The Draghi put may come to be seen as a short-term delaying tactic that destroyed any potential for implementing a deeper political and economic union. A deluge of money reduced the pressure on Italy and Spain removing the need for a coordinated bailout. Proposals for a banking union and greater political unity lost any immediacy and, as Euractiv have reported, are now pushed forward till next year. The drive for ever closer union has also become entagled with the electoral cycle of the paymaster, Germany: due to take effect in September this year. Angela Markel is not allowing European issues to affect the election since Eurosceptic parties are already outflanking the Christian Democrats and the Free Democrats on this single issue.
But political expediency, in its own terms, is not news. Angela Markel agreed with Francois Hollande, at a summit meeting on the 29th May, that these issues would be negotiated and agreed upon after the European elections in May 2014. That is a delay of a year, probably eighteen months. This is where the issue of the slow burn may find them out.
The Economist cover for last week described the political leaders of the Eurozone as sleepwalkers. The urgency of the markets has been replaced by the apathy of stagnation. The problems have been institutionalised with an economic desert in southern Europe. This leaves the ingredients for further emergencies and bail-outs in place; spreading to other candidates within the currency union such as France and the Netherlands. The balm of press releases will not delay or prevent this crisis. The continual decline in economic activity and rise in unemployment cuts across the nonsense spouted by Eurocrats and renders the continent vulnerable to global crisis.
The Europeans will regret that they did not act whilst they had an opportunity to do so. Pain postponed is crisis redoubled.