USA Africa Dialogue Series - As German Chancellor Professor Angela Merkel Said, Only A Union Of Europe Can Save Them

As German Chancellor Professor Angela Merkel said a couple of days ago, only a Union of Europe can save them. Are our Afrikan leaders listening? Only a Union of Afrikan states can save Afrika!

US futures edge lower as concerns turn to Spain

John Panin, Joe Tarangelo– Photo: AP

November 17, 2011 — NEW YORK (AP) — U.S. stock futures are edging lower as concerns about Europe's lingering debt crisis turn to Spain.

The Spanish government paid nearly 7 percent in an auction of 10-year bonds. That is the highest rate since 1997 and a level that economists seen as unsustainable. In the U.S., investors will be looking toward the government's report on initial applications for unemployment benefits last week. Economists expect that the number rose slightly to 395,000, which is well above what is considered a healthy jobs market.

The Dow Jones industrial average was down 27 points, or 0.2 percent, to 11,817 two hours before the opening bell. S&P 500 futures fell 5, or 0.4 percent, to 1,226. The Nasdaq 100 slid 9, or 0.4 percent, to 2,304.

Merkel Urges More Unified Continent to Save Euro

By NICHOLAS KULISH

Published: November 14, 2011

LEIPZIG, Germany — Chancellor Angela Merkel of Germany warned reluctant members of her conservative party in no uncertain terms on Monday that deeper political integration was necessary if Europe's common currency was to be saved.

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At the Christian Democratic Union's annual congress here, Mrs. Merkel told her party that "not less Europe but more" was the answer to the sovereign debt crisis facing the euro currency union. Mrs. Merkel, a scientist turned politician, drove home her point with unusual oratorical urgency, saying Europe had likely entered "the most difficult hours since World War II."

"It is now the task of our generation to complete the economic and currency union in Europe and create, step by step, a political union," she said.

But the kinds of changes to the European Union's treaties Mrs. Merkel is proposing would likely take years to enact, requiring approval by all 27 nations of the European Union, by each Parliament or through referendums. Treaty amendments cannot help resolve the acute crisis affecting the continent's heavily indebted countries and undercapitalized banks right now.

But Mrs. Merkel reiterated her opposition to euro bonds or other methods of collectivizing the debts of the 17 European Union countries in the currency bloc.

The push for deeper cooperation within the euro zone also awakens fears among the 10 members of the European Union that do not use the euro that Europe will break into two blocs — usually referred to as two-speed Europe — divided by different rules for those in the currency union and those outside of it.

And many countries already using the euro are concerned about how rigorous the fiscal controls could be under German leadership. For all the high-flown oratory, Mrs. Merkel called in her speech for automatic sanctions against countries that violate budgetary rules, and even for the ability to take offending countries before the European Court of Justice.

There has been no small amount of discontent in the German conservative ranks. Many members grumble that the Christian Democrats have tacked too far to the center under Mrs. Merkel, giving up on mainstay positions like support for atomic energy and military conscription, and most recently moving toward a compromise on establishing minimum wages in sectors where there are no collective labor agreements.

In particular, the bailouts for Greece, Portugal and Ireland have been extremely unpopular among German voters. In her address on Monday, Mrs. Merkel stressed that Germany is inextricably linked with the other members of the European Union and draws economic strength from the common currency.

In a reminder of the hard feelings toward the nations requiring bailouts, in particular Greece, there were calls from within the party before the congress began for a mechanism to throw countries out of the euro zone. Those calls were rejected, but delegates approved a measure on Monday that would allow nations to voluntarily leave the currency bloc if they chose to.

Although the Christian Democrats are just one of three parties in the governing coalition, the event was an important opportunity for Mrs. Merkel to address her political base, elected officials and party rank-and-file from across the country.

Mrs. Merkel did not strike a conciliatory line in her hourlong speech, but instead sounded at points like a sharp taskmaster. "We do not despair, we do not complain, we do not whine; instead, we know that we have a task," she said.

Markus Lewe, the mayor of the city of Münster, said the chancellor "sent a clear signal that we are in the midst of a change of paradigm" with regard to European policy.

"She stressed that this is epochal and historic," he said.

Angelika Gemkow, a retired member of the state Parliament in North Rhine-Westphalia, said, "More than anything we need a stable currency, no matter what it's called."