What is this myth? Well, simply put the myth goes like this: every time the EU faces a crisis, some kind of crisis, any crisis, it muddles, it procrastinates, it comes very close to the brink of disaster, but in the end, at the very last moment, it pulls back and solves the problem.

That has indeed been a feature of the EU. I dare say when the problems were of a different nature and easier to solve than the current crisis deriving from the bursting of the global financial bubble on the one hand and of an extremely badly designed common currency on the other.

There are many analysts, politicians, commentators throughout the whole of the EU who resort to this facile conclusion with a shrug. “Oh well, that is how the EU works. But don’t worry. In the end they will get it right.”

Another reason why it is taken for granted that the crisis will be solved, is, to put it crudely, that the Euro “is too big to fail” and it is. But does any of the above constitute any guarantee that “they” will get it right? And why?

First of all who are “they”, the ones we expect will get it all right in the end? In times gone by the President of the Commission was very instrumental in shaping EU policy and thought. In days when people such as Jacques Delors was the President. Unfortunately the current President of the Commission and the newly designed President of the EU are both nothing but superfluous rubber stamps.

The leaders of the major member nations were also part of the EU “they”, leaders such as Francois Mitterand and Helmut Kohl who knew they had to work together and knew how to do it. Unfortunately today, despite many hypocritical protestations the “they” has been reduced to “she”. The German Chancellor. A simplification perhaps, but short hand for the German government.

So we are all expecting The Frau to fix things at the last moment. But the disastrous results of the German imposed policy in this EU crisis has clearly demonstrated that she does not get it right and may well not be relied upon to get it right in the end either. For very many reasons.

The main reason at the moment is that she is facing reelection in 2013. And for her and her party (major player in this Wolfgang Schauble) their top priority is not Europe, not even the long term prospects of the German economy, but getting back into the seat of power.

It is for this reason and this reason alone that in the pressing case of the unsustainability of Greek debt, they do not want to take any action towards what Christine Lagarde has termed a “real fix”. Firstly they do not want to admit that their policy has not worked. They don’t have to admit it was disastrous, but they do not even want to hint that well, perhaps now, we could do something a little differently.

No! More and worse of the same! Squeeze the secondary Greeks until their worthless pips squeak! They do not want to admit to the electorate that far from “giving” their hard earned money to the lazy Greeks, they have turned this whole crisis into a nice little (albeit short term) earner for Germany. Not only is she receiving revenue from the relatively high interest rate charged on loans to Greece, but she is also profiting very nicely thank you very much, from the negative interest on her own bonds. A development due directly to the crisis in the south.

I heard an estimate this morning from a MP of the Free Democrat party of Germany’s financial gain. It was over 80 billion. But since The Frau has acted as a rabble rouser, vilifying the lazy Greeks and slovenly south, telling her electorate that they are the hard working ones paying for this, she can hardly own up to the truth now.

And that is how she plans to run her reelection campaign. On disinformation and populist impulses. But the German election will not be held till November of the coming year. Well past the “last minute” when the EU is supposed to get it right before everyone is washed overboard. Germany included.

I do not think disaster may be deferred indefinitely. Her favourite solution has been scotched. That is of getting rid of Greece altogether. This has been deemed too costly and too dangerous, so the next best solution has been opted for. Keep the moribund Greece on painful life support (as painful as possible to act as an example to others) and then see what to do about it after the election.

However this rather facile approach has not taken into account two factors. The first that the Greeks and other southerners have reached breaking point form austerity. A point China has made a dire warning about. And the second that the IMF cannot sit by and watch as The Frau drags the whole of the global economy dangerously down so she can win her election.

Christine Lagarde is reported to have said, in connection with the Greek debt situation, and German smug complacency in NOT dealing with it:

“It aint over till the fat lady sings.”

And she is getting ready for her aria.

A Greek singer in an Italian Opera. Coincidence.

“Avanti a lei, tremava tutta Le’Europa”. Perhaps.