Wednesday, 4 July 2012


Building blocks and working methods

BELGA PHOTO YORICK JANSENS
In the never-ending saga of the eurozone crisis it is now clear that even in the face of death, with the toes already over the cliff, our esteemed leaders will salvage our souls not with heroic deeds, courageous actions and death-defying initiatives, but with wordplays and euphemisms.
The long awaited report of the working group of Herman van Rompuy, that was to bring us the blueprint of the Europe of tomorrow, a 10-15 page thoroughly thought through action-packed document, so Reuters said only days ago - turned out to be a 7-page light-heartedly vague description of measures one could take or not take in the next decade (!) to end the crisis.
And, of course, immediately certain players deemed the document too far-reaching, the Dutch press speaking of a Brussels power grab for instance. So if a vague sort of Bilitis type-photo of a European Fata Morgana already sets people up in arms, what on earth would happen when really some actions were to be undertaken; It is difficult to imagine, but perhaps we can pretty soon find out.
Because there are also those that immediately dismissed the document for what it was: too vague. Italy's Mario Monti said, for instance, that he will hold the European Council hostage later this week, if need be until Sunday-night, to make sure measures are taken before the markets open on Monday. And these measures would be not "building blocks" or "working methods", but actual measures destined to bring down the interest rates Italy and Spain have to pay in the bond markets. And bring them down within days or, at most, weeks. This will be a major culture shock, if Mr Monti will actually follow up his words with deeds. Unfortunately for him he may have to do so, as - perhaps to hi surprise - he has found an ally in Irish Taoiseach Enda Kenny. He also made a passionate plea for the Eurozone to create instruments that could alleviate the debt burden of Italy and Spain. He did so not out of Irish altruism, but in good Irish self-interest style. Ireland is to go back to the money markets pretty soon, and it would be handy that when it does, it will know there is such a support to bring down the rates.
The Van Rompuy working group document does not suggest such a magical instrument. It only says that maybe "in the fullness of time" some form of debt mutualisation might be imaginable, if and when the building blocks turn out not to be stumbling blocks and a fiscal, political and banking union will be in place.
Of course, for this to happen we will have to wait for sightings of air-born pigs and a sudden drop of temperature in the Hades. Some people think that Europe may not be given so much time, that there is a real sense of urgency. For those people it can only be hoped, that they have savings outside the Eurozone, or better still safe-havens outside the Eurozone where they can flee to.

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