Don’t miss AEP’s latest: ECB is euroland’s last hope as bail-out machinery fails to resolve crisis.
The money quote, the one paragraph that tells you what we’re actually facing:
Mr Trichet is moving into dangerous waters dictating budgets to sovereign parliaments. It matters enormously whether citizens have political “ownership” over austerity, or whether it is imposed by outside forces.
His former colleague Otmar Issing fears that Europe is becoming a deformed union where officials run roughshod over nations and fiscal power lies beyond democratic control. Such encroachments have “brought war” in the past, he said.
And finally we see the that the even within political circles the realisation begins to dawn that we are on a destructive and potentially very dangerous path. It has been some time in coming, but finally, at long last we are getting there.
On a side-note, earlier in the piece AEP says:
Italy does not have a debt problem as such. Its budget is in primary surplus this year. Total debt – the relevant gauge — is under 250pc of GDP: similar to France, and lower than Holland, Spain, Britain, the US, or Japan.
You what? Every statistic I have seen puts the Dutch debt at around 75-80% of GDP. What am I missing? Is AEP wrong, or have we been lied to? Again?
No, seriously. If any of you have some light to shed I would very much like to hear it.