Wednesday, 28 March 2012

The euro rescue fiasco: When will German taxpayers say, enough is enough?

Der Spiegel notes that yet another red line has been crossed in the continuing euro rescue disaster. The question is: How long are the German taxpayers willing to accept the misinformation - and, yes, lies - thrown in their faces by the present leadership? It cannot take long before Angela Merkel will have to face the wrath of the voters.

The euro bailout funds will be enlarged, and Germany's guarantees will rise further as a result. Once again, Berlin has exceeded its own self-imposed limit in crisis talks. Coalition members are grumbling, but seem to have lost the will to fight. Finance Minister Schäuble has promised this will be last concession, but experience indicates otherwise.
Now yet another red line has been overstepped. Contrary to initial assertions, the euro-zone bailout fund will be effectively increased, and with it the formerly untouchable German contribution of €211 billion. Coalition leaders in Berlin are trying to play down the move.
Merkel praised the euro firewall increase as "the final step down a logical path," but some conservatives
doubt whether this milestone has truly been reached. On Tuesday the Organization for Economic Cooperation and Development (OECD) said the euro bailout package should be increased to at least €1 trillion to help the currency union return to economic health. The European Commission would also like more concessions from Germany, preferring for the ESM and EFSF to both run parallel at full strength, through which their volume would increase to some €940 billion. The best option, in their view, would be the transfer of EFSF funds to the ESM -- which would cause Germany's responsibility to explode, reaching a volume of some €400 billion.

Read the entire article here

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