Yet again it seems, Germany has saved Europe! Estimates are just that, but economists say that the old German mark would now be at least 30% more expensive - with all the knock on effects on the price of its exports - if it were not for the euro. So, unsurprisingly, Germany has set up the new deal to 'save' the euro. The rich in Spain, Italy and even poor old Greece will still get to buy their BMWs cheap.
Apparently Berlusconi was told that his Italian 'promise' to cut spending would be monitored by euro officials. Get used to the future - they said. Sarkosy rang up the Chinese it is reported. Apparently French wine costs a fortune in Beijing. Sarkosy wanted to agree a Chinese price tag for european 'civilization.' How the market brings out the best in us!
What is the future of the German led euro deal?
It's fucked. There is no prospect of serious growth,great new technological breakthroughs, or vast new sources of cheap labour, in Europe. These are the attractions that international capital requires. They are unavailable - no matter how much our leaders drive down welfare and wages - in the foreseeable future. Now all the fun (and profits) has been blown out of debt (governmental, corporate, banking and personal) there are no big, instant bucks to be made in decrepit old europe.
Maybe we need a new continent. Based on different principles. What do you think?
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