Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Alex who wrote (11480)	5/10/1998 12:09:00 PM
From: goldsnow	Respond to of 116834

Kissinger says hard to see how EMU can succeed 10:43 a.m. May 10, 1998 Eastern STOCKHOLM (Reuters) - Former U.S. Secretary of State Henry Kissinger said it was difficult to see how the European economic and monetary union could succeed but added it was even more difficult to imagine that failure would be tolerated. Kissinger, writing in the Swedish newspaper Dagens Nyheter on Sunday, said the project would be riddled by conflict between Germany and France. ''It's difficult to see how the European economic and monetary union could be a success. It's even more difficult to imagine that a failure would be allowed,'' he said. ''Navigating correctly through this developing situation will be a increasing challenge for U.S. foreign policy.'' Harmonizing 11 countries' fiscal policies under a single monetary policy would be difficult during a period of strong economic growth. However, during a recession it would be even more complicated. ''If different parts of Europe find themselves in different parts of an economic cycle, it can be impossible to manage.'' Socialist Europe especially could eventually be confronted with a dilemma, he said. ''Within the existing parliamentary system, European countries have not succeeded in reducing the social welfare programmes which has ruined their ability to compete and aggravated unemployment.'' EMU would eventually be driven to become a political union or towards dissolution, Kissinger said. ''But the Europe which would result from a collapse of EMU will be characterised by either extreme leftism or extreme rightism, or a combination of the two. ''It is in the interest of the United States to stop such a breakdown, but this does not at all mean that we should give unqualified support to any type of integration, regardless.'' Copyright 1998 Reuters Limited.