Continent Isolated

The European Central Bank is forbidden to lend to the European Union budget, to national governments, and to any public body, which includes the European Investment Bank. It cannot make any contribution to a European version of the Paulson bail-out. National governments must act. Of course 27 governments cannot agree on a fund and its distribution. Equally obviously the banks to be rescued are multinational. Under a smoke screen of seeking a Union-wide bail-out which they knew was technically and legally impossible, the core European Union has been coordinating effective response, with some left out of the loop.