The chaos surrounding the Euro zone was brought into focus yet again last night as Slovakia voted against increasing the Eurozone Bail out fund.
This latest episode may not be a definitive block on the expansion of the fund, but Slovakia have become a thorn in the side of the Euro and shows why the Euro zone is in such disarray.
The Euro zone has become the model by which no sane organisation should be run. It’s decision making process is slow, unwieldy, and lacking focus.
Even now, the Euro zone is fighting a phoney war with itself, having problems obtaining a consensus on an increase in the bail out fund that we all know will be inadequate anyway.
The slow motion car crash that is the Euro debt crisis has fundamental problems that the leaders of Europe seem unable to grasp.
It is surely only a matter of time before the next shock appears, and the markets react.
The project for monetary union can now be seen to have been ill conceived and without the sound foundations any economy needs. Without fiscal and political union, the currency cannot survive, and is unlikely to survive with the weaker economies largely in the south of the zone remaining a part of it.
It s no wonder that Slovakia is reticent to help fund the bail out of countries that are richer than they are, even though the posturing may well be for a domestic audience.
It is still unbelievable that with all that has happened, the leaders within the Euro zone still appear to have their heads in the sand.