Consensus is an almost cursed word in Brussels at this stage of great Crisis. The consensus has disappeared in management of political mess unleashed around migratory issue. Nor does it exist to agree on reforms of euro, which are essential for next crisis not to take single currency ahead. The head of Eurogroup, Portuguese Mário Centeno, sent this Monday to President of European Council, Donald Tusk, a long missive to explain how discussion to reinforce euro is. And it is more bitter than ever: re is only agreement for fiscal support of Bank resolution fund, mechanism to avoid an episode of financial instability if EU decides to close a bankrupt bank. Rye tells clear in that letter differences, which are of thick caliber, in or debates. Rye assumes, roughly, agreement between Germany and France, but with so many caveats that it does not seem possible that leaders can move forward at summit convened on Thursday and Friday. These are fundamental issues:Euro budget
The president of Eurogroup notes that differences of opinion persist on creation of an anticrisis budget. It includes possibility of creating a budget that allows to maintain public investment in event of a crisis, as proposed by European Commission. And, despite frontal rejection of 12 countries leded by Nerlands, possibility is that launching of a common unemployment insurance "in event of severe crises", although countries of North do not want to hear of speaking or painting of that instrument.Debt restructuring
Germany and France signed a few days ago a statement that has potential to provoke a jolt in markets if y come curves: Berlin and Paris want greater market discipline, and in case of a large-caliber crisis y pretend that before rescues of European aid Mechanism (MEDE) There are debt restructurings, through collective action clauses (a semi-automatic mechanism that would be included in debt contracts for investors to pay in event that Mede uses European taxpayer money To rescue a country. Rye points out that euro partners will work on that line, something that causes shivers in more indebted countries, with Italy at forefront.Banking union but less
There is only agreement for support of resolution fund. The Eurogroup insists on need to explore new ways to reduce risks. But re is hardly any mutualization: Common deposit Guarantee Fund is still a plan for a plan. "After June summit, political discussions could begin for a common Guarantee fund roadmap." The eternal kick forward.