In a shocking twist to the Eurozone saga European leaders have actually come up with some sort of plan, unfortunately it is not expected to bear much fruit for another ten years…oh.
The leaders drafted the radical plan ahead of the EU summit to be held in Brussels on Thursday. Consumer and investor confidence is at an all time low as the markets lose faith that the troubled Euro regions leaders would come up with an effective viable solution something that today’s proposed plan defuses slightly. They are actually talking to one another!
That’s progress.
The radical plan proposes that the 17 member nations of the Eurozone will form a fully fledged political federation and integrated banking system, basically they’ve decided to give themselves even more powers. It remains to be seen whether the peoples of the member countries will tolerate such a proposal as such a move will require them to abandon their national pride and replace with the dream of a few deluded euro politicians desperate to see their vision of a united states of Europe come to pass.
The document was released by European Council President Herman Van Rompuy and was drawn up with the presidents of the European Commission, the Euro group and the European Central Bank. Mr Van Rompuy said it was “not meant to be a final blueprint”, but that he expected “to reach a common understanding amongst us on the way forward” at Thursday and Friday’s summit.
In another shock it appears that the Germans, French and Spanish have all agreed that a closer fiscal pact is necessary to get the troubled currency back under control. The news that there is in fact a plan is sure to be welcomed by the rest of the world who have increasingly frustrated with the ineptitude of Europe’s leaders.
Angela Merkel dashed any lingering hopes in markets that she would agree to Europe issuing common bonds any time soon to underpin its single currency, after Spain formally became the fourth state to request a financial rescue.
Hours later, Cyprus became the fifth raising the concern that contagion is increasing in pace across Europe. It is now a race aginst time to see whether the leaders of Europe can find common ground and actually save their currency before the Euro dream becomes ashes.
EESC president Staffan Nilsson believes that the moment of truth has come for the Euro. In a press release issued by the EESC Nilsson said: “This is the final round for the euro and European integration; this time it cannot be just one more European summit because people have lost faith. Either the Eurozone – with Europe in its wake – will make the quantum leap in integration or it will break apart.”
The currency markets have seen the Euro post a two week low against the US Dollar as investors fled to the ‘Greenback’ in order to find a safe haven. The lack of confidence that the radical plan will work has dragged on the Euro causing it to post losses against many of its peers.
The Pound to Euro exchange rate is currently trading at 1.250
The Pound to US Dollar exchange rate is currently trading at 1.560
The Euro to Australian Dollar exchange rate is currently trading at 1.243
The Euro to US Dollar exchange rate is currently trading at 1.247
The Euro to Pound exchange rate is currently trading at 0.799
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