Last week felt full of hope for the EU. Spreads came in, the common currency rose, and generally there was talk of unity among nations. Good times.
But you knew that wasn’t going to last, especially one someone put a microphone in the face of a German leaders.
Germany’s Vice-Chancellor Guido Westerwelle came out slamming the idea of an expanded stability fund, saying “Only a small part of the fund has been used, so there is no need to talk about increasing it.”
Then another party member came out and reiterated the country’s demand for stringent terms (austerity) on any aide doled out.
Finally, Angela Merkel called the daily introduction of new aid packages “tiresome.”
So here we are again. Spanish yields are widening, markets are down, and the euro is taking a nasty move lower. We may be back to the Europe we know.