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Britain opted out. At issue are new regulatory proposals UK banks oppose. They include an EU-wide financial transactions tax, bans on short-selling, and requirement that all financial business be conducted in the Eurozone, not London.
At the same time, a provision protects banks and bondholders from losses incurred by bailouts. Worker households will bear the burden.
Other differences remain to be resolved, including between Germany and France. Sarkozy wants less stringent fiscal oversight and more expansive ECB policies. Merkel wants more centralized control, enforced EU austerity, and tighter ECB reigns imposed.
Without Britain, whatever's agreed will be illegal under Lisbon. The December 9 deal solves nothing. Switzerland is preparing for a euro collapse. Capital controls and negative interest rates may be imposed for protection.
A tsunami of euros would inflate the Swiss franc, devastate its export economy, and devalue its overseas wealth. The price for troubled Eurozone countries is economic collapse. It's just a matter of when.
At the same time, the agreement requires 26 EU nations to surrender their monetary and fiscal powers to Brussels. Violators will be punished. Political, economic and legal issues impose immense burdens and uncertainties.
In addition, final details aren't yet worked out. Another summit will follow next year. Europe and America face worsening Depression-level problems. China, India, Brazil and other emerging economies are slowing. A global train wreck approaches.
Recent economic data show why. In November, French business confidence fell for the eighth consecutive month. In October, Japanese machinery orders dropped 6.9%, following an 8.2% plunge in September.
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