Tuesday, 16 March 2010

Er, Brussels - We Have A Problem

So says mission control in Bonn, according to Ambrose Evans-Pritchard writing in the Telegraph, asking whether anyone reads German any more.

Reporting on the 'Greek Bail-out' AEP writes:

"This cannot possibly be done without German backing, so it is academic what these people think or want. As of today, German finance minister Wolfgang Schauble has not yet agreed to anything beyond a last resort rescue “if insolvency were imminent” and if there were to be a threat to the “financial stability of the euro area as a whole”. That raises the bar very high. He cannot go further because any bail-out for Greece would breach the EU’s no-bail-out-clause, and would therefore violate the German Grundgesetz, or constitutional law. Eurosceptics in Germany already have their fingers on the trigger, waiting to launch a court challenge if the line is crossed. Quite why markets/pundits seem to assume that the EU can just finesse this with its usual creativity — dare I say, its fundamental lawlessness — is beyond me. Germany is a serious country. The law matters."
So the EU is in a 'bit of a pickle'? Contrary to AEP's doubts, we can be sure that with the high levels of German expertise in 'engineering' and the EU's recognised ability for 'creativity', there will soon be a 'solution' found. As with referendums, the EU will continue until such time as they get the result they want!

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