Spigots getting turned open for the banks once more - meanwhile the Dutch tell their citizens to " eat their peas "

Eurointelligence Daily Briefing: ECB and several euro states prepare for direct lending of the EFSF to banks

The ECB and several member states prepare proposals to enable the EFSF/ESM to directly lend money to troubled banks; A working group meeting is to come up with proposals next week; Mario Draghi called for a growth compact in his hearing at the European Parliament

So, what is this growth compact?

According to Asmussen one option would be to redirect money from the EU's structural or regional funds to program countries

Robbing Peter to pay Paul!

Another option would be labour market reforms as the Agenda 2000

And that's the extent of the "growth compact"?

German newspapers and  interprets the ECB's proposal as a further sign that Angela Merkel's consolidiation approach is increasingly contested; Mark Schieritz says the proposal offers nothing new, just more of the same; Francois Hollande proposes his own 4-point growth compact; it includes eurobonds to finance infrastructure projects, EIB involvement, a financial transaction tax and redirection of unused EU funds; Sarkozy under pressure after comments that Le Pen was compatible with the principles of the republic; FTP party leader and Bundesbank urges ECB to exit loose monetary policy; German Christian democrats agree on minimum wage for all sectors not covered by collective wage agreements; though collective wage bargaining agreements that foresee wages below the minimum wage shall nevertheless stay valid; Zaki Laidi writes that Sarkozy's lack of political coherence and action is the reason why he lost support; IMF says Spanish banks need more money; German tourists, meanwhile, have been avoiding Greece, fearing anti-German reprisals.

and....

http://www.zerohedge.com/news/dutch-deal-done

Dutch Deal Done

Submitted by Tyler Durden on 04/26/2012 12:32 -0400

• Bond
 
• headlines

Holland entered the bond vigilantes' radar screens abruptly this weekend, following some vague rumbling that it may be downgraded if it doesn't get its deficit in order, and culminating with a cabinet collapse once the critical austerity deal was unable to be reached. Subsequently the cabinet resigned en masse. It seems it may have to be now reappointed en masse with headlines blasting that...

• DUTCH PARLIAMENT MAJORITY BACKS BUDGET DEAL, ANP REPORTS

The paradox is that in this market, in which more European turbulence is actually good for risk assets as it brings the inevitable next LTRO/easing event closer, any diffusion of Dutch tensions would be market neutral. Yup: enjoy the Constanza market.