Euro Summit Statement “Leaked” Draft Looks Like Swiss Cheese

A leaked draft of the Euro Summit Statement is sparse on details and long on hot air. They only item of "substance" and I really use that world lightly, is an 10-point action item plan detailing an agreement to setup more meetings.

The Telegraph presents The Leaked Draft.

I would like to provide details on resolutions to the economic crisis including the EFSF, however there are no details to present (and there will be none as long as the Merkozy feud lingers, which may be through the end of the summit).

With nothing but holes everywhere else, I am pleased to present the 10-point agenda to establish more meetings.

10-Point Proposal for More Meetings

1. There will be regular Euro Summit meetings bringing together the Heads of State or government (HoSG) of the euro area and the President of the Commission. These meetings will take place at least twice a year, at key moments of the annual economic governance circle. The President of the European Council will ensure the preparation of the Euro Summit, in close cooperation with the President of the Commission, on the basis of the work of the Eurogroup.
2. The President of the Euro Summit will be designated by the HoSG of the euro area at the same time the European Council elects its President and for the same term of office. Pending the next such election, the present President of the European Council will chair the Euro Summit meetings.
3. The President of the Euro summit will keep the non euro area Member States closely informed of the preparation and outcome of the Summits. The President will also inform the European Parliament of the outcome of the Euro Summits.
4. As is presently the case, the Eurogroup will ensure ever closer coordination of the economic policies and promoting financial stability.
5. The President of the Eurogroup is elected in line with Protocol n°14 annexed to the Treaties. A decision on whether he/she should be elected among Members of the Eurogroup or be a full-time President based in Brussels will be taken at the time of the expiry of the mandate of the current incumbent.
6. The President of the Euro Summit will be consulted on the Eurogroup work plan and may invite the President of the Eurogroup to convene a meeting of the Eurogroup, notably to prepare Euro Summits or to follow up on its orientations. The President of the Euro summit will meet regularly, at least once a month, with the President of the Commission, the President of the Eurogroup and the President of the ECB. The Presidents of the supervisory agencies and the EFSF/ESM chair may be invited on an ad hoc basis. These meetings will be used to establish clear lines of responsibility and reporting between the Euro Summit, the Eurogroup and the preparatory bodies.
7. Work at the preparatory level will continue to be carried out by the Eurogroup Working Group(EWG), drawing on input mainly provided by the Commission. The EWG also prepares Eurogroup meetings. It should benefit from a more permanent sub-group consisting of alternates/officials representative of the Finance Ministers, meeting more frequently, working under the authority of the President of the EWG.
8. The EWG will be chaired by a full-time Brussels-based President. He/she should preferably also chair the Economic and Financial Committee.
9. The existing administrative structures (i.e. the Council General Secretariat and the EFC Secretariat) will be strengthened and co-operate in a well coordinated way to provide adequate support to the Euro summit President and the President of the Eurogroup, under the guidance of the President of the EFC/EWG. External expertise will be drawn upon as appropriate, on an ad hoc basis.
10. Clear rules and mechanisms will be set up to improve communication and ensure more consistent messages. The President of the Euro Summit and the President of the Eurogroup have a special responsibility in this respect.

Synopsis

There were six items actually pertaining to the Eurozone crisis in the draft. None of them had any details.

However, there were 10 items pertaining to agreements to meet more often, including plenty of details regarding ad-hoc meetings, who gets to be the chairman, special working groups, preparatory bodies, additional consulting groups, and heads-of-state protocols.

Competing Theories

1. Eurozone bureaucrats are purposely hoping to downplay this now-failed summit into the gutter so that any results at the meeting will look good


2. Eurozone bureaucrats are as clueless as they look and sound. If there is a positive result of any kind, it will be by accident.

As a big fan of Occam's razor. Thus I favor choice number two.

Source: Global Economic Analysis