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I'm happy to be joined by Susan -- former senior -- the Treasury Secretary.
Treasury Department rather Matthews and welcome thanks for it to be here so I know you just got back from a trip from Europe -- -- we start by by talking about what's going on there sure.
I think there are having some concerns about leadership that way that we some people are in the United States.
There's a feeling that the political leaders perhaps haven't stepped up maybe as much as they could have.
In Germany in particular.
There's an always inside comments about how chancellor Merkel ways importing eastern Germany and kind -- not -- -- market environment and so maybe that she's a little bit.
Less -- -- her footing in terms of coming up with creative policy solutions.
They also are trying to work through as you know a lot of the -- bond and the debt issues that are going continue to go on sovereign debt issues in the country.
-- you say that -- the EU is more than just a financially because a lot of people just think you know the best solution to this.
You let the EU -- -- purposely disbanded -- to let these governments that have.
You know basically acted fiscally irresponsible for all this time eleven going to default and then maybe when they -- that's our economy -- come back we consider this again.
What say you about that well there I think there.
One of the element that's missing from out of the conversation in the United States is this notion of the kind of another story line among -- -- European Union beyond the economic.
And the following World War II -- terrorism strong efforts to think about how do we -- lasting peace in Europe.
And one of the ideas that they came up with ways if we can intertwining economies more closely.
Of some of the major countries they'll be less likely to sort of go to war with each other.
And it started back in the late forties and early fifties they created something called the European coal and steel community.
Which is basically taking west Germany France Italy and added -- countries and -- their coal and steel industries together.
And it was.
Underpinnings -- -- military industrial complex right so if you're still industries dropped tied together can be harder to sort of go at each other.
And since starting from -- there's been a history really of institutions in Europe and the kind of velocity and your above.
If we can sort of stay hugging each other a little closer.
We're not gonna get incidents this cuts that we -- have been over you know not just the Fed won't worse but over you know -- but the challenge seems to be.
Trying to get all these countries to merge together when they don't have one fiscal policy or can't even agree on basics.
Of how to conduct fiscal policy -- reconciling differences.
And I don't think it's not to say that I think they wanted to create one massive government -- in -- they do have their regional differences and they they do hold firm to the Germany's a certain must certainly much more austere.
On the -- for senior political.
Through -- benefit and I don't know if it's not too much.
It's more the idea of a cooperative and that the feel that they're a little bit in this together.
And you see even when talking to it in terms you know they aren't the Germans fed up with this.
Thing and I think that that that notion has been overblown a little bit in the US.
I think that -- certainly concerned about Greece and about Spain and even Italy and especially when you get to Italy -- Italy is you know the worst Greece and Spain.
In terms of the debt outstanding in the -- economies in terms of the broader and packed in Europe.
But -- it's more of a we want to make sure when we bailed amount that it's the bail out not the first of many -- -- the problem but there are already on the second thoughts for the -- down right.
We're depending on you know how you look at the IMF vs the university in -- -- that.
-- -- at some point where it is where is your figure otherwise that you know lack.
You -- the fact if you tell us is we're not thinking that this yeah.
And that's why I'm saying and I think some of the political argument also is -- side by side of the economic argument is that we're just an economic that probably would have.
Right they don't battle over dinner out so I think the dynamics are a little bit more -- staying together than they are splitting apart and there and there's certainly frustration there's no.
There's no qualms about that but when you look at they're trying to put together bailout package now with this.
Financial stabilization signs.
And you know the Germans aren't the ones that are holding up it's the -- is now on the Finnish government has now said that they want to have collateral against whatever they put up in terms of their degree bail out and so.
And that it's not just kind of -- -- eastern given up on duster and now yeah definitely not.
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