Vince Cable: The €urozone crisis isn't about banks, "it's about sovereign debt, the debt of governments"

Comments

[chris]

He is 100% right.

That is why the Government needs cuts.

[Cleethorpes Rock]

Vince is right for once.

Let's hope this crisis gives the coalition the purpose and resolve to remember why they came together in the first place: to stop this happening to Britain.

[Dawn Carpenter]

It is about what happens when economic decisions are made for political reasons which have nothing to do with sound economics. "What had the markets spooked was the dawning realisation that Spain and, in particular, Italy may not pay their debts ... the President of the European Commission, José Manuel Baroso admitted in a letter to European heads of state that the size of the EFSF needed to be increased. Hours later, the European Central Bank intervened in the markets -- but instead of buying distressed Spanish and Italian debt it targeted Portuguese and Irish bonds. Seemingly, political divisions within the ECB were weakening its powers. ... Traders saw weak political will and rounded in fear on Italy." -- Patrick Aldrick, Economics Editor http://www.telegraph.co.uk/finance/financialcrisis/8685063/Merkel-faces-a-Hobsons-choice-on-eurozone.html

[openeyes]

"Europe has only made progress in the past following dramatic events"

Dutch MP Renee van der Linden, addressing the European Parliament's constitutional affairs committee in March 2003

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The creation of a single European state bound by one European constitution is 'the decisive task of our time'"

Joschka Fischer, German Foreign Minister since 1998. Daily Telegraph 27 November 1998.