BERLIN: Europe faces a new wave of extremism and nationalism if the eurozone fails to resolve its problems, Britain's Deputy Prime Minister Nick Clegg has warned in a German news magazine.
"If the eurozone doesn't come up with a comprehensive vision of its own future, you'll have a whole range of nationalist, xenophobic and extreme movements increasing across the European Union," he told Monday's edition of news weekly Der Spiegel.
Asked whether he believed German Chancellor Angela Merkel was "not active enough" on leading eurozone crisis-fighting efforts, he replied: "everybody should be more active" and that the current situation of emergency summits, bailouts and governments being voted out of office could not continue.
"We know this much from our continent: The combination of economic insecurity and political paralysis is the ideal recipe for an increase in extremism and xenophobia," he said according to an English transcript of the interview.
"And I, as a passionate liberal and pro-European, think it would be a disaster if a lack of grip and a lack of a comprehensive solution were to lead to a push to the extreme right or extreme left.
"But that's where we are heading," said the former member of the European Parliament.
Clegg also said that the 17-member eurozone "cannot thrive through fiscal discipline alone" adding that fiscal transfers -- taxes from one eurozone member being directed to help another member -- were unavoidable and could take different forms, including joint eurobonds.
Britain, which is not a eurozone member, has proceeded with a tough programme of budget cuts and tax rises, aiming to wipe out its budget deficit, the highest in the G20, by 2017.
With Greece facing new elections and the risk of a eurozone exit, Berlin is looking increasingly isolated in its austerity-driven solution to the crisis as a debate has opened up over the need for a new growth strategy.
Germany also vehemently opposes eurobonds, while France is in favour. But, added Clegg: "We are condemned to work with each other. Isolation is not the solution."
indiatimes.com
"If the eurozone doesn't come up with a comprehensive vision of its own future, you'll have a whole range of nationalist, xenophobic and extreme movements increasing across the European Union," he told Monday's edition of news weekly Der Spiegel.
Asked whether he believed German Chancellor Angela Merkel was "not active enough" on leading eurozone crisis-fighting efforts, he replied: "everybody should be more active" and that the current situation of emergency summits, bailouts and governments being voted out of office could not continue.
"We know this much from our continent: The combination of economic insecurity and political paralysis is the ideal recipe for an increase in extremism and xenophobia," he said according to an English transcript of the interview.
"And I, as a passionate liberal and pro-European, think it would be a disaster if a lack of grip and a lack of a comprehensive solution were to lead to a push to the extreme right or extreme left.
"But that's where we are heading," said the former member of the European Parliament.
Clegg also said that the 17-member eurozone "cannot thrive through fiscal discipline alone" adding that fiscal transfers -- taxes from one eurozone member being directed to help another member -- were unavoidable and could take different forms, including joint eurobonds.
Britain, which is not a eurozone member, has proceeded with a tough programme of budget cuts and tax rises, aiming to wipe out its budget deficit, the highest in the G20, by 2017.
With Greece facing new elections and the risk of a eurozone exit, Berlin is looking increasingly isolated in its austerity-driven solution to the crisis as a debate has opened up over the need for a new growth strategy.
Germany also vehemently opposes eurobonds, while France is in favour. But, added Clegg: "We are condemned to work with each other. Isolation is not the solution."
indiatimes.com
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