October 6, 2008
Maybe I’m old-fashioned but I still believe that a key quality of the European Union was ‘solidarité’ (a better word in French than English). With the ‘dog-eat-dog’ behaviour of the financial sector, was it too much to hope that EU leaders would set a good example? The market would have so much more confidence if there were true EU coordination.
A once reliable Germany said nothing at Saturday’s summit and next day announced a blanket guarantee to personal bank deposits. And London tried without success to get clarification from Berlin of the guarantee before the Asian markets opened Monday morning. Before that, Ireland and Greece acted unilaterally.
At stake is the future of the Eurozone and EMU. The action by Germany, previously impeccable in the monetary field – without consultation – undermines the authority of the ECB as well as the Member States, and can turn the financial meltdown into a crisis of the euro itselfAuthor : Stanley Crossick