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News Link • European Union

Germany's Backing of Redemption Pact Signals End Game for Europe?

• http://www.thedailybell.com, by Staff Report
 the German government has begun opening the door to shared debts for the first time in a profound change of policy, agreeing to explore proposals for a €2.3 trillion stabilization fund in order to stop the eurozone's crisis escalating out of control. Officials in Berlin say privately that Chancellor Angela Merkel is willing to drop her vehement opposition to plans for a "European Redemption Pact", a "sinking fund" that would pay down excess sovereign debt in the eurozone. – UK Telegraph

Dominant Social Theme: One way or another, the EU and euro shall be salvaged.

Free-Market Analysis: Is the Euro-crisis finally coming to an end? Just yesterday, we pointed to the intractability of the larger European position regarding any EU "bailout."

But we have also previously covered Ambrose Evans-Pritchard's reporting on the so-called sinking fund that has been proposed – and increasingly this seems to be a solution that may be headed for adoption.
 
It is an intriguing concept, not least because it involves gold. Ironically, it is also illegal.

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