Thoughtful article comparing the events that precipitated the collapse of the ‘Rouble-zone’ with the EU.
Ending the week disappointed with rhetoric surrounding the Spainish banking recapitalizations & prospective deposit guarantee scheme – I think the core is the problem.
It was never going to be easy, but I sense – once more!? – the markets <relief> rally has inadvertently endorsed ‘the fudgers’ self-confidence.
Back on the defensive until the crisis takes another – deeper – twist.
The lesson for the EU is that it should be watching closely what Germany is doing, and be wary of calls for a smaller euro zone, or a “two-speed Europe,” Krastev said. Unions don’t break up because of troubles in peripheral countries, they break up from the core, he said.
“Disintegration doesn’t occur because everyone wants to go their own way,” said Krastev at the think-tank in Bulgaria. “It happens because politicians envisage a closer, optimal union. This crisis is already reducing the borders of solidarity. The EU space is going to be renegotiated.”