Posted on 06/27/2012 11:08:17 PM PDT by bruinbirdman
Pleas from Spain and Italy for urgent financial aid from the eurozone to bring down borrowing costs were dismissed by Angela Merkel as divisions hardened on the eve of a critical summit.
Germany's Chancellor angrily rejected desperate pleading by Italy and Spain as a Franco-German rift over eurozone debt sharing threatened to unravel efforts to find a fix for the single currency at a meeting of European leaders on Thursday.
Before flying last night to Paris for emergency talks with Francois Hollande, the French President, Mrs Merkel told German MPs that instead of more cash the eurozone needed to step up debt reduction and economic reforms.
"I fear that at the summit we will talk too much about all these ideas for joint liability and too little about improved controls and structural measures," she said.
Mariano Rajoy, the Spanish Prime Minister, said he would plead with other leaders to allow euro bail-out funds or the European Central Bank to stabilise financial markets by helping to reduce borrowing costs, running at nearly 7pc for Spain.
"We can't keep funding ourselves for a long time at the prices we're currently funding ourselves," he said. "There are institutions and also financial entities that cannot access the markets. It is happening in Spain, it is happening in Italy and it is happening in other countries."
As Spain's central bank warned that recession would deepen in the second quarter, official figures showed the government's deficit had reached 3.41pc of GDP in the first five months of the year, close to its total 2012 target of 3.5 pc.
Mario Monti, the Italian Prime Minister, warned the country's MPs on Tuesday that he would block agreement at the summit unless emergency measures to reduce borrowing costs were agreed.
On Wednesday, Italy had to
(Excerpt) Read more at telegraph.co.uk ...
In public they beg for free German money...in private they toast their coming default on non-sovereign Euro-debt.
We use Lira’s here in Italy, they will say. Those “Euro” debts are not ours to repay.
The way the euro is set up, without a central bank of last resort, it acts like a foreign currency in every EU country.
yitbos
And that was by design. They knew taht they would eventually default on their debt...the Euro gives them an excuse to default on a foreign one.
Correct! Give the man a cigar!
;-)
Won’t that piss off George Soros?
What free German money? Germany has not given out a single grant to anyone.
I remember Europeans bragging about cheap vacations in U.S.A. when euro was $1.40.
In U.S.A. the joke was, "Yes if you are lucky enough to have any euros."
Now EZ is finding out how easy it is to preserve capital. Click the mouse and move it.
As an example, I own some Swissies in the form of Nestles Corp. equities, some pounds in British Gas, and some euros in Finland's Metso Corporation. Trades are all electronic.
yitbos
They are turning way too pro-EU at the Telegraph. The Daily Express makes more sense than they do, nowadays. Neither Spain nor Italy would make any so-called “pleas for aid” (i.e. loans) if their national governments (such as they are) weren’t populated by pro-EU politicians.
>> Before flying last night to Paris for emergency talks with Francois Hollande
Wouldn’t you love to be a fly on THAT wall...
I almost feel sorry for Hollande.
Almost.
Maybe ‘pleas for aid’ is apt.
Everyone knows these loans would never be paid back in anything but a token fashion. The Spanish and Italians want Euros so they can sort out their immediate problems - and then default.
The only way Germany actually gains from more vendor-financing now is if she insists on Gold.
After all the EU is 25% of the worlds GDP and it will kill Obama's chances of re election if allow to meltdown.
Well, there’s one way to “pay back” the loans, and that’s through giving up their sovereignty. After all, that’s one of the terms of the loans. If it isn’t yet apparent just how fanatical EU politicians are, keep watching them in the months ahead.
Germany has no problem with southern Europe papering over their systemic spending problem on a short term basis just so long as it is not German money used as the wallpaper.
Do people still say, “You go, girl!”? If so, I’m sayin’ that.
I guess Spain, Italy, et al., will never “get it” — never understand how/why their countries’ systems are collapsing. And America will be next.
Maybe, just maybe, Soros has finally found an election that is too expensive to buy
“We can’t keep funding ourselves for a long time at the prices we’re currently funding ourselves,”
You just know this clown believes “at the prices we’re currently funding” is the problem and not “We can’t keep funding ourselves for a long time”.
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