Are you sure this was not written by Angela Merkel?
Germany is desperate not to have the euro / union explode, and is basically saying if you want any more cash then there is proper fiscal union (ie everyone follow Germany's industrial and fiscal models.) This will screw most of Southern Europe who don't manufacture anything, so cannot export anything that is not subsidised under CAP.
So the Germans will only pay up if the whole of Europe agrees to tighter fiscal controls.
And you don't agree to tighter fiscal controls, we just walk away. Didn't you see the positive reaction to those articles we planted :-)
However the Spanish government followed the fiscal rules. It was their banks (with political connivance) that massively over reached.
I think fiscal union is the only solution Europe has. But it will also need to reign in banks otherwise another Spain will occur. Presumably a combination of never trading privately (ie only over public exchanges where markets can assess the deals) and never being allowed to exceed certain crash levels (again guaranteed through the derivative markets). Oh and never letting the Greek government lie about its borrowing levels.
Just like every other government in Europe has in one way or another. (The UK government uses PFI - they ask private finance to build a hospital and they rent the hosiptal grounds for 30 years. Never mind it is always cheaper in the long run to build your own, is that private debt? Yes according to UK government. But they will never ever stop paying the rent. Or let a hospital provider go bust.)
Its only becoming clear to me how much debt is an addiction to banks.
Most German citizens would be very happy to get rid of the Euro, but the ruling parties refuse to have democratic elections of this question. What we are seeing is democracy being eroded away under the banner of European unification.
None of the major transfers of political power away from the German parliaments/citizen towards the democratically non legitimised EU institutions have been put to a referendum in Germany (and various other countries). That's a clearcut erosion of democracy.
Germany is desperate not to have the euro / union explode, and is basically saying if you want any more cash then there is proper fiscal union (ie everyone follow Germany's industrial and fiscal models.) This will screw most of Southern Europe who don't manufacture anything, so cannot export anything that is not subsidised under CAP.
So the Germans will only pay up if the whole of Europe agrees to tighter fiscal controls.
And you don't agree to tighter fiscal controls, we just walk away. Didn't you see the positive reaction to those articles we planted :-)
However the Spanish government followed the fiscal rules. It was their banks (with political connivance) that massively over reached.
I think fiscal union is the only solution Europe has. But it will also need to reign in banks otherwise another Spain will occur. Presumably a combination of never trading privately (ie only over public exchanges where markets can assess the deals) and never being allowed to exceed certain crash levels (again guaranteed through the derivative markets). Oh and never letting the Greek government lie about its borrowing levels.
Just like every other government in Europe has in one way or another. (The UK government uses PFI - they ask private finance to build a hospital and they rent the hosiptal grounds for 30 years. Never mind it is always cheaper in the long run to build your own, is that private debt? Yes according to UK government. But they will never ever stop paying the rent. Or let a hospital provider go bust.)
Its only becoming clear to me how much debt is an addiction to banks.