Hopes that the creation of the euro would force rational economic behaviour on all sides were in vain
Oskar Lafontaine, the German finance minister at the launch of the euro, has called for a break-up of the single currency to let southern Europe recover, warning that the current course is “leading to disaster”.
LATVIA and Iceland successfully issued sovereign bonds last week, and there are rumours that Dubai may follow suit. Yields on Icelandic and Latvian debt are approaching those on Spanish bonds. That the countries which started the sovereign debt crisis are returning to the market while peripheral euro-zone sovereigns continue to struggle has led to crowing from those who see austerity as a misguided strategy for Greece, Ireland and Portugal.
BERLIN (Reuters) - Reeling from a debt crisis that has spread to the very heart of Europe, the continent is looking once again to the Franco-German duo that dreamed up the euro to save the single currency from ruin.
Oskar Lafontaine, the German finance minister who launched the euro, has called for a break-up of the single currency to let southern Europe recover, warning that the current course is "leading to disaster". "The economic situation is worsening from month to month, and unemployment has reached a level that puts democratic structures ever more in doubt," he said.
Yesterday German Chancellor Angela Merkel came flat out and said, "To save the Euro we must Destroy Germany".
Well not exactly, but she may as well have because that is the implication. This is what she did say: Germany Is Ready to Cede Some Sovereignty to Save the Euro
BERLIN (Reuters) - The German government no longer rules out agreeing to the issuance of euro zone bonds as a measure of last resort to save the single currency, conservative newspaper Welt am Sonntag reported on Sunday.