Euro Area

[Andres]

An interesting analysis in the Washington Post.

Belgian newssites this morning suggested Cyprus might turn towards Russia. One of the possible deals is Gazprom bailing out Cyprus in return for exclusive rights on Cypriotic gas. If I'm not mistaken, Turkey (a NATO member (which Cyprus isn't)) claims that gas as well. This could get ugly.

European incompetence seems to have the potential of leading us towards a dangerous geopolitical game.

So, how is the incompetent and unable to make fast decisions Europe going to react? Do we want Russia to buy itself into the EU? And if Russia buys Cyprus (because, let's face it, that's what will happen if Russia saves Cyprus instead of the EU), what will hold them back to "buy" Greece as well, eventually?

Or did we all really think the Russian bear was defeated permanently after the fall of communism? And how will the US react if Russia tries to spread its' sphere of influence into the EU?

Not sure if I'm happy to live in such interesting times.