GeSoros : The Euro has failed politically
George Soros "I am certain that Greece will be saved, because the government is taking all necessary measures: if you need to help 'Europe should respond. But there is a real problem on attitude of the Germans. They do not want to be the 'paymaster for the countries of Southern Europe who can not regulate themselves and they also have constitutional constraints. The point is that to really help, the rates of the credit in Athens should be as low as possible. " Are about 5%: European governments that have funds for Greece will eventually win. "Yeah. So it is counterproductive and is a technical error, because it makes it more difficult for Greece to get out of the hole and reveals real problems in the Euro itself. Everyone knew that the Euro, as it was built in Maastricht was an' unfinished currency , Europe had a central Bank but not a common fiscal policy, it gave the countries the commitment to keep the deficit below 3% of GDP. Virtually no one has met that threshold. " Germany was the first in 2003 to refuse to suffer the penalties of the Stability Pact. "This suggests that the Stability Pact has failed and now we have all countries off course. Here is something missing, which must be added. In the past there 's always been the political will to take a step forward, now it is very doubtful that there is one. But this is dependent on the future of 'euro'. The 'euro was seen as compensation for German reunification. Yet Berlin has never seemed to be as isolated as today. The currency has failed politically? "The German reunification was the great driving force that has taken forward 'Europe. Germany was ready to pay any price just to have European support on this, then the Germans have always made the concessions needed to advance the European Union ', when you seek agreement. Not anymore. The Germans feel detached, self-centered and reluctant to keep their old role. This is why the European project has stalled. And while from here it can not go forward, but go backward. It is important to understand that if they do not move the next steps for the 'Euro' s gonna fall apart and the European Union 'also. Only this knowledge may inspire new advances. " Soros interviewed by The Corriere della Sera from Milan
Translation: Germany Doesn't Want To Screw Themselves Again or Let Anyone Else Do It To Them!
ReplyDeleteThe Germans survived the 30's & 40's under the Socialist boot of Nazism. With the help of the West (largely America) They've fought their way back to be one of, if not the healthiest, EU economy. They don't want to screw themselves again or let anyone else do it to them!
Ambrose Evans-Pritchard, an international-business editor of the London Telegraph has said: "We are in 21st-century depression, which is just like the 1930s, except with a bigger welfare cushion," he said this week in an interview from his home in London. "It's taken a long time to get here, and it'll take a long time to get out."
John Markman has an excellent piece on this subject, entitled "Europe's Woes are WWII Hangover." You can read it here: http://articles.moneycentral.msn.com/Investing/SuperModels/markman-europes-woes-are-wwii-hangover.aspx