We still don’t know what the details will be of the “bazooka” EU leaders will fire off tomorrow evening before currency trading gets started (or if they’ll have any details to offer at all), but a Reuters report gives what sounds like a good hint.
Euro zone sources said late on Friday that the mechanism could be funded by bonds issued by the European Commission with guarantees from euro zone states.
In other words, as Jamie Coleman at ForexLive observes, the EU is about go beyond being a monetary regime and begin the establishment of a common treasury.
Once that happens, it really would be silly to see the various European countries as anything other than states in the United States of Europe, or actually the United States of Germany, as Michael Pettis put it.
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