Reuniting Europe

EU leaders gather today at 18.00 in Brussels to save Europe and the world one more time this year.

At lunch time the Bundestag has passed the EFSF motion with a large majority (good news). But the motion states that the European Central Bank will no longer need to buy bonds on the secondary markets, and that the rescue fund cannot be financed through the ECB (bad news). Especially for Sarkozy, who counted on ECB to keep his country’s triple A status in the perspective of the May 2012 Presidential elections in France. But now Trichet is gone and Merkel calls for ordnung.

There may be a mini-agreement on a Greek haircut of 50% and of a bank recapitalisation with the requirement for banks to have a core capital of 9%. But with Italy the sick man of Europe and not enough EFSF firepower to bail it out, I don’t even want to think about the reaction of the markets.

Leaders drive safely their national cars, carefully watching for election lights and poll signals. But with regard to Europe, we are in a crash test extravaganza. In which we citizens are the dummies.


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  1. Dear friends,
    We follow discusions attentively, I find that there is more optimism today than yesterday.
    What do you think?
    At least the déclarasion of José Manuel Barroso assures us
    I have read these comments in BBC News
    “They agreed a mechanism to boost the eurozone’s main bailout fund to about 1tn euros (£880bn; $1.4tn).= ils ont convenu d’un mécanisme de fonds pour stimuler la zone euro renflouement principale à environ 1TN d’euros (£ 880bn; 1.4tn $).
    ……Because banks have agreed to shoulder losses on Greek bonds, the country’s burden has been reduced, cutting its debt down to 120% of its gross domestic product by 2020.
    Leaders of the 17 eurozone nations had been in meetings since Wednesday trying to hammer out a deal to help Greece put its national finances in order and underpin other European economies such as Italy.
    Do you live in a country that is in the eurozone? What do you think of the eurozone debt deal that has been reached? You can share your thoughts by filling in the form below”
    Kind regards

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