German Chancellor Angela Merkel on Wednesday brushed aside the latest push to pool European debt, arguing that it would be "economically wrong and counterproductive" to make such a move before governments have shown they can comply with budget rules.
AP - German Chancellor Angela Merkel is brushing aside pressure for a quick-fix solution to the euro crisis even as market tensions mount, arguing that spreading debt liability could ruin Europe's competitiveness and a massive European Central Bank bond-buying drive wouldn't resolve its problems.
George Soros, the billionaire speculator best known as “the man who broke the Bank of England” in 1992, has launched a stinging critique of Germany’s role in the euro crisis and suggested the single currency’s prospects would be improved if its most dominant member were to quit, reports The Guardian.
German Chancellor Angela Merkel repeated on Wednesday her firm opposition to eurobonds, or pooling of European debt, calling them economically "wrong" and "counterproductive".She told lawmakers: "Apart from the fact that instruments like eurobonds, eurobills, debt redemption schemes and much more are not compatible in Germany with the constitution, I consider them wrong and counterproductive."
German chancellor Angela Merkel and French President Nicolas Sarkozy proposed a "quick new stability pact" that allegedly will bypass the need for treaties. However, there is already disagreement over the role of the ECB.
Please consider Germany, France plan quick new Stability Pact
Submitted by Simon Black of Sovereign Man blog, I’ve landed this morning in Frankfurt... financial capital of one of the few remaining ‘healthy’ countries in Europe able to inspire a modicum of confidence among investors.
German Chancellor Angela Merkel flatly rejected any quick-fix ideas to try to resolve the European financial crisis, telling lawmakers Friday that treaty changes and a stricter fiscal union were the only path forward — a process that could take years.» E-Mail This » Add to Del.icio.us