It is always useful to see yourself through the eyes of your peers. Now Citigroup Inc. has provided us with such an assessment, as reported by Bloomberg. Here’s what Tom Fitzpatrick, chief technical analyst at Citigroup in New York, wrote in a note to clients:
“Europe needs to stand up and decide if it is going to be a ‘United States of Europe’ or a ‘patchwork quilt’ of independent states.”
A difficult dilemma. Being a technical analyst, Mr. Fitzpatrick may not know what it means and how much it takes to develop this ‘patchwork quilt’ in the first place. But he knows something else very well: that monetary integration is impossible without fiscal integration.
This conundrum will not be solved, at least not decisively. Olli Rehn has good ideas, but they will, probably, not be adopted.
Economic statism is safe and sound in Europe. It will take much more than a bailout for Greece before the Member States start questioning their current political dogma.