Amazing. The EU politicians now promise to enforce the rules a decade too late and they actually think that's an advance. It’s like a bad SciFi novel where everyone does everything in exactly the reverse order and in slow motion to boot. Merkel used the three-way summit with France and Italy in Strasbourg to insist that new treaty powers to intervene and punish sinner states remained the key focus of Europe's rescue efforts. She said: "The countries who don't keep to the stability pact have to be punished – those who contravene it need to be penalized. We need to make sure this doesn't happen again." Even suggestions that the ECB could extend longer loans to countries over a period of up to three years appeared to be ruled out. Ms Merkel said: "The ECB is independent, the modification of the treaty does not concern the ECB, which is dealing with monetary policy and financial stability. We are worried about a fiscal policy. It's a very different chapter. It has nothing to do with the European bank." At the beginning of the day, Jean Leonetti, French minister for European affairs, said: "France wants the ECB to have the same role as the Federal Reserve... Why is the euro under attack? It's simple. In the US there's a Federal Reserve. Europe has the ECB, but the ECB does not buy up sovereign debt if needed."
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Thursday, November 24, 2011
Amazing. The EU politicians now promise to enforce the rules a decade too late and they actually think that's an advance. It’s like a bad SciFi novel where everyone does everything in exactly the reverse order and in slow motion to boot. Merkel used the three-way summit with France and Italy in Strasbourg to insist that new treaty powers to intervene and punish sinner states remained the key focus of Europe's rescue efforts. She said: "The countries who don't keep to the stability pact have to be punished – those who contravene it need to be penalized. We need to make sure this doesn't happen again." Even suggestions that the ECB could extend longer loans to countries over a period of up to three years appeared to be ruled out. Ms Merkel said: "The ECB is independent, the modification of the treaty does not concern the ECB, which is dealing with monetary policy and financial stability. We are worried about a fiscal policy. It's a very different chapter. It has nothing to do with the European bank." At the beginning of the day, Jean Leonetti, French minister for European affairs, said: "France wants the ECB to have the same role as the Federal Reserve... Why is the euro under attack? It's simple. In the US there's a Federal Reserve. Europe has the ECB, but the ECB does not buy up sovereign debt if needed."
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The push to renegotiate EU treaties adds yet another layer of complexity and tension to a crisis that has already stretched the euro zone's leadership to a breaking point.
The crisis has toppled seven euro-zone governments in less than a year, including those in Spain, Italy and Portugal.
Proposals for treaty changes that would subject countries to stricter oversight of their budgets and spending signal the bloc's leaders—in particular German Chancellor Angela Merkel—continue to favor long-term solutions that do little to satisfy calls for urgent action to solve the deepening crisis.
TORONTO -(Dow Jones)- The euro tumbled in early North American trading Thursday to trade lower against the U.S. dollar, as German Chancellor Angela Merkel said she sees no reason for euro bonds.
Euro bonds "would weaken us all," she said, speaking at a news conference in Strasbourg.
Merkel is meeting with the leaders of France and Italy to discuss the crisis. She described the process as difficult, and said trust had been lost. She added, however, that European leaders trust each other, and will work closer on issues.
The euro, meanwhile, erased gains to trade at $1.3330, from $1.3343 late Wednesday, according to data provider EBS via CQG
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