Posted on 06/12/2012 1:19:10 PM PDT by bruinbirdman
Germany's central bank has shot down EU proposals for a European banking union, warning categorically that eurozone liabilities cannot be shared without a fundamental shift towards fiscal and political union.
Andreas Dombret, a key board member of the Bundesbank, said the grand plan by Brussels is unworkable. "It has to follow a deeper fiscal union as it would imply significantly increased risk sharing amongst countries."
Mr Dombret said a pan-EMU deposit-guarantee scheme and a debt resolution fund would require "a genuine, democratically legitimated fiscal union" and a new treaty.
The Bundebank's vice-president Sabine Lautenschlaeger hammered home the point in what is a clearly co-ordinated push to kill the plan. "The result would be a pooling of the governments' liabilities through the back door," she said.
"Whoever is footing the bill must also have a right of control, particularly when it comes to the large sums that are seen in banking crises," she added, alluding to rulings by German courts that unquantifiable EU liabilities breach Germany's constitution.
Chancellor Merkel endorsed the tough line at a party conference yesterday, insisting that Germany will not accept variants of debt pooling or eurobonds until Europe has created a machinery of joint government.
"We can't take part in things that lead us into an even deeper disaster," she said. "We want more Europe, but Europe in which joint liability and joint control go hand in hand. What is not acceptable is shared liability and control remaining in national hands."
Merkel said the failure of the European Banking Authority to uncover festering losses in Spanish banks in a series of stress tests showed that national regulators -- acting out of "misguided national pride" -- cannot be trusted to do the job.
The Chancellor said countries must be willing to give up sovereignty
(Excerpt) Read more at telegraph.co.uk ...
VEE are the Master Race!
Scuppers?.........Did the reporter mean SCUTTLES?.............
“Scupper” is a common Britishism. In this sense, it means “ruin” or “destroy.”
Euro Ping
yitbos
To me, a ‘scupper’ is a drain hole...........
“Two great nations separated by a common language.”....Winston Churchill, commenting on the difficulty of American and British military to effectively communicate during WWII.............
Yes, when used as a noun. In the UK, the use of the word as a verb entails a different meaning.
You should have heard a British colleague of mine try to pronounce “Antietam.” :-)
There was a very good article by Niall Ferguson on the subject..worth a read..
It helped me a great deal in understanding just what choices Europe faces (or does not)
Obey, or we will starve you to death!
If the European nations submit to the military, social, legal, politcal and economic rule of the E ewww, the future looks downright Chi-com. The Germans are not going to like it once they get it.
ESSR groupthink has never -- never means NOT ONCE -- resulted in anything but making a bad situation much worse, particularly in finance.
Oh, and please do not confuse what is going on in the welfare-queen nations in the ESSR with "austerity". No such thing. "Austerity", in their Newspeak dictionary, means, "We'll only increase our spending (and borrowing) 10% over last year's, instead of the 20% we intended."
If Greece blows out (which I rate at 2-to-1 on), the Fishwrapper is under 1.20 in the blink of an eye, possibly even under 1.15. This is a result that is unacceptable to the ESSR ruling class, because they've SO much ego and emotional capital invested in the Fishwrapper; they can't bear to see it come to its logical end. Look for a greater-than-usual amount of election fraud in Greece this weekend, as TPTB pull out all the stops to get a pro-bailout coalition into power.
Not to put too fine a point on it, but the above-mentioned capital is the ONLY capital invested in the ESSR since the Ponzi started to blow up in 2008.
WELL, SCUPPER MUH KIPPERS!................
yitbos
Would you like them with toast?
Crumpets...........
Nonsense.
The Germans are just the last remaining vestige of common sense in Europe. The Hitler reference is insulting and rather a left-wingish insult, truth be known.
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