Why Mario Draghi should be the next President of ECB?

Mario Draghi, the Italian banker and economist might be the next president of the European Central Bank.  For the past one year, his succession to current President Jean-Claude Trichet, seemed impossible.

His main competitor Axel Weber, the President of German Bundesbank has already left the race. For economists from Germany and France, this is sad news. They wanted someone “German” enough to take the charge, taking into consideration the shattering plunges of financial crunch witnessed by the Euro Zone.

Though currently, Yves Mersch from Central Bank of Luxembourg is definitely another competition. Though, Mersch is known for option for display of force in international relations and economy rather than diplomatic tones.

Another opponent can by Cathy Aston, European Union’s representative of foreign affairs. Unfortunately, she is more in news for brooding over Cameron’s visit to the Middle East as she wanted to be the first “Westener” to do so.

Politics and fiasco

The future seems quite unpredictable for the European Union, as always after the tenacious recession hit the continent. The adoption of the single currency is causing more pressure on the Zone to unite and fight.

Rejecting Draghi does not make sense if the selection is based to suit the images of respective countries and not to actually opt for the best President. Its quite necessary for the European conglomerate to understand the repurcussions which would be caused by the delay.

Draghi and Presidentship

The President should know how to fight against inflation. Incidentally, that is what Darghi is trying to harp upon. He is also compared to Cardinal Richelieu, who is often called as the first prime minister of the world. All this is because, time and again, Draghi has shown how he can face politics and work around it, in a very intelligent and impressive manner.

He knows his deal about government finance and central banking. He has years of experience in both public and private sector.

What shall happen?

Just because he is Italian, does it mean that he should be discouraged? When will the entire European learn to differentiate that every Italian is not Silvio Berlusconi.

Secondly, his four years of work experience with Goldman Sachs is another bogus issue which people are pointing out.

Its high time when Germans should know that they have the right man and they indeed should support him.

The European Union in danger

The glass is smashed. The pieces are jumbled up together in confusion. Stuck. But falling one by one. Will this glass survive?

Well, the European Union faces jeopardising financial times with Ireland, Portugal, Spain and Greece going bankrupt. Who will save them? Let us put it in this way, can Britain and Germany save these nations?

Three year loan to Ireland

UK government has decided to offer a three-year direct loan of £7 bn to Ireland to rescue the once Celtic tiger from financial depression, says BBC. The naked melting of the Irish banking system might indicate the initial rift that might break the European Union.

At the same time, will the loan help a country which needs to strictly devise its budget, spending ways and economy?

On the other hand, will the UK economy face positive results after granting this loan? European officials believe that it might help the bleeding economy of Britain, as in three years, they can earn more by interest rates, business and even cross border negotiations.

The European monetary Union is being pushed too far. So, should Ireland discard the Euro? Till 2002, the Republic Ireland survived with the Irish Pound, which alarmingly fell in comparison with other currencies in the international market during the late nineties.

So, to save its skin, Ireland joined the Eurozone, utterly unaware of the fact that it might face the music again. What about the Irish pride?

At the same time, the officials from the European Union will not let the dream of single currency die. Unfortunately, they might face rejection. Sound nations like Germany and Finland are not ready to bailout Ireland without a coherent plan being in action, says the Daily Crux.

Financial downturn in UK

But how can UK save the entire scenario when her own banks are at high stake? The UK’s debts are expected to rise to 79.1pc of gross domestic product (GDP) in 2010, compared with 124.9pc in Greece, 64.9pc for Spain, 118.2pc in Italy and 85.8pc for Portugal, reveals theTelegraph.

The rescue package might affect the pockets of Britons with around £300 per household more investment in the form of taxes.

So, is Europe going to move in two different directions? Will the team of sisters break?

Surprisingly, United States might pressurize the International Monetary Fund to play a role in the bailout. The loan might prove to be financially advantageous with appealing interest rates and paybacks.

Though, it too is surviving recession, US could work better on a common currency because of having a mobile labor market, portability of pensions and common language, says BBC.

Shattering Glass

German Chancellor Angela Merkel in the site Prison Planet believes, “If the Euro fails, even the European Union will.”

So, should we get a new glass? Dump the broken pieces in trash? Or should we handle it with care and see a better reflection? After all, how many times would we change this glass? Blow after blow? Well, that is impossible.