02/03/2009
Bloomberg
is telling us that Eastern (and Central) European stocks have dropped to the lowest in 5½ years. Hungary's forint fell the most in a month. Bank shares are nose-diving as investors flee, amid "concern that companies and consumers will be unable to repay foreign-currency debt as plunging exchange rates increase borrowing costs."
And all because the EU leaders said no to a â¬190 billion handout!
Hilariously â from the school of, you have to laugh or you'll cry â little José is saying that eastern Europe doesnât need special treatment (i.e., a â¬190 billion loan) as it can draw on â¬15.4 billion in the EU's balance-of-payments assistance fund. The countries are also eligible for â¬7 billion of accelerated infrastructure subsidies, he said. "We are one union, not two unions or three unions," bleats Barroso.
Now, let's get this straight. The eastern/central countries want â¬190 billion (they would actually prefer â¬300 billion) to stave off a fate worse than Ambrose. Little José is saying they can dip into a fund of â¬15.4 billion shared between all member states, with a top-up of â¬7 billion. And that solves the problem?
Good thing it's only one Union, isn't it. I don't think we could take any more.
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