France and Spain no longer a “Latin bloc” against Germany

The European Stability Mechanism - a half-trillion euro bank firewall - came into effect this week, and at next week’s European Council session much of the debate will surround Spain’s possible request of a bailout, something France is keen to see happen. Despite one leader being a socialist and another a conservative, the two share widespread agreement on how to save the Eurozone.


Last May President Hollande, Prime Minister Rajoy and Italian Prime Minister Mario Monti, formed a so-called “Latin growth bloc” which aimed to fight German-imposed austerity measures. But Spain and Italy approved the European Fiscal Pact in July and in France the treaty should easily pass through Socialist-dominated parliament this week. To many, it seems that lowering borrowing costs and refunding private banks have carried the day.

After a series of budget cuts and tax increases, Spain has been inflamed by demonstrations and even threats of secession. With regional elections to take place later this month, many believe Rajoy may need the EU’s billions to win over Spanish voters.

The similarities between France and Spain - economically, politically and culturally - far outweigh their differences, and perhaps it’s natural that during a crisis the Eurozone’s leaders are sticking together. But that hasn’t translated into job security for politicians, or guaranteed the well-being of their constituents.