NP - Meanwhile, Europe Slowly Sinks

[David Morris]

http://www.washingtonmonthly.com/political-animal-a/2012_06/meanwhile_europe_slowly_sinks038232.php

Here was the Guardian’s Ian Traynor late yesterday with the most
important development prior to today’s EU summit:

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Germany has flatly ruled out any pooling of eurozone debt in response
to the single currency crisis, seeming to set the scene for clashes at
an EU summit that looks unlikely to take any big decisions to quickly
stabilise the euro.

The German chancellor, Angela Merkel, sharply criticised a seven-page
blueprint drawn up by four senior EU leaders on opening the way to a
eurozone political federation.

She made it clear she would not yield to pressure to move towards the
common issuance of eurozone debt in the form of eurobonds, to lower
the cost of borrowing for vulnerable countries such as Spain and
Italy.
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Unless this is just posturing for the cameras and the leverage, this
could be very bad news for the European and global economies.

Today markets are dropping; there are rumors Italian P.M. Mario Monti
may resign; and things are tense all round. If there’s going to be a
breakthrough, it’s certainly taking its time to arrive.