Tag Archives: Chancellor of Germany

Merkel’s Dispassionate Approach to the Euro Crisis


By Konstantin von Hammerstein and René Pfister – For three years now, the euro crisis has been smoldering. It has brought down governments in Ireland and Spain, in Italy and Slovenia, and has led to countless summit meetings in Brussels, at which first a temporary and then a permanent bailout fund was established.

European leaders will meet in the Belgian capital once again this Thursday and Friday, at what is expected to be the year’s most important summit. The agenda consists of nothing less than the political realignment of the euro zone and the question of whether members can agree to a European banking union to save the Continent’s ailing banks.

In the midst of it all, as always, is German Chancellor Angela Merkel. more> http://tinyurl.com/avjufos

Merkel says exit from euro crisis to take at least five years


AFP/Google – “We have to hold our breath for five years or more,” Merkel told the regional party congress of her Christian Democratic Union (CDU) at Sternberg in east Germany, the DPA news agency reported.

“A lot of investors do not believe that we can keep our promises in Europe,” she said, adding: “We must demonstrate rigour in order to convince the world that it is profitable to invest in Europe.” more> http://tinyurl.com/d457kws

Bank debt possibilities left open by Merkel’s ambiguity


By John McManus – SO NEAR, yet so far. Just when a transformational deal on Ireland’s historic bank debts was within our grasp, the German chancellor seems to have dashed our hopes.

Or has she?

Finding a Germany-friendly way to deal with the other €30 billion odd of bank-related debt is a little trickier. This is pure Irish sovereign debt, even though the money was ploughed into AIB, Bank of Ireland and Irish Permanent as equity to shore up their capital.

The plan here seems to be for the new rescue fund to take equity stakes in the so-called pillar banks. The Government would then use the cash to repay sovereign debt. more> http://tinyurl.com/9vckvkq

Merkel raises new hurdles on EU bank union


By Angelika Stricker and Luke Baker – German Chancellor Angela Merkel raised new hurdles on Friday (Oct 19) to using the euro zone‘s rescue fund to inject capital directly into ailing banks from next year, dashing Spain’s hopes of soon removing the cost from its strained national debt. more> http://tinyurl.com/8phpx73

Merkel Outflanked in Crisis Summit as Hollande Backs Italy-Spain


By James G. Neuger and Helene Fouquet – French President Francois Hollande put French endorsement of a German-inspired deficit-control treaty on hold, and Italy and Spain withheld approval of a 120 billion-euro ($149 billion) growth-boosting package unless Germany authorizes steps to calm their bond markets.

By provoking an open breach with German Chancellor Angela Merkel, the new French leader overturned the austerity-first consensus that has dominated the debt-crisis response and risked fracturing the Berlin-Paris alliance that built the European Union and euro. more> http://tinyurl.com/6lpxfgb

Merkel rebuffs pleas for debt action on summit eve


By Noah Barkin and Julien Toyer – On the eve of a crucial summit that could determine the future of the euro zone, German Chancellor Angela Merkel brushed aside increasingly shrill calls from Spain and Italy on Wednesday (June 27) for emergency action to lower their soaring borrowing costs.

“Joint liability can only happen when sufficient controls are in place,” she said in a less definitive rejection of common euro zone bonds than she made behind closed doors on Tuesday, when she told lawmakers she did not expect to see total shared debt liability in her lifetime. more> http://tinyurl.com/cj96ddm

Europeans choose sides over financial crisis


By Harold Meyerson – The founding document of a genuinely pan-European politics isn’t one that unites the continent. To the contrary, the fiscal compact that German Chancellor Angela Merkel persuaded her European Union colleagues to embrace — with an assist from French President Nicolas Sarkozy — has given rise to bitter dissents both within and among European nations. The pact, which codifies fiscal constraints that will inflict years of economic stagnation, if not accelerated decline, on such debtor nations as Spain and Greece, has divided Europe into rival camps — the Keynesian leftists against the austerity rightists.

All politics in Europe isn’t local any more. Roll over, Bismarck, and give Clemenceau the news: The German chancellor wants to campaign for the French president. Mein Gott! Mon Dieu! OMG! more> http://tinyurl.com/7rl5pun