Tonight’s must-read comes from Ambrose-Evans Pritchard at The Telegraph who offers some clear views on why the EU’s big shock & awe rescue plan is not having its desired result — why it hasn’t fully instilled confidence.
Part of it is this whole insistence on the part of leaders that the goal was to go after a “wolfpack” of speculators. That screams willful ignorance of the real, structural problems at hand (even if it is just rhetorical).
Then there are continuing concerns about the bailout mechanism.
Beyond that, the European union is losing the Germans.
This is interesting:
Chancellor Angela Merkel has put the best face on a deal that has so damaged her leadership. “If the euro fails, then Europe fails and the idea of European unity fails,” she said. Too late, I think. The German nation is moving on. I was struck by a piece in the Frankfurter Allgemeine proposing a new “hard currency” made up of Germany, Austria, Benelux, Finland, the Czech Republic, and Poland, but without France. The piece entitled The Alternative says deflation policies may push Greece to the brink of “civil war” and concludes that Europe would better off if it abandoned the attempt to hold together two incompatible halves. “It can be done,” the piece says.
That (at least some) Germans see France as part of the other half is telling. (And if anyone can point to a version of the FAZ article (which is behind a paywall), we’d be appreciative.