From Kiron Sarkar:
The FT, as usual, says it all. Copy of article attached.
No “quick fixes” reports Mrs Merkel to the German Parliament today. Instead the creation of a legally-enforceable “fiscal union”, through treaty changes – bi lateral agreements are 2nd best, though may be the initial approach – I clearly agree;
No IMMEDIATE INTRODUCTION ( read – they will be introduced some time after the treaty changes enforcing fiscal union is in place) of Euro Bonds;
She rejected charges that Germany is taking over the Euro Zone – well……;
Germany has BENEFITED GREATLY from the Euro – HALLELUJAH, well finally she is telling the Germans the reality of the situation;
The fiscal rules must be legally enforecable through the European Court of Justice and include automatic sanctions for those who do not comply – certainly hope its implemented as the Germans want – the French hate this, but they have no choice – I certainly hope;
Germany will not interfere with the “independent” ECB – come now, the deal being hatched up is that if tough fiscal rules are put in place, the ECB (very similar to the situation with the BoE/UK Government) will embark on bond buying/QE/interest rate cuts/lending to the IMF to on lend to Euro Zone countries (EFSF being a “dead duck”), etc, etc ie monetary easing. However, it’s exactly the line she should be taking;
She understands that a “deal” needs to be announced at the 9th Dec summit. Too true, but a very limited time available;
Amazingly, she conceded that AUSTERITY IS NOT ENOUGH – (Bloody hell – is this really a German saying this – clearly TOTALLY RIGHT.
“It is essential we get back to more growth” and follows up with “That is one of our most important goals”. I promise you, direct quotes from Mrs Merkel’s speech to the German Parliament.
Boys and Girls, Mrs Merkel has discovered religion.
Just to reinforce her “road to Damascus moment” – I quote Mrs Merkel again,
“We are saving (German) banks and ourselves and our jobs”
I understand that number of you are deeply sceptical of Europe – as you will recall from my previous blogs – I have probably been the most sceptical.
I will repeat, when Germany gets it and pursues a policy (with it effectively in charge), believe you me, it has a very good chance of success.
I remain bullish.
It has taken me more than 1 1/2 hours just to produce this, given the local Internet problems here in Goa. Impossible to do more.
Merkel calls for rapid EU treaty change
Angela Merkel has called for European Union treaty change to introduce as quickly as possible a legally-binding set of rules for the eurozone’s economic management.
Looking very sombre in a black suit and not deviating from her written text, the German Chancellor said in a speech to the Bundestag, the German parliament, the eurozone was not facing a debt crisis, but a crisis of confidence that would take years to resolve.