Centralization of fiscal policy within the European Union is an essential precondition to overcome the crisis within the Euro zone.
Jürgen Fitschen, Member of the Management Board of Deutsche Bank AG, expressed this idea in the debates dedicated to the problems of the global economy. “If we want to come out of the recession we should delegate the fiscal policy management. If the member countries are unwilling to waive their sovereignty, then building a new, common Europe is impossible,” he said.
Pan-European solidarity in the trade and economic sphere is advantageous both for “poor” and “rich” European countries. While “poor” states may get help in the situation of economic crisis, solidarity means extended export opportunities for more developed, in economic terms, countries, first of all, for Germany. The populations in many European countries do not understand in full the sense of integration inside the EU. However, this does not make integration less essential.
Arguing against Larry Summers, Jürgen Fitschen emphasized that stimulating the demand itself can’t resolve the present problems of the global economy. “The world incurred too high debts and we need to balance them somehow. We can’t throw money into the world again and again. There is no lack of liquidity. There is a lack of trust,” he mentioned reminding that in the USA themselves, the funds accumulated in the foundations are not duly utilized… “We should not create demand at any cost. We need viable, sustainable demand,” Jürgen Fitschen believes.
The 8th Yalta Annual Meeting entitled “Ukraine and the World: Common Challenges, Common Future”, organized by the Yalta European Strategy (YES) in partnership with the Victor Pinchuk Foundation, will take place in Livadia Palace, Ukraine from 15th to 18th of September 2011.
International Renaissance Foundation