The Hill News

As European leaders conclude a new historic treaty aimed at greater integration and averting collapse, Germany formalizes its undisputed leadership of Europe.  Timing and symbolism cannot be underestimated.  The new accord’s endorsement at the Brussels summit occurs twenty years to the day of the Maastricht Treaty’s signing, which created the European Union and its single currency, the euro.

However, euphoric headlines claiming “German vision prevails” may soon be replaced by “Euro fails”.  The Brussels summit may amount to too little, too late. It provides no form of closure for the eurozone crisis. Nor does it include any credible measures to address immediate needs.  Europe still remains in the danger zone.  In fact, the eurozone’s intrinsically inherent contradictions were on full display at the summit. The bottom line: how to reconcile a single currency with 17 different fiscal policies and banking systems, particularly when nor! thern European fiscal responsibility is hampered by southern profligacy.   

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