Surrender never comes easily to Germany, whether on the football pitch, where it crashed out of the European championships against Italy, or in Brussels, where Angela Merkel has for months been the Nein Chancellor, resisting all pleas for a Euro bail-out.
Having repeatedly refused southern European demands for help, Mrs Merkel found herself saying yes in the early hours of yesterday. The Mediterranean states called her bluff, and won. Mrs Merkel has agreed to the use of European rescue funds both for direct bail‑outs of troubled banks and to provide relief to indebted governments. She also agreed a limited form of banking union, and made concessions over the terms of the Spanish and Irish bail-outs.
Given the low expectations many had of the summit in Brussels, this was quite a capitulation. Yet despite the ecstatic reaction of the markets yesterday, no one should be in any doubt that the eurozone remains a long way short of plausible and lasting solutions.
[More]
Editorial: Merkel’s retreat will not solve Europe’s problems (15),See Also:
Hooray! Euro is saved … for the 483rd time!
Here Are Four Good Reasons Not to Trust Today’s Rally
World Bank Mired In Dysfunction: Mess Awaits New Head
Oil surges as EU leaders tackle debt crisis; US pump prices could rise
Outspoken Canada still worried about Europe
Afternoon Updates:
12:02 pm EDT, July 1st, 2012 — Italy has won this euro battle, but not the war
12:03 pm EDT, July 1st, 2012 — Banks blasted for ‘profiteering from developing world loans’
12:05 pm EDT, July 1st, 2012 – Athens to ask for EFSF deal to apply to Greece, too
12:06 pm EDT, July 1st, 2012 — Eurozone lending to private sector looks dismal
12:07 pm EDT, July 1st, 2012 — Less disunion
12:08 pm EDT, July 1st, 2012 — Merkel Secures Vote for Euro Treaties
12:09 pm EDT, July 1st, 2012 — TSX racks up triple-digit gains as investors cheer eurozone deal
12:10 pm EDT, July 1st, 2012 — As debt crisis widens, Denmark hands over EU presidency
12:11 pm EDT, July 1st, 2012 — EU’s Debt-Crisis Missteps Echoed By Patent Fight Before Summit
People reading the 12:10 entry will be surprised by no mention of who assumes the EU Presidency next.
I correct the error.
That would be Cyprus!
“Woohoo”.