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Merkel questioned for the first time in political union in Europe

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Panhead

Panhead
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Merkel questioned for the first time in political union in Europe
German Economic News | Published: 24/05/12, 16:57 | Last updated: 5/24/12, 17:06 | 82 comments

Without strict budgetary discipline is not a political union in Europe is possible, says Angela Merkel. So they attacked Francois Hollande, unusually severe. The Franco-German relationship has reached a low point.
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Topics: Angela Merkel , Euro Bonds , Fiscal Pact , Greece , crisis summit , opposition

On Thursday afternoon, Angela Merkel will meet with the heads of party and faction in the Bundestag parties responsible for the first time to negotiate the implementation of the Fiscal Pact (the opposition wants to take the vote on it until after the summer break in the eye - here ). Without two-thirds majority of the Covenant can not be ratified.
Angela Merkels Politik der kleinen Schritte geht die Puste aus (Foto: flickr/World Economic Forum)

Angela Merkel's policy of small steps will run out of steam (Photo: Flickr / World Economic Forum)

Without binding budgetary rules, "we will create a political union can not," she said at a conference of the Association of Electrical and Electronics industry in anticipation of the meeting with the party and faction leaders. The main problem is the differences in competitiveness across the Union, she continued. "We are only as good, if our neighbors fairly well." But still the Chancellor of the euro bonds are still an eyesore. "It makes no sense that everything now by € bonds or whatever - apparently in solidarity instruments - patch up to then It also reflects even more difficult situation in Europe, as we have today."

Yesterday's crisis summit in Brussels confirmed once again how the procedural situation in the euro zone. Except for the idea of a Europe-wide deposit insurance fund (more here ) it was in talks to no agreement. Angela Merkel seems in the face of the worsening situation around Greece and Spain and the new political direction within the euro zone itself is no longer on the success of a political union to believe. The vehemence with which they resisted against Francois Hollande's demand for euro bonds, shows how low the Franco-German relationship has reached.

http://translate.google.de/translate?sl=de&tl=en&js=n&prev=_t&hl=de&ie=UTF-8&layout=2&eotf=1&u=http://deutsche-wirtschafts-nachrichten.de/2012/05/24/merkel-zweifelt-erstmals-an-politischer-union-in-europa/&act=url

Panhead

Panhead
Admin

interesting comment from a German reader...

Today, Mario Monti said that there will be eurobonds soon.

At the same time, Merkel said there aren´t going to be eurobonds.

The PIIGS can´t change the situation, they need to print money. Germany (FORTUNATELY!!!!) is not going along with that. So, the euro will need to break up very soon.

That is why Germany could issue 2 year bunds with no yield. They are bought only because of the currency revaluation when the euro finally goes.

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