because if he increases his zone of responsibility, he will claim an increased salary and pension.  He and his cohorts are trying to use "False guesstimate" information about the way Brexit will go, but in reality, they have no more positive idea than the man in the street, they just don't want to loose power and anyone who threatens that power base is in for a hard time.  As has been said, if Countries has there own currency, they would be able to flex their economy far better and in a way that suits them.  In the EU case, I am sorry to say that one size does not fit all and as we know Greece is not the only one suffering.  I am in the process of reading about World War 1 and am horrified at what Germany and Austria inflicted on the World in their expansionism drive, orchestrated by their high command.  I Ihave to wonder if that mind set has changed to any great degree?   I expect to be criticised by some for this post, but would suggest you read your history before reaching for your keyboard! 

[George FmplesdaCosteedback]

On 14/09/2017 at 9:45 PM, ilostmypassword said:

So we agree. The Euro is a bizarre idea. American economists from left to right were puzzled by why anyone would think it was a good idea. It seems to have been driven more by emotion than reason. 

Not so much emotion, more fantasy idealism, expansionism and megalomania...

Something the world has seen before in Europe more than once.

 

[dundee48]

Absolutely hilarious,not a remoaner in sight trying to justify this.We got out at the right time.This drunkard Juncker has been saying this for years when he`s pissed,now he has said it sober(ish).Watch the whole house of cards come tumbling down very soon.

BTW,this junket was in Strasbourg,the whole gravy train had to upsticks from Brussels to hear this drunken moron give his speech.

You couldn`t make it up;.

[ilostmypassword]

4 hours ago, dundee48 said:

Absolutely hilarious,not a remoaner in sight trying to justify this.We got out at the right time.This drunkard Juncker has been saying this for years when he`s pissed,now he has said it sober(ish).Watch the whole house of cards come tumbling down very soon.

BTW,this junket was in Strasbourg,the whole gravy train had to upsticks from Brussels to hear this drunken moron give his speech.

You couldn`t make it up;.

Are you serious? I've got some exciting news for you. The UK is not a member of the Eurozone. In fact, it's not being a member of the Eurozone gave it a big advantage in relation in trade with Eurozone countries. An advantage that is going to lessened by withdrawal from the EU.

[dundee48]

13 hours ago, ilostmypassword said:

Are you serious? I've got some exciting news for you. The UK is not a member of the Eurozone. In fact, it's not being a member of the Eurozone gave it a big advantage in relation in trade with Eurozone countries. An advantage that is going to lessened by withdrawal from the EU.

Yes I`m really excited to be leaving this mess.