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Of the 27 EU nations, 23 have agreed to tighten their fiscal coordination, though leaders remain...

Of the 27 EU nations, 23 have agreed to tighten their fiscal coordination, though leaders remain deeply divided on the details of their crisis strategy. The U.K. will stand aside, while Hungary, Sweden and the Czech Republic have reserved their positions. All 17 eurozone nations are participating.
Comments (8)
  • Inzaghi009
    , contributor
    Comments (26) | Send Message
     
    gulp.. good news? uh oh..
    9 Dec 2011, 01:42 AM Reply Like
  • dividend_growth
    , contributor
    Comments (2887) | Send Message
     
    There is no way the Brits are going to surrender their sovereignties to the Krauts.
    9 Dec 2011, 01:45 AM Reply Like
  • Villi Grdovich
    , contributor
    Comments (598) | Send Message
     
    So why are they talking so much?
    9 Dec 2011, 01:50 AM Reply Like
  • bob adamson
    , contributor
    Comments (4557) | Send Message
     
    The UK shares with the US the dubious distinction of having overdeveloped investment banking (with its attendant shadow bank and hedged fund components) as a major industry dwarfing in domestic impact many other industries that in other countries provide productive employment to large sectors of the population. The UK's EU partners wanted to control and limit investment banking which they rightly see as an important feature of the lead-up to the sovereign debt and banking crises that many EU member States are currently experiencing but the UK wanted to shelter its investment banking industry from EU regulation or supervision.

     

    This serious division of intent between the UK and the continental EU member States was well understood going into the Thursday and Friday EU summit meeting and the outcome of UK continuing membership in the EU but in isolation from all but two or three other member States under the new arrangements was always the likely outcome.

     

    The test now will be whether the new EU accord will be supported by (a) domestic resolve to make it work on the part of the continental EU States and Ireland, with the support of the ECB and IMF, by cooperation of the central banks of the leading global economies and by the markets.
    9 Dec 2011, 02:24 AM Reply Like
  • mP1
    , contributor
    Comments (386) | Send Message
     
    Every couple of days someone drops a few hundred billion to some fund for this crisis. Just how long can this continue and who will pony the next 300B ?
    9 Dec 2011, 02:35 AM Reply Like
  • Villi Grdovich
    , contributor
    Comments (598) | Send Message
     
    bob adamson, thanks for a very neat explanation.
    9 Dec 2011, 04:49 AM Reply Like
  • User 353732
    , contributor
    Comments (4853) | Send Message
     
    Having systematically violated the old rules, now the EU has risibly announced new rules that can also be violated with impunity.
    Fortunately, the EU has currently configured will have collapsed in a year, so the new rules can soon be buried and forgotten.
    9 Dec 2011, 07:22 AM Reply Like
  • bob adamson
    , contributor
    Comments (4557) | Send Message
     
    User 353732 –

     

    I would not be so sure

     

    The question is whether the IMF and ECB will see their way clear to now backstop the Eurozone nations’ sovereign debt and economic and fiscal stability and reform pending the hammering out of the new accord amongst the EU nations minus the UK. Arguably the answer will be yes to this and to the question of whether the EU nations approach of proceeding with a new accord or treaty beyond the confines of the Lisbon Treaty despite UK objections – too much is now at stake for the answer to either question to be no.

     

    More murky are the questions concerning the future place of the UK and “the City” (i.e. London’s investment banks) within Europe and indeed globally in the face of the UK breach with its EU partners.

     

    The following articles probe various aspects of the forgoing.

     

    http://bit.ly/vhWXXH

     

    http://econ.st/tE8LL3

     

    http://bit.ly/uGdztt

     

    http://bit.ly/vEHzjG

     

    http://bit.ly/vl5HWb

     

    http://bit.ly/tiGcTs
    9 Dec 2011, 10:53 AM Reply Like
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