Mario, Mario

The head of the European Central Bank,Mario Draghi, rejects criticism of the central bank's cheap three-year lending plan and calls for governments to take a 'courageous leap' of political imagination to save the eurozone.  Presumably as the antidote to the political machination and hand-wringing in Brussels yesterday.

Meanwhile  Mario Monti, the technocrat ruler of Italy imposed by the Merkel led cabal, has stated that eurobonds  'are not too far off'.  Clearly supporting Hollande, but off-message as far as Merkel is concerned who has issued the following riposte:


It makes no sense to want to fix everything with eurobonds or other similar 'solidarity' instruments which would only aggravate the crisis.


The above from the excellent Daily Telegraph  live updates.


See:  http://www.telegraph.co.uk/finance/financialcrisis/9288609/Mario-Draghi-urges-eurozone-leaders-to-take-courageous-leap-to-economic-integration-if-euro-is-to-survive.html

Also:  http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/9288812/Europes-slump-deepens-as-Kabuki-summit-falls-short.html


The problem for Merkel is that her options are limited by political pressures at home and the German constitution and these matters will have to be addressed before there is any move to closer fiscal and economic integration as well as making the ECB a lender of last resort.


Difficult times ahead.  Merkel has to get the fiscal pact through the Bundestag and there is the small question of the Irish referendum on the pact at the end of this month.


http://www.spiegel.de/international/europe/euro-zone-members-are-developing-contigency-plans-for-a-greek-exit-a-834975.html

http://www.spiegel.de/international/europe/euro-bond-discussion-dominates-european-union-summit-a-834865.html

http://www.independent.co.uk/news/world/europe/angela-merkel-courts-opposition-over-eu-fiscal-treaty-7785485.html

http://www.telegraph.co.uk/finance/financialcrisis/9286598/EU-summit-fails-to-provide-answers-for-eurozone-crisis.html