Tuesday, August 7, 2012
September: The Cruelest Month?
Wall Street Journal
August 6, 2012
Brussels has been mercifully quiet over the last few days, but the moratorium on action won’t last beyond Sept. 12 — if it lasts that long.
Some European Commission and European Council staff will be here throughout August, but the commission’s economics man, Olli Rehn, his office informs us, does not intend to be back in town before the last week of August.
The markets are open. The troika — European Commission, European Central Bank and International Monetary Fund inspectors — left Athens on Sunday but will continue their work throughout the month, and are scheduled to return in early September. And the lesson we learned last year is that things happen even during the lazy month of August.
However, Sept. 12 is set to be the symbolic beginning of the new euro-crisis season, and it looks set to start with a bang.
It is on that date that the Dutch will vote for a new government, and the German constitutional court will rule on whether the permanent bailout fund, the European Stability Mechanism, is constitutional or not.