The German PM, Angela Merkel, again rejected the idea of issuing common Eurobonds. She held a press conference on Monday which lasted for almost 100 minutes, making comments on different issues. We'll go cover some of those comments in this article.
Merkel once again rejected Eurobonds, saying that there can be no shared debt burden without shared control. She said that the crisis will be solved by "politics" and added that she wants Europe to agree to closer political coordination by the end of this year. Merkel hopes that the fiscal compact will ease investor concerns. Financial markets are worried that Europe can repay its debts, she said.
In comments on the ECB's latest bong buying program, Merkel said that its not up to politicians to determine the size of the ECB's OMT (Outright Monetary Transactions) program. She added that the ECB President Draghi's focus on monetary policy is important and that the Bank mustn't go into fiscal policy. She said that "she will take the ECB's word" that their actions are driven by monetary policy considerations. I find it very hard to believe she actually thinks that. Seems pretty obvious that the ECB just used the "crisis interferes with our monetary policy transmission" line to get cover for intervening in the peripheral bond markets.
The German PM defended the Bundesbank President Weidmann's comments to the media, saying there is nothing wrong with him expressing his views in public. She added that he is concerned and that "we have to solve the crisis in a sustainable way".
Merkel said that they are between 4-5 years into the crisis and that there is "some way to go". She's trying to mix up the 2008 Crisis with the Euro Debt Crisis which started in late 2009/early 2010. In my opinion this is a deflection trick used by some European politicians trying to blame the Crisis on outside factors not on their overspending.
Merkel goes on to say that "her heart bleeds for Greeks facing hardships". But she later says that richer Greeks should "pay their fair share" adding that the government must focus on collecting taxes. This is a gross misrepresentation of the problem. Greece doesn't have a revenue problem, it has a spending program caused by a massive welfare state. But again its politically easier to blame the evil rich people not paying "their fair share" then it is to fix the mess that is the European welfare state.
A European supervisory body for banks is unlikely to be created by year end, she said. But the body must be in place before the ESM (Europe's permanent bailout fund) will be allowed to inject money in struggling banks.
She expressed confidence that the Crisis can be solved but added that overburdening Germany will not help the Euro. "Germany's strength is not unlimited" she said.
Komentarų nėra:
Rašyti komentarą