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| Europe |
| AEP: The week that Europe stopped pretending |
| 2012-06-03 |
| The euro has essentially broken down as a viable economic and political undertaking. The latest rush of events reeks of impending denouement. Switzerland is threatening capital controls to repel bank flight from Euroland. The Swiss two-year note has fallen to -0.32pc, not that it seems to make any difference. Denmark’s central bank said it was battening down the hatches for a "splintering" of EMU. It has cut interest rates twice in a matter or days and pledged to do whatever it takes to stop euros flooding into the country. Contingency plans are on the lips of officials in every capital in Europe, and beyond. On a single day, the European Commission said monetary union was in danger of "disintegration" and the European Central Bank said it was "unsustainable" as constructed. Their plaintive cries may have fallen on deaf ears in Berlin, but they were heard all too clearly by investors across the world. Joschka Fischer, Germany’s former vice-Chancellor, said EU leaders have two weeks left to save the project. "Europe continues to try to quench the fire with gasoline – German-enforced austerity. In a mere three years, the eurozone’s financial crisis has become an existential crisis for Europe." |
| Posted by:tipper |
| #2 This looks like the week the merde hits the fan. |
| Posted by: phil_b 2012-06-03 20:13 |
| #1 "the eurozone's financial crisis has become an existential crisis for Europe." That tends to happen, when you claim you'll lead everyone to the pot of gold at the end of the rainbow, and discover nothing there. Sucks to be them. |
| Posted by: RandomJD 2012-06-03 19:28 |