October 28, 2010
In yesterday’s post about the stability of the euro I didn’t mention anything said by Commissioner Rehn.
For my money, lots of the proposals are too little too late and will have very little benefit in the coming economic climate. For example, the idea that automatic penalties may be applied to euro members that do not adhere to the rules of the Stability and Growth Pact seems rather redundant.
Just this week, Portugal raised over a billion euros in bond sales, but then seemed to lurch towards a political crisis as the proposed austerity package appears to be faltering. Under such circumstances, could you now start applying a penalty? Of course not, it would plunge a struggling economy even further into the mire. Thus, these seem to be rules for the next big economic crisis in 10 / 15 / 20 or more years time.
Anyhow, the Lisbon Council has released a highlights video of the event, so you can judge for yourself.
[kml_flashembed movie="http://www.youtube.com/v/yHz64qoYeN0" width="425" height="350" wmode="transparent" /]