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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

It’s fine, we have a flow chart

Well done, Ireland! The country voted ‘yes’ in the world’s most unnecessary referendum on the implementation of the European fiscal pact AND it got a pat on the back from the European Commission, saying the country met all conditions imposed in the scope of its €85bn bailout, i.e. it’s growing and its deficit is somewhat under control.

In the meantime, Spain got an extra year to reduce its deficit, because Germany felt generous this morning. read article

George Osborne is suing the EU, or rather ESMA, the European Securities and Markets Authority. The case: Osborne says the union has overstepped its mandate when they enforced a ban on short-selling. Curiously, he actually agrees with the regulation or at least with the reform of short-selling policies, but this, so Osborne, is about principle. Well, you have to pick your battles, but if this is the best one to fight is up for discussion. Get ready, this may be a ten-year lawsuit. read article

In other exciting news this morning: every single person with access to a Bloomberg terminal has probably stumbled upon Greek Drachma (Post Euro),Germany is being paid for borrowing money (2-year yields are negative) and Syriza is leading in the Greek polls again. Meanwhile,the European Central Bank is stressing the need for a common deposit insurance fund to prevent a run on banks, and Mario Draghi is also criticizing Angela Merkel‘s handling of the crisis once more, which makes for woes ahead in austerity-land.

The FT’s Martin Wolf had lunch with Paul Krugman, who barely promoted his new book while he was ranting about how we should all be more Keynesian. read article

Finally, here’s a flowchart for European crisis planning… bottom line: if you think you have a plan, you probably don’t.

Have a good long weekend [if you’re a UK resident, otherwise have fun at work on Monday and Tuesday…]!

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