The Student News Site of Colorado State University

The Rocky Mountain Collegian

The Student News Site of Colorado State University

The Rocky Mountain Collegian

The Student News Site of Colorado State University

The Rocky Mountain Collegian

Print Edition
Letter to the editor submissions
Have a strong opinion about something happening on campus or in Fort Collins? Want to respond to an article written on The Collegian? Write a Letter to the Editor by following the guidelines here.
Follow Us on Twitter
Lando Norris in Miami. Accident win or the birth of a new star?
May 17, 2024

  On May 5, 2024, an essential event for Formula 1 occurred in Miami. One of the favorites of the world public, the Briton Lando...

Germany court to rule on ESM, reduce debt — reduce risk

If the financial collapse of 2008 taught us anything, it was about the interconnectivity of every market in the world. As Germany’s constitutional court convenes this Wednesday, not only will it determine the fate of the euro, but also the short-term future of the world economy.

Massive national debts have put a chokehold on eurozone economies. Without Germany’s intervention, the euro has the potential to fail completely,xthrowing the entire world economy into turmoil.

Ad

If the judges find that the European Stability Mechanism (ESM) complies with the German constitution, it will be the final step in establishing a €700 billion bailout fund to support the other crumbling eurozone economies.

Germany’s parliament and senate have both approved the ESM, and President Joachim Gauck was about to sign it into law when 37,000 Germans petitioned the court with the claim that the ESM and the fiscal pact (which allows the EU to fine countries that spend too much) violates the German constitution.

Should the German people be forced to assume the debts of struggling European economies against their wills — even if doing so may save the European and world economy?

If the German court rules that the new measures are unconstitutional, the German people may escape relatively unscathed while the eurozone is destroyed. Germany’s protection from this potential financial disaster is derived in part from its productive economy, but mostly from its minimal debt obligations — debt being the downfall of the other eurozone countries.

America would be well-served to follow Germany’s example and minimize our debt. That way, when the next financial calamity strikes — such as the euro’s potential dissolution — America may be better able to cope with a global economic disaster.

View Comments (3)
More to Discover

Comments (3)

When commenting on The Collegian’s website, please be respectful of others and their viewpoints. The Collegian reviews all comments and reserves the right to reject comments from the website. Comments including any of the following will not be accepted. 1. No language attacking a protected group, including slurs or other profane language directed at a person’s race, religion, gender, sexual orientation, social class, age, physical or mental disability, ethnicity or nationality. 2. No factually inaccurate information, including misleading statements or incorrect data. 3. No abusive language or harassment of Collegian writers, editors or other commenters. 4. No threatening language that includes but is not limited to language inciting violence against an individual or group of people. 5. No links.
All The Rocky Mountain Collegian Picks Reader Picks Sort: Newest

Your email address will not be published. Required fields are marked *