Ambrose Evans-Pritchard directs our attention to The Netherlands, which has received a downgrading from the S&P:
The reality is that even The Netherlands has been destabilised by monetary union despite being a creditor state and despite close trade ties to Germany. The country is now stuck. S&P expects the Dutch current account surplus to rise to 10pc of GDP from 2013-2016. And no, this is not a sign of health. Extreme imbalances are always bad. A deformed structure has become entrenched.
What surprises me is that the Dutch central bank has gone along with the ECB’s over-tight policy so lamely. Why did Governor Klaas Knot vote with the hawks against the ECB’s rate cut earlier this month? Is it some sort of Calvinist solidarity, “zachte heelmeesters maken stinkende wonden” as the old Dutch saying goes?
Why is he lining up with the hardliners when the ECB is missing its own M3 and inflation targets by a country mile, and when this policy mistake is doing so much damage to both Europe and his country?
Yes, it´s “going, going…gone!