The heart of euro crisis still untouched - The Globe and Mail
"Following a now familiar pattern, German Chancellor Angela Merkel
gave just enough ground at the latest European crisis summit to keep the
leaking euro vessel afloat a while longer, prompting a global rush back
to the casino tables.
She also vowed not to soften the strict German austerity diet
demanded of any country seeking a lifeline. The reasoning: Any such
measures would let governments off the hook for their bad fiscal
behaviour and encourage them to resume their destructive habits. But as
her French, Italian and Spanish counterparts made clear, there’s no
point worrying about the plumbing when the house is ablaze. And as she
has in the past when staring into the abyss (she was once adamant about
never bailing out Greece), Ms. Merkel backed down...
For now, the basic goal is to restore collapsed confidence in two
core markets, Spain and Italy, so they can avoid massive bailouts that
the Europeans simply can’t afford.
So we’re set up for a summer of tumult.”
No comments:
Post a Comment