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Wednesday, September 07, 2011

Temporary Relief For Eurozone

Germany's constitutional court has rejected lawsuits which were brought with the aim of blocking Germany's participation in eurozone bailouts.

Cue a sigh of relief from the embattled "leadership" of the sinking eurozone.

However, this is but a temporary "relief" for the Euro. The vote was, by all accounts very, tight and the court ruled that Germany's parliamentary budget committee must approve any aid before it is granted.

This effectively hobbles any future rescue packages (even if they are approved by the German parliament) as, by the time the parliament approves them, the packages will be too late to address the issue they were intended for.

Politics is moving a lot slower than economic events.

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