"If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace. We ask not your counsels or your arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you, and may posterity forget that you were our countrymen."

Friday, 14 May 2010

And PIIGS Might Fly

According to El Pais (translation), President Sarkozy has been throwing his bijou continental charms around the boardrooms of Brussels again and demanded a  "commitment from everyone to suppport Greece...or France would reconsider its position in the euro"   France is the most exposed to PIIGS debt - it's owed in the region of $912bn so we can see why Sarkozy is getting hot under his collar.  We must bailout the banks of all these countries in order to bail out the banks of France after we've already bailed out our own banks - and got little in return.

There isn't a cat in hell's chance that France will pull out of the eurozone - it's integral to the whole concept of an economic and political union. The eurozone would have to collapse first - and it would do that if politicians with their cherished ideologies would stop interfering and let the markets have their way. Yes, it would be painful for all of us, but that pain would be offset by knowing that the EU dream of a command and control superstate had collapsed and we'd be free to pick ourselves up and start again from a better, healthier position.

I've blogged previously about the EU wanting the power to pre-vet national budgets before our own 'sovereign' parliament has seen them.  Well, it's hotting up.  Next Tuesday sees a meeting of Finance Ministers (our new Chancellor, George Osborne, will be attending so we'll get to see his mettle) when, once again, Germany and France will be thumping the table and talking about economic governance/aka monetary and fiscal union.  I wonder how Osborne will stand up?

One thing seems certain: if Sarkozy/Merkel do get their way that poor old chap on the Clapham Omnibus and his children will be bailing out banks and, indirectly, multi-nat corporations, for ever and a day.  We'll be no more free than the indentured servants of long ago.

Anyone thinking that the next step won't be EU taxation, hidden in VAT or as a ring-fenced portion of another tax, is wrong.  Btw - countries of the EU can raise VAT without the authority of the EU but to lower it again, it definitely needs permission so any VAT hike is here to stay.

From the Telegraph: Cameron facing EU crisis
From the Times: More - FTSE plunging
And, in case you missed it yesterday, here's a fairly good diagram showing how the money is pushed around and who owes what to whom.


  1. Is it me, GV, or are several countries looking for a way out?

    First France, now Germany. Greece kicked it off with their dollar bonds (they should have euro bonds).

    On reflection, it would be cheaper for them all to simply run away.


  2. I don't know what's going on CR - it looks as if they regret not tightening up the Lisbon Treaty. The reason they didn't make allowances for default in the eurozone is because they 'didn't want to encourage it' ie, allowing leeway would encourage countries to test it to the limits. It seems they didn't allow for independent markets. Not to worry! All that will be sorted out next week when the markets are brought under EU control.

    If they were honest then Spain, Italy, Greece and Portugal would say they wanted to set their own rates. It's a f/king implosion CR and yet, here we are, in the UK, with the most overtly europhile government ever. Nothing makes sense.


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