EXTRACT: Arguably, overall the biggest loser from the summit was Spain. Effectively, the EU leaders have reneged on the decision taken at the June ‘make or break’ Brussels summit, when Merkel appeared to back down at the very last minute and finally consent to the use of bailout money for bank recapitalisation. Previously, as our regular readers will recall, she had insisted that any rescue money doled out by the European Financial Stability Facility/ESM could only be channelled through the actual states themselves. Governments in receipt of such monies would be “fully liable” for any payment defaults or lapses.
At the time, Merkel’s concession was hailed as a glorious victory for the ‘Latin bloc’ and the new Hollande leadership - Spain, and the euro, was saved. Rejoice. However, even before the ink was dry on the agreement - so to speak - it was engulfed in deliberately engineered confusion, with Germany and ‘triple-A’ allies denying that they had signed up to an imminent EU-financed clean-up of Spanish banks and lenders. What an absurd idea. Do you really think we are going to throw our money down a Madrid black hole?
At the time, Merkel’s concession was hailed as a glorious victory for the ‘Latin bloc’ and the new Hollande leadership - Spain, and the euro, was saved. Rejoice. However, even before the ink was dry on the agreement - so to speak - it was engulfed in deliberately engineered confusion, with Germany and ‘triple-A’ allies denying that they had signed up to an imminent EU-financed clean-up of Spanish banks and lenders. What an absurd idea. Do you really think we are going to throw our money down a Madrid black hole?
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