The Eurocrats are caught out as markets flex their muscles to show who's really calling all the shots
The European project is at risk as bondholders, saved by bailouts, turn their back on the EU, writes James Fitzsimons
THE Government may be an improvement on the last one, but already the system it supports in Europe is falling apart. Politicians and eurocrats had only set off on their long summer vacations when they realised that all was not well with the world. Olli Rehn, the EU's economics guru, was called back to convince us that there is nothing to worry about. But money markets didn't agree.
Even the US was on the brink of default. Obama's attempts to tax the rich have failed. He thought he was in charge. He is learning the hard way that governments don't run countries. Those who control the purse strings do. Printing money hasn't solved the problem.
The EU could split. The 17 members of the eurozone (E17) will have to work together if they are to save the euro. If Nicolas Sarkozy gets his way, we will lose more of our sovereignty to the EU. He wants the European Council President Herman van Rompuy to have more power over economics and fiscal policy in the eurozone.