Germany's policy seems to be avoiding doing things in open, in order not to alienate voters. The bad thing is that the solutions become less open for criticism and control. Soon everyone will be unelected, immune from prosecution and perhaps later fully anonymous.
Oh well...
Previously on MoreLiver’s:
Roundups and Commentary
News –
Between The Hedges
Markets –
Between The Hedges
Recap –
Global Macro Trading
The Closer
– alphaville / FT
Roundup – A
View From My Screens
German Court Decision and Data Extend Risk-On Rally – Marc
to Market
European
Summary – ZH
European
Stocks End Green (But Leaking) As Sovereigns Stagnate
US Summary
– ZH
Euro-area crisis? Tomorrow’s FOMC meeting is the market’s bellwether
Reference
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
EUROPE
The Evolving Euro – EconoMonitor
it is clear that Eurozone 2.0 will not be
launched for several more years. The president of the European Commission in
his recent State of the Union address admitted that completion of the new
design would require changes in the EU treaties.
Eurozone building blocks are falling into
place – Gavyn
Davies / FT
The ESM and the fiscal compact can now be
safely launched, and any immediate obstacle to Mario Draghi’s bond buying plan
at the ECB has disappeared…there may be limits to the willingness of the German
political system to make the cross-border transfers which are inherent in the
ESM/ECB support operations, especially if the troubled economies, following the
example of Greece, fail to stick to the necessary policy conditions
Let’s not be afraid of… banking union – alphaville
/ FT
JPMorgan’s
Alex White has taken a stab at some of the current problems:
State of the Union 2012 Address – europa.eu
Barroso,
President of the European Commission 12-Sep (Finnish version here)
EU treaty change: Nowhere to run, nowhere to
hide… – Open
Europe
Barroso was explicit: this crisis is the
perfect time to take the next great leap towards a federal Europe.
Catalan region renews call for independence – euobserver
One and a half million people gathered in Barcelona on Tuesday demanding
independence from Spain. It was the biggest
self-rule rally ever in Catalonia.
Southern European countries are in the early
stages of a major deleveraging that will produce a Depression-like environment,
Dalio said.
GERMAN COURT APPROVES ESM
German court approves new plan to save Europe. But is it a good plan? – Wonkblog / WP
German court approves new plan to save Europe. But is it a good plan? – Wonkblog / WP
So, instead, Europe’s leaders have devised a compromise
plan that’s supposed to quell the immediate financial panic, bring down leaping
bond yields, and at the same time placate German voters who are tired of
bailing out their neighbors.
Burying a banking licence – alphaville
/ FT
the court adds more legal flesh to the argument
against the ESM tapping the ECB — interestingly through delving into the ESM
treaty text itself. Most interestingly of all, it does so in a way that
suggests the treaty really is badly drafted ambiguous to interpet on key
points.
German ruling could be turning point for debt
crisis – Danske
Bank (pdf)
The ball is now in Spain’s and Italy’s courts. If they
deliver the planned fiscal tightening and structural reforms, the debt crisis
could end in a couple of years. At that stage we might look back at the late
summer of 2012 and conclude that this was turning point.
The verdict came as no surprise: Germany's constitutional court has green-lighted the European Stability
Mechanism (the ESM) and so given the euro a future. But the condition attached
is that any increase to the bailout fund must meet with German approval.
Initial reactions from the German press.
What will the German Constitutional Court ruling mean for the eurozone? – Open Europe
This decision merely referred to the question
of whether to grant a temporary injunction against the ESM. The full ruling on
the complaints is expected in early 2013. However, since the law can now be
finalised, and as an international treaty may be difficult to reverse, many
expect the final ruling to be along the same lines.
Sighs of relief as German court approves
bailout fund – euobserver
German Court Approves ESM While Ruling "No
Unlimited Liability, Parliament Must Approve Changes in Ceiling"; Sigh of
Relief Reaction – Mish’s
USA
More Fed QE: done deal or Pavlovian response? – MacroScope
/ Reuters
Great Graphic: Euro, Yen and S&P with QE – Marc
to Market
Don't expect much from the Fed tomorrow – Free
exchange / The Economist
IN FINNISH
Euro & talous
4/2012: Rahapolitiikka ja taloudellinen tilanne – Suomen
Pankki
Pääjohtaja Liikanen:
Kansainvälisen talouden näkymät vaisut, rahapolitiikan välittyminen turvattava
* Hanna Freystätter: Asuntojen hintakuplan puhkeaminen ja Espanjan
talouspoliittiset haasteet * Juha Kilponen: Finanssipolitiikan syklisyys ja
valtionlainojen riskilisä * Heli Simola: Miten nousevat taloudet ovat
muuttaneet globaaleja hintatrendejä?
1 800 000 000 €:n
hanke: Tämä on Suomen ja Viron ero – Uusi
Suomi
Kun
terveydenhoitopiirit etenevät asiassa eri tahtiin, eikö vaarana ole, että
Suomeen syntyy jälleen useita rinnakkaisia, erilaisia järjestelmiä, Antti
Kivelä? –Kyllä se riski on olemassa ja se on jopa todennäköistä, jos kunnat
eivät tee yhteenliittymiä. Maanlaajuinen hankintarinki ei ole todennäköinen,
Kivelä sanoo.
Apotti-hanke saa
maksaa tietotekniikan vanhoista synneistä – HS
Epäonnistumisten lista
on lähes loputon...Ja usein julkisen sektorin kumppanina on tanssahdellut sama
veljeskolmikko: Tieto, Logica ja Accenture.