FIRMS' MEMORANDUM

Firms' Memorandum

Firms' Memorandum

To: Thomas Mayer, Esq.

By: Rosemary Scordamaglia, Lawyers

Date: November 12, 2008

RE: Case Ima Shewin

The importance of good performance of international relations in the development, political, commercial, cultural worldwide today is essential to achieve the integral development of nations. No single nation so that it can be considered self sufficient and does not need the assistance and support of other countries, even the richest nations need resources which they lack and that through negotiations and global agreements meet their needs and wants elsewhere.

The European Commission (formally the Commission of the European Communities) is the executive branch of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union. The Commission separates its competences upon different Directorate-Generals.

The European Parliament (EP) is the only directly elected parliamentary institution of the European Union (EU). Together with the Council of the European Union (the Council), it forms the bicameral legislative branch of the Union's institutions. In the process of proposing and drafting legislation, the European Commission will consult the various Standing Committees of the European parliament.  

The European Council brings together the heads of state or government of the European Union and the president of the Commission. It defines the general political guidelines of the European Union. The decisions taken at the European Council meetings represent a major impetus in defining the general political guidelines of the European Union.

The European Union is in danger of compounding its ongoing economic crisis with a political crisis of its own making. Over the last year, crises of confidence have hit the 17 EU members that in the years since 1998 have given up their own currencies to adopt the euro. For the first decade of this century, markets behaved as though the debt of peripheral EU countries, such as Greece and Ireland, was as safe as that of core EU countries, such as Germany. But when bond investors realized that Greece had been cooking its books and that Ireland's fiscal posture was unsustainable, they ran for the door. The EU has stopped the contagion from spreading -- for now -- by creating the European Financial Stability Facility, which can issue bonds and raise money to help eurozone states. Together with the International Monetary Fund, the European Financial Stability Facility has already lent Greece and Ireland enough money to cover their short-term needs.

But such bailouts are only stop-gap measures. Portugal and Spain, and to a lesser extent Belgium and Italy, remain vulnerable to pressure from bondholders. Portugal is likely to receive 50-100 billion euros over the next few months. But should Spain also need a bailout -- which could cost as much as 600 billion euros -- the 750 billion euro European Financial Stability Facility would soon be exhausted. In that event, the main euro creditors, primarily British, French, and German banks, might have to accept so-called haircuts, substantial cuts in the principals of their ...