With the last signature on the agreement for a Euro Zone bail out, its only taken twelve months to reach agreement.
The “too little too late” tag is now firmly on the Euro Zone bail out fund. The lack of leadership has been fully exposed and also the sham of a single currency for Europe.
A real single currency would have ensured that new members were inducted only when they fully met the criteria for membership. Then there would have been regular audits to ensure that every member was keeping only one set of books and that the books fully conformed to the current policy for the single currency. That would have meant that the Euro Zone would be able to manage itself and deal with changing economic circumstances.
However, the new bail out fund is arguably sufficient to met the looming banking crisis in France but not the existing sovereign debt crisis.
It remains to be seen whether creditors will accept the concept of Greek bankruptcy within Euro Zone membership. The Euro hope is that Greek debt can be written down by 50% without any consequences for Greece or the Euro Zone. It appears that Greece will now receive a further massive loan without having honoured promises made to receive the previous bail outs.
We are now moving from the probability towards the certainty of a global recessiondeeper than the Great Depression of the 1930s and if that happens, the blame will sit firmly at the doors of the European Federal fanatics who have been prepared to place the world at risk for the narrow political ambitions of a new political class.