Mail.
Britain could become one of Europe's 'second-tier countries' following a decision by those signed up to the single currency to form a tight inner circle, George Osborne said this afternoon.Apart from wondering if that last bits the case why don't we just leave, I cannot see how throwing €1 trillion at the problem will resolve it, even with writing off Greek debts, Greece being only part of the problem, There's Italy, Portugal, Spain and Ireland to sort out next and I cannot see the Germans carrying on with paying out forever. Biggest worry is of course where the €1 trillion is going to come from, I simply hope they don't decide to dip into our pockets, Osborne could simply point out that no chair at the table means no money for a bail out, though I much prefer my first thoughts of getting out before they drag us down with them.
The Chancellor said he feared the development of a 'two-tier' Europe after the 17 countries who use the euro decided they would have their own president and twice-yearly summits.
Britain will not be invited to take part as it is not part of the single currency.
The dramatic move towards closer fiscal union was announced as eurozone leaders thrashed out a deal they hope will convince markets they have an effective response to the growing economic crisis.
Speaking to the House of Commons, Osborne said: 'We have to be alert to the danger of caucusing ... in areas that should legitimately be the preserve of the 27.'
It confirmed fears that the eurozone is taking on the trappings of a state within a state and that the 17 will starting coordinating decisions on business and social policies, to the detriment of Britain and the other non-euro countries.
4 annotations:
Maybe I'm missing something here but I can't see why Osborne is so scared. All the evidence seems to be that the "deal" is just smoke and mirrors and that all that in reality is happening is buying time. The endpoint seems to be thatthe thing is going to go bang and whilst Germany will be strong, everyone else in there will have bugger all to trade with and that the non financial market will resemble a jumble sale.
I don't see what there is to be shut out of. Its a bit like being told you not allowed to move into a shanty town.
I strongly suspect that Cameron and Osborne have agreed to keep talking about the "solution" - in reality a non-solution - in the hope that it keeps the markets happy for a few more weeks in the hope that "something turns up". It worked today - but a dose of reality will probably be taken tomorrow; but it's all whistling in the dark.
Our best bet is to become "second-tier" and try to avoid much of the coming troubles and all that they will futher create, though we can't avoid the IMF ones. I believe that Osborne has been extremely economical with the actualite.
We should remember that "second-tier" / "two-speed Europe" was the sort of talk that pressured Greece in becoming a eurozone entry.
I cant fathom why the UK is so determined to do everything in its power to help the eurozone...when the moment there is some hint of a solution sterling takes another bashing. Do we want the Euro powering ahead and our currency to sink even lower?
Bollocks to that I say
"...and I cannot see the Germans carrying on with paying out forever"
Why not? On the terms the Germans set up it will be cheaper for them than invading/occupying - they'll still get to tell the Greeks what to do, and soon the Italians too.
The Germans and French are smart enough to try to arrange for others to pick up a substantial part of the bill (China, perhaps) as they pick off the ones they've encouraged to be economically vulnerable.
The intent as ever is to build the European Empire until the inevitable face-off between France and Germany, when France will do what they've always done - Merkel's already indicated there won't be another '50 years of peace' unless they get their way, and coincidentally Sarky has already had his '39/'40-style hissly fit at CallMeDave who'll probably soon be waving a Treaty that 'doesn't really need a referendum'.
Post a Comment