Telegraph Live: Reports that the Italian Government has won its confidence vote when it comes to its austerity package. Lets be honest here folks, the Italy is now owned by the European Central Bank, the ECB has to keep buying Italian bonds or Italy goes down the drain. The problem is the Italian Government and PM Silvio Berlusconi, he has more scandals than this blog has had health dinners! Thus what ever package is passed will it be taken through, that’s the problem with Greece, it has been very slow to follow through, it had to pass a emergency land tax just to keep the EU, IMF, happy. Also the markets are up on the idea that France, Germany and Greece will have a plan at 5.05pm today, good luck with that, Germany in effect pays ALL the debt of the PIIGS or Greece has to get out of the Euro. The German Coalition Government has taken a battering in local elections, thus the Chancellor has to take her Government with her, never mind the German voter. If Germany would underwrite EU bonds then the PIIGS might be saved, but it’s a tough sell to the German voter, even then it might fail. Thus Greece needs to default, the Governments of Germany and France need to protect their banks and then give loans to Greece. The Euro can go on folks but with a smaller number of countries, if you try to save them all you will destroy the Euro.
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