Wednesday, November 09, 2011

More Toast?

Paul Krugman isn't the only one singing a dirge for the Euro today. Others seem to think that Germany and France are planning a mini-Euro, minus the Southern weakies.

One senior German government official said it was a case of pruning the euro zone to make it stronger.

"You'll still call it the euro, but it will be fewer countries," he said, without identifying those that would have to drop out.

"We won't be able to speak with one voice and make the tough decisions in the euro zone as it is today. You can't have one country, one vote," he said, referring to rules that have made decision-making complex and slow, exacerbating the crisis.

Speaking in Berlin, Merkel reiterated a call for changes to be made to the EU treaty -- the laws which govern the European Union -- saying the situation was now so unpleasant that a rapid breakthrough was needed.

I predict that it won't happen. The Euro will undergo spontaneous deflagration before the slow moving Euromasters can get their act together.