"In the wake of last week's Euro summit, there's one obvious new development. Headlines like this in the FT: How long will Britain stay in the EU?
This question is being repeated all over the place following David Cameron's refusal to endorse treaty changes that would allow the Eurozone to move closer to fiscal union.
But beyond that, as Ambrose Evans-Pritchard points out in a blistering Telegraph column, the proposed treaty changes still don't get at the root cause of the euro crisis.
at http://www.businessinsider.com/the-simple-reason-why-last-weeks-euro-summit-was-such-a-disaster-2011-12?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+clusterstock+%28ClusterStock%29#ixzz1gFyqpY9D
This question is being repeated all over the place following David Cameron's refusal to endorse treaty changes that would allow the Eurozone to move closer to fiscal union.
But beyond that, as Ambrose Evans-Pritchard points out in a blistering Telegraph column, the proposed treaty changes still don't get at the root cause of the euro crisis.
There is no shared debt issuance, no fiscal transfers, no move to an EU Treasury, no banking licence for the ESM rescue fund, and no change in the mandate of the European Central Bank.
In short, there is no breakthrough of any kind that will convince Asian investors that this monetary union has viable governance or even a future.
Germany has kept the focus exclusively on fiscal deficits even though everybody must understand by now that this crisis was not caused by fiscal deficits (except in the case of Greece). Spain and Ireland were in surplus, and Italy had a primary surplus.
So in short: A treaty that solves nothing that now opens up a rift between the EU and the UK. Hard to spin that as positive."at http://www.businessinsider.com/the-simple-reason-why-last-weeks-euro-summit-was-such-a-disaster-2011-12?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+clusterstock+%28ClusterStock%29#ixzz1gFyqpY9D
