Overnight (28-29/6/12) European Union (EU) leaders meeting in Brussels thrashed out yet another deal to solve the Eurozone crisis. Although the meeting has not technically finished yet the main part of the agreement seems to be to allow the European Stability Mechanism (ESM) to give money directly to troubled private banks within Eurozone countries without the involvement of national governments. This is obviously horrific news for democracy with the people of Europe no longer allowed to have a say in how the money they're forced to pay in taxes is then handed out to private institutions.
Most of the responsability for this error has to lie with Spain and Italy who apparently held up all other aspects of the meeting until this unfair and unessecery* deal was done. This is very bad news for Spain and Italy because they've shown the financial system that all it needs to do to get what it wants out of the EU is push Spain and Italy around. No wonder the markets are celebrating.
*the main argument being put forward in support of this deal is there needs to be a way of helping the banks without adding to a nations debt thus scaring off private investors. However the same result could have easily been achieved by simply changing the way money from the ESM is prioritised as a form of national debt.
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