Daniel Hannan has written lots of good articles recently, but his latest is worth noting for posterity:
On Saturday, the European President, Herman Van Rompuy wrote an unintentionally hilarious piece in The Guardian in which he chided the markets for not doing what they were told. “Astonishingly, since our summit the cost of borrowing has increased again for a number of euro area countries.”
Those pesky bond traders! Weren’t they listening? Eurocrats have officially declared the crisis to be over!
Spanish and Italian bond yields have now risen to a higher level than before the summit, and are close to the point which triggered the Irish, Greek and Portuguese bailouts. The graphs below show the price of, respectively, Italian and Spanish debt,