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| Europe |
| Italian gov't on brink of collapse |
| 2011-10-26 |
| [Financial Times] Italia's prime minister was fighting on Tuesday night to stave off a collapse of his centre-right coalition government over European Union ...the successor to the Holy Roman Empire, only without the Hapsburgs and the nifty uniforms and the dancing... demands for more concrete economic reform measures in time for Wednesday's highly anticipated summit of eurozone leaders. The demand came as European officials attempted to reach a final agreement on giving the eurozone's €440bn rescue fund more firepower so that it can assist Italia by purchasing Italian bonds, lowering Rome's borrowing rates, which are near 6 per cent. While such EU assistance falls well short of a full-scale Italian bail-out, senior European officials said it would come with tough new conditions, and that the demands on Silvio Berlusconi ...current Italian prime minister, known for his plain (for a European politician) speaking and his liking for hookers a third his age or less... were the beginning of a more intrusive effort by Italia's eurozone partners to ensure Rome convinces the financial markets it is sincere about fiscal reforms. Talks early on Tuesday between Mr Berlusconi and his Northern League coalition partners failed to resolve the deadlock -- centred on proposed pension reforms -- after inconclusive negotiations the night before. "The government is at risk," Umberto Bossi, leader of the fiercely eurosceptic and federalist Northern League, told news hounds in Rome. "The situation is difficult, very dangerous. This is a dramatic moment," he said, warning of possible snap elections. But Angelino Alfano, secretary of Mr Berlusconi's People of Liberty party, said on Tuesday night that an agreement on reform measures had been reached with the Northern League that would hold the coalition together and assure economic growth. Details were not immedietaly available. Any Italian compromise that promises future action could be hard to swallow for eurozone leaders seeking a comprehensive solution to the sovereign debt crisis at the Brussels summit, their second in four days. The European Central Bank, which has been propping up Italian debt on the markets since early August, received similar commitments in the past. Mr Berlusconi's difficulties mirrored tough pre-summit negotiations in other European capitals, where leaders were struggling to finalise the overhaul of the rescue fund and strike a deal with Greek bondholders that would allow them to lower the amount of government bail-out aid to Athens. |
| Posted by:Fred |
| #13 They never got on Greece's or any others when those countries did not hold to their financial standards. The Germans killed over 5% of the Greek civilian population in WW2, via a combination of deliberate starvation, death camps and the massacre of hundreds (i.e. 100 to 1 ratio) in reprisal for the deaths of individual German soldiers. Now, we say there's no such thing as inter-generational guilt. But has the slate really been wiped clean? Ultimately, I think this shared history is why the Germans will continue footing the bill - they'll play hard to get, but the stench of Germany's campaign of extermination in Greece will permeate Greco-German relations for a long time to come. |
| Posted by: Zhang Fei 2011-10-26 20:26 |
| #12 France, Germany, Belgium, and the Netherlands are fatally exposed to an Italian default. Greece is an hors d'oeuvre. |
| Posted by: Free Radical 2011-10-26 18:51 |
| #11 We killed all the people to save the village. |
| Posted by: Bright Pebbles 2011-10-26 18:26 |
| #10 So how far is Merkel willing to go to save this zombie called the EU? Blow the wad on saving PIIGS and killing Germany, or letting the PIGGS die and saving Germany? That is what it really comes down to for her. They never got on Greece's or any others when those countries did not hold to their financial standards. No accountability. The free ride is over and now the free ride down the drain begins. |
| Posted by: Alaska Paul 2011-10-26 17:02 |
| #9 #5 "the PIIGS will kill the Euro. Is Merkel willing to give away all of Germany's money to save the PIIGS? Is it her's to give?" No, She cannot give Europe anymore money, that may just tear the Nation of Germany apart. No can do. |
| Posted by: newc 2011-10-26 16:11 |
| #8 All this talk about bail-outs and austerity. Sounds like what they need is an Obama style jobs and economic recovery plan - not just for pizza workers, but for teachers and bureaucrats. That would stimulate the economy and free up resources for infrastructure improvements with new roads, parks and aqueducts. Then they could pay down debt without reducing entitlements and do it all without reducing the level of civility between them and the Germans. Nice Germans, nice Germans. |
| Posted by: Hank 2011-10-26 14:48 |
| #7 the PIIGS will kill the Euro Can't kill something that never was really alive. |
| Posted by: g(r)omgoru 2011-10-26 13:19 |
| #6 Reuters: Fist fight breaks out in Italian parliament |
| Posted by: Anguper Hupomosing9418 2011-10-26 13:12 |
| #5 the PIIGS will kill the Euro. Is Merkel willing to give away all of Germany's money to save the PIIGS? Is it her's to give? |
| Posted by: Alaska Paul 2011-10-26 13:03 |
| #4 On Drudge we have the "Merkel Miracle". Don't believe it. Lies and more lies. Just a bunch of Zombies(empty vessels) going through the motions. Nothing is fixed. Spain is still in trouble as the rest are.Look at Argentina now that princes has won a landslide. I think Ross Perot saw this coming a long time ago. Looks like Argentina is going Chavez route. Honey I would love to buy that but my outgo is greater than my income. Reminds me of the Palmer tune "She's so fine I don't care where the money went". |
| Posted by: Dale 2011-10-26 11:25 |
| #3 "Italian gov't on brink of collapse" is as NEWsworthy as "Pope wears a pointy hat." |
| Posted by: Bright Pebbles 2011-10-26 11:15 |
| #2 Italy comes under the category of "too big to bail" which, combined with the requirement of unanimous agreement among 17 countries, almost guarantees failure. With 17 coalition governments in place in the Eurozone, the temptation to extort new concessions in return for going along will be strong. Alot of things have to go right to avoid catastrophe. |
| Posted by: Frozen Al 2011-10-26 08:18 |
| #1 Let me know whan an Archduke gets bumped off... |
| Posted by: Raj 2011-10-26 00:50 |