Euro Zone Finance Ministers

The Euro Zone finance Ministers are now on their way home. There was no agreement to increase the size of the bail out fund nor to introduce a Euro zone bond. Germany opposed both. More important, if you want to look beneath the surface, is the number of German voters who want to quit the Euro, or for Germany to effectively take control of it.

Clearly this currency cannot go on as it is. It will do so for the moment but there are very big troubles ahead. This is because although policians speak in robust terms of the solidity of the Euro and their determination to defend it at all costs, they no longer have the political consensus behind them to make the changes which would make that survival possible. The predictions in the previous post may be coming true already.