Herman von Rompuy

Our Beloved Leader, the politician par excellence, speaks out.

Astonishingly, since our summit the cost of borrowing has increased again for a number of euro area countries. I say astonishingly, because all macro economic fundamentals point in the opposite direction. It cannot be stressed enough that Greece is in a unique situation, not comparable to that of the other eurozone countries. Italy will generate a primary surplus in 2011 and, with the additional austerity package just adopted will have a balanced budget in 2014. Spain has a low debt stock around 70%, below the EU and the euro area average, and has taken courageous measures to reduce its deficit and boost growth. In all these cases, the current market assessment of risks are totally out of line with the fundamentals and it is ludicrous that CDS-rankings put these countries in the top tier of default risk countries.

When markets disagree with politicians it\’s the markets that are wrong. Thus speaks the true politician.

A quite breathtakingly ignorant politician too.

Take Italy\’s primary surplus: that\’s actually a danger sign for default. For it\’s only when you\’ve got both a primary surplus and a large historical debt that it makes economic sense to default upon the historical debt.

How did we get such an ignorant man as the bureaucratic leader of a continent? And what can we do to get rid of him?

7 thoughts on “Herman von Rompuy”

  1. In the EU and in France in particular they have regulations covering what work a person may or may not do according to qualification. So why do we allow politicians to take up such important posts without taking a similar qualification test.

  2. To paraphrase Mandy Rice-Davies, “Well he would say that wouldn’t he”.

    This is one of the problems with the democratic deficit within the EU, since he was not elected by anything that could reasonably be described as a consitiuency representative of the people, there is no means by which he can be removed.

    We are indeed fortunate that he has the charisma of a damp rag and that everyone can see this.

    As Mrs. Thatcher said in March 1988 (during Nigel Lawson’s failed attempt to keep the pound down by manipulating interest rates and subsequently selling Sterling on the foreign exchange markets) – “There is no way in which one can buck the market.”

    It would seem that the EU still hasn’t learned it’s lessons on sound economic management and will need to continue to take it’s punishment unil it DOES learn.

    Score:
    Markets: 1
    Herman van Rumpey Pumpey: 0

  3. “How did we get such an ignorant man as the bureaucratic leader ?”

    Wasn’t it ABT ? Anyone but Tony.

    Alan Douglas

  4. since he was not elected by anything that could reasonably be described as a consitiuency representative of the people, there is no means by which he can be removed.

    He was appointed in exactly the same way David Cameron was appointed PM, only with heads of European states instead of MPs. He could be dismissed in exactly the same way, too.

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