http://www.cnbc.com/id/45029118 Germany opposed to Euro bond buying draft
For this reason today's financial meeting was cancelled http://www.cnbc.com/id/45029954
She got an important confidence vote yesterday as "German lawmakers flexed their muscles to secure a full parliamentary vote on Wednesday on euro zone crisis measures negotiated by Chancellor Angela Merkel and her euro zone peers, a move senior politicians said would give Merkel a stronger mandate."
"The new vote comes just one month after Germany's Bundestag (lower of house of parliament) approved greater powers for the euro zone rescue fund, and should pass without problems, but it risks delaying Europe's response to the debt crisis at a crucial juncture."
This vote was only possible as Merkel was able to get French Prime Minister Sarkozy to back of on a demand that the ECB leverage Euro crisis funds.
"Merkel's Battle for our Euro," was Monday's headline in the mass-circulation conservative paper Bild, saying she taught France's Nicolas Sarkozy "that the EFSF rescue fund cannot be used to print money" to solve the debt crisis.
"The chancellor must stick to her guns — in the interests of Germany and of Europe," said the newspaper.
While on balance this is a positive development this defeat for France is unfortunate. Again, Germany will only do what is necessary kicking and screaming. It was therefore something of a victory for austerity as well with this concern over "printing more money."
In another case of German austerity, Merkel yesterday indicated that Germany did not agree to the part of the Euro draft conclusion calling on the EU to continue buying bonds in the secondary market. Not surprisingly this sent the Euro lower and today the markets ended lower as well.
No comments:
Post a Comment