Germany – Page 6 – Slugger O'Toole

Euro crisis: “Slowly the public is being softened up for historic change.”

Pete Baker on January 17, 2011, 5:29 pm

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While the euro crisis rumbles on, and with Frau Bundeskanzlerin promising that “We will do what is necessary, everything else will be discussed step by step”, the BBC’s Europe editor, Gavin Hewitt, wonders “what democracy in Europe means”… If the eurozone group of countries heads towards fiscal union then a further question will surely follow. Can you have fiscal union without political union? Slowly the public is being softened up for historic change. President Sarkozy was not a lone voice when he …

Angela Merkel: “We will do what is necessary, everything else will be discussed step by step”

Pete Baker on January 12, 2011, 6:44 pm

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Eastern promises aside – and isn’t there something about beware [metaphorical] Greeks bearing gifts? – Portugal’s visit to those reluctant bond markets is described as “successful” by this Reuters report at the Irish Times – €1.25 billion raised with the ten year yield kept below 7%. But as the BBC report points out Bond buying by the European Central Bank (ECB) had helped keep the yield below 7%. “Probably the most important thing for the 10-year yield is that the 7% level …

“the euro crisis had a Christmas break, but it’s back”

Pete Baker on January 10, 2011, 2:03 pm

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With Portugal heading back to an increasingly reluctant bond market, the BBC’s Europe editor, Gavin Hewitt, notes that “White knuckles have re-emerged in Brussels and other vulnerable European capitals.” Sometimes in Brussels I detect that the fight is less to save Portugal but more to ring-fence Spain. It’s the fourth-largest economy in the eurozone. If it needed rescuing the funds currently are probably not there. And then awkward questions would have to be asked – including whether Germans, in those …

Euro crisis: “For good or ill, she is perceived to set policy, pace and tone at every turn.”

Pete Baker on December 28, 2010, 9:06 pm

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In the Irish Times Arthur Beesley’s assessment of the “mammoth task” European leaders face in the year ahead is well worth a read. From the Irish Times article Strain and anxiety were everywhere in 2010. Merkel held the line against easy bailouts but her dogged intransigence on core principles led to accusations that she was making matters worse, not least in Ireland. From the summit room came whispered reports of shouting matches between French president Nicolas Sarkozy and ECB chief …

Angela Merkel: “now we need more in common in our economic policies…”

Pete Baker on December 19, 2010, 4:00 pm

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EU leaders met in Brussels last week, for their last summit of 2010, and agreed the text of a “narrow revision” to the Lisbon Treaty – the conclusions of the European Council (16-17 December 2010) [pdf file]. In Taoiseach Brian Cowen’s view, “There isn’t a change of competence or a transfer of competence, so our strong view is that it is compatible with the Constitution.” That would be without the need for a referendum. And from the same Irish Times …

Olli Rehn: “We are now in the decade of fundamental reforms”

Pete Baker on December 9, 2010, 1:37 pm

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As the Irish Times notes, EU economics and monetary affairs Commissioner Olli Rehn has joined the head of the IMF in calling for “well coordinated action to safeguard stability in the euro area”. From the Irish Times Mr Rehn told the conference [in Athens] that the euro area was determined to agree thorough reform to set up a new system of economic governance. “We will not stop until we have accomplished our mission. We are now in the decade of fundamental reforms,” …

Euro crisis: “So something is afoot.”

Pete Baker on December 7, 2010, 5:17 pm

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While a furious Irish taxpayer [on the Clontarf dart] discovers just how bad it’s going to be, RTÉ notes that EU finance ministers have formally approved the €85billion bail-out for Ireland. While bond investors still appear unconvinced that the politicians have a clear strategy to restore the euro’s fortunes, there is growing political division over the best solution. Belgium, which holds the EU presidency, and which has seen its own bond yields increase, wants the €750bn fund increased. Luxembourg and Italy …

IRISH TAXPAYER (Séan): “I am really furious right now, Helmut…”

Pete Baker on November 30, 2010, 3:29 pm

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As I mentioned yesterday, the markets were distinctly unimpressed with the details of Ireland’s bail-out. The Irish Times today notes that Although banking stocks rose yesterday, global stock markets closed lower as markets failed to be convinced that the €85 billion package for Ireland would solve the euro zone debt crisis. EU economic and monetary affairs commissioner Olli Rehn said yesterday that Spain may need further austerity measures to reduce its deficit if growth was lower than forecast next year. And the paper …

Ireland can’t afford to bail out European banks

Mack on November 30, 2010, 2:41 pm

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I think this point is worth highlighting more clearly. Below – Simon Johnson ex-CEO of the IMF – on who is owed money by the Irish banks German banks are owed $139 billion, which is 4.2 percent of German G.D.P. British banks are owed $131 billion, or about 5 percent of Britain’s G.D.P. French banks are owed $43.5 billion, which is approaching 2 percent of French G.D.P. But the eye-catching numbers are for Belgium, which is owed $29 billion – …

Euro crisis: “Come on, Frau Bundeskanzlerin, history is knocking at your door.”

Pete Baker on November 25, 2010, 11:13 am

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The Irish Times reports the comments by chief of the European Financial Stability Facility, Klaus Regling. “There is zero danger,” Klaus Regling, chief of the European Financial Stability Facility (EFSF), told German daily Bild when asked if the euro zone could break up. “It is inconceivable that the euro fails. “No country will give up the euro of its own will: for weaker countries that would be economic suicide, likewise for the stronger countries. And politically Europe would only have …

German foreign minister: “German-French relations are absolutely stable.”

