German Economy Minister and government vice-chancellor Philipp Rösler unveiled a new proposal to get the eurozone out of trouble — and maybe even save the Germans from having to bear the burden of peripheral states’ public debt.His answer? Nation-specific “competitiveness tests” and a “stability council” to dole out EU aid.
“A stability council wouldn’t mean — ‘you’re not getting any money’, but rather we’ll apportion it for you,” Rösler told reporters.
This announcement comes on the heels of increasing German disapproval of Angela Merkel and the realisation that Germans are likely to shoulder responsibility for bailing out peripheral euro countries — even if such measures are unlikely to succeed.
Rösler leads the Free Democratic Party (FDP), whose members have been vocal in the last few days about the sustainability of eurozone bailouts made by the European Financial Stability Facility, particularly if France were to lose its AAA credit rating.
“Without France, the EFSF won’t function,” FDP economist Frank Schaeffler told Dow Jones Newswires on Monday.