The eurozone’s ‘Latin Bloc’ is in full revolt. The trio of French, Italian, and Spanish leaders – backed by world powers – are to push for a radical shift in Europe’s economic strategy at crucial summit on Wednesday.
The package of measures includes an EMU-wide guarantee of bank deposits aimed at halting a slow bank run across southern Europe, as well as demands for full activation of the European Central Bank as a lender of last resort.
They will propose eurobonds to finance an infrastructure blitz, a sort of Marshall Plan to revive confidence even if long-term benefits will take years to feed through.
While the moves are couched in diplomatic language, the clear aim of French premier François Hollande, Italian premier Mario Monti, and Spanish premier Mariano Rajoy is to wrest control of the EU’s governing machinery from Germany.