After a year full of financial woes, cash shortages and near-bankruptcies, the situation has become anything but reassuring. In fact, in recent weeks, the euro crisis has gotten even worse.And yet we are told by many that it is in Britain's interest to go on propping up this inherently unstable structure.
Following months of insisting it would not need a bailout, debt-stricken Portugal has now asked for help from the European Union's euro rescue fund. In a television address last Wednesday, Portuguese Prime Minister Jose Socrates announced that his caretaker government could no longer deal with the pressure from the financial markets by itself. Before making the announcement, yields on the country's sovereign bonds had climbed to almost 10 percent, a new record.
Indeed, on the whole, those in charge of rescuing the euro in Brussels and Europe's capitals have done a poor job. So far, almost all of their expectations have been disappointed. And things have continuously gotten only worse.
At first, people thought that the European Financial Stability Facility (EFSF) -- the temporary rescue fund that will be replaced by the permanent European Stability Mechanism (ESM) in 2013 -- had been equipped with enough resources to calm the markets, and that no one would actually draw on its help in any case. But, now, two countries, in the form of Ireland and Portugal, have asked for support, and no one can say for sure that they will be the last.
Monday, April 11, 2011
Well, stone the crows!
It seems that after all that Greece will have to restructure its debt. Well, well, well. Who could ever have predicted that those bail-outs would not work. I mean they so much sense. According to Der Spiegel Germany is opposed to give any more money to Greece and that debt restructuring will be the inevitable consequence.