Deal…what Deal? So Manu depilas, it mist be trufe... Or are they playimg a cunnkng doble bluff?

Deal…what deal?

Posted by Delusional Economics in Global macro on Sep 28th, 2011 | 19 comments

The situation in Europe has now officially become a farce.

While the Equity markets rocketed up between 4-5% last night because of a rumour that Greece, and therefore Europe, would be saved by a new plan to leverage up the EFSF, a large number of people who would actually have to approve the deal were denying such a deal even existed.

German Finance Minister Wolfgang Schaeuble told the cabinet on Tuesday:

.. there were no plans to increase the volume of the European Financial Stability Facility (EFSF) rescue fund or Germany’s maximum contribution

Finland and Dutch PM’s in a joint statement:

… rejected international calls for an expansion of Europe’s bailout facility however, stressing that profligate euro nations in the periphery should enforce budget discipline according to existing treaty obligations.

Spanish Economy Minister Elena Salgado:

“It is not on the table, nor has it been discussed,”

The EIB that was supposed to be running the whole thing:

.. the European Investment Bank just said that it has not been approached to take part in any bailout program involving the European Financial Stability Facility.

German Chancellor Angela Merkel’s junior coalition partner FDP General Secretary Christian Lindner:

“The woman Chancellor must make it clear very quickly that there are no changes to the Rules for EFSF.”

German Bundesbank chief Jens Weidmann has said:

“they would discourage politicians from taking tough decisions to cut budget deficits and weaken faith in the euro.”

Andreas Vosskuhle, head of the German constitutional court:

There is little leeway left for giving up core powers to the EU. If one wants to go beyond this limit – which might be politically legitimate and desirable – then Germany must give itself a new constitution. A referendum would be necessary. This cannot be done without the people

Even Merkel’s own party in the lead up to Thursday’s vote is struggling to come to a concen

via www.macrobusiness.com.au