Vague plans involving loss of sovereignty isn’t just for the eurozone anymore. That’s not the kind of bold leadership that will calm the markets and diffuse the financial crisis. No, it’s going to make a much bigger crisis to fix this mess.
Following last weekend’s announced $125 billion bank bailout in Spain, the ever present question of “what’s next” has been looming larger than usual this past week. So has the past. As we all know, the past is indeed prologue. Especially the parts involving mind numbing stupidity.
This is one of those posts that has an “ ‘End Game” feel to it. Angela Merkel is now demanding that eurozone nations agree to a “fiscal union” far more “sovereignty-free” than earlier proposals, and that’s a precondition for further consideration of alternative/additional financial aid options. And on top of all that, the latest bailout fund comes with strings attached. Golden Strings. It’s getting ugly in the EU.
Supporters of Berlin’s austerity drive across the eurozone were relieved by Ireland’s approval of the ‘Fiscal Compact’ on Thursday. But this ‘good news’ coincides with a growing backlash by key leaders an officials against the endless calls for austerity without a ‘pro-growth’ component. Except, as usual, not really.
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