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Dublin: 10 °C Thursday 20 June, 2013

Sarkozy: We need to rethink Europe to save the euro

In a dramatic speech this evening, the French president said that there needs to be a “rethink” of how Europe is structured – and possibly a new treaty.

Sarkozy delivering his speech in Toulon, France, earlier this evening
Sarkozy delivering his speech in Toulon, France, earlier this evening
Image: AP Photo/Claude Paris

NICOLAS SARKOZY TONIGHT made a dramatic intervention in the eurozone crisis, suggesting that the EU needs major treaty changes to fix the ongoing turmoil.

In a speech in Toulon in France, the French leader said that he and the German chancellor will push for European treaty changes to “rethink the organisation of Europe”.

The speech was in direct contrast to Tánaiste Eamon Gilmore, who earlier today hinted strongly that Ireland would resist any proposals to amend EU treaties.

Sarkozy repeatedly emphasised that eurozone economies would have to pull together if the euro is to survive.

The French president said that Europe must be “refounded,” with France and Germany at its heart to ensure “a zone of stability,” reports Al-Jazeera.

He praised France and Germany for their increased co-operation, saying that all of Europe was stronger when France and Germany were united.

Sarkozy described the EU’s Maastricht Treaty as “imperfect”.

The French president also said that “unfair competition” on tax could not continue, hinting that EU-wide tax harmonisation will be one of the key issues pushed by France and Germany when they meed next week.

Sarkozy said that he and German leader Angela Merkel would unveil proposals at a meeting on Monday in Paris which will “guarantee the future of Europe”.

Earlier today the head of the European Central Bank hinted that the bank was ready to play a bigger role in the resolution of Europe’s debt crisis – but only if the 17 countries that use the euro tether their economies more tightly together.

The speech marked a significantly more aggressive response to the eurozone crisis from the ECB.

You can watch Mario  Draghi’s speech here:



(Video uploaded by AssociatedPress)

Read more: Gilmore gives strongest hint yet that Ireland opposes EU treaty change >

- Additional reporting by AP

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Comments (76 Comments)

  • Bye, bye IFSC, microsoft, google etc. if he gets his way on tax harmonisation..

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    • I was thinking that too! We can say goodbye to every multi-national in the country – they’ll all go where they can get cheaper labour!

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    • It is the future potential that it kills as well,locked in to an economic and currency straight jacket. We’ll stagnate for decades, there will be an arc of poverty on the edge of Europe, with countries stuck with interest rates that do not meet their needs and a currency at a completely unsuitable level. France may yet be one of them, for all its Eu nationalism and ambition to share the leadership with Germany.

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    • Ah shur what matter, we’l have loads of punts

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  • An election year coming up political posturing from Sarky. Hopefully the French people kick him out.

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  • We need to rethink the organisation of Europe? Okay, how about a Europe where France and Germany stop telling everyone else what to do? I can only speak for myself but I’d much rather a less prosperous EU if it meant all members were treated more fairly. And he’s back on about the tax thing again…?

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  • Referendum will happen and we’ll be offered a reduced debt burden but will have to take tax harmonization and tighter fiscal control.

    I say, tell them to get stuffed. Default on all bank debt. Devalue so we become competitive again and trade our way out of this mess.

    Our biggest ‘customers’ are the US and the UK. They are our friends and will continue to buy from us, especially if we are cheaper.

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  • Germans and French unveiling their plans to take over Europe. They now want a three tier Europe it seems ‘France and Germany at it’s heart’. What? Like the Romans? Where all serve Rome as vassal States. We need a major rethink alright… Of our association with the EU. We went in on the basis of one country one vote. Now look at the deal!!

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  • I think European countries will be told shite or get off the bucket..change is coming and it’s a case of how much balls Ireland has in a game of Russian roulette…brace yourself lads/lassies there’s rougher times coming

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  • Bear in mind that this was a speech to launch his re-election campaign and should be given as much credence as Gilmore’s “Labours way or Frankfurts way” speech or Verucas “not a cent more into the banks” etc etc

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  • Subsection 4 of the Lisbon Treaty:… “4° Ireland affirms its commitment to the European Union within which the Member States of that Union work together to promote peace, shared values and the well-being of their peoples.”
    Now somebody explain how Impoverishing the Nations People is in the interest of “the well-being of their peoples”

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  • The only thing Sarky didn’t say was there will be a ruling Franco/German elite with the rest of Europe being the underlings.Good luck with a ref on that one Enda.As for Gilmores thoughts on a ref he has proved he cannot be trusted wikileaks anyone

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  • Bless, he still thinks he has control in Europe.

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  • anyone remember the promise from the Lisbon treaty ? more jobs etc wouldn’t trust Germany or France pair of dictators………..

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  • Sarkosy= monstrous failure

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  • re corporation tax.frances underlying rate is actually lower than ours..a number of years back we had a tax regime for MNCs etc that was high with more loopholes than a politicians promise. our govt then reformed it and got rid of loopholes..put rate at 12%.. france on the other hand is still levelling artifivially high gross rate but companies in reality actually pay net 8-9% less than us. sarkozy is a hypocrite on this topic. however..for euro to succeed it requires closef fiscal union..but can small countries like ours get a fair deal? uk stayed out..so too did denmark..we have loads in common with uk..and when i was in school..geography studies showed me ireland was very similar to denmark..population agriculture etc…we are in for better or worse now..but if it fails..peg punt to sterling

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  • One word! NO

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  • Sunday’s like we’re going to have another referendum……and then another one when they don’t like the answer to the first!

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  • One word – Iceland

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  • Couldn’t have put it better my self!

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  • You mean we should go back to our irish pound….that will make more sense……

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  • Just because its our only choice doesnt make it the right one we would be a small voice in a crowded room.
    Id give it till our next general election before the whole arrangement fell apart.
    Would it be possible to take back our oceans / fisheries, export as much of our agricultural products ect if we left?

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  • Ah Sarkozy on about tax harmonization again is like a broken record. They tried that in Maastrict and failed. They were lucky to get the tripple qualified majority voting lark tidied up in Amsterdam or Maastrict(can’t remember). It made no difference because we need to vote on it. Sarkozy will live to regret his stance on this. They may go ahead with a rushed treaty but it won’t include tax harmonization. It would never get accepted. However, I feel having Europe watch over our budget is not a bad thing at all within a federal Euroland when you consider the ill guided mess progressive government have made of it on their own.

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    • Having europe watch over the budget would probably be a positive thing for a few years at least, but giving up fiscal soverignity is too high a price.

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    • Giving over our fiscal sovereignty is a term the has many possible definitions. It could simply mean extension of and stricter implementation of the budget deficit guidelines that exist already. Which wouldn’t be as bad as some suggest.
      I am anti tax harmonization because localized tax systems can be tailored to suit very different cultural and diverse economies. Just like the euro having one interest rate forced on nations whether in boom or stagnant because it suited the largest nation.

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  • Losing all Multinationals (euro) OR extremely devalued currency (punt)..

    Fun times in Ireland comin’ round the twist..

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  • Maybe it should be that we rethink the euro to save Europe rather than the other way round

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  • Exactly!

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  • Who said “refound”? Is that even a word? It sounds a lot like founder. As in, sink without trace.

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  • The man is looking for re-election so he’ll say anything (like all Politicians)

    I’m just amazed at how brash they are (well, not really). France hasn’t balanced its budget since the 70s yet there he stands, on his elevated soap box, preaching to everyone else.

    Bull and bluster.

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  • Time to jump off this sinking ship before it’s too late. Bring back the punt! Default on all non sovereign debt. Tough it out for a few years, and use the incredible capable Irish public to rise again.

    “The great appear great because we are on our knees: Let us rise.”

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    • A cuddly aspiration, but what happens then?

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    • Ryan your an idiot. You know your dealing with an idiot when all they can resort to is discrediting people for not being able to give specifics on what will happen in the future. There is no point in discussing anything with you because no matter how much details you give you will still use the “But what will happen next” line like someone with a serious mental impairment. Going from article to article rehashing the same crap.
      Or maybe you are someone who just wants to pretend like they are intelligent. Lets not fool ourselves into thinking that you aren’t just rehashing a rhetorical question used constantly on RTE debates shall we.
      Why don’t you ask the same question of Enda or Sarkosi. Why is it nobody who uses that phrase ever uses it on the politicians who are making matters worse? You people don’t deserve accountability because you don’t demand it. The system will be corrupt so long as you are blind to whats going on. It doesn’t matter if its the French, Germans or Irish voting for these people. Are you really that pathetic that you think they are right because they present statements in suits.
      There are options on the table for Ireland believe it or not, even options for Europe. Parallel currencies come to mind. But you would rather listen to the power hungry. How many times have we been told that the problem would be fixed after ceding just one more ounce of control over to un-democratically elected officials? They are pilling debt on debt when the only way of solving the issue is debt-jubilee. That is what has been used historically to put economies on the road to recovery, to be as dismissive of it as you have just shows you have no idea what you are talking about. You want to know what happens next, take a look at what happened historically.
      The only people who benefit from pilling debt onto more debt are bankers who make money through interest on said debt. The same bankers who crashed the economy and had the tax payer bail out.
      Not only do they refuse to pay their own debt but they want to make as much money from the dumbass they roped into paying it. And you are the dumbass Ryan because you continually walk right into the scam.
      The reason they want to change the treaty is to create a European bond which will not help us one bit.
      The only thing it will do is make speculators richer. The same speculators who crashed the global economy in the first place.
      Have you forgotten how the Lisbon treaty would create jobs? Or are you just happy that when you asked “But what will happen next?” they gave you an answer, albeit a lie.
      Stop inviting the robber back into our house for another gander.

