The EFSF fund and the ESM fund

The basis elements of financial-assistance are described in the EFSF fund and later in the ESM fund. But these rules offend against the “No-Bailout” clause of the contract. The Federal Government of Germany has tried since 2010 to limit his results by protection mechanisms. So they focused all their interest in the formula of “Ultima Ratio”: The crisis funds should be used only if it is guarenteed that the support be only granted for reform editions. However, the contract shows many open details for a financial aid. The conditions of support are hardly specified.

The ESM is executed on the “Ultima Ratio”, which is not a clear rule for everyone. At the last EU summit it was fixed on the same day in which the German parliament should ratify the ESM contract that this agreement must be soon changed again. Spain was the first exception for the ESM aggreement. A similar agreement was decided for Italy. The aid becomes greater and greater in southern euro-states. For the member states of the EU it is imposed therefore to incur no more other debts. Just those “close-to-the-idea-of-EU” states defend against a kind of political union. The debt union and the irregularity belong together

Development of the Euro:
However, this debt trend is to be understood only before the following background of the last development of the Euro. After the euro leaves last week his high peak with 1.43 dollar for one euro, now the analysts believe that the euro begins, finally, his long expected slow downhill “game”, because this would be for example also essential for the export economy. However, the experts of the royal bank of Scotland expressed pessimistically to the dollar development. They expect in spite of the positive US-job market data that the mortgage crisis of the US economic situation further presses the more predicted euro development. Others see the euro in a consolidation phase like analysts of the Raiffeisen-bank group from Vienna. It has been faded out that indicators would have got worse for the economic situation in the eurospace at last. The ifo index to the German climate reached a 19-month low. Rumours brought new pressure that central bank sold dollar.