December 2nd, 2011
04:34 AM GMT
London (CNN) – We are now on Day Two of Olli Rehn’s 10 days to save the euro and the tempo is heating up.
Mario Draghi, the new European Central Bank president, has tantalizingly hinted he will do more to help out provided euro-member countries start the process of economic unification. As he put it, the sequence of events matters. In our language: Don’t put the horse before the cart.
For Europe’s leaders the promise that the ECB will ride to the rescue is sweet music, perhaps even for Germany’s Merkel and the Bundesbank who are demanding a move to fiscal union as the only preferred long-term solution.
If we needed any reminder of how messy this is getting, the Governor of the Bank of England, Sir Mervyn King gave us a hefty dose of reality. He said the euro crises was an “extraordinarily serious and threatening situation” and that Banks should be prepared to withstand the crises. He admitted the Bank of England was preparing contingency plans for what might happen to the euro. (Gulp)
As Day Two comes to an end I paraphrase the famous quote attributed to Otto Von Bismarck: “Saving the Euro is like making sausages. it is best not to watch them being made."
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