As far as I know, Germany is paying (roughly) 27.1% of the ESM; France is paying 20.4%; Italy 17.9%; Spain 11.9% etc. Of course the German contribution is the largest; it has the largest population and economy. But isn't both the credit given and the criticism given (depending on the person asked) a little disproportionate? a) Germany isn't paying an outsized portion but b) if Europe is on the wrong path then it must be said that the other countries aren't doing a lot better than Germany in coming up with answers. Why are so many people emphasising the German role, either positively or negatively? Is it the fact that the German contributions and agreements have had to go through lengthier domestic processes than those of France, Italy etc., so that the need for German agreement is kept in the news?Is it cultural differences? The Germans, like the Dutch, Finns and others with similar economies, having been more vocally unhappy from the start of the crisis than some of the EU's other wealthy countries. Or are the Germans actually going to pay the bulk of the money?From Bismarck to the Reichs, Germany influenced by strong nationalist views, has sought to dominate Europe rather than exist peacefully besides the other European countries. No European project can succeed when one country constantly pushes its way through the others. There is the dream of Europe as a community of cultures and the view of a Europe dominated by the Germans. A lot of peoplewould prefer the first and would feel uncomfortably by the second. The Germans may want to forget but the thing is will the other countries forget what they went through as well? After all, remembering the past can only help us avoid the same adventures in the future. Germany is pretty forthright about it's past, though. I don't get the sense that their looking to erase it from history - but they're doing their best to ensure that it doesn't necessarily define their future. That said ... you're right: I never, ever want to diminish what was the closest example to pure evil history has witnessed in the modern age. The collective psychosis that gripped a modern, educated nation is something that should make us all shiver.
9 comments:
"However, the EU authorities broke their pledges so many times during the Greek saga that market faith has been shattered. Even Norway’s sovereign wealth fund has expressed disgust, signalling that it will give Club Med debt a wide birth from now on. It has already sold half its Spanish bonds. The fund, under Norway’s finance ministry, voted against the Greek debt deal on the grounds that European institutions were exempted from losses and given “special” treatment. “It's very important to create trust in the markets. To create trust you have to stick to the rules,” said director Yngve Slyngstad."
This is just plain mistaken. Portugal will not be the next Greece.
The Portuguese government have been pretty consistent in their statements on this. They will not accept another bail-out. They will not become another Greece. They would rather leave the Euro.
The Portuguese people support them strongly in this.
"However, the EU authorities broke their pledges so many times during the Greek saga that market faith has been shattered. Even Norway’s sovereign wealth fund has expressed disgust, signalling that it will give Club Med debt a wide birth from now on. It has already sold half its Spanish bonds. The fund, under Norway’s finance ministry, voted against the Greek debt deal on the grounds that European institutions were exempted from losses and given “special” treatment. “It's very important to create trust in the markets. To create trust you have to stick to the rules,” said director Yngve Slyngstad."
Interesting. Just two hours ago the online page of portuguese Diário Económico published two articles about Norway's sovereign wealth fund. If it wasn't already too late I would translate them, but here's a few bits:
We're interested in the portuguese privatizations
DE: Why have you reduced exposure to portuguese debt?
Yngve Slyngstad: We consider that portuguese companies are a better investment than portuguese bonds.
http://economico.sapo.pt/notic...
Biggest european sovereign wealth fund is going to invest in portuguese companies.
http://economico.sapo.pt/notic...
They're specially interested in telecommunications and utilities.
Why would the biggest european wealth fund want to invest in portuguese companies, if they could just wait for a better opportunity to buy? Isn't it probably because we have already hit the bottom, and this is the right time to start buying?
The big one is the elephant in the room that no-one is talking about...
Forget Portugal forget the Eurozone. Berlin as they are the paymasters of the hole Euro farce will deal with that now. The Germans specifically the Bundestag have just had it with the Governments of club med the problems will get dealt with, Germany got it's way with Greek debt destruction like it or not. They will do the same with Portugal, you may not like the method but neither you or the bondholders are Berlins concern, Berlins concern is the continuation of the European project and if they have to drive a panzer through bondholders they will...Like it or not they are doing it..... Debts are being destroyed.
