Merkel fiddles while Greece burns and the Euro Zone reaches for another costly sticking plaster.
As Merkel and Cameron electioneer for Sarkosi, the Euro Zone reaches for more sticking plaster to keep the Euro on the road until after the German and French elections. It seems that EU leaders are falling in behind political pygmy Sarkosi because he seems the less disastrous choice for French President. The socialist leader is seen as a guarantee that the Euro will implode and Le Pen is still a political unknown. The irony is that Le Pen may win as the Socialists and Sarkosi supporters fight amongst themselves. If that is the reality, le Pen may prove to be the best French President for decades, at least in the French interest.
In the meantime another cynical attempt to paper over the Euro cracks is already unraveling. It seems that even the Eurocrats are already admitting that the latest massive bailout of Greece will prove a total waste of money and saddle the Greeks with debts and restrictions that they will wait decades to be free of.
Greek Unions and the Communist Party are gearing up for a long hot Summer of arson and riots, while even moderate Greeks are becoming enraged and unpredictable.
The two questions now seem to be:-
How much more money will pour down the EuroDrain?
When will Greece default?
Of course there is also the third question:-
How much longer can the Germans con the world to send money that should be coming from Germany?
Clearly, the only plan now is to try to keep Greece in the Euro, in the knowledge that a Greek default will see the Euro crash out.
The markets may end up making the decision for Merkel because a Greek default has already been factored in and the markets have been planning for Spanish and Italian defaults in the wake of the Greek default.