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    • The incredible capable Irish people? Where would they be now? The ones who blew money they didn’t have in the last decade? – just because you say don’t mean it’s true.

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    • Well said John, very well said, I concur on everything you wrote…I had noticed that before about Ryan alright. He is like a worn out RTE sound bite or Daily Mail cutting, its very irritating to read the same crap daily, I suspect he imagines himself to be some sort of pseudo intellectual. He never fuc**ng gets off this website anyway.

      Reply
    • @john, maybe ‘what happens now?’ is a question that doesn’t get asked enough round these parts…

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    • CJ Ryan 02/12/11 #

      Three cheers for John.

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  • This was foretold a long time ago and every crisis is being used to bring us down the road of total control. That of course raises the question, was this crisis engineered or did it just happen?
    I believe it didn’t just happen.

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  • Interestingly, he also said:
    “A new economic cycle of debt reduction was beginning”, and:
    “The extravagant growth of the financial sector has placed the economy under the exclusive domination of the logic of speculation”.
    Fancy that – proposing a solution to a debt crisis that doesn’t involve getting more debt!
    That’s the first sense I’ve heard from a politician since this whole ‘crisis’ began!

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  • John 02/12/11 #

    The eu project has failed, as has the euro experiment. Suck it up, admit the failure, and let everyone salvage what they can.

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  • He’s not wrong you know.

    Brendan Keenan put it well yesterday in The Independent when he said “…the Euro is a currency without a Government”. For the European project to succeed, of course there will need to be further integration. We’re a very small nation and we need to decide whether we’re better off in or out.

    In relation to MNC’s pulling out due to EU tax harmonisation, our new Government need to understand very quickly that, just like the property bubble, you can’t rely on one source of income (or in this case, large-scale employment). We need to encourage indigenous entrepreneurship and continue to invest in technology, agriculture, manufacturing and tourism.

    We have a lot to offer. Can we still offer it if we exclude ourselves from Europe and the Euro?

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  • If a new Punt was to be worth a fraction of the Euro, say 25%, the price of the pint would be a pound, you’d pickup a small house for around IR£25,000. It’d be like we were back in the early 80s. We even have the dole queues to go with it.

    Reply
  • CJ Ryan 02/12/11 #

    All the Kings Horses and All the King’s Men couldn’t put Humpty together again.

    27 (or 17 in the eurozone) countries with different ethnic groups, different cultures, different languages, different fears and aspirations could never form a full federation. At least not democratically.

    The sh*tty little peninsula that is Europe is sinking like the Titanic. And the band is playing ‘Ode to Joy’.

    Reply
  • Its not just Henry who has their hands on everything….typical French… Bring back the punt in six months we all be converting it for a sun holiday like the good ol days…

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    • Henry who?

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    • Thierry Daniel Henry is a French professional footballer

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    • he French team struggled during the 2010 World Cup qualifiers and finished second in their group behind Serbia. During the playoffs against Ireland, Henry was involved in a controversy in the second leg of the game at the Stade de France on 18 November 2009. With the aggregate score tied at 1–1 and the game in extra time, he used his hand twice to control the ball before delivering a cross to William Gallas who scored the winner.[60] This sparked a barrage of criticism against the Frenchman, while national team coach Raymond Domenech and Arsenal manager Arsène Wenger defended him.[61][62] The Football Association of Ireland lodged a formal complaint with FIFA, seeking a replay of the game, which FIFA declined.[63] Henry said that he contemplated retiring from international football after the reactions to the incident,[64] but maintained that he was not a “cheat”; hours after FIFA had ruled out a replay, he stated that “the fairest solution would be to replay the game”.[65] FIFA President Sepp Blatter described the incident as “blatant unfair play” and announced an inquiry into how such incidents could be avoided in future, and added that the incident would be investigated by the Disciplinary Committee.[66] Blatter also said Henry told him that his family had been threatened in the aftermath of the incident.[67] In January 2010, FIFA announced that there was no legal basis to sanction Henry.[68]

      Reply
  • No froggy. You just need to run

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  • A return to the pound. And not the punt , the pound. A close trade and monetary relationship with the UK is where we need to be IMO. Might not be ideal but we have far more in common with London than Berlin and Paris.

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  • Of coarse this was all engineered, every few days rating agencies come out with some bullshit about how bad a countries credit rating is & need to be down graded. This is all speculation & is all part of a tactical plan for the bigger countries to gain more control. If everyone stopped acting irrationally & just ignored these guys, things would get move along & gradually everything would get paid.

    Reply
  • Where’s my comment gone?

    Reply

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