Oh dear… RTÉ reports Taoiseach Enda Kenny
sticking his head in the sand insisting that the status quo is perfectly adequate to deal with the eurozone crisis.
Speaking in Warsaw, Mr Kenny admitted there had been a lot of discussion among eurozone leaders about where the crisis was headed, and that there would be a good deal more discussion before heads of government meet in mid October.
When asked if he supports Treaty change in order to facilitate a deeper fiscal union, Mr Kenny said:
“I don’t … I’ve made this known to other leaders. It’s very important that having put Lisbon in place that the governments of the EU work that treaty in the way that it was intended … I think we have to get on with what we have now, and focus on the potential of the Lisbon treaty to put Europe where we believe it should be, right up there at the very top.”
The reaction of the “other leaders” is not yet known… And no offence to RTÉ, but the opinion of European Commission President José Manuel Barroso is somewhat less important than that of Frau Bundeskanzlerin. Or that of her Finance Minister, Wolfgang Schäuble.
Or, indeed, that of President Sarkozy – “We have to converge. The status quo is impossible.”
And the German leader may not be able to go back to the well.
…the message that came from today’s vote was that Germany’s political class is firmly committed to fighting for and saving the euro even if the German people are growing more wary by the day.
That may prove a factor in the future – the growing divergence between the political elite and the people.
What has happened is that a debate over Europe has now started in Germany. Europe as a subject was never much of an issue politically. Now it is. It is a settled issue no longer.
Every day brings new indications of Germans rethinking their approach to European integration.
Philip Lane’s graphic didn’t include Ireland. But the market’s view of the ECB is beginning to look like a very good fit.
Because the status quo won’t resolve that crisis of legitimacy.
Others are being more forthright.
Repeat after me:
THERE WILL BE NO FISCAL UNION.
THERE WILL BE NO EUROBONDS.
THERE WILL BE NO DEBT POOL.
THERE WILL BE NO EU TREASURY.
THERE WILL BE NO FISCAL TRANSFERS IN PERPETUITY.
THERE WILL BE A STABILITY UNION – OR NO MONETARY UNION.
Get used to it. This is the political reality of Europe, since nothing of importance can be done without Germany. All else is wishful thinking, clutching at straws, and evasion. If this means the euro will shed some members or blow apart – as it almost certainly does – then the rest of the world must prepare for the day.
ANYhoo… It’s still “the political trilemma.”
[Europe is still sexy! – Ed] Of course it is.