EU, under threat, shows new urgency in crisis

“The crisis has shown us we need to animate moves toward closer political union as well as monetary union and we need a quantitative jump. The EU has used crises in the past to make =that kind of jump and this is what is needed now.”

#imag1 After a week in which the EU took drastic measures to wrest the initiative from financial markets, EU leaders are finally using a debt crisis to launch painful reforms that could prevent it becoming a spent force.

After weeks of failing to resolve Greece’s debt problems, the EU agreed its part in a $1-trillion rescue fund for euro zone countries early on Monday, and Spain and Portugal have bitten the bullet since then by announcing austerity plans.

The unveiling of European Commission proposals for tighter budget discipline has also shown Europe is at last getting to grips with a crisis which German Chancellor Angela Merkel says is an “existential test” for the euro zone and the 27-nation EU.

“There is still a long way to go. We have opened the gate. Now we have yet to go through it,” said Ulrike Guerot, an analyst at the European Council on Foreign Relations think-tank.

Read Entire Story in Reuters

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