Pete Baker on September 18, 2010, 10:33 pm

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While frustration is taking hold in Europe over financial matters, there appears to be a [distracting?] diplomatic row brewing over France’s repatriation of Roma immigrants. The BBC’s Gavin Hewitt noted a “fierce row” between the French President Nicolas Sarkozy and European Commission President, Jose Manuel Barroso, following condemnation of France’s actions by the EU Commission. The French President, Nicolas Sarkosy, then invoked the support of German Chancellor, Angela Merkel – only for that alleged support to be denied. But, as a BBC report noted The BBC’s …

The ‘psychic’ octopus was right!

Pete Baker on July 7, 2010, 10:03 pm

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As predicted by Paul, the ‘psychic’ octopus, Spain overcame an impressive German team via a single goal from the head of Puyol. RTÉ match report here. Sunday’s FIFA World Cup Final will now see the Spanish side take on the Netherlands. Here’s RussiaToday’s report of that prediction. On rumours that the eight-tentacled wonder had gone into hiding following reported death threats, The Spoof tells us that residents of Newby, Isle of Wight, have been sworn to secrecy… And I, for one, welcome our new cephalopod overlords… …

“Kaiser Wilhelm had a master plan for Europe…”

Pete Baker on June 24, 2010, 12:14 pm

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The Irish Times reports pointed criticism from former German Chancellor Helmut Schmidt of the recent German and French bickering in Europe. And the report notes some interesting comments from Ulrike Guérot, Berlin head of the European Council on Foreign Relations… Leading European think tanks were more critical about Mr Schmidt’s “Wilhelmine” remarks. “As much as I see his point, that Germany is being perceived in Europe in a negative way, Kaiser Wilhelm had a master plan for Europe whereas in Berlin …

Euro Crisis : Germany and Spain at war!

Mack on June 19, 2010, 2:53 pm

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Be afraid, very afraid. Zero Hedge on those German leaks to force greater Spanish austerity, and the Spanish retailation to force the publication of Euro banks stress testing. One of the more ominous news of the day came from Reuters, which reported that the previously disclosed rumor that Spain was seeking a €250 billion bail out package, had in fact originated from high-placed German officials. The move, which will could easily set off an intraeuropean cold war, was prompted by …

Euro crisis: “The commission is the economic government of Europe.”

Pete Baker on June 16, 2010, 12:58 pm

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The BBC has a country-by-country guide to the EU austerity measures, including the bickering France and Germany. And, as the Irish Times reports, EU Commission president, José Manuel Barroso, lays down the law Amid intensive debate among European governments around measures required to reinforce the euro’s foundations, Mr Barroso said some of the member states needed to be reminded that the commission was “the economic government of Europe”. France and Germany have been at loggerheads over the scale of the measures …

Euro crisis: “Germany and France have to be of one opinion, otherwise Europe is sick”

Pete Baker on June 15, 2010, 2:56 pm

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German Chancellor Angela Merkel and French President Nicolas Sarkozy are presenting a united front in public, and pointing at a global bank levy. But, as the Irish Times reports, behind the scenes things are not well with the European leaders In an hurried show of unity, the two leaders penned a joint letter to the European Commission, urging it to speed up efforts to regulate EU financial markets. Ahead of yesterday’s meeting, French finance minister Christine Lagarde insisted that a new …

Euro crisis: “The crisis of the eurozone has only just begun.”

Pete Baker on May 20, 2010, 3:28 pm

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I hope it wasn’t something I said… At the Guardian’s Comment is Free, Timothy Garton Ash feels “more depressed about the state of the European project than [he has] for decades.” The crisis of the eurozone has only just begun. The bond markets have not been convinced even by last week’s giant “shock and awe” bailout of Greece. The one thing that moved them was the European Central Bank’s readiness to start buying eurozone government bonds, but it still costs …

Euro crisis: “None of Europe’s leaders are yet spelling out the cultural revolution that is to come.”

Pete Baker on May 19, 2010, 6:35 pm

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I missed this at the time, but the BBC’s Europe editor Gavin Hewitt’s thoughts on “one of the fundamental dilemmas in political leadership” being faced by eurozone politicians caught in a manifestation of “the political trilemma of the world economy” are worth reading. Within the EU there is tension, and at its heart is the role of Germany. The Germans never wanted to join the euro if it meant it would have to bankroll the weaker countries. That is what has happened. …

Euro crisis: The Hollow Euro

Mack on May 17, 2010, 12:05 pm

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Twice in the past century Germans have learnt, the hard way, the value of sound money. Between 1921 and 1923 the Weimar Republic, under the strain of massive WW1 reparations, fell into a hyper-inflationary death spiral. The Mark plunged in value, measured against Gold Standard Marks it fell from a ratio of 1:1 to 1:1 trillion in 2 years. After the German defeat in WW2, their economy was in tatters and the Reichsmark once again worthless. In 1948 Ludwig Erhard, …

German anger at paying for luxury Greek pensions

Mack on April 27, 2010, 11:11 am

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Bild on the Greek bailout – It is only a matter of days until Germany starts handing out billions in aid to the Greeks, according to Chancellor Angela Merkel. But for some experts, Greece is just a bottomless pit. And now anger is increasing in Germany, with many asking why they should pay for things like the luxury Greek pension system. They highlight superior Greek pensions, that German workers will now be paying for – The fact is that in …