Thursday, 14 July 2011

Eurozone chaos continues

The IMF head of mission, Ajai Chopra, to Euro troubled Eire made me laugh. He berated the EU saying in the context of Eire the EU needed to "provide consistent, cohesive and co-operative policies". He then went on to say "What we need and  what is lacking so far is a European solution to a European problem.!"

When I was involved in the early 80s in applying for academic grants from the EU that is exactly the phrase the EU used ad nauseam to justify not adopting already existing US technology and standards. We do not want US systems they cried. We want European solutions to European problems. A pity they do not heed their own advice. Also they now seem delighted to have the IMF, a US based Anglo Saxon invention solve their EU created half baked European problems. 

Instead the EU continues inventing fancy phrases at which they excel to avoid using the unpleasant but truthful words, Greek default. All the talk of private sector involvement, reprofiling debt etc  simply means a default in the eyes of the investors and credit rating agencies.

"The principle of having a Euro chiefs' meeting is accepted by the main players, including Germany," said one EU diplomat, adding that it was likely to happen next week despite earlier signals from Berlin that there was no rush to finalize a second package of aid.reports Reuters today. Well the EU is certainly never short of fine words and hot air but as the Emperor Augustus used to say before Jesus was even born, 'Fine words butter no parsnips'. They don't even butter up the Germans who are getting angrier and angrier over this mess. They may even be wishing they had never joined.

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