Monday, August 29, 2011

Ambrose Evans-Pritchard: Euro Bailout in Doubt as Hysteria Hits Germany

AEP's latest discusses the rising mutiny facing Merkel over continued PIIGS bailouts by Germany.
If Merkel thinks she has issues now finding enough support for continued Greek bailouts, just wait until Italy, Spain, and France hit the fan for real.
If QE does not continue to INFINITY AND BEYOND in Europe, the great Euro experiment will be over, and you will see a return to national currencies with possibily a core Northern Euro remaining.

German Chancellor Angela Merkel no longer has enough coalition votes in the Bundestag to secure backing for Europe's revamped rescue machinery, threatening a constitutional crisis in Germany and a fresh eruption of the euro debt saga.
Mrs Merkel has cancelled a high-profile trip to Russia on September 7, the crucial day when the package goes to the Bundestag and the country's constitutional court rules on the legality of the EU's bail-out machinery.
If the court rules that the €440bn rescue fund (EFSF) breaches Treaty law or undermines German fiscal sovereignty, it risks setting off an instant brushfire across monetary union.
Mrs Merkel's aides say she is facing "war on every front". The next month will decide her future, Germany's destiny, and the fate of monetary union.

Read more: