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Nick Robinson
Political editor
Europe: Deal or no deal?
Will Germany agree to underwrite the debts of the eurozone, as David Cameron hopes?
The eurozone has done a deal or has it?
The rabbit the leaders pulled out of their hat was a deal with the banks for a 50% haircut on Greek debt.
The details though will not be settled until the end of the year.
Then there's the euro bailout fund - the details will not be agreed until the end of November. However in case it's unclear, Herman Van Rompuy, the president of the European Council, had this to say:
"The leverage could be up to one trillion [euros] under certain assumptions about market conditions and investors' responsiveness in view of economic policies."
Mmmm. I can't help feeling that this deal is not yet the real deal.
David Cameron still believes and hopes that Germany will eventually agree to the European Central Bank underwriting the debts of the eurozone.
It will now be up to the markets to determine whether and when that proves necessary.
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Fast Track
Comment number 1.
Up2snuff27th October 2011 - 8:32
Well, we'll have to wait and see, won't we?
And this is typical of the EU and why the thing just ain't gonna work long term.
More taxpayers money down the drain. When will we wake up and realise we cannot afford 1. this type of government, and 2. all the different layers of government that we have in total?
Something has gotta give!
Instead of take ...
Link to this (Comment number 1)
Comment number 2.
quietoaktree27th October 2011 - 8:51
After the Bundestag speech, we should expect Merkel to set the tone on the world stage.
The EU is the largest regional economy in the world -and Germany is at its center -- those who wish to stay on the periphery can-- Merkel has offered her hand to all others.
A two tier EU is forming -- but don´t expect Poland not to join the Euro.
http://www.bbc.co.uk/news/business-15472100
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Comment number 3.
watriler27th October 2011 - 9:12
Yes the seeds are sown for the marginalisation of GB in Europe once others countries find the crisis free Euro attractive (well in the future). As clearly demonstrated it will be France and Germany who will call the Eurozone shots. I dont know why G Osborne should sound so happy about the result because the developing tensions will open up the fault lines in both the Tory Party and the Coalition.
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Comment number 4.
Geoffrey Bastin27th October 2011 - 9:12
Where is all this money to come from to re-capitalise the banks. If Germany was to attempt to bail-out the Euro then it would also go bust.
Every government has boorwed to the hilt and now the chickens are coming home. All there is left is for the European Bank to print money.
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Comment number 5.
Geoffrey Bastin27th October 2011 - 9:23
Printing money is one option but it will greatly reduce most peoples savings and drive up the cost of living. Europe is in one massive mess and the pain has not yet started. Wait until 2013 and then the fun will really begin. Politicians don't understand and never will, after all they created this mess in the first place through mis-management and ignorance.
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Comments 5 of 95