Euro Area

[Brenus]

"there is no such thing as eu governments ignoring the ratings agencies if they want/need to borrow" They can change the status of the European Bank and make it equivalent to the Fed US Bank. It is a political decision.

[Furunculus]

"there is no such thing as eu governments ignoring the ratings agencies if they want/need to borrow"

They can change the status of the European Bank and make it equivalent to the Fed US Bank. It is a political decision.

if the ECB starts issuing eurobonds in order to buy up sovereign debt then it has just created a debt union which would in large part have to be paid for by german taxpayers.

given that the legality of the bailouts is going before the german constitutional courts right now, who are likely to rule that any further such action must be approved by the bundestag, how likely is it that german politicians will vote themselves out of office en-masse by backing a Merkel inspired debt-union?

http://www.spiegel.de/international/...772969,00.html

[Philippus Flavius Homovallumus]

if the ECB starts issuing eurobonds in order to buy up sovereign debt then it has just created a debt union which would in large part have to be paid for by german taxpayers.

given that the legality of the bailouts is going before the german constitutional courts right now, who are likely to rule that any further such action must be approved by the bundestag, how likely is it that german politicians will vote themselves out of office en-masse by backing a Merkel inspired debt-union?

http://www.spiegel.de/international/...772969,00.html

Dept union would essentially be economic union, the performance of the Greek economy would directly impact Germany and France. In such a situation political union would have to follow because you can't have Germany bankrolling Greece while Greece just sulks and/or riots.

Where this is going is scary, where it will end is impossible to tell.

We are litterally reaching make or break for the EU as we know it, and break might be preferable.

Hell, what is the EU Government's deficit? no one has signed off on the accounts for two decades now!