ECB is leading Ireland and the eurozone to disaster
Moralising lectures about fiscal policy and austerity will not resolve the European banking crisis, writes Colm McCarthy
The EU Council, the Commission and the European Central Bank have made substantial progress in preparing new oversight and supervisory arrangements, a permanent rescue fund and arrangements for better scrutiny of public finances. All of this is designed to prevent Europe's next financial crisis. However, they have been doing a less impressive job in handling the current crisis, which is now in its third year.
Yields on Greek government bonds have reached stratospheric levels, implying that the markets regard a Greek default as a virtual certainty.
Both Irish and Portuguese yields suggest that the markets also see very high default probabilities in these countries.