Europe is Out of Time, Breakup Inevitable
BY MICHAEL SHEDLOCK
One of the many interesting aspects of the Eurozone crisis is how many key political and central bank leaders fail see (or at least admit) that Europe is out of time.
Even more peculiar are statements by ECB president Jean-Claude Trichet who finally does realize time is of the essence, yet Trichet “solution” is a set of measures that must be passed by all 17 nations when those nations cannot agree on EFSF funding, on Eurobonds, on collateral for Greece, or even on whether a fiscal union or transfer union must take place.
In some instances the differences boil down to big country vs. small country concerns. In other instances it is Southern “club-med” states vs. Northern states. Some countries refuse to give up sovereignty, while others welcome giving up sovereignty.
It does not help matters when German chancellor Angela Merkel seems to change her mind on something every other week.
German Court OK’s Bailouts, But “No Blank Check”
On Wednesday the German court ruled that bailouts were legal. However, chief judge Andreas Vosskuhle also stated “This was a very tight decision. It should not be mistakenly interpreted as a constitutional blank check authorizing further rescue measures”, adding that parliament was “forbidden from setting up permanent legal mechanisms resulting in the assumption of liabilities based on the voluntary decisions of other states.”