Giuliano Amato Pushes for a European Monetary Fund To Bail Out Euro

February 16, 2010 (LPAC)—"Mr. Lisbon Treaty" Giuliano Amato calls for a European Monetary Fund today, in order to save the euro monetary system. In an interview with La Repubblica, Amato says that there are only two solutions to the crisis: "The first is a 'Bundesbankization' of Europe, because it will be Germany, the country most sensitive to payments, because it knows it shall finance the most massive ones, to take over quotas of fiscal sovereignty which Greece, in this case, shall give up." The second scenario is the creation of an International Monetary Fund-style European Monetary Fund. "The Fund could find money on the market by issuing those European bonds which Germany always rejected, considering them an indirect commitment. But when the alternative is a commitment which directly bears on your budget, an indirect commitment through eurobonds could be considered a better perspective."

Fabian socialist Amato, who recently became advisor to Deutsche Bank on "economic and political scenarios and on the evolution of regulations," says that Greece and Spain "have deserved a shock." He believes that "spreads have a useful function," and that London hitman Mario Draghi at the European Central Bank would be "the right man in the right place." He calls for a "future-oriented" industrial policy which cannot "rely on nuclear plants."

Another Fabian socialist, former Finance Minister Tommaso Padoa Schioppa, calls today for filling the gap between currency and state. The euro crisis is showing the weakness of a currency without state, Padoa Schioppa writes in an article in Corriere della Sera, entitled "Sovereignty in Transition," that "we begin to understand that the time has come for the 'euro state.'"

THE OCTOPUS KNOWN AS BANCO SANTANDER