Cameron’s EU Veto Could Bring Down Conservative-Liberal Coalition

BBC News – EU veto: Cameron says he negotiated in ‘good faith’.

British PM David Cameron caved in to the Euro-skeptics and the City (the U.K.’s Wall Street) but his partners in government, the Liberal Democrats, who happen to be pro-Europe, are not happy about the vote in Brussels last Friday. The rift could split the government.

The Laborists are waiting in the wings, taking pot-shots at Cameron who indeed has placed Britain in the most isolated position the country has been since the fall of France in June 1940.

But in 1940, Britain had the empire. There is no empire today.

Without the LD, the conservatives would not have a majority in parliament.

The response of Europe to Cameron’s stubbornness was: “Don’t let the door hit you on the way out.” Without Europe, Britain would lose a great part of its standing in the world.

For the last three decades, British policy has been designed to prevent Franco-German dominance of the continent. But that is exactly what is happening now. And everybody is blaming the PM.

My prediction is that the Cameron government will not last very long in power.

On the other hand, if Germany agrees to the ECB buying more Euro debt, I believe the Euro would sail through calmer waters.

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Britain Alone Worst Obstacle To Euro Rescue

‘Cameron Is a Coward’: European Politicians Slam British EU Veto – SPIEGEL ONLINE – News – International.

“We jumped into a rowboat… next to a supertanker” said David Milliband, former U.K. foreign minister under Labor, criticizing the posture taken by the Conservative PM in Brussels today.

Britain vetoed the 27-nation agreement today and the other 26 member nations had to reach an accord outside the framework of the E.U. Effective yes but it is not the same.

At the center of the British dissent is banking. The financial sector is a large portion of the U.K. GDP – larger than in Germany or France – and U.K. banking laws are modeled after their American counterparts, cut-throat and unregulated. The banking sector in continental Europe is more regulated and as long as anybody could do as they pleased, the U.K. would go along. But  the treaty proposed today, and adopted by the other 26, imposes supra-nationals controls which would affect the U.K. financial sector. British banks would be subjected to the stricter Franco-German norms that are the model in Europe.  Thereof the British veto.

But those supranational controls are the only way out of the crisis. Britain, or rather its conservative government, is being incredible selfish and short-sighted. If Europe fails, Britain sinks.

The euro crisis is affecting both the U.S. and China, two major traders with Europe. China just lowered the amount of cash Chinese banks have  to keep liquid to stimulate internal spending, even at the risk of worsening inflation. That is because Chinese manufacturing is slowing down due to a drop of demand abroad.

Many in Europe feel that the U.K. should leave the E.U. altogether and be like the Swiss. That would certainly benefit the euro rescue and the world economy.

France, Germany, Poland Join Forces to Save Europe. Britain Out

http://www.bbc.co.uk/news/world-16104089

New agreement signed today met objections from Britain and Hungary. Britain was then left out of the agreement, more isolated than ever.

This agreement is a step in the right direction: Tighter unity.

Will it calm investors? We will see today. But I am optimistic.

Debt Crisis Bring Former Foes — Poland and Germany — Closer Than Ever – NYTimes.com.

The greatest achievement of the European Union has been, without a doubt, peace – as British PM Chamberlain naively claimed after Munich in 1938: “Peace in our Time”.  And nothing exemplifies this more than the alliance of centuries-old enemies, Germany, France, and Poland in a bid to save United Europe.

During the XVIII century, Poland’s kings did not follow a line of succession but were elected by the nobility and that created weaknesses and internal divisions which were exploited by the countries’ powerful neighbors, Austria, Prussia, and Russia. By the end of the century, the 3 powers carved Poland.

A Polish state, under the name of Duchy of Warsaw was restored by Napoleon I, who also had a Polish mistress, countess Maria Waleska, but with the retreat of the French from eastern Europe in 1813, the Duchy was overrun and erased from the map.

Poland was restored by the Treaty of Versailles in 1919, invaded by the Soviet Union in 1920 (the Poles beat the attack with French help at the gates of Warsaw), invaded again by Germany in 1939, and was a battlefield between the retreating Germans and the Soviet army in 1944/45.

After 1945, Poland fell behind the Iron Curtain and then it enthusiastically re-joined Europe after the fall of Communism in 1990.

As a side note, the Polish Communist Party returned to power in free elections and then voted out again after a period of time.