Yet another European day full of rumours and counter-statements.
Over the last few days a number of readers have asked exactly where the money is coming from if there is a new European bailout. Last night CBNC had some breaking news which should hopefully clear that up:
These statements seem to have been once again quashed by the German Finance Minister:
..severe irritation in the liberal party has assured the Federal Finance Minister Wolfgang Schäuble on Monday evening that there were no plans for a renewed increase in the Euro-bailout EFSF. “We do not intend to increase it,” Schäuble said the channel “n-tv”.
The question is whether Schäuble is making these statements for the local audience to ensure that Thursday’s vote passes through the German Parliament. We will have to wait until later in the week to see what sort of statements he makes after the vote.
As I said yesterday I have been wondering about the internal politics of the ECB and EC for some time now and my opinion is that the unionists are winning. The constant leaking of information, true or not, is just part of the politics.
In other news the Greek Finance Minister denied that he ever discussed default with the IMF, German business confidence fell again but not as badly as expected, the ECB is said to be considering restarting covered bond purchases and finally the Spanish parliament has been dissolved in preparation for early elections in November.