Britain vs EU update
Following PM David Cameron's rejection of the new EU "treaty", Der Spiegel: 'QUESTIONS THE LEGALITY of a separate Euro treaty'.
The Telegraph reports: “"The plan by France and Germany to build a separate fiscal union after Britain blocked changes to the European Union’s treaty is an 'abuse of power', according to confidential legal advice. . ."
Most crushing: The financial markets are unimpressed: "Sanctions against fiscal offenders. . .will have no legally binding character and could be revoked following the election of a new government. 'Is this really going to impress the markets?' asked an official."
The answer appears to be no. Last night "Italian 10 year bonds closed at 6.83%, Greek at 32.62%, Portugal at 13.16% all in bail out territory! French bonds were over 1% more expensive than UK gilts".
Monsieur Sarkozy and Frau Merkel have no real financial experience, do they?