Saturday, June 19, 2010

Who’s the Cowboy (Capitalist) Now ?



Some Germans mull the sanest outcome of the Eurozone’s dependency on them. It isn’t kicking out the undercapitalized and profligate-borrower member states, it’s leaving them for dead.

Gerard Baker:
The euro version goes like this: fiscal policy is run by the Greeks, the Spanish and the Italians; interest rates are set by a central bank in thrall to politicians in France and Italy, and it is all organised by a Portuguese socialist and a Belgian. The idea will go down a treat in places like France, Greece and Portugal. But if you’re German — an increasingly disgruntled citizen of Europe’s largest and most productive economy — you might be starting to think it represents a final signal to get the hell out of there.

I exaggerate, of course. The EU summit is destined to break up without any firm plan being agreed.

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