CuriosityCat: The Eurocrisis – A Gallic snub, No Haircuts & More Stability Funds

What a dramatic few days we have just lived through!  The grandest experiment in modern history – the European Union – has weathered a major threat to its existence, with 27 governments gathering in Brussels, and 26 agreeing on a roadmap for future stability and closer fiscal union. And the one country that is half-in ...

CuriosityCat: David ‘Two-Speed’ Cameron and the EuroCop

Chancellor Merkel’s glacial crawl towards the creation of an all-powerful EuroCop with powers to veto the budgets of Eurozone nations is beginning to make Prime Minister Cameron a bit nervous.  Cameron is on the outside, looking in, but is itching to give advice to the 17 European Union members of the Eurozone about how to ...

CuriosityCat: Chancellor Angela Merkel’s bypassing tactic on its way to success

David Cameron wants a pound of flesh in return for the UK agreeing to changes to the EU Treaty to bring on closer fiscal union in the Eurozone. Pushed by the Euroskeptics in his party, he has to pander to them by trying to change the deal and repatriate more power to the UK government. ...

CuriosityCat: Chancellor Brinkmanship: Angela Merkel’s Teutonic discipline for the EU Latin Fringe

To some, the Eurozone crisis has all the hallmarks of a train crash. These onlookers are only partly right. The Eurozone crisis is a slow motion train wreck, with the speed being checked as and when she wants to, by Chancellor Merkel of Germany. The Stampeders: On the one side, we have the capital markets, ...

CuriosityCat: Greek PM frames it as a battle for the future

Here’s one politician who – rather belatedly – has managed to frame the issue in a way which will make it difficult for Germany to say No. He has shifted the focus to the future, to the reforms that Greece is determined to implement: Greek Prime Minister George Papandreou has delivered an impassioned plea to ...

Progressive Proselytizing: The similarities between debt crises and currency crises

During the nineties, the predominant form of economic crisis that could hit a nation was the currency crisis whereby the value of a countries currency drops precipitously. Most infamously was the Asian financial crisis, whose effects rolled around the world, but also the Russian, Mexian, Argentine and many other similar currency related crises in countries ...

CuriosityCat: The Chancellor versus Breugel: The Cat thinks Merkel is right about the Eurobond

The European Union is a loose confederation of widely divergent nation states, with the weaker ones suffering from the consequences of a worldwide recession, living beyond their needs, and financial markets that are wary of investing in the sovereign debt issued by the likes of Greece and Italy. Enter The Eurobond: Chancellor Merkel ponders the ...