There’s this growing frustration with Germany for not stepping up and fixing the Euro problem… ‘The one country that’s gained big time from the Euro experiment shouldn’t be so reluctant to step in and help its prodigal brethren’, many think… But unlike the Good Book’s Prodigal Son, the Euro’s wayward children don’t get an open-arms pass for all their wandering and squandering… However I do sense there’s still a little something pulling at Germany’s heartstrings…
Chancellor Merkel indeed maintains her adamant stance that there’ll be no Euro bond and no ECB rescue of sovereign debt, per CNBC.com this morning: Hopes for a swift resolution have been dampened after yet another inconclusive summit on Thursday. German Chancellor Angela Merkel, French President Nicolas Sarkozy and Italian Prime Minister Mario Monti’s meeting did not result in any new initiatives, with Merkel reiterating her opposition to issuing joint euro bonds and allowing the ECB to print money.
However, she has offered up hints of late that maybe, just maybe, there is a scenario where Germany can step up without herself losing face… Here’s more from this morning’s article: Besides the German obsession with central bank independence and fear of hyperinflation, the core of the German opposition is “all about conditionality,” Carsten Brzeski, an analyst with ING, said.
“The German government does not believe in a quick fix of the crisis, only in structural changes,” Brzeski said.
“In fact, chancellor Merkel has recently made several pleas for more political integration in the euro zone. However, it is obvious that the German government first wants to see more political integration before it would give structural access to German money. This explains the German emphasis on Treaty changes,” he added.
And seriously, can you blame her? Instead of just throwing money at the problem willy nilly, Germany’s saying “hey, if you want our help, show us you can handle it, responsibly”… A bit of tough love you might say….