What Hath Europe Wrought?

What exactly is it that the EU has signed on to when approving the Merkel-Sarkozy deal yesterday? Most everyone not part of an EU government believes that the agreement is the absolute least that could have been accomplished in order to - at least temporarily - stave off disaster in the euro zone. But the big problem with the agreement is that its success is largely dependent on a bunch of "if's" that are by no means certain of coming about. To wit: IF the 26 members of the EU can get their paliaments or convince enough of their citizens in a plebicite to go along with the fiscal union plan that would make Brussels the ultimate authority on national budgets, the euro might yet be saved. IF the bailout fund, the European Stability Mechanism, is fully funded and can attract outside cash from countries like South Korea and China, it can be a credible backstop to an Italian or Spanish default and the euro might yet be saved. IF the European Central Bank will take advantage of the...(Read Full Post)