Main focus of Wednesday, November 30, 2011

Euro countries leverage bailout fund

Spain's Finance Minister Salgado talking with her German colleague Schäuble. (©AP)

The finance ministers of the euro countries agreed on Tuesday night to leverage the bailout fund. But Germany continues to reject euro bonds and massive bond purchases by the ECB. A catastrophic mistake, write some commentators, while others praise Berlin's clear stance.

Blog Démystifier la finance - France

Germany continues to reject the idea of pooling the Eurozone's debts. Angela Merkel's hard line against euro bonds is good for Europe, writes the banker Georges Ugeux in his blog Démystifier la finance: "She went into politics to serve her country and her compatriots. For her, politics is a religion. She has principles and values, and even if she has had to compromise here or there, her actions have always been inspired by her convictions. She has a natural and healthy disregard for the lofty ideas of academics and advisors. She will not give in if she is convinced that Europe's interests and financial orthodoxy are in danger. ... I won't discuss Germany's method, which has annoyed its European partners more often than necessary. But Europe needs a compass, and a clear direction everyone can stick to. I don't know where we'd be if the German chancellor had heeded the reckless proposals of some of her European partners. Thank you madame ... and above all, hold your course!" (30/11/2011)

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Politics, » Germany, » Europe
All available articles from » Georges Ugeux
Who's saying what » Ways out of the debt crisis

Delo - Slovenia

Germany has once more spoken out against euro bonds at the meeting of the Eurozone finance ministers in Brussels, and rejected plans for involving the European Central Bank fully in the euro bailout. Berlin is deliberately ignoring reality, writes the daily Delo: "The problem with the German logic is that previous attempts at a solution haven't worked, and the fire could spread even further. If they rely on austerity measures alone, the indebted countries will neither become more competitive nor will they free themselves of debt. In addition, stricter budget controls and sanctions only function in the long term and have no impact on today's acute crisis. ... Only the European Central Bank can offer measures to help in the short term. ... Is Germany's fear of inflation and a loss of independence for the European Central Bank more justified than fears of the collapse of the entire system, with all the unforeseeable repercussions that implies?" (30/11/2011)

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More from the press review on the subject » Fiscal Policy, » Economic Policy, » Germany, » Europe
All available articles from » Peter Žerjavič
Who's saying what » Ways out of the debt crisis

La Stampa - Italy

Leveraging the bailout fund is nothing more than a quick fix because saving the euro and Europe depends on Angela Merkel's willingness to allow the European Central Bank to become the lender of last resort, writes the liberal daily La Stampa: "The real bailout plan has yet to be announced and it will be nine days [when the EU summit takes place] before we know more. There are widespread fears that Angela Merkel will continue with her strategy, which fits in with Germany's national interests and her own very personal election interests. Up to now those in the Eurozone's engine room, where the motors have ground to a halt, have only heard the Chancellor's droning No. But the kid gloves are slowly coming off to reveal the iron fist. ... Perhaps people are finally beginning to realise what kind of politician we are dealing with - unpredictable, inscrutable, stubborn - and above all who the leaders who want to save the euro and the European Community will be dealing with on December 9." (30/11/2011)

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Germany, » Europe
All available articles from » Enzo Bettiza
Who's saying what » Ways out of the debt crisis

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