We are getting into the eye of the EU debt crisis hurricane now with Italy crying out for help and showing their teeth towards Merkel and Germany. Hollande has already shown a breach with Merkel, too. France wants immediate solidarity on mutualizing debt and loosening up the bailout funds for Spain and Italy - and for themselves later if needed. Germany is insisting on fiscal union - with the socialist inclusion of FTT, the tax of the fiscal union - in exchange. Germany can't politically or economically give a blank check for bad debt mutualization without getting their power grab for EC control based on German concepts, first.
Italy, Spain and France, the big 3 of the big 4 insist the money must be losened up now and they can only promise future cooperation for a fiscal union. Germany may blink this week, and loosen up some more bailout fund money, but they will also want to keep the pressure and leverage on.
Once everyone threatens each other with their leverage, it turns more partisan. FTT will take a long time to arrange, and I agree that EC9 FTT was always shaky. In a debt hurricane, it's even shakier.
You can't blame Germany, this thing is too far gone. It's not like turning around the U.S meltdown with the Fed and TARP investments. It's far worse, there is no Fed, and 17 to 27 EU countries will duke it out looking out for their own interests.
EU talk and micro steps will manage the markets until it doesn't. Without EU fiscal and banking union, I doubt there will ever be wide-scale or infectious FTT.
As I said all along, the best thing about FTT for the advocates was it serves as a great talking point, which is all they really have in their bazooka. FTT talk is cheap, it won't fix the EU, so bring on reality in the markets.
It's time to put up or shut up. What will Germany do?
Italy, Spain and France, the big 3 of the big 4 insist the money must be losened up now and they can only promise future cooperation for a fiscal union. Germany may blink this week, and loosen up some more bailout fund money, but they will also want to keep the pressure and leverage on.
Once everyone threatens each other with their leverage, it turns more partisan. FTT will take a long time to arrange, and I agree that EC9 FTT was always shaky. In a debt hurricane, it's even shakier.
You can't blame Germany, this thing is too far gone. It's not like turning around the U.S meltdown with the Fed and TARP investments. It's far worse, there is no Fed, and 17 to 27 EU countries will duke it out looking out for their own interests.
EU talk and micro steps will manage the markets until it doesn't. Without EU fiscal and banking union, I doubt there will ever be wide-scale or infectious FTT.
As I said all along, the best thing about FTT for the advocates was it serves as a great talking point, which is all they really have in their bazooka. FTT talk is cheap, it won't fix the EU, so bring on reality in the markets.
It's time to put up or shut up. What will Germany do?
