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Thursday, May 17, 2012

In case anyone wondered about the state of the euro

In a speech to business leaders in the North West today, Cameron will say:
"The eurozone is at a crossroads. It either has to make up or it is looking at a potential break-up....Either Europe has a committed, stable, successful eurozone with an effective firewall, well-capitalised and regulated banks, a system of fiscal burden-sharing and supportive monetary policy across the eurozone...Or we are in uncharted territory which carries huge risks for everybody." 
Alongside remarks from Bank of England chief Mervyn King that the euro is "tearing itself apart", this has triggered a lot of excitement amongst the UK media (montage: Tim Montgomerie):

This, of course, was just in case anyone was still uncertain as to what shape the euro was in (and needed Cameron to remind them)...


Bugsy said...

Several phrases come to mind:
Told you so, cutting your cloth, domino effect. RIP the Euro.

Bugsy said...

Several phrases come to mind:
Told you so
Cutting your cloth according to your means
Domino effect
RIP the Euro.

christina Speight said...

What on earth does Cameron think he's on about? The eurozone has got to do this - and that - and those - and the other and etc. All he'll achieve is to infuriate them. It's too late to do any of the things he says are needed. So we are in the "uncharted territory" and he has nothing toi say about that at all.

The man is a dangerous fool.

Idris Francis said...

please read http://www.fightbackwithfacts.com/the-eu-and-euro/

The difference between engineers and physicists on the one hand and politicans on the other is that the former understand basic principles of their subjects and that some things are literally impossible to achieve, or at least sustain

The elite are still pretending that the euro can and will survive through political will.

It cannot and it will not, it is dead and finished and the sooner they bury it the better for all concerned

Rik said...

Fully agree with Christina and Idris.
1. Europe will simply not be a dynamic place the rest of this century. It will more look like a retirement home in any realistic scenario.
2. What this got to do with the points Idris and Christina make?
The UK at this point will have to decide if it wants to live next to two zombies or next to and alive and kicking old (wo-)man and one in coma. For as far it can already influence that.
If the EZ's North is fully to bail out its South (as suggested by Dave)all its potential growth is likely going out of the window (and the South is unlikely to recover) and it will be 2 zombies.
3. I doubt if this is the right choice.
4. Another point anyway the chance that the EZ gets an even bigger mess, than it already is at this moment, is very substantial. The UK should try to limit the fall out thereof.
5. One possibility being a change of membership (heavily supported at home anyway). And likely also a sound economic strategy. More Europe now simply costs a lot of money and make an emergency scenario (aka exit) much more difficult and costly as it already is.
6. The possibilities Dave has to influence things in the EZ are simply very marginal and by these statements he only irritates the countries he need to get to a different kind of memebership.
7. Your Dave is only playing for the home audience. If he wants to do that (not a bad idea btw if he wants to get reelected) he better works on the legal relation with Europe. Clearly his (potential) voters would rather like to see that.