Euro Bail-Out In Doubt As "Hysteria" Sweeps Germany [Economic Tsunami Ahead?]

Telegraph(UK) ^ | August 28, 2011 | Ambrose Evans-Pritchard

[Steelfish]

Euro Bail-Out In Doubt As "Hysteria" Sweeps Germany German Chancellor Angela Merkel no longer has enough coalition votes in the Bundestag to secure backing for Europe's revamped rescue machinery, threatening a consitutional crisis in Germany and a fresh eruption of the euro debt saga.

Seething discontent in Germany over Europe's debt crisis has spread to all the key institutions. By Ambrose Evans-Pritchard. 28 Aug 2011.

Mrs Merkel has cancelled a high-profile trip to Russia on September 7, the crucial day when the package goes to the Bundestag and the country's constitutional court rules on the legality of the EU's bail-out machinery. If the court rules that the €440bn rescue fund (EFSF) breaches Treaty law or undermines German fiscal sovereignty, it risks setting off an instant brushfire across monetary union.

The seething discontent in Germany over Europe's debt crisis has spread to all the key institutions of the state. "Hysteria is sweeping Germany " said Klaus Regling, the EFSF's director. German media reported that the latest tally of votes in the Bundestag shows that 23 members from Mrs Merkel's own coalition plan to vote against the package, including twelve of the 44 members of Bavaria's Social Christians (CSU). This may force the Chancellor to rely on opposition votes, risking a government collapse.

Christian Wulff, Germany's president, stunned the country last week by accusing the European Central Bank of going "far beyond its mandate" with mass purchases of Spanish and Italian debt, and warning that the Europe's headlong rush towards fiscal union stikes at the "very core" of democracy. "Decisions have to be made in parliament in a liberal democracy. That is where legitimacy lies," he said.

[SkyPilot]

One World Currency - here we come.

[Bean Counter]

“Most City banks say the fund needs €2 trillion to stop the crisis engulfing Spain and Italy. “

And that’s just Spain and Italy! That implies Greece is already dead and gone, and probably Portugal along with them.

If I were a German taxpayer and voter, I’d be hoppin’ mad about this, but not hysterical....

[SeeSharp]

One World Currency - here we come.

Yes, but what they don't know is that the one world currency is going to be gold.

[alloysteel]

Wheels on fire and coming off.

Germany pauses as it teeters along the precipice. There is no good outcome at this point.

One is reminded of the final scene in “Thelma and Louise”, where the 1966 Thunderbird is still suspended midair.

Maybe they made it.

[Mariner]

I've contended from the onset of the European "debt crisis" that the German People would one day defy their government and insist on no new bailouts.

There have been many here who have contended otherwise.