Crisis Worsens Ahead Of Meeting

EuroIntelligence report sovereign and banking crisis worsens ahead of meeting: Steinmeier and Steinbrück break ranks with Merkel, and accept the principle of eurozone bonds; favour a three-step solution: haircuts for Greece, Ireland and Portugal, ringfencing of Spain and others, and the introduction of eurozone bonds, up to some ceiling of GNP; shift in position undermines government’s claim that eurozone would never find majority in Bundestag; Asselborn says Merkel’s behaviour had been “theatrical”, and accuses Germany and France of arrogance; the crisis yesterday spread further to Spain, as bond yields reached new eurozone records; the good news from Spain are data showing a reduced reliance on ECB funding; S&P put Belgium on a downgrade watch because of a lack of government; Germany accepts the principle of an ECB capital increase; Wolfgang Münchau, meanwhile, compares the political response to the crisis to Hans Christian Andersen’s Emperor.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: