Claus Vistesen

This Weekend's EU Summit Lacked Proper Teeth

Hi Mad(...),

You are bang on with most of your points; especially this.

"Germany has the smallest loan exposure, but has the most to lose, with 25% of its exports headed east."

The thing is, you have no idea of how many people did not see this coming because they simply did not bother to look at the real exposure Germany has to the CEE in terms of exports. Actually I would think that the 25% you mention understate the actual exposure since on the margin the growth in German exports have been primarily driven by growth in the CEE (well I would imagine, I don't know).

"It looks like the headlines in Europe are about to get uncharacteristically sensational."

Well, let us hope that the sensations will be in terms of historical measures taken to avert the crisis rather than the sensations you are implicitly referring to. I mean, I have not lost hope here. In particular, I would emphasise the measures to let the currency board economies into the Eurozone.

Yet, I agree wholeheartedly with the SA editor's re-write of my headline ... it lacked teeth. Let us hope it will have more bite next time they meet.

Claus