Sunday, October 16, 2011

EU Hits Moment of Truth

Drowning in Debt, EU hits moment of truth

Nearly two years in, Europe's leaders bid to draw a line under the debt crisis this week and deliver a "lasting" solution to ring-fence their money and prevent EU disintegration.

The stakes are high, in the run-up to marathon Brussels talks amid global pressure to end in-fighting and avert the "scary" future US President Barack Obama fears otherwise awaits us all.

But Europe remains steadfast. "The results of the October 23 summit will be decisive," insisted French Finance Minister Francois Baroin after chairing weekend talks with G20 counterparts in Paris.

Culminating in that 'mother-of-all-summits' on Sunday, one that could run right through the night, finance, foreign and finally prime ministers, presidents and Germany's chancellor will each troop in.

All, even Angela Merkel, are under international orders to cater for every potential side-effect of their decisions, and deliver "comprehensive" defences aimed at turning the gaze of market wolves elsewhere.

So the EU leaders plan on offering a "lasting solution" in order to prevent EU disintegration. That information is quite interesting.

This may give us a clue:

European leaders have now identified root solutions, namely an understanding that the eurozone if not all EU economic policy must be delivered top-down, not bottom-up.

Replacing toothless EU deficit and debt thresholds, countries must now meet shared targets on a broad gamut of criteria from public budgets to tax bands or volumes of red tape.

Fundamentally given its incontestable clout, Germany's highest court has ordered much greater oversight by all lawmakers of all future bailout participation.

Should the drift accelerate, Europe may end up "dominated" by "extreme parties or groups," says Martens.

The coming solutions?

Key words tell the story:


"Greater oversight by lawmakers"

And the possibility of being "dominated by extreme parties or groups".

This sounds like something we may expect from the 'revived Roman Empire" of the last days.

Indeed. Add this evolving scenario to the list of "watch items".

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