Euro crisis: “Welcome to Europe’s endless debt saga.”

I haven’t posted an update on the euro crisis for a while, and this European Diary piece by Arthur Beesley in the Irish Times might help explain why.

Welcome to Europe’s endless debt saga. Sunshine is a rare enough commodity in cloudy Brussels – and a downpour follows any glorious spell. The hunch must be, however, that Vitamin D levels are at an all-time low in the euro trouble crowd.

After all, the general routine these days involves hundreds if not thousands of politicians, advisers, officials, diplomats, translators, clerks, security dudes, drivers, journalists and assorted hangers-on spending endless hours cooped up in arid buildings as people in a stuffy room try to sort out the latest incremental move. Sunshine is the luxury of wimps, clearly.

The meeting here of euro zone finance ministers on Monday night was a case in point. Nine languid hours they spent talking, before emerging bag-eyed into the dark after 2am with a 522-word statement in which they mainly reiterated the conclusions of a 14-hour dead-of-night summit meeting a fortnight ago.

These communiques increasingly resemble the notes of a bewildered doctor on an ailing patient he still hopes to save but whose illness he does not fully understand.

The latest message from the ministers was dated July 9th but it was already July 10th by the time the thing was actually released. By then, plans were already in train for another bickering session 10 days hence – and yet more unscheduled talks in early September.

When is an emergency meeting not an emergency meeting? When it’s planned eight or nine weeks in advance.

Never mind the lack of sunlight. Sleep deprivation is at work too. Exhaustion is general. A fellow reporter recounts waking up with a shudder the other night in the middle of an anarchic dream about Mario Monti, Angela Merkel and other luminaries! Say no more.

Really, it all seems faintly ridiculous.

Do read the whole thing.  And on his point that “there are no guarantees in this game”, take a look at the “polite riposte” Ambrose Evans-Pritchard received from the German finance ministry to his “irreverent suggestions in yesterday’s blog“.  As he says

Interpret this as you will.

It strikes me that the European Commission and others have gone much too far in claiming that the ESM will indeed recapitalise banks.

The German Bundestag has not given any such authorisation. It may do so at some point in 2013, or it may not. The current finance legislation specifically prohibits it.

As for breaking the law, the question is what Chancellor Merkel agreed to verbally behind closed doors. The comments by the Spanish and others suggests that she may have promised much more than appeared in the formal conclusions – arguably in breach of her Bundestag mandate.

Since German president Joachim Gauck has told her to come clean on exactly what she agreed in Brussels, we may soon find out.

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  • Zig70

    Does feel a bit of a corner turned. The Euro seems safe, Greek tragedy or not, contagion is not so widely used. The EC are probably patting themselves on the back. Troika says Ireland is a bit screwed but at least it’s confined to an Irish problem.
    Sucessful my ass.

  • Mister_Joe

    The whole thing sounds like something that Kafka would have written.

  • A little something about the ESM that you may not know anything about, but which you should ? ……… ESM Treaty of Debt

    And whenever your local/national politicians/representatives of the people know of the trap, why would they play and support that game?

  • And here is another instructional corker of an educational video sketch ….. World Collapse Explained in 3 Minutes

    And just in case you still struggling to comprehend and/or are locked in an ignorant circle of pathetic denial, here is Jim Rogers laying it out as plain as can be …… A Holocaust is Coming

    I hope everyone is enjoying their holiday.

    Coming soon, in a Colossal Trojan of Titanic Proportions …… The Great Game, and how to Play it with IT Command and Control and Not Lose.

    And what machine do you imagine is able to deliver that Blockbuster of AIMove?

    Debbie does Dallas is real soft core whenever compared to Holywood does Hollywood.

  • Arthur Beesley appears to have enjoyed a report in the German media last week that too many Germans suffered from low vitamin D levels owing to lack of sunshine.

    Ambrose-Prichard has invited interpretation. Here goes.

    Merkel has a well-oiled political machine operating in the German Parliament. It is working so effectively that the opposition are too scared and too compliant to jettison consensus whilst Merkel has a 66% public approval rating. The ESM treaty was passed in Parliament last week without incident. Only the constitutional court, which has to decide the outcome of an injunction to stop it, can bring the temple crashing down but that seems highly unlikely.

    The German President is a constitutional president. Like the Queen, here, he ratifies legislation and does not get involved in party politics. It seems, however, that he sees his role as guardian of the German constitution to be a bit more than ceremonial. He has stated that he will sign the treaty only if the constitutional court approves it.

    The German President has “told” Angela Merkel to explain her Euro policies.

    I dont know if lack of sunlight has anything to do with the vitamin D problem but it seems that the German President thinks that the people are being kept ‘in the dark’.

  • Greenflag

    A German Bishop was arguing with a German bankster about who had the greatest power and authority .

    Said the bishop to the bankster :

    ‘You can only condemn people and entire nations to poverty , mass unemployment and economic emisseration whereas I can condemn them to eternal damnation ‘

    ‘True ‘ said the German bankster . ‘But if I condemn individuals or indeed nations to poverty , mass unemployment and economic emisseration then thats exactly what happens ‘!

  • wee buns

    We still try to oppose the madness from Donegal.

    ”In his action, Mr Pringle claimed the ESM Treaty breaches the Irish Constitution, existing EU Treaties and EU law and is inextricably interwined with the Fiscal Stability Treaty approved in a referendum here last May.
    He argued the ESM Treaty must also be put to the people because the purpose of the ESM goes beyond the economic and monetary union approved by the Irish people in existing EU Treaties.
    He argued the Treaty irrevocably and indefinitely binds all 17 Eurozone states to the defence of the Euro and, because it allows for decisions by qualified majority voting, deprives Ireland of the capacity to say yes or no to bailout decisions.
    Ireland could be committed forever to putting money into a fund without having any say about that, he argued.”