I think it's pretty relevant to the article we had on France because that article discussed how the economic policies of France potentially led to them not taking as hard a hit with the recession. Perhaps their involvement in leading this new proposal is a function of their luck, or rather planning, with their economic policies. Obviously based on what has happened recently all nations want their economic systems to be better protected against another crisis similar to the one we've just had, and this proposal is supposed to be a big step towards safeguarding against history repeating itself.
Sunday, February 6, 2011
Euro Bailout Fund is Enough to Protect Against Future Crises
Last week, Germany and France proposed a new plan to deepen integration among the 17 countries that use the Euro as their national currency. The proposal is meant to strengthen the economic rescue fund, which amounts to 440 billion euros. It also could lead to the euro nations agreeing to more of their economic policies in a unified bloc.
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It is nice to see how European countries help each other to recover from the current recession. Also, in the article it states that they are proposing lower corporate tax. Given high unemployment rates in European countries such as Spain, France, and Italy, lower corporate tax is good news as it should increase number of jobs.
However, a lower corporate tax will leave less revenue for the countries to work with to help their high budget deficits. Illinois is getting a lot of heat for raising their income and corporate tax rates in order to fix their budget deficit but it seems to be the only way.
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