Markets leave no respite to the peoples as long as politicians do not act as statesmen.
This old law, valid for centuries, is today a cruel news.
It is useless to repeat History, repeating that if decisions at the last EU summit had been taken 18 months earlier, there would be no crisis of the euro today, as the Eurozone would have the technical tool and legal weapon to counter speculation. In particular, banks would no longer be able at the same time and at the same institution, to find losses on Government loans of a country and sell short these same bonds.
It is appalling to have to repeat that there is a solution to structural problems of the Eurozone, solution that many have offered for years: the pooling of a larger share of VAT from EU countries, in order to finance the service of Eurobonds issued by an ad hoc entity of the euro zone.
These Eurobonds could usefully replace a part of the national debts and enable Europe to reinvent its industrial, entrepreneurial and technological future; and repay its debt through the only reasonable way: growth. This would not exempt from efforts the most heavily indebted countries; this is within their reach: for example it would suffice to tax for ten years 1.5% of Italians private assets (which is, in proportion, nearly 25% greater than that of other Europeans) to eliminate the public debt of this country.
Except that the European leaders, under the influence of short-sighted pressure groups, and unable to think politics outside of the demands of the world of finance, did not believe in the seriousness of the dynamics in operation since the end of 2007. They were content to sail closer to illusory European summits in worthless G20 format, postponing deadlines using tiny measures and contradictory statements.
If they do not want to remain in History as the gravediggers of the euro, and the EU, European leaders and first, Nicolas Sarkozy, Angela Merkel and Jean-Claude Trichet, must act very quickly. They should convene a new summit of the Eurozone, which will decide finally for this necessary step towards federalism in Europe. And which, until it can come into effect, after the vote by national parliaments -which should be held at the earliest possible time- would allow the ECB to defend the value of the euro and the liquidity of the banking system by all means at its disposal, even the less orthodox ones.
If they do not do so, or if they fail to persuade their partners to do it with them, chain of events will continue towards the worst. Those who were accused, until recently, of being pessimistic, will be seen as sweet dreamers. In particular, here, the French presidential elections will take place in a context of confusion, of questioning the very existence of the union and a recession even worse than that of 2008.
Then, the peoples will remind to those of their leaders who have not been able to maintain Europe as the richest and most prosperous economic region in the world the tragic dimension of History.