Summer’s in full swing, with temperatures around the EU rising not only in the most literal sense. The 2012 UEFA European Football Championship (no wonder it’s called „Euro 2012” for short) is gathering pace, what with quarter-finals beginning as soon as tomorrow. Riots on the stadiums and unruly fans aside, both organizers have been consigned to hosting only, as neither Ukraine nor Poland pulled through to the knockout phase. At the same time, G20 summit in another corner of the globe (Los Cabos, Mexico) put all the current crisis-combating efforts in Europe under close scrutiny…
Not too close though; platitudes and encouragement were the words of the day. Europe was called „the world’s richest bloc” and President Obama read a long list of countries that depend on Europe for goods and funds. This a mere week before a more important European Council Summit on 28-29 July where actions will speak louder than words. In Los Cabos though, diplomats and representatives scurried about intent on solving great problems, while (seemingly) neglecting the „smaller” issues of poverty and hunger; this time, it was Europe that was on everyone’s lips.

 

 

Yves Tiberghien, Professor at University of British Columbia, said the following on the summit;

The Los Cabos G20 delivered more commitments than expected. The Europeans upped the ante and publicly committed to institutional upgrade for the banking system and fiscal situation of the EU.

Commitments are all well and good, what about actions and deeds though? In all, they’re going „to consider concrete steps towards a more integrated financial architecture„. In other words, the EU has to rekindle its love for unity and shared wealth. Germany’s wealth, to be precise, as it’s about the only major economy in Europe that’s „still standing” in the wake of the European sovereign-debt crisis.

The main course of action plotted earlier in EU is tightening the bonds that hold all 17 states of the eurozone together. Individual states will have to resign what little sovereignty they still have left and share common economic costs. That, in particular, means common banking (tight supervision locally, bank recapitalization, phasing out weaker banks and guaranteeing new deposits) and fiscal policy (common tax laws, tax rates etc.) across all the participating countries, which would presumably lead to a much greater stability – at a cost of becoming even less defined as individual states within the Union.

On the upside, the indebted countries wouldn’t have to resort to borrowing from some other banks elsewhere but rather use (and supply) common funds to that end. The plan for a banking union is already set in motion, with a broader, all-encompassing plan to be finalized by December (provided the world doesn’t end… you never know with Mayas). Banking union will be much easier to implement (there already exists ECB, after all) than the (much more important) fiscal union. Once that is achieved, Europe as a whole, and not just its member states, will have to share the financial risk for any and all economical endeavours. Interestingly, Italian representatives at Los Cabos offered a quick-and-dirty solution for the currently flagging states (such as Spain and Italy), by using eurozone’s rescue funds to simply buy out the debt of these states. That’s unlikely to happen though, given the overall „slow and steady” approach adopted in Brussels.

Meanwhile…

After Greece avoided the full-blown meltdown by nary a hair via an election and instituting an uneasy truce, the two ruling parties now have to figure out how to mend their country’s ailing economy without relying on the new initiative from above. Spain, on the other hand, has just received a promise of another bailout package that’s seen as a stopgap measure at best. France and Italy are wholeheartedly supporting the new strategy, while Germany is cautious. That’s due to Germany being the biggest EU contributor to current meagre 2.5% global growth. The country also stands to lose the most; it alone will have to propel the other 16 members of eurozone to safety and prosperity, footing the bill for PIIGS countries as time goes by.

Will the initiative take hold, and will the crisis be finally halted (if not reversed)? Only time will tell. For now, let’s enjoy the footy bonanza offered up in Poland and Ukraine and relax in the sun. Don’t let the fact that winter is fast approaching (and with it a wholly new EU) spoil your hols!

 

VOCABULARY
to be in full swing – być w pełnym toku, trwać w najlepsze
literal – dosłowny
to gather pace – nabierać tempa
quarter-finals – ćwierćfinały
riots – zamieszki
to be consigned to sth – zostać odrzuconym/umieszczonym gdzieś
to pull through – przetrwać, przeżyć
knockout phase/stage – etap eliminacji
summit – szczyt, spotkanie na szczycie
crisis-combating – zorientowany na zwalczanie kryzysu
platitudes – pustosłowie, komunały
encouragement – zachęcanie, zachęta
to depend on sb – zależeć od kogoś
mere – zaledwie, ledwo
European Council – Rada Europejska
actions speak louder than words – liczą się czyny, nie słowa
to scurry about – roić się, latać
intent on sth – zamierzający coś, zdeterminowany coś zrobić
to neglect – zaniedbać, zlekceważyć
poverty – ubóstwo, bieda
to be on everyone’s lips – być na ustach wszystkich
commitment – zobowiązanie
to up the ante – podwyższyć stawkę
upgrade – aktualizacja, ulepszenie
to consider – rozważyć
to rekindle one’s love for sth – na nowo rozbudzić czyjeś zamiłowanie do czegoś
wealth – zamożność, bogactwo
in the wake of sth – w następstwie czegoś
sovereign debt – dług państwowy
course of action – kierunek działania
to plot – wyznaczyć, określić
to tighten – docisnąć, zacieśnić
to resign sth – zrezygnować z czegoś, odpuścić (sobie) coś
sovereignty – niezależność, suwerenność
supervision – nadzór
to phase sth out – stopniowo wycofać (z produkcji), pozamykać (np. placówki)
tax rate – stawka podatkowa
presumably – przypuszczalnie
defined – określony, zdefiniowany
on the upside,… – z pozytywów, z plusów (należy wymienić…)
indebted – zadłużony
to resort to sth – uciekać się do czegoś
to be set in motion – zostać wprawionym w ruch, być rozpoczętym (np. o planie)
all-encompassing – wszechogarniający, obejmujący wszystko
provided that… – o ile (nie)…
to exist – istnieć
to achieve – osiągnąć
endeavour – przedsięwzięcie, próba
quick-and-dirty – sklecony na poczekaniu
flagging – słabnący, kulejący
rescue funds – fundusze ratunkowe
to buy sth out – wykupić coś
approach – podejście, nastawienie
full-blown – pełny, prawdziwy
meltdown – krach, kryzys
by nary a hair – zaledwie o włos
via – poprzez, za pośrednictwem
uneasy – niespokojny, niełatwy
truce – pokój, rozejm
ruling – rządzący
to figure out – wymyślić, wykombinować
to mend – naprawić
ailing – niedomagający, chory
to rely on – polegać na
bailout package – pakiet dotacji, zapomoga
stopgap measure – tymczasowy środek zaradczy
wholeheartedly – z całego serca/całym sercem, gorąco
cautious – ostrożny
due to – z powodu
contributor – ofiarodawca, uczestnik
meagre – mizerny, marny
to stand to lose the most – mieć najwięcej do stracenia
to propel – napędzić, popchnąć
to foot the bill – zapłacić rachunek
to take hold – zadomowić się, wejść gdzieś na dobre
to halt – wstrzymać
footy – piłka nożna
bonanza – bogactwo, żyła złota, wyjątkowa okazja
fast approaching – szybko zbliżający się, nadchodzący wielkimi krokami
hols – wakacje

-by Prochor Aniszczuk

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