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http://www.spiegel.de/international/...4960-3,00.html
Mostly what you'd expect, but then there's this:
So, as Mr. Joost de Jong and others have pointed out, the EU federalism motivation is also a factor.
From my point of view, Germany is again on the cusp of a decision: as the holder of the purse strings, they have had the opportunity to carve out an empire in Eastern Europe using their bailout money - but declined.
Now they are being forced to pay up to 'preserve the (European) Union'.
The price being exacted is the explicit EU control over member nation's budgets via 'effective implementation' and 'real and effective' sanctions.
The sticking point will be when France itself, much less the majority of the rest of the EU, starts getting subjected to the above.
Still a tossup as to whether Germany leaves the EU or is pushed. I'm quite certain the rest of the EU won't want to be the financial beeyatch of Frankfurt.
Mostly what you'd expect, but then there's this:
Trichet: No. This is excluded. If a country joins the euro area, it shares a common destiny with the other members. There is a need for a quantum leap in the governance of the euro area. There need to be major improvements to prevent bad behavior, to ensure effective implementation of the recommendations made by "peers" and to ensure real and effective sanctions in case of breaches (of the Stability and Growth Pact). The ECB is calling for major changes, and I will explain this in the task force chaired by (European Council President) Herman van Rompuy.
SPIEGEL: What makes you so sure that Europe's top politicians will not now use the ECB as a permanent money printing machine?
Trichet: Again, we will take all the additional liquidity that we are bringing into the system back out. Our monetary policy stance is unchanged. We have never hesitated for one second to take the decisions needed in order to ensure price stability, without taking into account any pressure groups.
SPIEGEL: But the banks, too, are being spoiled by the ECB. As part of your so-called non-conventional measures, you have again made it possible for them to borrow countless billions. In doing so, are you not handing out even more play money to the financial markets?
Trichet: Again, we do what we believe we have to do in all consciousness in order to be able to deliver price stability over the medium term. We do not take into account pressure groups and lobbies. We supply liquidity to the banks so that they can finance the real economy and support the recovery, they know that.
SPIEGEL: What makes you so sure that Europe's top politicians will not now use the ECB as a permanent money printing machine?
Trichet: Again, we will take all the additional liquidity that we are bringing into the system back out. Our monetary policy stance is unchanged. We have never hesitated for one second to take the decisions needed in order to ensure price stability, without taking into account any pressure groups.
SPIEGEL: But the banks, too, are being spoiled by the ECB. As part of your so-called non-conventional measures, you have again made it possible for them to borrow countless billions. In doing so, are you not handing out even more play money to the financial markets?
Trichet: Again, we do what we believe we have to do in all consciousness in order to be able to deliver price stability over the medium term. We do not take into account pressure groups and lobbies. We supply liquidity to the banks so that they can finance the real economy and support the recovery, they know that.
From my point of view, Germany is again on the cusp of a decision: as the holder of the purse strings, they have had the opportunity to carve out an empire in Eastern Europe using their bailout money - but declined.
Now they are being forced to pay up to 'preserve the (European) Union'.
The price being exacted is the explicit EU control over member nation's budgets via 'effective implementation' and 'real and effective' sanctions.
The sticking point will be when France itself, much less the majority of the rest of the EU, starts getting subjected to the above.
Still a tossup as to whether Germany leaves the EU or is pushed. I'm quite certain the rest of the EU won't want to be the financial beeyatch of Frankfurt.
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