22 July 2011

Graham Bishop's blog: 7AM thoughts on the eurozone agreement - leaders have gone a long way but full details awaited

Technical details will be revealed in a session at 13.00 by the Commission. A more detailed judgement can be made after that. (18.00 comment: looks as though real details will only come in the next few months!)

• The EFSF functions are widened dramatically - but no word about an increase in the size. However, there may be a facility to increase it easily.
• Its lending rates are now made sensible, instead of usurious.
• Economic governance: This is the pivotal issue as it is designed to ensure that such events cannot happen again. The "six-pack" of legislation may now finally be agreed with the European Parliament - on the Parliament's terms. That would be the historic final element in creating a political union of the eurozone. President Sarkozy has said the governance issues will be resolved over the summer. Is this what he means - or is there a new proposal to come from France and Germany? (See my book for a full analysis of this subject Graham's Book "The EU Fiscal Crisis: Forcing Eurozone Political Union in 2011?".)

© Graham Bishop