[lbo-talk] Trillion Euro Bailouts

dredmond at efn.org dredmond at efn.org
Fri Oct 31 19:18:28 PDT 2008


Just found this little gem:

"A clear distinction will be made between budgetary consequences stemming from policy errors and cyclical effects including consequences of the financial crisis rescue package. In particular, increases in debt levels due to rescue plans will be taken into account in the surveillance process." (page 5)

http://ec.europa.eu/commission_barroso/president/pdf/COMM_20081029.pdf

Translation: the EU is dumping Maastricht monetarism and embracing bailout socialism. While things remain dire, Europe has committed well over 2 trillion EUR in bailouts and loan guarantees, as compared to $1 trillion for the US. They'll have to do more, of course - a golden opportunity for the Euroleft.

-- DRR



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