Chillin' out till it needs to be funded
Even as the Financial Transaction tax becomes a reality as a result of the first Merkozy games of 2012, it also became apparent that the new Financioal Tax would not be launched only in France and others in the Eurozone incl Germany would need to get it approved by local governments which at heart remains opposed to the new tax, keeping up the stimulus for its Economy. Cameron will have a tough task esp in the UK where the coalition govt has managed to create a new ring of regulation around its banking system
The new transaction tax apart, ECB continues to wallow in the mire of collateral it has made even after living with all manners of lightly disguised ineligible collateral. The union found a list of 11,656 newly eligble securities, 8000 of which will be exclusively French and were recommended by the French to make it easier for the French banks to borrow.
Pillars of Strategy become the wont of expression of Financial and Political Speak in the Euro zone for the thid successive year as merkozy pulled out the “Pillar of Economic growth and Financial Stability” as the second leg of their strategy espousing job creation again as sa goal. While Germany remains mildly positive in economic climate, Frane is unlikely to come out of recession for three years and the rest of the South continues to struggle with austerity plans to cut budget deficits counting to a 1% degrowth in Euro GDP in 2012
Ofcourse the discussion on Greek restructuring remained on its last legs. We liked the report that pointed out that the EUR 110 bln in Greek rollovers in February , if allowed to go through, would count to the EUR 80 bln in armament purchases commissioned buy the Greeks emphatically as part of its revised budgets. Also the so called strong cuts unlikely to go through include agreed extra working days in PSEs and the sale of PSEs themselves, always honest objectives where work needs to get done!