By John Galt
July 25, 2011
There are two very bad outcomes for the E.U. if AEP is right and Merkel falls hard due to the multiple bailouts:
1. The Leftists take over and institute a move towards a fiscal union of all of Europe.
2. The ultra-Nationalists gain a foothold and push for withdrawal from the Union.
In the end, this deal if passed makes Germany a slave to world politics as much as it does to the unemployed cobbler or fisherman in Greece. AEP outlines the apparently building German furor at this situation in their domestic politics:
German Chancellor Angela Merkel is facing a storm of protest at home after yielding to EU calls for radical action to shore up Spain and Italy, raising doubts over her ability to implement the package.
By Ambrose Evans-Pritchard
7:50AM BST 25 Jul 2011
Frank Schäffler, finance chair for the Free Democrats (FDP) in the ruling coalition, said the summit deal threatened “the castration of Germany’s parliament” by shifting budget power to Europe.
Jens Weidmann, the Bundesbank’s chief, said the accord exposes Germany and other creditor states to “sizeable risks” and greatly alters the EU’s constitutional landscape.
“The euro area has taken a big step toward a collectivisation of risks. This weakens the foundations of a monetary union where each is responsible for its own budget.
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