Quote:
Originally Posted by Damien
Germany just don't seem to want to do anything. Probably printing Deutsche Marks as we speak.  |
Germany is forbidden by its constitution - a constitution, incidentally, dictated to it by our good selves and the rest of the Allied powers in 1945 - from guaranteeing the debts of third parties in the way some have been pressing in recent days.
To be honest, my sympathies are with Frau Merkel here. Her job as Chancellor is to look after the interests of the people who elected her. I don't see how those interests could possibly be served by Germany becoming guarantor of the shoddy financial practices of certain other Eurozone states. She is quite right when she says that mutualised government borrowing via Eurobonds is something that can only follow
after the Eurozone states enter a full and formal fiscal union whereby the whole can intervene to prevent profligate behaviour on the part of one or more of the others.
The quandary is, without Germany agreeing to pay for the Euro-bandwagon - and quickly - the wheels are going to come off, most likely in spectacular fashion, before the year is out.