Its a German Franco partnership Germany are the Guvnors--we've been telling you THIS -for 10 years plus.

Eurozone comment round-up

Handelsblatt economic editor Daniel Goffart argues that "Juncker's plan is expensive and full of illusions," as "eurobonds won't calm down the markets." He explains that "poor countries are threatened with higher interest rates", since under Juncker's proposal "for all state debts up to 40% of GDP there would be eurobonds. The remaining 60% would need to be financed by single countries themselves just as now it is the case [...] Eurobonds would be traded at a low interest rate, but the remaining bonds to finance the 60% 'shabby remainders' would become considerably more expensive than today for the PIGS. The advantage of low interest rates for eurobonds would therefore again be destroyed as for the remaining national bonds a lot more would need to be paid. On balance, the financing costs would not decrease."

Goffart concludes that an alternative would be "to ultimately have eurobonds for the 100%," but this would "make Germany forever the paymaster of Europe. That Angela Merkel resists this cannot be considered as 'un-European behaviour' even by a sly dog statesman as Juncker."

The Economist's Charlemagne argues: "Using the ECB to back sovereign debt might be seen in some quarters as another stealthy step towards fiscal union. One more foundation stone quietly being laid is the first issuance next year of common bonds, for Ireland, by the European Financial Stability Facility. One way or another, say enthusiasts, a Eurobond is just a matter of time. That might provide an insurance policy for the future. But what of the current inferno?"An article in the Economist notes that the euro crisis has shown that power in the EU has shifted from France to Germany.

Dutch magazine Elsevier's EU correspondent Carla Joosten argues that "EU member states should really question whether the eurozone countries have sufficient economic potential to maintain a strong euro. If the answer is negative, the question on how to realise the divorce is on the table. But that discussion is being postponed as long as possible, just as in real life."