Thursday, 10 May 2012

Euroland update.

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

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.

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

Breaking news:
But will the Greek people wear it?

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