THE EUROZONE IS IN BAD NEED OF AN UNDERTAKER
—The EU’s Franco-German “Directoire” and the European Central Bank have between them ruled out all plausible solutions to the eurozone’s debt crisis.—
By Ambrose Evans-Pritchard, International Business Editor 7:21PM GMT 12 Dec 2010
There will be no Eurobond, no increases in the EU’s €440bn (£368bn) rescue fund, and no mass purchases of Spanish and Italian bonds by the ECB. Nothing. The system is politically and constitutionally paralysed. Spain and Portugal will be left nakedly exposed before their funding crunch in January.
It is entirely predictable that Angela Merkel and Nicolas Sarkozy would move so quickly to shoot down last week’s Eurobond proposal, issuing pre-emptive warning before this week’s EU summit that they will not accept “a bundling together of all Europe’s debtsâ€.
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http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8197780/The-eurozone-is-in-bad-need-of-an-undertaker.html