You need to look across the pond at Uncle Sam who's not doing so good.
The federal Government has run up debts of $15+ Trillion the individual States have run up their own debts in addition that make the European issues look like peanuts in comparison and don't forget the individual cities they too have been running the credit card to the tune of...... wait for it $2 trillion and that's just the major US cities. We are sandwiched between a rock and a hardplace the only good news is Germany is cracking skulls hard now Britain by comparison has talked a good game but done little to cut spending and continues to run up the deficit spending but it's nothing compared to what the senate/ congress and the Federal reserve has done to the dollar. for the last 2 years we have taken our eyes off the ball if the dollar collapses inflation is going to tear through all economies in a race to the bottom except ironically the Euro if the Germans can keep up the pressure they should be alright but we here in the UK with our ever increasing debt pile -will be fu***d.
Does anyone notice a pattern here? Portugal gets mentioned and the reactions are two-fold.
1. Idiotic post after post of sheer denialism, which are mainly filler to push sensible comments off the bottom of the page.
2. Insistence that it's really the UK that is in trouble.
Didn't we go through months of this already over Greece? Didn't the very same posters put all their energy into turning this into a content free wasteland of shameless lies and pointless one-line cracks?
Now that Greece has defaulted, the same posters are going to run the same completely moronic campaign of denials and lies over Portugal.
Like the man says, there is a degree of persistence that is indistinguishable from a mental disorder.
Don’t be surprised this week if it all feels a little familiar. When George Osborne stands up to deliver his Budget on Wednesday there’s every possibility you’re going to think you’ve heard it before. The Coalition horse-trading for this year’s affair couldn’t well have been much more public. It’s going to be like some kind of glorified newspaper round-up.
This weekend we had the 50p tax reduction, the so-called ‘tycoon tax’, measures to crack down on corporate tax avoidance, and even extended retail opening times over the summer. Any hopes the Chancellor had of pulling a rabbit out of the hat are looking slim – they’ve all leaked out of the bottom
Which is what some think has happened to client funds at World Spreads . A £13m shortfall has been found at the spread-betting firm which was last night put into the Financial Services Authority’s Special Administration Regime. With some 5,000 customers at risk – many of them likely to be in the City – this is destined to be a hugely messy affair.
The allegations suggest client funds were inadequately segregated from the company’s own funds. That's exactly what happened at MF Global.
Elsewhere, Misys has announced a recommended 350p a share cash offer from Vista Equity Partners. The ball is now in the court of Misys’s major shareholder and potential counter-bidder ValueAct Capital
Only when we accept that the euro is a political, not an economic instrument will things change. This is why Lagarde was made head of the IMF - because she agrees with everything the europrats say.
The currency will not be allowed to fail. If it were, all this nonsense would eventually flatten out and southern Europe recover as independent nations. Instead, they want to continue the perpetual chaos just to ensure their gravy train chuffs along.
It's criminal.
However, the EU authorities broke their pledges so many times during the Greek saga that market faith has been shattered.
They certainly have changed their position several times. Given that the actual EU treaty current position is that bailouts of member states is forbidden, this is hardly surprising.
But given that the Telegraph has been talking down prospects for the indebted countries with some glee, for quite a few years now, I feel pretty relaxed about discounting their position now. It isn't that they're always wrong, they're quite often right on the economics. But they're utterly clueless about the politics. They just want the Euro to fail. End of.
However, the EU authorities broke their pledges so many times during the Greek saga that market faith has been shattered.
They certainly have changed their position several times. Given that the actual EU treaty current position is that bailouts of member states is forbidden, this is hardly surprising.
But given that the Telegraph has been talking down prospects for the indebted countries with some glee, for quite a few years now, I feel pretty relaxed about discounting their position now. It isn't that they're always wrong, they're quite often right on the economics. But they're utterly clueless about the politics. They just want the Euro to fail. End of.
Post a Comment