Sunday, 11 December 2011

Lessons from our colonial days on how to handle Merkozy

After McMillan made his wind of change in Africa speech in 1957 there was a huge increase in the justified movements for independence. These all followed a pattern of unity until the Brits left and then reversion to tribal boundaries and blood letting. The only thing uniting these movements was a desire to be rid of the Brits. Thus it is in Europe and now the Brits have been excluded from the club and are no longer there to be kicked the mid Europeans will revert to squabbling amongst themselves.

The lesson for Cameron is to do as little as possible ie keep on blocking any attempt to extend EU powers in the UK and wait. Sarkozy will of course blame every setback on the UK and the other Anglo Saxons but all Cameron has to do is smile sweetly and give them his calm down dear line. Doing nowt is the hardest thing to do in politics but it is on this occasion the best policy. The markets will sort out Sarkozy very rapidly.

Terry Smith put it very well , "All the UK is isolated from is an impending disaster; the eurozone will fragment with countries leaving and debt defaults. Its like being as isolated as the man who failed to get on the Titanic before it sailed".

The new . "solution" proposed by Merkozy is identical to the failed stability and growth pact enshrine in the Maastricht treaty. The markets have already sussed this so there will be more grief for Merkozy tomorrow.

Liam Halligan has a good piece in today's Sunday Telegraph. He castigates the 'breakthrough' of round tripping via the IMF to avoid national laws against funding bail outs as "deeply immoral". Sums up the EU. The ECB are at it too taking dodgy collateral and extending repo refinancing secured on such collateral to 3 years!

Merkozy will be held to account in the world's financial markets and in blood on the streets of Eurozone capitals. Already democratic obstacles are emerging to the Franco Prussian plans in Ireland, Holland, Denmark and Austria. Perhaps we will soon see these democratic countries governments replaced by EU bureaucrats. If not the UK may find itself some company sooner than the EU philes think.

No comments: