The inter-governmental procedure on the EU debt and competitiveness package is turning into a disastrous quagmire and will probably become a ‘cas d’école’ of inefficient multilateral inter-state bargaining.
Between France and Germany (on a common ‘non-proposal’).
Between ‘liberal’ Eurogroup member states (this is a ‘première’).
Between all Eurogroup member states.
Between the Eurogroup and EU 27 member states.
Between the UK and all other member states (this NOT a new cleavage).
The confusion about what type of legal and financial instruments are to be used (EU or national or intergovernmental / binding or discretionary / …) has reached a climax only rarely observed before.
In an unprecedented determination to ignore the apparently ‘démodée’ Community method , the EU is engaging in a most uncertain diplomatic wrangle that will do nothing to appease the markets’ scepticism about its final outcome.
In the end, let’s hope the IMF will blow the end of the break , as it did before , and force the EU to deliver a sensible package.