Turkey’s efforts to pull the lira off record lows on Monday are likely to be emulated across emerging markets as central banks fight to avert an exodus of foreign capital driven by the impending turn in US policy.
It’s all a far cry from a year or so ago, when emerging market exporters were battling rising exchange rates and Brazil was accusing Western policymakers of waging currency wars by flooding the world with cheap money. Continue reading
Marine Le Pen is spoiling for a fight. The leader of France’s Front National vows to smash the existing order of Europe and force the break-up of monetary union, if she wins the next election.
It is no longer an implausible prospect. “We cannot be seduced,” she said, brimming with confidence after her party secured 46pc of the vote in a by-election earthquake a week ago. Her candidate trounced the ruling Socialists in their own bastion of Villeneuve-sur-Lot.
“The euro ceases to exist the moment that France leaves, and that is our incredible strength. What are they going to do, send in tanks?” she told the Daily Telegraph at the Front National’s headquarters, an unmarked building tucked away in the Paris suburb of Nanterre. Her office is small and workaday, almost austere. Continue reading
There’s no knowing how and where it will all end. But it is clear with every week that passes in Europe’s biggest crisis that Britain and the rest of the EU are heading in starkly different directions.
Last week the European commission signed up to the German blueprint, while unveiling problematic EU legislation making the European Central Bank the policeman of the eurozone banking sector. Britain will have no part of that, either.
On Tuesday the German foreign ministry extended the federalising economic policy-making to foreign and defence, along with 10 other EU foreign ministries carefully chosen to reflect the non-UK EU mainstream – small countries, big countries, single currency members and those outside the euro, core western states and newer east European countries. The likelihood is that the 11-country consensus will swell into a majority among the EU’s 27. Britain also stands apart from this. The 11 include Germany and France, the big ones, plus Italy, Spain and Poland – after Britain the biggest EU countries.
Full article: Britain and EU close to point of no return (Presseurop)