September 15th, 2012

Epic Fail

On solidarity and race, class, religion, and gender:

A few days ago, a post was made in which it was asserted that to solve matters in a sense of true solidarity requires bypassing issues of race, class, religion, and gender.
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These are all examples purely from the 20th Century, of a phenomenon that is in fact far, far deeper than this, and which has a whole constellation of aspects. Solidarity, ultimately, is not transcending these differences, which requires handwaving their very existence, it is working together despite them for the common good. There is also no more a true solidarity than there is a true Scotsman, unless we're referring to Solidarnosc.
Groovy Kol

The European Stability Mechanism

The ESM plan was approved by the Constitutional court of Germany after lots of debates and controversy. It's supposed to start working in October, and now most hopes rest upon that plan. But what is it all exactly about? (See FAQ if you don't care to bear with me).

Although it still exists only on paper at this point, it's supposed to turn into an international financial institution, just like the IMF. The agreement for this permanent emergency fund was signed by all Eurozone members except two: Ireland and Germany. And, while Germany is now on the road to its ratification, Ireland still has one more court procedure to go through. However the Irish decision may not be so important, because Ireland doesn't participate with a big share in the fund anyway. While Germany provides 27% of it.

The stability mechanism will only become operational when 90% of the needed funds are collected, i.e. € 630 bn out of the planned € 700 bn. That's why there's still no exact deadline for the beginning of its work. The chairman of the current rescue fund Klaus Regling will probably become the chairman of the ESM as well. At the moment he's in Luxembourg, working on the details.

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