Euro and “morbid speculation”

Christmas comes but once a year. But the euro zone debt crisis is every day. Yesterday afternoon, as I reported, Mario Draghi, European Central Bank President, speaking to a committee of the European Parliament warned against people from outside the euro area who constantly engage in "morbid speculation" about the single currency's survival.

The headlines in todays' British papers show the morbid ones are out and about in force.

Draghi warns of new year contagion, shouts The Guardian.

ECB says eurozone leaders created 'cycle of risk,' The Telegraph.

Both articles accentuate the negative without giving a clear sense of the neutral, central banker tones of Draghi's voice.

What they do get correct is that once again, Britain has put itself outside the European consensus as leaders struggle to find a solution to the euro zone crisis.

After the Brussels summit two weeks ago the EU nations said they would give an additional 200 million euros ($261 million) to the IMF. The IMF in turn could use this money to help euro zone countries facing debt difficulties.

British Prime Minister David Cameron has long said that Britain would not get involved in a euro zone bail-out. He has been true to his word. Yesterday Britain declined to participate in this new fund … and clearly, convinced some other non euro-zone countries within the EU to join it. 150 million euros was all that was raised.

To understand Cameron's thinking turn to the always lively Ambrose Evans-Pritchard's post titled Britain, the IMF, and the world's richest beggar. Here's a flavor:

"As eurozone politicians never tire of reminding us, their aggregate debt levels are lower than those of the UK, US, or Japan. They are right. So get on with it and stop begging."