Monday, 10 October 2011



Merkel seeks Lisbon treaty changes as part of euro rescue deal

GERMAN CHANCELLOR Angela Merkel is intensifying her drive for changes to the Lisbon Treaty as part of a comprehensive deal to assert control over the expanding euro zone debt crisis.
The chancellor rallied support for her initiative last night from French president Nicolas Sarkozy, giving fresh momentum to an emergent proposal which may require a referendum in Ireland.

France, fearful of losing its top-notch AAA credit rating, would rather dip into European funds than its own coffers.
Sarkozy said that France and Germany had identified proposals for boosting the EFSF's powers. Press reports say Paris wants the fund to have a banking licence allowing it to rely on the European Central Bank.
He also said that Paris and Berlin would propose "important changes" to European treaties, adding he favoured greater integration of the eurozone.
Merkel said the "goal is to have closer and more binding cooperation of eurozone countries" to avoid overspending.

Berlin, Paris vow new crisis plan, global pressure builds
In addition to addressing the banks and Greece, Merkel said France and Germany were working on steps to boost economic coordination in the euro zone and said their proposals would necessitate changes to the bloc's Lisbon Treaty.
Sarkozy made clear, however, that Europe needed to "take decisions now", rather than announce long-term plans that would take time to implement. Changing the treaty could take several years.
"Comprehensive, sustainable and rapid responses before the end of the month. That is the result of this Franco-German meeting," he said.
German news agency DPA, citing financial sources, reported on Sunday that euro zone finance ministers were working on scenarios involving a 60 percent reduction in Greece's debt.
Time short’ for eurozone, says Cameron


Bank of England causes inflation, claims former MPC rate-setter Andrew Sentance

Weale grants backing to QE
Sentance Says BoE’s King ‘Misleading’ Public, Sunday Times Says

Weale Says Bank of England Can Increase Asset Purchases Plan

http://www.businessweek.com/news/2011-10-09/weale-says-bank-of-england-can-increase-asset-purchases-plan.html

Dustbowl Britain: the new Depression

http://www.heraldscotland.com/news/politics/dustbowl-britain-the-new-depression-1.1128256

Planning To Plan

"Planning To Plan" - Merkozy Reach Yet Another "Agreement", Adding "It Is Too Early To Enter Into Details"

SCOREBOARD: EU distraction

Unfortunately, we didn’t get much out of meetings between France and Germany over the weekend. Sarkozy and Merkel said that no details were to be given at this point, but that a complete package would be announced by month’s end. So another excruciating few weeks are in store, with markets being whipped around by whatever speculative newspaper article comes out on the day. Not fun. In the end though – and regardless of what speculative discussions come out over the next few weeks – we are none the wiser on the key questions: the key concerns for the market of whether Greece will default or not and if Greece does default, what action politicians will take to stem the contagion.
Recall that a major problem with forcing Greece to default is that market attention will merely turn to the next country.

Germany, France vow to protect banks

"We're not going into details today -- we're looking to introduce an entire package," Merkel said.
Merkel, Sarkozy Say Deal is Near to Stabilize Euro Zone
Despite signs of convergence between Berlin and Paris, the euro zone's most powerful nations have yet to resolve differences over who will pay for banks' capital needs and over how deeply to restructure Greece's teetering debts, according to people familiar the talks.

Germany, France vow to protect banks

"We're not going into details today -- we're looking to introduce an entire package," Merkel said.
Merkel, Sarkozy Say Deal is Near to Stabilize Euro Zone
Despite signs of convergence between Berlin and Paris, the euro zone's most powerful nations have yet to resolve differences over who will pay for banks' capital needs and over how deeply to restructure Greece's teetering debts, according to people familiar the talks.

Posted by Britannia Radio at 08:19