27.04.2020 | Macron issues ultimatum to Europe's German bloc: cough up Covid trillions or lose the single market
by Ambrose Evans-Pritchard - The Telegraph
European leaders have dodged their "moment of truth". The Covid-19 emergency package averts an immediate crisis but fails to draw the political poison now threatening monetary union.
It has not cut Italy’s borrowing costs to bearable levels and is too little either to ensure the economic viability of southern Europe’s debt bloc or prevent the North-South divergence from spiraling out of control.
It leaves the European Central Bank holding the fort, compelled to cover to the exploding debt issuance of eurozone treasuries and to work overtime to stave off a run on Club Med bond markets. This places the institution in an invidious legal position.
The vague agreement on Thursday night was billed as a compromise. EU veterans say that it was in reality a "German" outcome, repeating the pattern of the eurozone debt crisis.
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