The markets gave the politicians time as they arrived in the ambulance to save the Euro as well as the economic well being of the world.
But it soon became clear that Europe’s leaders had come not with an economic defibrillator to kick-start the heart of the Euro, only with a sticking plaster and they were arguing over which shattered limb to apply it to first.
We have ever been promised that a deal will be announced tomorrow, or at the week-end or soon. But a deal does not really look on the cards, which would be catastrophic for the world’s economy as, probably starting with Greece, debt contagion sparks a domino effect around the planet.
Last week’s deal became last weekend’s deal and today’s deal is now next weekend’s deal.
But of course it all hangs on politicians from different countries agreeing on the one way ahead for a single currency unit. And this was always the problem with the Euro concept in the first place.
One EU diplomat quoted in the Guardian said "Everybody realises that we are on the brink of such a total catastrophe that anything that prevents it and a huge recession must be grasped. The markets will kill us if they haven't laughed themselves to death."
The two main driving countries of the Euro-zone, France and Germany, are at loggerheads over how to deal with the issues and it is emerging that Silvio Berlusconi’s government is about to collapse over austerity concerns and go to the polls next March. And don’t forget the civil unrest already happening in Greece.
Germany has the problem that its people are against the ECB lending any more money out via buying bonds from troubled countries. Angela Merkel, the German chancellor has already said this route was ‘unacceptable’.
Today’s EU finance ministers’ meeting has been cancelled and instead more crisis meetings will be held, which David Cameron will attend.
The three main issues that need to be addressed to soothe the markets are:
Properly recapitalising the banks.
How to get the already huge â‚¬440 billion bail-out fund above â‚¬1 trillion.
Getting private investors (like banks) to take at least a 50% hair-cut (loss) on their loans to Greece.
As the system collapses in almost Biblical proportions all our politicians and leaders can look at doing is applying more Heath Robinson style props to try and keep things as they are.
But the markets patience will wear thin and when it does the politicians will be unable to react fast enough.
How long will it take for those in power and with the money to realise that the system they so carefully constructed and cherish has failed.
But what is needed is not more globalisation and more centralisation. No, we need local action and accountability coupled with global awareness but threaded through with compassion. That is, maybe what we need is more ‘Glocalisation’.