UK Coalition Government and New EU Treaty

Guardian: Reports that the UK Coalition PM David Cameron has stated that the main objective of UK interest will to protect the single market and to protect the financial sector in the UK. If the 17 States of the Euro do create a Treaty the UK will have to make sure that they cant backdoor a tax on the financial sector in the UK, don’t impose employment regulations that hurts the UK. The Conservative right wants a Referendum on any new Treaty, in most cases this blog would support such move, but this is not the time, should the Euro go down the toilet it will take the EU and more important the UK economy with it, thus battle this bush fire first, then deal with the EU. There will be more chance of battles folks. The French will needs us against the Germans, Paris in the long term wont want Berlin calling all the shots in the EU.

France and Germany = S&P

Telegraph: Reports that credit Agency S&P has warned France and Germany that they could lose their much valued AAA rating should the fail to agree a complete plan to solve the Eurozone Crisis. It can be argued folks that the idea that an agreement between either the full EU States or those 17 Countries that use the Euro can be reached by March is out there in the Twilight Zone, one can postulate that Ireland will need to have a Referendum, also it can be postulated that the States of the 17 might have a problem if it seen that Germany is running the economic show. That was one of the World War One aims of the Kaiser, how are the rest of the Eurozone Countries going to react with a German Gauleiter turns up and veto’s budgets passed by a Democratic Parliament. This might not be as easy as the Markets thinks folks.

Credit Rating and the Euro

BBC News: Reports that the Credit Agency Standard and Poor's ( S&P ) has placed Germany and France and 13 Euro Countries on a Credit Watch. At a big two meeting between France and Germany today the leaders decided an Agreement should be made for a tougher treaty either between the 27 States of the EU or the 17 Euro Countries. Lets see if these Eurozone Countries want the Germans to have the ability to NO to local Budget. One can postulate that even the French after Two World Wars might draw the line at having their Budget coming under the VETO power of Berlin. Also will the proud Greeks after fighting in WW2 and going through years of harsh austerity really want Berlin as their Masters. Its really is the 4th Economic Reich folks.