It’s rare on these pages that we write in praise of the UK or EU governments. But after their recent performances, we have to tip our caps to Gordon Brown, in particular. His bank recapitalization plan is being adopted by most of the G7, including the US.
We, and the market, doubted the EU’s ability to come to a speedy rescue of its banking sector but they have out-performed expectations. It wasn’t always pretty, but they’ve pulled it off with speed and coordination which was unexpected given the lack of common common infrastructure. Their currencies are reflecting the level of satisfaction the market has with their actions, rebounding smartly today.
