web analytics

ANGELA’S ASHES

By David Vance On August 29th, 2011

Seething discontent in Germany over Europe's debt crisis has spread to all the key institutions. Photo: AP

it’s being reported that German Chancellor Angela Merkel no longer has enough coalition votes in the Bundestag to secure backing for Europe’s revamped rescue machinery, threatening a consitutional crisis in Germany and a fresh eruption of the euro debt saga.

Mrs Merkel has cancelled a high-profile trip to Russia on September 7, the crucial day when the package goes to the Bundestag and the country’s constitutional court rules on the legality of the EU‘s bail-out machinery. If the court rules that the €440bn rescue fund (EFSF) breaches Treaty law or undermines German fiscal sovereignty, it risks setting off an instant brushfire across monetary union. The seething discontent in Germany over Europe’s debt crisis has spread to all the key institutions of the state. “Hysteria is sweeping Germany ” said Klaus Regling, the EFSF’s director. German media reported that the latest tally of votes in the Bundestag shows that 23 members from Mrs Merkel’s own coalition plan to vote against the package, including twelve of the 44 members of Bavaria’s Social Christians (CSU). This may force the Chancellor to rely on opposition votes, risking a government collapse

The painful truth for so many is that Germany is bankrolling the bankrupt EU but even banks can run out of money. Should Merkel fall, I think the consequences for Euroland will be severe. However she deserves to all and so I hope it happens.

3 Responses to “ANGELA’S ASHES”

  1. Should she fall then so will the Eurozone and then the EU. We live in interesting times.

  2. As Peter says, “Should she fall then so will the Eurozone and then the EU..”
    If the EU implodes (as I hope it will) then it will make it easier for member countries to reassess their obligations and refloat their own currencies. It may also be an opportunity to revamp the whole idea, and come up with a much more sensible arrangement that might organically lead to a European Union based on democracy, not political vanity. 🙂

  3. Merkel is probably less to blame for state of Euro than her two predecessors, Kohl & Schroeder.

    The Euro has to unravel regardless of what happens to her because even if we get past this crisis, the underlying flaws remain.