“Another half century of peace and prosperity in Europe is not to be taken for granted. If the euro fails, Europe fails.”
– German Chancellor Angela Merkel
And the euro will fail.
Prepare for collapse.
– EU SUMMIT SEALS ONE TRILLION EURO DEAL AFTER MERKEL WARNS OF WAR IN EUROPE (Express, Oct. 27,2011):
JUST hours after Germany issued a chilling warning that war could again engulf Europe, EU leaders made a desperate 1 trillion bid to save the euro.
Eurozone leaders sealed a three-part deal in the hope that the markets would be convinced there had been effective response to the crisis.
Officials in Brussels said an accord had been reached with banks on a 50% write-off of Greek debt and they also approved a complex mechanism to boost the eurozone’s main bailout fund to 1tr euro (£880bn).
The FTSE 100 index was 2 per cent higher this morning as investors welcomed the long-awaited action plan.
But only hours earlier, concerned about the consequences of a failure to deal with the crisis in the eurozone, German Chancellor Angela Merkel raised the spectre of military conflict.
“What is good for Europe is good for Germany,” she said.
“Another half century of peace and prosperity in Europe is not to be taken for granted. If the euro fails, Europe fails. We have a historical obligation: To protect by all means Europe’s unification process begun by our forefathers after centuries of hatred and blood spill. None of us can foresee what the consequences would be if we were to fail.
“It cannot be that some time in the future they say the political generation responsible for Europe in the second decade of the 21st century has failed in the face of history.”
Mrs Merkel delivered her warning to the German parliament, where she won a crucial vote for backing emergency financial measures for the eurozone.
Her comments surprised many observers who suggested that now was a time for cool heads if the euro crisis was to be resolved, and it would not help to raise the spectre of war.
But British officials heading to Brussels for the chaotic crisis summit feared eurozone leaders had failed to scrabble together the “big bazooka” remedy needed to rescue the single currency, despite proposals for stitching together a trillion-plus euro rescue package.
One senior Tory in Brussels dismissed the plans as “a sticking plaster on a gaping wound”.
All 27 EU leaders backed a proposal to increase cash holdings to nine per cent of their balance sheets.
As the summit broke up last night, David Cameron said: “We made some good progress tonight.
“It’s very much in Britain’s interests that we sort out these problems and solve this crisis.
“We have made good progress on the bank recapitalisation; that wasn’t watered down, it has now been agreed. It will only go ahead when the other parts of a full package go ahead and further progress on that needs to happen tonight.”
Mr Cameron was understood to be fiercely resisting attempts to squeeze more cash out of British taxpayers for saving the euro.
And he was putting pressure on eurozone leaders to sort out the debt crisis that threatens to plunge Europe – and the UK – into recession.
But there was growing scepticism among senior Tories that the eurozone in its present form can survive the crisis.
Martin Callanan, leader of the Tories in the European Parliament, said: “Once again we are being told this is the make or break summit.
“We were told the same on Sunday and the same before the summit before that.
“They march us to the top of the hill and march us down again.”
He added: “They may come up with another short-term fix, but it will all be based on borrowed money and shuffling of debt.
“Without addressing the fundamentals, it remains a sticking plaster on a gaping wound.”
Mr Osborne cautioned that it was now necessary to keep momentum up and deliver precise details on how the three-part agreement will work.
And he insisted that Britain will not contribute money to the European Financial Stability Facility bailout fund or to any IMF package specifically targeted at the eurozone area.