Wolfgang Münchau’s View Of The Week Ahead

Wolfgang Münchau’s strong views are always worth reading. Here’s from today

Click the above to go to the FT page if you have a subscription. Else you can read it via Business Spectator

Münchau says

With five days to go, the world is waiting for a big political signal. What I fear is a fudge, consisting of a multi-annual fiscal retrenchment, no eurobond, at most a temporary debt redemption instrument. The ECB will provide liquidity measures to stabilise the financial sector, and it will also provide a backstop for the bond markets. But I find it hard to see how Mr Draghi can agree an unlimited guarantee in the absence of a political union and a eurobond. A strengthened stability pact is not a fiscal union.

The way the negotiations are going now, I can see a compromise, but no solution.

Leave a Reply

Comments are welcome, but not published—see comments policy. Required fields are marked *