Merkel Cancels Speech to Parliament; "Merkozy Marbles"

How often do politicians cancel speeches? One might think never, except in case of death or accident, but I have stunning proof it can happen.

Bloomberg reports U.S. Stocks Extend Losses as Merkel Cancels Speech

U.S. stocks extended losses as German Chancellor Angela Merkel canceled a speech to parliament on the European bailout fund because of disagreements on the role of the region�s central bank.

German Chancellor Merkel has canceled her planned speech to parliament in Berlin tomorrow because of a deadlock over proposals to leverage the European Financial Stability Facility to give it more firepower, three German lawmakers said.

More than a Merkozy Feud

This is far more than a Merkel-Sarkozy feud.

• Merkel is feuding with the German Parliament
• Sarkozy is feuding with Merkel
• Sarkozy is feuding with the ECB
• The IMF is feuding with the EU

Part of the Merkel-Parliament feud is in regards to oversight. The German supreme court said the Bundestag (German Parliament) must be consulted on EFSF and bailout matters and Merkel does not want to give up control.

Like a child who loses at marbles, Merkel took her marbles and left the room. It would be fitting if Sarkozy took his marbles from the game as well. Of course all eyes are on the next release of the tranche to Greece, unless of course the IMF takes its marbles from the game.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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