After a weekend of Je suis Charlie the Euro elite must now revert to their real role of proper Charlies to face up to the Euro mess .Should they print Euros by the billion? Can they? Will they? Or will they just try to get through with more extruded Euro fudge?
Germany wants the Euro to work because it keeps their exchange rate lower than it would be if they didn't have other currencies to hold it down like guy ropes from the heights to which Germany's big trade surplus would push it. But they don't want to pay for it. They've already paid the huge cost of integrating East Germany with the west and the cost of financing the weaker economies of Greece, and the other Club Med countries which they regard as lazy corrupt and in need of a bit of Deutsch discipline would be far far higher.
So they insist that the layabout countries make themselves fit for the euro by deflation and cuts. These produce pain and unemployment and have turned the Euro into the world's low growth high unemployment black spot
Draghi and the European Bank have managed to prevent collapse by promising to do "what it takes" and talking of printing money by a big dollop of quantitive easing as the US and UK have done. Now the situations still deteriorating they have to put their money where their mouth is. But can they print to float the Euro off the rocks?
The Germans don't like the idea even though it will bring the a euro down further. Their constitutional court has referred the issue to the European court .Now that court must decide whether the constitution gives the ECB the right to print money by buying back public debt-including presumably Greek public debt which will never be paid back anyway
If the court says no then the Germans will have to throw good money after bad by loaning more for the Greeks not to pay back. Or we'll see a Greek default and departure. Life's never boring in the Euro madhouse. Facile descencis Avernis.Via the Euro.