Germany has been pushing a fiscal treaty as the solution to the problems of the eurozone, but the pact, signed by European leaders at a summit in Brussels on March 2, is hitting roadblocks at every turn. First Francois Hollande announced he would trash this treaty if he were elected (something that looks likelier every day). Now, opposition is coming from within the German parliament itself. The culprit is Germany’s main opposition party, which is refusing to pass the treaty without significant changes to the document — and since the treaty needs a 2/3 vote in the Bundestag, the SPD can block ratification unless its demands are met.
Unless Hollande loses and the SPD is bluffing, the European fiscal treaty is going to change. And once the amending process begins, who knows where it will end?
The reality is that Europe still has no realistic plan for dealing with its currency crisis. The world’s largest economic union is up a well known creek without a paddle.