The French president admitted that European infighting had led to markets and consumers being \”paralysed by fear\” and vowed to stop the bitter argumentswith Germany to ensure the euro is properly supported. \”It must be made clear that a debt of a euro member will be repaid,\” he said. \”It\’s a question of confidence.\”
We all know that at least one, possibly three, eurozone countries simply cannot repay their debts. Just isnopt mathematically possible, however much the borrow now and from whomever. To insist that, for example, Greece, will repay all its debt is to be counter-productive, or, in the technical terms the market uses, pissing up a rope.
It simply cannot happen so an insistence that it will is just going to make things worse: markets really don\’t like people who refuse to face up to reality.