Posted on 05/27/2012 1:06:58 AM PDT by bruinbirdman
France's new president, François Hollande, has put the German chancellor on the defensive with his growth agenda. Now Angela Merkel is planning to strike back. She is calling for structural reforms to save the euro with a six-point plan aimed at harmonizing austerity and growth in Europe once again.
The more European leaders talked at a dinner last Wednesday, the grimmer Angela Merkel looked. One after another, they spoke out in favor of the joint assumption of debt and against the strict austerity course Berlin is calling for. The chancellor stared silently at the man who was responsible for this change of mood -- France's new president, François Hollande, who noted with satisfaction that there was "an outlook for euro bonds in Europe."
Merkel disagreed, saying that euro bonds are not the right tool, but to no avail. Only a minority stood behind the German leader. Even European Council President Herman Van Rompuy said, at the end of the dinner, that there should be "no taboos," and that he would examine the idea of euro bonds. "Herman," Merkel blurted out, "you should at least say that some at this table are of a different opinion."
Merkel's world had been turned upside down. For the first time in years, the chancellor did not set the tone at an EU summit, nor did she and the French president agree on joint positions in a backroom before the meeting.
Much depends on whether Merkel and Hollande will be able to find common ground in the fight over Europe's common currency. They have been arguing for weeks over whether more austerity or more spending can save the euro. Now the dispute has reached a new level of escalation. After Hollande's statements on Wednesday, Merkel is now presenting her opposing concept. In
(Excerpt) Read more at spiegel.de ...
For Germany, the question is whether they want to flush away good money after bad. I suspect the Germans will ultimately decide to cut their losses and bail rather than bet more trillions on “red”.
And again Lady Thatcher’s pithy observation proves true: Socialism works until it runs out of other people’s money.
The Have-Nots have the votes against Merkel. Germany should get out of the Eurozone now, before it is expected to finance all the drunken spending of Socialist Europe.
It includes privatizing state owned businesses, special economic zones, labor reform, etc.
Even if there are going to be no euro-bonds, all EU countries need to do the 6-points anyway. These are subjects Hollande does not want to face.
yitbos
"Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery."
The European Commission's top economists warned the politicians in the 1990s that the euro might not survive a crisis, at least in its current form. There is no EU treasury or debt union to back it up. The one-size-fits-all regime of interest rates caters badly to the different needs of Club Med and the German bloc.So please keep in mind that this is what you are witnessing right now. It is one of the most disgraceful imperialistic moves perhaps in the history of the planet. And yes, it will affect the USA badly too.
The euro fathers did not dispute this. But they saw EMU as an instrument to force the pace of political union. They welcomed the idea of a "beneficial crisis". As ex-Commission chief Romano Prodi remarked, it would allow Brussels to break taboos and accelerate the move to a full-fledged EU economic government. …
Privatization and labor reform aren’t bad in and of themselves. Dictating “special economic zones” is another kettle of fish, however. And there’s already talk about turning Greece into a EU “protectorate” and occupying the country with “protection forces”, so think about the motives behind this crisis . . .
Or a Greek military "putsch".
yitbos
No, it won’t affect the US badly.
We always do well financially when we step in to clean up another genocidal European war.
Which will be soon.
I’d be grim too surrounded by others talking about how they are going to spend and squander the wealth I (my people) created from my (their) personal willingness to get up every day and work. No different than the grim expression on my face every time I see the face and hear the voice of a Democrat politician. It is the grimness of a man or a people feeling slave shackles hammered onto his and their hands and feet.
Merkel is running the risk of being turned out of office by the German Taxpayers who are sick and tired of seeing their hard earned money pay for every other Euro members excesses.
Germany is PROOF that austerity works. NO OTHER European Union country had even tried it. The entire reason Hollande was elected was because the French rejected Sarkozy's mild "cuts" (read that: reduction in spending) and raising the retirement age. Rather, they want "their benefits" and government spending to go unchecked, thinking the party can last forever.
Yeah, ask Greece about that.
Here's the question each and every one of us should be asking our Congressmen: If Government Spending is the way to economic prosperity, exactly why isn't Greece an economic super-power by now?
What I wouldn't give for some young, enterprising "news reader" to ask Obama that question this fall during one of the debates. Not holding my breath that'll ever happen...
Yup, Panzers.
Yup, Panzers.
Growth is typically a good term. But in this case, the “growth” is achieved by putting the bill on the German credit card. Its like 20 people going out to a fancy restaurant and ordering the works. The assumption is that all 20 will share the cost of the dinner. But when the check arrives, all the others are mysteriously absent from the table except the Germans (& maybe the Dutch and Norweigans).
The real purpose for such an occupation would be to control the border with Turkey. Greece has done a poor job with this and (given their situation) things aren’t going to get any better.
No, it not the only reason.
It may have consequences as such,and I share your fear of such an outcome, but the many fiscal facts & factors of this situation created by their failed economic policies are the only primary reasons.
More newspeak. Growth usually means creating something of value and increasing the standard of living. The mindless spending of borrowed money is NOT growth.
They think more spending will save the Euro?
That’s like saying more water rushing into the innards of the Titanic would have kept the ship afloat.
Pay piper, call the tune.
Money talks, BS walks
France is BROKE, and so are we.
Kinda sounds like Obama four years ago, all pumped up, flying high in front of Roman columns, marshalling the Have Nots to his side and promising the moon.
Socialism does not age well. Europe is just about to fall like dominoes nudged by the noobie lefty French president. Just the same scenario will happen to the U.S. economy which will most certainly collapse if Monsieur Obama gets four more years in office to impose the final chains of his marxist agenda on us.
Almost alone in the Euro wilderness, Merkel sees the handwriting on the wall and won't let Germany go down the tubes with the rest. It will be a colossal battle of wills between Hollande and her.
My bet as to who will prevail is definitely placed on the "grim lady" seated at the leaders' dinner, or, perhaps a little more light-heartedly, the "sour Kraut".
Leni
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