09 December 2011

EUROZONE: UK's Cameron...Odd Man Out On Fiscal Union?

     The WSJ ran a winning headline : "Euro Summit Leaves U.K. Camarooned" that summarizes PM David Cameron's decision to not join...after 26 nations agreed to draft a new treaty allowing for more fiscal integration.
    4 nations balked initially...Czech Republic, Hungary, Sweden and the UK...but at the end...only the UK refused to join...because of proposed more stringent financial regulations.
     A new treaty will take months to negotiate and may require tricky referendums and parliamentary consultations with past skeptical nations like Finland, Slovakia and Ireland.
    One diplomat called Cameron's negotiating tactics "clumsy."
    Earlier...even after lowering the ECB benchmark rate to 1%...ECB President Mario Draghi dashed eurozone and bond markets' hopes of using the 'big bazooka'...basically printing money and buying unlimited sovereign debt.
    But reportedly the ECB will keep buying E20BN of bonds weekly. 
    Polish PM Donald Tusk admitted he wasn't sure if the proposals will save the euro.

OPINION : I. TRAYNOR:  "For the first time in the EU...the Germans are in charge. But they are also more isolated than before. The British are....more marginal than before. Their influence has never been lower..."
  "The prospect is a joyless union of penalties, punishments, disciplines and seething resentments with the centrist elites...under siege from the anti-EU populists on the right and left everywhere in Europe." 

AND: ANALYSIS: the winners are Sarkozy and Draghi; the loser...is Cameron.