Tuesday, August 16, 2011

Merkel and Sarkozy aim to balance budgets

The press conference, now underway,  significantly earlier than scheduled, has Sarkozy and Merkel seeming to mainly be emphasising Sarkozy's so-called 'Golden Rule' which requires a balanced budget, and a Parliamentary majority of two thirds in both houses as far as I understand the constitution requires in France.

In the Bundestag, even more problems seem likely to occur, never mind the German Constitutional Court.

The elected heads of France and Germany will nevertheless push for such a rule across the Euro Group.

The long discussed concept of a financial transaction tax was mentioned in conjunction with the equally time worn strengthening of "economic governance" again to be pushed by Von Rompuy.

Questioners asking about Eurobonds are being answered in the negative as far as joint and several liabilities seem to be being suggested.

My early impression, while the questions continue, is that this meeting is the damp squib I expected in my post of last weekend and the real MELTDOWN of the euro will now begin.

Why did they meet seems the main burning question.

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