Saturday, 26 November 2011

Is EU Fragmentation on the Cards?

I said many months ago that the Eurozone would have to release Greece in order to ensure stability.

When Italy became a victim, the Euro became even more dodgy.

Now that Germany has caught a touch of the virus spreading through Europe and its bond auction has failed, you know that something drastic WILL happen.

As long as Germany could shovel Euros into the ECB and the IMF and (like our government) the cost of propping up the Euro could be hidden from the German taxpayers and voters by keeping it remote, things could continue.
Now German finances are directly affected, there is no hiding it and you just know that radical moves to distance Germany from the mire will start to be put in place.

Could the rockier economies be ditched to save German finances? Or could plans get even more drastic?

December should be an interesting month.