Wall Street Journal
October 26, 2011
Otto von Bismarck is said to have warned against watching laws and sausages being made.
Well, Europe's latest generation of politicians is trying to rebuild a pig out of sausage meat. They are trying to shore up confidence in the fatally flawed euro zone using half measures, when what's really needed is a fundamental rethink of the project itself. What's more, only half the necessary participants are involved in the half measures.
Unless the European Central Bank throws the might of its printing presses into the mix, a move that could buy Europe's politicians time to create the next medium-term eurofudge, the latest summit is likely to prove a failure.
In the longer term, one commonly cited solution is closer fiscal integration of countries that use the euro. If only, say its proponents, euro-zone members were more closely bonded through taxes, transfer payments and governance structures, the imbalances that are threatening to tear the single currency apart could be resolved.
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