Would you lend your money to the PIIGS?

Merkozy (Merkel and Sarkozy) have a truly “brilliant” plan for saving the eurozone – new tough rules about spending and budget deficits will be imposed on all eurozone countries. There are a few problems with this. Firstly, the supposedly “tough” rules have always been in place – but most countries, especially France and Germany, just ignored them. Secondly, to meet the rules, the lazy, corrupt, tax-avoiding PIIGS (Portugal, Italy, Ireland, Greece, Spain) would have to work hard, pay their taxes and stamp out corruption. And how likely is that?

What will actually happen is that Merkozy will put pressure on the “independent” ECB to use taxpayers’ money to buy hundreds of billions of euros of worthless PIIGS government bonds. Then in a few years we’ll be told that unfortunately the PIIGS are unable to honour their bonds and vast quantities of our money have disappeared into thin air. Meanwhile, the PIIGS will carry on slacking off, avoiding taxes and stealing any money that comes their way. Great plan!