Well. it looks like Berlusconi is following Papandreou out through the exit door, as demanded by Merkozy. This morning, the BBC pondered the future for Italy. Naturally, they push the “tighter fiscal and political union” fantasy of Barroso and his pals. They are also fixated on the personality of Berlusconi.They might do better to listen to the markets, now factoring Italy’s 10yr bond rates at 7%. That’s immediate bail-out time, and this time, not enough cash in the coffers to bail Italy out. So why does the BBC not discuss the central issue here – namely Euro-Governments spending more money than they have? The impossibility of such diverse economies as Germany and Greece? The hubris of the European elite who have ignored the profound schisms that now threaten to engulf the Eurozone? Why is the substance of the debate always so restricted?
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