By Richard Breslow, a former FX trader and fund manager who writes for Bloomberg
At the end of last week, the EU-27 held what was meant to be a reaffirmation of their joint commitment to solidarity and outline their plan to make Europe great again. It was all laid out in the loftily titled “The Bratislava Declaration.” Unfortunately, the document was about as far as things got.
But for the fact that it’ll be quickly and mercifully forgotten, the summit would go down in history as highlighting the very issues that render the continent dangerously divided. We no longer talk about the “sick man of Europe,” rather that Europe is sick.
The meeting was preceded by European Commission President Juncker’s 2016 State of the Union speech. He reminded the parliamentarians that “the next 12 months are decisive if we want to reunite our union.” How many times have we heard that before?
His punchline was ironic, given the ensuing finger-pointing and anger. “Europe is a cord of many strands -– it only works when we are all pulling in the same direction.”
Hungary Prime Minister Orban blasted the group’s efforts on immigration in vitriolic terms. Vowing to submit counter- proposals on behalf of eastern countries. Ideas in direct contravention of Merkel’s ideas.
Luxembourg, you’ll remember, recently suggested that Hungary should be excluded from the Union altogether for its “massive violation” of the core values of the EU. Now that’s cohesion for you.
Italian Prime Minister Renzi refused to take part in a joint press conference with Merkel and Hollande. He shed any diplomatic niceties over the unwillingness of those heads of state to give him the budgetary flexibility he needs to deal with a banking crisis in full bloom. He accused them, and Spain, of breaking Union rules while putting his economy at full risk.
About the only thing they all do agree on is that European banks can’t afford the capital levels suggested by Basil III. Not very comforting coming from a continent with nearly half of the world’s systemically important banks.
Angela Merkel said, “Europe is not at all in a good state.” And Europe is famous for waiting until the last second to actually address crises. The danger is that threats are flowing from so many holes that plugging up the leak at the last moment may take more fingers than the Little Dutch Boy of myth has.
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Full Bratislava Declaration below…
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