Euroland update.

When it rains it pours and pours and pours.  The Chinese have stopped buying European government debt.

http://www.telegraph.co.uk/finance/financialcrisis/9258317/Chinese-sovereign-wealth-fund-stops-buying-European-government-debt.html

Meanwhile poor Angela's fiscal pact is coming apart at the seams.  Not only does the new French president threaten to block the treaty, but she has difficulties at home.  The Dutch coalition government has not signed and her ally in Italy, Mr Monti  gives the impression of joining the Hollande camp.  On top of all this the Irish referendum on the treaty will be held on 31 May and a 'yes' vote is far from certain.

http://www.telegraph.co.uk/news/worldnews/europe/greece/9257302/Its-too-late-for-Germany-to-save-the-euro.html

To add insult to injury, the Bundesbank has signalled that it may be prepared for inflation to creep upwards, a major policy shift.


http://www.telegraph.co.uk/news/worldnews/francois-hollande/9257718/Francois-Hollande-to-fly-to-Berlin-to-meet-Angela-Merkel-within-hours-of-inauguration.html

http://www.telegraph.co.uk/news/worldnews/europe/eu/9258483/Francois-Hollande-threatens-to-block-eurozones-new-financial-treaty.html

http://www.telegraph.co.uk/news/worldnews/europe/germany/9255534/Eurozone-crisis-Angela-Merkel-forced-to-postpone-fiskalpakt-ratification.html

Breaking news:  http://www.telegraph.co.uk/news/worldnews/europe/greece/9258442/First-hope-of-Greek-coalition-government-as-socialist-parties-say-they-could-work-together.html
But will the Greek people wear it?