Friday, December 16, 2011
One week on from the "Summit To Save The Euro", and it appears that the much hyped "deal" is already unravelling before it is even signed.
- Fitch has downgraded a number of banks, including BNP Paribas and Deutsche Bank.
- The leaders of Hungary and the Czech Republic have stated that they are ready to reject the planned treaty changes and implied move towards a centralised tax system.
- Mario Draghi, the head of the European Central Bank (ECB), warned that the bond-buying programme was “neither eternal nor infinite”.
- Pedro Nuno Santos, vice-president of the Portuguese Socialist Party told MPs:
"We have an atomic bomb that we can use in the face of the Germans and the French: this atomic bomb is simply that we won't pay.
Debt is our only weapon and we must use it to impose better conditions, because recession itself is what is stopping us complying with the (EU-IMF Troika) accord. We should make the legs of the German bankers tremble."
- Greece has yet to agree a deal with its bondholders etc.
Despite the above, the French appear to believe their own hype. France's finance minister Francois Baroin said:
"It's true that the economic situation in Great Britain is very worrying and that we prefer being French rather than British on the economic front at the moment.
We don't want to be given any lessons and we don't give any."
As I said last Friday:
"Cameron, over the coming days, will be vilified by many for his actions. However, time will prove that the Eurozone and its "leaders" are not up to the job of running single currency.
Oh, and by the way, the "new treaty" is not yet a done deal. Member states have to formally sign up to it, and at least Poland and Ireland are already discussing having to hold referendums before they sign up! "