Tuesday, July 12, 2011

Strong and visionary European leadership is needed - Papandreou

"I am now convinced, after fourteen months, that no matter what Greece does-and we have proven ready to live up to our responsibilities—if Europe does not make the right, collective, forceful decisions now, we risk new, and possibly global, market calamities due to a contagion of doubt that will could engulf our common union. Strong and visionary European leadership is needed.
I say this to you because now there is a greater need to avoid mistakes of the past. “Crunch time” has arrived and there is no room for indecisiveness and errors such as:
- taking decisions that in the end prove ‘too little, too late’ to convince the markets we are serious;
- making compromises that satisfy our internal political ‘red lines’ that in the end substitute tactical politics for sound management of the crisis (although I do recognize the problems some governments have and the democratic demand for a greater say of Parliaments in trying to deal with this crisis);
- failing to use in-depth technical analysis and consultation before decisions are made;
- allowing a cacophony of voices and views to substitute for a shared agenda, thereby creating more panic than security;
- and I would add more global issues such as doing nothing substantive about the destabilizing role of the rating agencies, credit default swaps, tax havens or about plausible new revenues such as a financial transaction tax.
The above have in one way or another had profound effects on my country and others facing similar challenges."

The above is from a letter from Greek Prime Minister Papandreou to Jean-Claude Juncker, thanks to Covering Delta, linked here. Asking for strong and visionary leadership from this typically blinkered Luxembourger in regards to the leadership of the Continent seems worse than asking a member of an Olympic synchronised swimming team to run the IMF, (or perhaps expecting a drone bee to take the role of the Queen Bee in a hive). Frankly they are just not mentally, genetically nor physically capable of fulfilling such a task! When will somebody twig that obvious fact?
Or of course, on the other hand, is that the very reason they are appointed to the very positions in which they now find themselves? 

PS The Euro Group response to this letter, appears to be to prepare legislation against the rating agencies, as I reported on my first post of today see below.

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