The End?

I've always been reluctant to call time on the Euro, the capacity of the EU elite to do whatever is necessary to save the project should never be underestimated. However there does seem an air of acceptance of its fate and subsequently there's panic and posturing to pass the blame for its inevitable collapse.

China and the US are urging the EU leaders to sort the mess out, seemingly preparing to pass the buck to Europe for any fallout as a result of a Euro crash:

Reflecting the anger of Americans who are blaming Europe for the current economic turmoil, the President called for eurozone leaders to show global markets they are taking responsibility for the crisis.

Merkel is shifting the blame onto Greece for failing to get its house in order and EU Commission Barroso has waded into the mix:

European Commission (EC) President José Manuel Barroso left the door open for eurobonds on Wednesday, as he delivered a stark assessment of the eurozone described as “the most serious challenge of a generation”.

Barroso must know that, despite approving the current bail-out of Greece, the German Constitutional Court has specifically outlawed, in its recent judgement, eurobonds in the future as highlighted here:

While the German constitutional court may have approved bailouts last week, anyone who says this was good news for the eurozone did not read the fine print in that 29-page document.

That's the opinion of Wolfgang Munchau, a longtime FT editor who writes a weekly column on the affairs of the European Union.

In an editorial published yesterday, he points out that the constitutional court virtually ruled out permanent mechanisms like the European Stability Mechanism (the would-be successor to the EFSF) and the economic authority necessary to back up eurobonds because they would impinge upon the sovereignty of the German state. An expansion of the EFSF is only legal because it is temporary.

Panic and preparation for the blame game appears to be in full swing The end is clearly on the cards - it's all over, please get on with it.