The German Bundesbank, in its latest monthly report, says that the agreement cobbled together on 21st July 'threatens the principle that elected parliaments should control budgets'.
The Bundesbank believes that either the Eurozone should stick to the 'no bailout' rule, which is what the treaties currently in force say, or there should be new treaties permitting them.
The German constitutional court is due to rule on the legality of the bailout fund, the EFSF, in late September. If it rules against the EFSF, recent market attacks on the Eurozone will seem like friendly gestures.
No comments:
Post a Comment