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Europe looks like a disaster-zone right now.
There are days when you wake up and you know something is going to hit the fan in untimely fashion. That’s when you are more than likely to want to roll over and go back to sleep, but the nagging little voice tells you to get up and face it like a man. Today is the longest day of the year, and today more than any other day, it looks like some chimp (just have to work out who the chimp is!) has been launching missiles in your direction as you stand in front of the fan.
Europe is a disaster-zone. Here’s the round-up of what’s going wrong right now. The longest day? It would have been a long day, whatever happened, so you might as well enjoy it.
Greece
[29]
Eurozone: Greece
Greece announced this morning that the Greek Democratic Left Party, headed byFotis Kouvelis, has taken the drastic decision to tell its ministers to withdraw from the coalition government in the kafuffle over the halting of all broadcasting for the national television and radio stations. A strong majority have decided to back Kouvelis (without official numbers being released as of yet).
Confirmation has just this very minute been published after a press conference meaning that the withdrawal will result in a mandatory reshuffle of the cabinet. It might still continue as a minority administration, but the ministers and secretaries of state will leave.
The trouble just adds fuel to the fire that means that there is market volatility and International Monetary Fund statements being issued that they will pull the plug unless the Eurozone finds the money that Greece is lacking [30]. Ten-year Greek bonds rose to their highest since April, at 11.41%.
France
[31]
Eurozone: France
French President, François Hollande, is in for a tough ride today too. He recently stated on a state visit to Japan that the recession was over. He also stated yesterday in a press conference that he was on target to reduce unemployment by the end of the year. The INSEE (national statistics office of France) issued a report today stating that he should think and then think again about the improving situation. It isn’t likely to happen this year at all.
Unemployment is set, according to their forecasts, to increase until well into December. Hollande spoke of the difference between those that make ‘forecasts’ and those that are ‘willing’ to make change. Mind over matter? The INSEE sees unemployment increasing by 113,000 this year (but admits that this will be at a slower rate than in 2012). It will reach 10.7% by December 2013.
Luxembourg
[32]
Eurozone
Finance Ministers are meeting today, and probably for the rest of tonight to slog it out in what looks like a slanging match of the year over the one-size-fits-all financial policies regarding the failing banks and how they should be propped up in EU-member states. Britain and France will be aiming for individuality, whereas others want across-the-board decisions that will be the same for everyone. Who will get to pull the blanket furthest to their side of the bed?
Germany
[33]
Eurozone: Germany and Turkey
Germany and Turkey are in for a rough ride. The Chancellor of Germany, Angela Merkel made a comment during a press conference about Turkey’s way of dealing with protestors. It’s the word chosen that has aroused Turkish delights. She said the crackdown was “appalling”. In a tit-for-tat reply, Egemen Bagis, the Turkish Minister for EU Relations said that Merkel was only trying to block their entry into the EU and notch up a few points for her forthcoming election bid in September. Does anybody actually still want to stay in the EU? There are a good few that are actually trying to scramble out of the Union, but Turkey is still harping on about getting in. Who would want to go to a party that has finished?
The Turkish ambassador has been summoned for a ticking off and a wrap over his knuckles. Analysts are saying thatthe already-cooler-than-cold relations between the EU and Turkey will now hit freezing point. Turkey will be out in the cold for quite a while by the looks of things.
Conclusions?
If the worst comes to the worst, close the curtains, draw the blinds, pull the shutters; let the world implode. At least, you will get a good night’s rest. The innocent and the honest always sleep soundly. But there are the ones that understand that the stuff hitting the fan is just like dust on the sideboard and the bookshelf: it will just keep coming back if you try to get rid of it. The dust will be there tomorrow. If you understand that, you will sleep even more soundly. I can hear them snoring at the Federal Reserve and the European Central Bank and the Bank of England and the Bank of Japan and the Bank of…it’s the sound of the printing presses [34], soothing music to your ears, just like the gentle jolt of an intercity train, chugging along. Sends you off to sleep. Sweet dreams?
Originally Posted: European DisasterZone [35]
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