The situation is now getting hairier with every day and it exceeds this blogger's capacities to list all stumbling blocks on the way to a kind of European Orwellian integration envisioned by its leaders, but increasingly resisted by the sovereigns.
I once started this blog to be 5 years ahead of Moody's to ask whether the US' AAA-rating was in jeopardy. It was an easy world then. All you had to do was to lip-read Alan Greenspan's mysterious descriptions of markets to arrive at the conclusion that gold had only one way: upwards on the back of the decline of today's major fiat currencies.
Today's bullet points in OpenEurope's daily email digest of Europa discordia would have yielded several blog posts then. This is beyond the capacity of a single blogger.
Check yourself and remember this is only one day of bad news:
- The FT has a memo from Trichet’s office, which says Trichet does not like the deal on the stability pact;
- leak shows that there a serious differences over policy at the top level of the eurozone;
- Merkel has obtained an assurance from Sarkozy to support the idea of replacing the EFSF with a tough anti-crisis mechanism (in addition to a treaty change to withdraw voting rights, as already reported);
- vote on French pension reform is delayed, as protests continue;
- in Portugal, uncertainty over the budget continues;
- Commission proposes new EU watchdog to deal with cross-border banks in trouble;
- Commission also proposes EU-wide taxes to fund EU budget;
- Berlusconi and Tremonti plan a big reform of Italy’s budget process;
- James Hamilton considers the arguments against QE, and finds some of them convincing;
- a Spanish municipality, meanwhile, has become the first to suspend payments to its debtors.