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WSJ: 'Mr. Euro' Is Forced to Act

By Anonymous

A 2nd part in the interesting back story on the European crisis: Currency Union Teetering, 'Mr. Euro' Is Forced to Act

[A] senior commission official, debating with the German delegation, tried to persuade [German Finance Minister Wolfgang Schäuble's deputy Jörg] Asmussen to let Brussels run the stabilization fund.

"Why don't you let us handle this," he said.

"Because we do not trust you," Mr. Asmussen replied.

And the article concludes:

The deal allowed the ECB to press ahead with its bond-buying plan, and the package of EU measures has helped quell the panic. ... In the past month, financial markets have turned their sights on Ireland and Portugal. Doubts remain over the solvency of banks on Europe's stricken fringe. That leaves them dependent on Mr. Trichet's largesse, in the form of "temporary" lending facilities introduced by the ECB when the crisis first hit.

Despite Mr. Trichet's assurances that the bond-buying program is a stop-gap, it not only continues but has also increased in recent weeks?with no end in sight.

Here was the first part: On the Secret Committee to Save the Euro, a Dangerous Divide

Clearly Germany was calling the shots.

Earlier:

Summary for last Week ending Sept 25th (with plenty of graphs)

Weekly Schedule for coming week

Full post as published by Calculated Risk on September 27, 2010 (boomark / email).