Ben Chu: Welcome to the hotel eurozone
Outlook The single currency becomes more like the Hotel California with each passing every year.
Since 2010, Germany's Bundesbank has been resisting every attempt to ease monetary conditions in the single currency to help struggling member states on the periphery. The Bundesbank has also been insisting that official bailouts must be tied to deflationary fiscal packages. And if those countries aren't willing to gulp down that austerity medicine? Well, auf wiedersehen.
But the Bundesbank president, Jens Weidmann, modified his rhetoric this week and warned in an interview of "grave consequences" for any country that leaves the eurozone. The single currency, he said, is not "some sort of club which you can easily quit and then quickly sign up to again". So, as The Eagles sang: you can check out anytime you like, but you can never leave.
Mr Weidmann's correct that leaving the single currency would be "grave". However, life inside the eurozone remains pretty darn grave too, notwithstanding the latests surveys pointing to an expansion of activity for the bloc.
But those signs of recovery might explain Mr Weidmann's new line. Once the strugglers have wiped out their primary deficits (before interest payments) as all but one are forecast to do by the end of next year, they will be able to fund their expenditure from domestic taxes. That will make them less reliant on loans from neighbouring states and make an exit more feasible. That, just might, be check-out time for real.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...