"The worst of all worlds" AE-P in the Telegraph

The EU has brought about the first sovereign default in Western Europe since the Second World War and set a fateful precedent without actually resolving the Greek problem. This is the worst of all worlds.

The entire comment from Ambrose Evans-Pritchard in the Telegraph is linked here. It confirms what this blog has been re-iterating for the past ten days are these daunting, but obvious, other quotes:

Europe’s leaders have gone on holiday. The €440bn EFSF is an any case too small. The bond vigilantes broadly agree that the EFSF needs €2 trillion in pre-emptive firepower to forestall a twin crisis in Italy and Spain, though quite how France might pay for this without being drawn into the maelstrom itself is an open question.........

EU ineptitude - or rather, German, Dutch and Finnish unwillingness to face up to the implications of EMU - have raised the risk of a traumatic August crisis in Italy and Spain. EU leaders are bringing about exactly what they pledged to avoid.