Friday, December 09, 2011
A good enough euro deal?
Posted by David Smith at 08:45 AM
Category: Thoughts and responses

All the attention in Britain this morning is on David Cameron's veto and the reality of a two-speed Europe, with Britain in the slow/outer lane. Though that was inevitable given that the focus was on rescuing and more tightly binding eurozone members, it is a shift. Some would say such a shift requires a referendum.

What about the euro deal? There will be more fiscal discipline, which in time will help the euro, if it gets to that point. The challenge is to get from here to there, with deep austerity measures and the urgent need to restore competitiveness. This journey will have to be acccomplished without a European Central Bank bazooka to help clear the path, if we take Mario Draghi, its president, at his word. So, only half the deal the markets were looking for.