Germany Cries: “Europe Is Coming For Our Money”, Greece Promptly Obliges [zerohedge]
July 2, 2012 Leave a comment
Europe is coming for our money!
What else does Die Welt say:
When economic historians in a few years determine the turning point at which the euro zone turned into a debt community, they may refer to the last Thursday night. In those dramatic hours when Angela Merkel after massive pressure from Italian Prime Minister Mario Monti and Spanish Prime Minister Mariano Rajoy buckled – and agreed to an agreement whose scope is now very difficult to estimate.
Specifically, what is now painfully clear to everyone in Germany is that if indeed Merkel’s declarations over the past few days are to be taken at face value, then Germay has just lost control over European supervision: a topic very near and dear to all Germans’ heart, as up until this point money would be handed out only in exchange for conditionality. A move whie Welt calls a paradigm shift: “To date the Germans insisted that the €-aids come equipped with shackles. Money was always associated with reform programs that were monitored by the Troika of the EU, European Central Bank (ECB) and International Monetary Fund (IMF).” That is now no longer the case. At least according to conventional wisdom:
Precisely for this reason were countries like Portugal and Ireland long afraid to apply for assistance. Now dipping into the bailout pot will be far easier… The federal government has always stressed that any bailout will come with strict conditions. Now all has changed, partly because of pressure from the financial markets. Italy and Spain struggling with risk premiums at record levels. So far, however, they refused to implement emergency measures. That could now change. Monti has already cheered: “the Troika will never come to Rome.”