ANGELA MERKEL have problems with the Euro

Merkel fears demise if we continue like this, we are lost!
German Economic News | Published: 25.12.13, 01:54 | Updated: 25.12.13, 01:55 | 163 comments
The Euro-rescuer apparently fear the demise of the single currency: At the recent EU summit fell unusually fatalistic words.

Angela Merkel reminded them of communism and the First World War.

Mario Draghi said the southerners that they will lose their sovereignty without reforms.

The location is obviously out of control.

At the recent EU summit before Christmas doom and gloom seems to have prevailed . The Southerners refused for years to accept a technocratic idea Angela Merkel : They should be contractually obligated to reforms in the spirit of the troika of the IMF , ECB and EU to come to certain EU structural funding (more here) . The IMF , whose current chief Christine Lagarde would like to see at the head of the EU Commission (here) follows a similar line (here).

However, the southern Europeans do not want the task required of national sovereignty to accept (here).

Now Le Monde discussions reconstructed from notes. These notes read like the swan song of a rotten , doomed system.

It shows a huge crack that goes through the Euro – zone. And he does not run , surprisingly, between the rich North and the poor South , how it was used to.

Derr crack runs fundamentally between Germany and the rest of Europe .

So lamented the Dutchman Mark Rutte said that his country had to carry out painful reforms without the solidarity of others – and now the Dutch should pay for those that do not reform.

The Austrian Chancellor Werner Faymann said that Austria will not give up its sovereignty to the EU. All contracts would have to by the parliaments , Austria rest ” dictations” from – and nothing else were proposed by Merkel agreements with the EU .

The Finn Jyrki Katainen spoke of the rescue plans would have strengthened the populism and spoke of the ” cancer ” of the EU .

Francois Hollande remained covered and advised the assembled EU leaders to play on time: You should now agree on general principles and deal with the really tough issues until after the EU elections in the spring of 2014. Hollande sit the Euro – skeptics of Marine Le Pen in the neck (here).

The Belgian Elio di Rupo joined Hollande and advocated a shift in the reforms after the EU election .

The Spaniard Mariano Rajoy demanded that contracts could only be voluntarily closed because everything else threatens the sovereignty of states .

ECB chief Mario Draghi countered : ” If you do not reform , you will lose your sovereignty. “

The professional Euro – savior turned out to be lame ducks : José Manuel Barroso said he would no longer be in office when the changes are decided . Herman Van Rumpoy , who also retires next year , said he wanted to leave behind a mess.

These debates led to Angela Merkel in an unusually dramatic way the demise of the euro – zone implored : You come from a country that had to be bailed out by the Federal Republic of Germany . For the Europeans, no one will stand up to save them. Merkel called the Greek bailout as evidence that the EU may very well cope with crisis , and called for action : “If we had all of us behave like communism is the case, then we are lost. Without increased integration of our currency is going to explode sooner or later. “

Merkel said that she had ” The Sleepwalkers ” by Christopher Clark on the eve of the First World War saw similar phenomena in reading the book as it is today in the EU. All the efforts of a political solution have failed – and that led to the outbreak of the First World War. ” Life is unfair ,” Merkel said. It would be better now to pay 3 billion euros as the EU having to save 10 billion euros in a few years .

Such fatalistic words of a head of government are more than frustration over a rejected proposal.

The analysis Merkel is: The euro will ” explode ” if the euro zone does not pass to a radical integration. The location is hazardous, but a hundred years ago – as it then came to a world war.

The EU leaders agreed to a postponement of further reforms in the autumn of 2014.

In the state in which the EU presents itself to the end of 2013 , doubts have dissuaded whether the euro zone will ever experience these reforms yet .

The combination of a monetary union that does not work , and a gigantic debt crisis , the euro zone can not survive without a big bang.

The bang is , however, come in any case. After all, the debt does not disappear . They remain and will have to be settled.

With or without the euro .

We are witnessing the beginning of the end of ideology.

On one point, however, Merkel is wrong : The abduction of a decision will make the crash not cheaper .

With any more billion , which is pumped into the ailing system , the “rescue ” especially for the German taxpayer because of the compound interest on the new , bad loans is exponentially more expensive.

That may please the banks.

Your oath of office , however, has vowed the Chancellor to the German people a few days ago .

It may be that such an oath the third time is a mere cliché for a chancellor .

However, in a veritable crisis , as heralded by the debt tsunami, every word of a chancellor is placed on the gold scale.

Also the oath of office .

As surely as God help her .