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And Scene: Europe Agrees To Disagree, Next Summit Date Set For March 2012 As David Cameron Kills Compromise
Not the headlines Gollum van Rompuy needed at 3:30 am CET, when he was scheduled to have a press conference:
- EU LEADERS AGREE THEY WILL REEXAMINE CEILING OF ESM BAILOUT FUND IN MARCH 2012 - EU DIPLOMAT via RTRS
- TREATY CHANGE LIKELY TO BE DONE AMONG EURO ZONE PLUS OTHER COUNTRIES, BUT NOT AT 27 - EU DIPLOMATS via RTRS
- EU LEADERS AGREED PERMANENT ESM BAILOUT FUND WILL NOT HAVE A BANKING LICENCE -- EU DIPLOMAT
- And the guilty party: An agreement at 27 fell through after British Prime Minister David Cameron demanded concessions that Germany and France were not willing to give, one of the officials said.
And some more:
- The news conference by European Council President Herman Van Rompuy that had been planned for 0200 GMT has been delayed by at least 30 minutes as talks by European Union leaders are ongoing, a council press officer said.
Translation: tomorrow's summit is as of now an epic failure. As for the Eurozone lasting through January 1 of 2012, let alone March... good luck.
More:
The European Union failed to secure backing from all 27 countries to change the EU treaty at a summit Friday, meaning any deal will now likely involve the 17 euro zone countries plus any others that want to join, three EU diplomats said.
An agreement at 27 fell through after British Prime Minister David Cameron demanded concessions that Germany and France were not willing to give, one of the officials said.
During nearly 10 hours of talks that lasted into the night, EU leaders did manage to reach agreement on a ceiling for the size of the euro zone's permanent bailout fund, the ESM, saying it would be capped at 500 billion euros.
That figure will be reviewed in July next year, when the ESM is due to come into force, the diplomats said.
The leaders also agreed to explore the idea of providing bilateral loans to the International Monetary Fund totalling 200 billion euros, with 150 billion of that coming from the euro zone , to bolster IMF resources to tackle Europe's debt crisis.
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...now the reality
0519 GMT [Dow Jones] The euro zone press conference was a "farcical" effort and the announcements from officials so far have done little to inspire confidence given much of the detail is vague, says Westpac FX Strategist Sean Callow. "The bottom line is they interrupted their two day conference to grab headlines and raise hopes of a break through agreement and they ended up delivering a very underwhelming package of headlines." The EUR/USD initially moved higher, and is now choppy around 1.3332
Finally it's all over. New seperate treaty illegal.
http://finance.yahoo.com/news/uk-threatens-eurozone-others-over-05542375...
http://globaleconomicanalysis.blogspot.com/
Cameron +1
Where is ponzimaster Rehn? He gave the usual kiss of death abt a week ago saying the future existence of zEuro.pk depends on this particular summit. Now that eurocommies once again agreed to disagree, i expect Mr Rehn to announce this political utopia tested in real time with real human beings has failed for the last time and the peoples of Europe are now free from the shackles of the unelected bureaucrats in Brussels.
One more summit, one more "last chance"; it becomes boring.
Also the major point not clearly mentioned....as part of this new agreement Germany agees that:
BONDHOLDERS WILL NOT TAKE AN LOSSES
In short all 17 countries have agreed to drink the Jones-Town cool-aid - the other 10 were seen escaping in to the bushes...
From the french perspective this is a relative victory: 23 have signed on, two (Swe/CZe) will consult parliaments, two (UK/Hun) have opted out. With the treaty modifications envisaged on fast track mode, UK's NIET doesn't count. So Cameron can lump it.
The 23 have IMF/FED backing to move on. But move on to where?
The Math is still against the Euro construct. So its can kicking, but after financial armageddon some time when FED/ECB will have run out of false bullets, the Euro-land will move forward towards more economic integration, probably with a two tier currency by the looks of it; when it becomes obvious and politically respectable to admit that the North/South economic/cultural divide makes one currency impossible in long term. But we are not there. Right now its the one eyed leading the blind in the fog of financial collapse. THe collapse has to begin somewhere; that is what the world does not know today. Play on...
Concerning private sector losses, according to this deal, ONLY Greece bondholders will take 50% haircuts. A one off situation that will not apply to Italy or Spain etc. Now that is one helleva Euro gamble; apparently Merkel has bought into it. Mama Mia!
yes...but...but...the devil is in the details. There is no details...just another plan of another summit in March. Will that be enough for the casino to rally? Or does the death spiral continue?
The details you refer to are in the hands of others : the US oligarchs and the global ponzi. Don't give these Euro politicians and technocrats more credit than they deserve. Right now we, the world, are in PAX AMERICANA, home of financial ponzi, mother of reserve currency. Until PAX AMericana does not ostensibly go bankrupt, we will continue to spiral as they hold all the true levers of world finance.Not the Eurocrats. Its action and reaction. Financial karma.
And now Hungary also simply says that it needs to consult parliament; which BTW is true for many of the 27.
So that leaves only the UK as the odd one out.
Brits probably do not need fiscal prudence, they are doing swell without that kind of nonsense (UK debt/GDP: 150% & rising, LOL).
Ceterum censeo OTC esse delendam
The US newspapers say " UK torpedoes EU unity". The French newspapers say "EU excludes UK from decision making". Interesting how the interpretation varies. But we have to separate the long term from the crucial short term;
Short term : the fire wall against bank runs; EFSF/EMS type thingummy is not sufficient in current market mayhem. So this will determine if EUro survives in short term. Having said that the anglosaxon banking spiral could bring down Euro zone as vice versa. As the numbers thrown around about shadow banking shenanigans are just mind boggling; we the people have no handle on if/when/how fast this spiral could unwind.
Long term : THe fiscal discipline is a good thing to make the EU a more cohesive model for the decades to come. Europe needs more discipline in the face of global continental challenges, and will have to find its new energy/social paradigm as we move out of the easy energy, low climatic impact age.
It's true that the UK 'tea-party' equivalent (i.e. the right-wing of the the centre-right conservative party) and the UK's financial vested interests have pressured Cameron to step away from an agreement that deals with debtor nations' budgets, flagrant overspending, and harmonising taxes.
This opens the door for further devaluation (in order to make UK exports competitive) and bigger deficits.
Hip Hip Hooray ..
Now it's the US's turn to convince the world how it will pay it's debts.
Anyone who thought this meeting would end in some fashion that send the market anywhere but up still does not get it.
Before you all fall into the trap of believing the media spin on Cameron's spanner in the works,just be aware that his primary and only reason to veto was that it was to protect the interests of "the city"-in other words the banksters who reallly run the UK.National interest or doing the right thig for the British people didn't even come into it.
If it had,he would have declared the UK's immediate withdrawal from this swirling cesspit of lies,fraud and corruption.