EFSF leverage is deceptive

In the run-up to the meeting of EU heads of state and government on Sunday there are growing indications that the leaders will approve a so-called leverage of the euro bailout fund. But such an extension of the EFSF won't be of much avail, writes the liberal conservative daily Die Presse: "An enlarged euro bailout fund is supposed to calm the financial markets and facilitate the purchase of sovereign bonds. But the markets won't let themselves be fooled for long. For that reason there is no longer any real money changing hands, and less will be done, not more, to solve the real debt problem. Let's not kid ourselves: the only way indebted states can raise the money they need will be through devaluation, higher taxes and painful cuts to social services. There are no miracles. Even lottery jackpots are paid for by those who come away with empty hands week after week. With one difference: in a lottery everyone can decide for themselves whether they want to play or not."

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