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Someone Had to Blink - Perhaps Its a Pity It Had to Be Frau Merkel

Posted: 29/06/2012 09:42

Angela Merkel rushed off from this week's EU Summit without commenting on the deal done to shore up the financial system.

Hardly surprising - other EU leaders like Ireland's Enda Kenny have described this as a "seismic shift" in policy - and we all know who he was talking about - the German leader.

Not great optics for Merkel who has been edging her own poll ratings up through the crisis with the 'Swabian housewife' in Middle Germany - refusing to give in to the 'moral hazard' of financing those who can't or won't wake up to economic reality.

Personally I have tremendous sympathy for Merkels hard line up until now - why should the prudent support the reckless?

But as the summitry has dragged on over the past year - and we have all grown weary of the rhetoric not matching the reality. With a lack of political will to agree a lasting solution to Europe's fundamental problems - something had to give. Someone had to blink.

Faced with a crisis that has now taken on existential proportions - Angela Merkel has blinked.

The election of Francois Hollande in France has proved a game changer in rhetoric as well as policy across Europe.

Time will tell if his approach is right but it has moved the dial on the overall policy stance and Merkel has nodded to that.

The crisis has also intensified significantly just in the past two months - central bank governors and financial regulators have rushed to podiums to make that case.

So the German Chancellor has had to shift recognising parts of Europe - the fundamental market for all of Germany - is in flames.

In many ways its a pity. I have a lot of respect for Merkel - she has been prepared to tell truth unto others about the fundamental realities of life.

Europe needs her voice around the table more than ever as a check on EU leaders who are all too willing to ignore fundamental economic realities.

Make no mistake - she faces a herculean task to sell this package to the Swabian housewife.

For all of Europe - I hope she can.

 

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Angela Merkel rushed off from this week's EU Summit without commenting on the deal done to shore up the financial system. Hardly surprising - other EU leaders like Ireland's Enda Kenny have described...
Angela Merkel rushed off from this week's EU Summit without commenting on the deal done to shore up the financial system. Hardly surprising - other EU leaders like Ireland's Enda Kenny have described...
 
 
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06:13 PM on 06/30/2012
germany and france were clever in setting up the EURO they let people believe that wealth would be shared, then germany who had built its manufacturing base whilst rebuilding east germany held all the cards france survived because germany needed them to convince others. it removed any ability of others to undercut its economy all except the UK, we were too stupid to take advantage instead hovered around neither in or out. if the EURO falls germany falls as competition will increase and all these others will undercut the german economy and rates, we have seen business has no loyalty exept to profit so they would shift business in an instant. if merkel want the EURO to suvive then she has to either support then or get together and distribute the manufacturing, tourism etc and the ability to create wealth but that means an initial dip in the german economy which she is frightened of.
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songster
75 %plus 10
12:00 AM on 06/30/2012
There was no bail outs in Europe years ago, money was given to 3rd world.........they get it now and know one knows where its gone? leaders of that country I suppose????
06:44 PM on 06/29/2012
Merkel is between a rock and a hard place on this crisis. The citizens of Germany have just about had enough of all the EU members being bailed out with their money, and yet, she must be seen to do something. Her options are narrowing daily.
03:09 PM on 06/29/2012
Personally I have tremendous sympathy for Merkels hard line up until now - why should the prudent support the reckless?
---------------------------------------------------
Across Europe tens of millions of people, not well-off, have been required to pay extra taxes while the wealthy are paying the same or less. The bankers, tens of thousands of them (oh yes the number is that high) are earning large sums and causing absolute mayhem.

So you tell me, why should the prudent support the reckless? I would like to see all British banks nationalized and rationalized. Then broken up into manageable portions and sold off again.

The current situation of subsidizing banks has to end.
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jimbraid1
01:10 PM on 06/29/2012
Merkel is correct, she seems to be the only leader in Europe who understands that you cant spend more than you earn, and why should her responsible country keep on bailing out irresponsible countries ?.
11:17 AM on 06/29/2012
The first three of the last five paragraphs contain the word "fundamental"; three times in 77 words. You only use "the" four times and you have left out the apostrophe in "it's a pity". Sloppy journalism, get yourself a thesaurus.
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mrs w waugh
Hail Caesar We Who Are About To Die Salute You
11:49 AM on 06/29/2012
Maybe they have just discovered that word and want to use it a lot.Its not a good word there are better ones that can be used I am sure.......................................
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jimbraid1
01:13 PM on 06/29/2012
Nothing to comment about the gist of the story, just critical of the wording etc, get yourself a life Edmund.
02:29 PM on 06/29/2012
Hello jimbraid1, I'm sorry but the language is everything and this story was probably the most important financial story of yesterday and deserves to be written better. You are quite right that I should forget the Huffpost and read proper journalists on quality websites so thank you for your advice.