Blog

11 may 2010, a giant leap forward ?

Wow, despite my optibutsceptism, we may over the weekend have moved a significant step forward towards ever closer union, in the euro area at least. The ecb has traded one of its prized stances, with unprecedented disagreement from a key member of the governing council (the german axel weber). "Sterilisation" might be a way to square the circle, but that all depends on the quantum in play. There is no denying that a rubicon has been crossed. So what was given in return ? That part of the fine print remains under close discussion, and pending announcements from portugal and spain about swingeing cuts will not hide the need for a change from the usual routine of a good commission proposal dying the death of a thousand cuts from the various member states as it makes its way towards becoming enforceable. The options to be brought forward, which include commission examination of national budgets before they are passed and the withholding of eu funding from countries in excessive deficit procedure, are biting - but how likely are they to be adopted ? Let's see what the ecb got for its (our) money...