A very simplistic theory*:
1. Most people do not understand economics, monetary politics or EU politics – including journalists.
2. A lot of investors and market participants don’t understand politics – let alone EU decision-making. (hint: it is a long process…)
3. The media system has a tendency to simplify and sensationalize – both: economics and EU politics. Plus there is a 24h news cycle which increases the need for new and exclusive stories. And social media does also not contribute to a more thoughtful debate. In fact the more sensationalist a story is the more relevant it becomes for twitter etc. And nobody seems to care whether it is an outdated story or not!
4. Journalists read English-speaking newspapers because it is the language of the ‘markets’.
5. Many UK journalists have a problem understanding the EU. Some of them do not want to understand it. But most of them work in ‘market -relevant’ media outlets.
6. Markets operate in English: Investors tend to read English papers and analysis. They don’t understand EU politics and read stuff from people who don’t understand it either.
7. The evil cycle begins: Something happens – uninformed journalist report about it, be it EU or Euro or both – the media system sensationalizes it – analysts and ‘markets’ read it and act upon it – crisis deepens – politicians have no chance to influence the cycle because whatever they say – they tend to meet uninformed and ignorant journalists who willfully sensationalize the story in order to please the 24h news cycle…
* Please note: Text includes sarcasm, exaggerations, untrue statements and general insults. However, over consumption can cause severe depression and the desire to emigrate. Just to clarify: there are many good journalists out there.