The stage is set for a showdown between Angela Merkel (left) and Jose Manuel Barroso, the European commission president, after the German chancellor said a bailout for Greece should not be on the agenda of this week’s EU summit in Brussels. Barroso had called for the eurozone countries to use the two-day meeting to agree to a co-ordinated package of loans that could be quickly put in place if the Greek government decided it needed help to reduce its ballooning budget deficit. He warned that the financial markets were being unsettled by the lack of clarity. But Merkel said in a radio interview that Greece was not in danger of default and aid for the country would not be a topic at the summit, which starts on Thursday. “There’s no looming insolvency,” Merkel told Deutschlandfunk. “I don’t believe that Greece has any acute financial needs from the European community and that’s what the Greek prime minister keeps telling me.” She said it was the persistent speculation about a possible bailout that was creating the volatility in the financial markets and warned against raising “false expectations” that other eurozone economies would come to Greece’s rescue. The euro took a tumble last week, dropping to $1.35, amid all the talk about a possible bailout. “I don’t see that Greece needs money at the moment and the Greek government has confirmed that. That’s why I’d urge us not to stir up turbulence in the markets by raising false expectations for Thursday’s council meeting,” Merkel said. – UK Guardian
Dominant Social Theme: It will come right eventually, won’t it?
Free-Market Analysis: Is the world spinning out of control? Europe, America and Asia face significant challenges and it is not at all clear that these are currently being surmounted. This article will take a brief look at the world’s trouble spots and then suggest what can be done –if anything – both from an investment perspective and a sociopolitical one. (Yes, dear reader, in this single article, we are capable of doing such a thing, sure we are!)
The EU first. The above excerpt from the Guardian is one of literally thousands of recent articles illustrating the gravity of the problems faced by the European Union as it struggles with the potential insolvency of many of its larger member states, Greece chief among them. The Bell has consistently maintained that the EU experiment was bound to hit the rocks at some point – and the only question left in our opinion is just how bad the crack up will become.