Italy sides with Germany against eurobonds

EU Observer ^ | 25.11.2011 @ 09:28 | Leigh Phillips

[Olog-hai]

At Italy's first invitation for an audience before the Franco-German duo that powers European decision-making, Prime Minister Mario Monti made it clear that he backs the German position on eurobonds.

Meanwhile, little advanced at the meeting of the EU triumvirate, with Germany refusing to discuss whether the European Central Bank (ECB) should intervene more robustly to defend the eurozone. …

It was the first time an Italian leader had been welcomed into the Franco-German tent, although little emerged on Thursday apart from an announcement from Sarkozy that Paris and Berlin will propose their own modifications to the EU treaties.

"We are working on proposals (for changes), which have advanced a great deal," he said. The proposals are to be presented to the rest of the bloc at its winter summit on 9 December. …

For his part, euroskeptic Czech President Vaclav Klaus, in a new book on EU integration that he aims to publish in all the main EU languages, has lampooned the Merkel-Sarkozy duo. "Hardly a week goes by without a Sarkozy-Merkel meeting, in which—for us, but without us—with solemn faces and professionally-trained smiles, they make decisions on the future of our continent," his book said.

[wolfman23601]

Shouldn’t that be ‘Germany Sides With Germany’? Afterall, Italy is now run by unelected technocrat dictators hand picked by the Germans.

[apoliticalone]

Cramer on CNBC had a discussion on this. He said that in the USA and Europe the choice of protecting the financial system comes down to two choices.

The choices are about defending the private banks at the expense of the sovereign and nation, or nationalizing the banks and using the sovereign to guarantee deposits and obligations. The latter means sacrificing management and debtors and ownership.

The USA bailed out the private bankers. Iceland had the right idea

[STD]

And the Titanic sailed onward. Kicking the can down the road to perdition. What a concept, using the euro as a reserve currency is the only trick that remains. Please get ready for high inflation to swing in after Christmas. This could get ugly fast. Keep your gas tank full, a realistic plan and your prayers up to date.

[STD]

And the Titanic sailed onward. Kicking the can down the road to perdition. What a concept, using the euro as a reserve currency is the only trick that remains. Please get ready for high inflation to swing in after Christmas. This could get ugly fast. Keep your gas tank full, have a realistic plan and your prayers up to date.

[cloudmountain]

Yesterday there was an article about the "crack" in Germany's economy as they couldn't sell their bonds.
I dunno. One doesn't need to be a rocket scientist to see the economies of countries NORTH verus SOUTH of Switzerland. Germany is "giant" in its industry but also because there are 80+ million Germans, as opposed to the SMALL numbers of Swiss, Dutch, Belgians, Scandinavians, etc. They seem to all be good workers but there just aren't as many of them as there are Germans.

One forgets that in the middle east there aren't very many Iraquis (30 million), Saudis, Yemenis, even Israelis, but there are almost 78 million Iranians. Yikes.
source: http://www.internetworldstats.com/stats5.htm

[PAR35]

So the European economy will now turn upon the Rome-Berlin Axis?

[LZ_Bayonet]

" Germany is "giant" in its industry but also because there are 80+ million Germans, as opposed to the SMALL numbers of Swiss, Dutch, Belgians, Scandinavians, etc. They seem to all be good workers but there just aren't as many of them as there are Germans."

Keep in mind that Germany has gained from the value of the euro being kept low (let's say Euro/USD) BECAUSE of the southern eurozone nations providing a drag. I've heard speculation (CNBC?) that if there were a DMark it would now be north of $2.15. (Of course another aspect is that the southern eurozone countries have been able to "borrow" based on the value Germain adds to the currency.)

There are a lot of complaints about China's currency manipulation but, though disguised by Eurozone membership, Germany profits from this version of currency manipulation. However, you don't see this being discussed in debates or seeing Obama complaining to Merkel about it. I would not doubt that China has pointed to Germany's advantage when they receive currency related criticism.

[ozzymandus]

They’ll probably change sides again.

[familyop]

So the UK’s flood of divide-and-conquer propaganda didn’t work. Too bad. No empire.

BTW, don’t look at our US debt problem (greater than 100% debt-to-GDP). The tsunami of extra debt moved here from foreign bonds will only make our own collapse much worse.

[Olog-hai]

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So the UK’s flood of divide-and-conquer propaganda didn’t work. Too bad. No empire

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You may be counting chickens, I think. Everyone is still looking to the country that has the ECB within its borders for a solution; and that country is playing a game of brinkmanship to get what it wants.