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Eurointelligence Daily Morning Newsbriefing: Fiscal shock absorber has been dropped, not just postponed (14.12.2012)
Angela Merkel puts her foot down, as the idea of a fiscal shock absorber fund is now completely off the table; what remains is a tiny common budget - order of magnitude some €10-15bn - to act as a reward mechanism for countries that implement economic reforms; Suddeutsche Zeitung writes that never before has a European balloon deflated so fast and so massively; paper says there will be no discussions on further fiscal union until crisis is well and truly resolved; leaders have asked the European Commission to come up with a proposal for banking resolution 2013; Holger Stelzner goes ballistic over banking, and says the ECB may have a conflict of interest in preventing the resolution of a bank; Mario Draghi said he hopes that resolution would be in pact in early 2014, but says the system would function without resolution; also said that he did not coordinate with anyone when he made his "whatever it takes" pledge; Silvio Berlusconi said the euro will break up within three years; an Italian news agency says Angela Merkel had put pressure on Mario Monti to stand at the next Italian elections; the latest polls put a hypothetical Monti party at 18%; Il Foglio says Monti is Italy's only hope; Anatole Kaletsky says Italy needs more reforms, less austerity, and Monti is the best politician to deliver this; Italy is about to introduce a tax on high frequency trades; the latest Bank of Italy data show an alarming rise of inequality in Italy; a report by Intermon-Oxfam says austerity will drive 40% of the Spanish population below the poverty line in a decade, a situation from which it will take 25 years to recover; eurozone finance ministers formally agreed the loan disbursement to Greece; Antonis Samaras says that Grexit is no longer an issue;  but ministers have to reconvene to discuss measures to reduce Greek debt levels to reach agreed targets; eurogroup fails to reach agreement on a loan to Cyprus; Karl Whelan applauds the Fed for announcing an explicit unemployment target; so does Brad DeLong, who says that, while it is too little too late, it will reduce the lost decade to seven years; an Italian shopkeeper, meanwhile, summarises Italy's disappointment with Monti: "We were awaiting a miracle. And the miracle did not come."

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Fri Dec 14th, 2012 at 04:11:20 AM EST
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