Another punch up in Euroland

Rinoa

http://www.bbc.co.uk/news/world-europe-15452367

Is the Italian Prime Minister being sacrificed on the altar of finding a deal to fix the euro-zone crisis?
As the deadline for fixing the euro-zone summit approaches, more and more attention is focusing on Italy. Quite simply, unless Italy can be protected, no agreement will convince the markets.

The muscling of Italy has intensified because Europe's leaders have struggled to increase the firepower of their main rescue fund - the EFSF.
It is likely that on Wednesday they will announce that the fund has been leveraged up to one trillion euros.
Italy's debt stands at 1.8tn euros. It needs to issue some 600bn euros in bonds in the next three years to refinance maturing debt.

So President Sarkozy and Chancellor Merkel ganged up against the Italian leader Silvio Berlusconi at the weekend. They told him in no uncertain terms that he had to get his public finances in order.

They want further spending cuts, pension reform, and changes that will boost growth in the long run. The Italian leader was told he had to deliver a letter by Wednesday setting out his plans to rein in spending.
The letter must list concrete steps and come with a timetable. Mr Berlusconi was told he had to bring the letter to Brussels.

Silvio Berlusconi was furious. "Nobody in the union," he wrote in a letter, "can appoint themselves administrators and speak in the name of elected governments and the peoples of Europe...
"No-one is in a position to give lessons to their partners."

It did not help injured Italian pride when Chancellor Merkel and President Sarkozy were asked on Sunday whether they were reassured having met Mr Berlusconi.

They smirked and exchanged ironic smiles. Italians - even those opposed to the Italian prime minister - were insulted. The Italian president said the smirks were "inappropriate and unpleasant".

Others suspect that France and Germany are trying to engineer Mr Berlusconi's departure and have him replaced by a figure who will carry out reforms and so calm the markets.
Their demands threaten Mr Berlusconi's fragile coalition.

The pension reform could raise the retirement age to 67. Umberto Bossi from the Northern League - and Berlusconi's key coalition partner - said: "To retire at 67 years, to cancel old age pension, all of that is not possible... we cannot make the retirement age 67 years. People will kill us."
Mr Bossi won't budge and made it clear that the demands put Mr Berlusconi's government at risk.

Should make for an interesting week.

JonnyBravo

I love the clip of Merkel and Sarkozy smirking when asked about Berlusconi. It was on C4 news last night. Priceless. I had a good laugh at it.

ruggedtoast

The problem is Italians won't tolerate much austerity before they start rioting, fiddling their taxes even more, and driving around in small cars frantically tooting.

Either Germany picks up the bill or there is going to be default somewhere.

Rinoa

JonnyBravo wrote: »

I love the clip of Merkel and Sarkozy smirking when asked about Berlusconi. It was on C4 news last night. Priceless. I had a good laugh at it.

http://www.huffingtonpost.co.uk/2011/10/25/sarkozy-and-merkel-share-_n_1029916.html

Some speculated that Merkel took the chance to smile back as payback for reports that Berlusconi called the German Chancellor "an unf**kable lard a**e" in a phone call.

It's almost as bad as MSE.

kabayiri

Berlosconi should indeed worry about the reaction of his fellow countrymen.

One of his predecessors, Mussolini, found himself hanging from a gas station roof.

Mr_Mumble

The reaction to the Merkel and Sarkozy double act in Italy's papers:



CNBC - Rome Scrambles to Please EU

gagahouse

Rinoa wrote: »

http://www.bbc.co.uk/news/world-europe-15452367



Should make for an interesting week.

Umberto Bossi is the equivalent of Nick Griffin except he also hates any Italian outside his beloved 'Padania'. If his obstinacy manages to topple Berlusconi though, I'll admire him for about 10 seconds.

lvader

Anone hoping for someone better than Berlusconi is going to be very disappointed. Maybe Cicolina can make a come back to save Italy.

Mrs_Bones

Does anyone really think any agreement is going to work?

The French and Germans may well be able to bully the Greek Government, who will all be out on their ear as soon as the Greeks are allowed a vote. Italy is a different kettle of fish, they won't put up with it. France may have always wanted a Europe superstate with them playing a leading part, but getting the people of other nations to agree is going to be impossible. Sooner or later some countries are going to have to default and get out of the Euro, but it's like it is something that can't be mentioned, it's such a taboo subject.

They could be working now to try and sort it out in an orderly way so that hopefully the fall out can be contained but no, they are still living the fantasy of a Euro Superstate with no one leaving the Euro. Things are going to end up in a right mess.

sheffield_lad

Totally agree Mrs Bones, they are kidding themselves of they don't realise there is no other way other than a Greek default.

For the sake of the worlds markets they have to let Greece slip out of the Euro back to their own currency which will be devalued and give Greece a chance to sort herself out.

Also good for me as visiting Greece 3 times a year I have really noticed the price going up, it's far cheaper to eat out here rather than in Greece. The beer is cheaper here too, large Mythos=3euros these days ouch

michaels

Good to see the European leaders have seen just how serrious things are and started the only sensible course of action in these circumstances....blamestorming