December 2, 2011- In an attempt to stop a global economic crisis, the finance ministers of the 17-euro zone nations are meeting in Brussels. Their goal is to save the common currency in the zone and make sure the global economy is not affected by their sovereign debt crisis.
The ministers have begun to discuss ideas that at one time were unthinkable but must be considered in moments of desperation. Ideas included on this list include an elite group of nations in the euro zone that would guarantee the loans of others members, countries releasing fiscal sovereignty to a separate central authority and a requirement of strict fiscal discipline for any country wanting to be a member.
Angela Merkel, Chancellor of Germany, announced her support for changes in the current treaties in Europe to pave the way for a fiscal union. She knows this will not be any easy task since some of the European Union’s 27 members are not happy with change. However, she dismissed rumors that the 17-member euro zone would move ahead alone.
With the rest of the world economy counting on the survival of the European economy, swift, aggressive action is urgent. Past debts of 638 billion euro’s for the governments in the euro zone are coming due in the upcoming year. Forty percent of those need refinancing before the end of the first 120 days of 2012.
Ministers are calling for the nations to integrate their budgets and closely monitor one another’s spending. Also being discussed is that Eurobonds be joint-issued, possibly lowering the borrowing rate if stronger economies like Germany are guaranteeing them.