In a masterpiece of understatement, Annalisa Piazza, a fixed-income strategist at Newedge Group in London said:
“All in all, today’s [Italian bond] auction was not very satisfying,”Then in a further twist:
A new obstacle to solving Europe's debt problems - already!
Germany's constitutional court has suspended the right of a small parliamentary committee to approve urgent actions required by the eurozone bail-out fund.
Oh and Portugal's buggered as well:
The court said it will investiagte whether using the small committee to decide EFSF matters infringed the rights of other politicians.
The nine-member group was set up to get decisions passed more quickly - however there is growing anger among German politicians and voters that they are being dragged into bailing out other nations with little or no consultation.
Reuters reports that the court's suspension of the smalll committee means the EFSF won't be able to start buying bonds in the secondary market because purchases must be agreed in secret, and the full German parliament can't meet in secret.
That leaves the ECB carrying the responsibility for buying Spanish and Italian bonds for a bit longer...
Monetary contraction in Portugal has intensified at an alarming pace and is mimicking the pattern seen in Greece before its economy spiralled out of control, raising concerns that the EU summit deal may soon washed over by fast-moving events.Oh and Belgium:
Belgium’s economic expansion stalled in the third quarter as European leaders struggled to contain a worsening debt crisis amid signs the region is heading toward a recession.And so on...