Technically it shouldn’t be so, but everyone seems to agree that Germany runs the show at the ECB. And of course, she who controls the money supply controls everyone, and therefore, Germany runs the show across Europe. Everyone has known this for a while, but the degree to which this was on display and talked about this week was remarkable.
In Ireland, Prime Minister Enda Kenny was accused by opposition leaders of a “staggering breach of faith” after a copy of the Irish budget found its way into the German Bundestag for review.
That prompted this remarkable front page of a big Irish newspaper (via ZeroHedge):
But the GERMANY IS OUR NEW MASTER story wasn’t confined to Ireland.
In the UK, The Telegraph made hay out of a “secret” German plan to intervene in the domestic politics of other EU countries, including the UK. Supposedly Angela Merkel was attempting to dissuade David Cameron from holding any kind of referendum on EU treaty changes. The report is a tad fuzzy.
And for what it’s worth, Merkel’s own words might give others a reason to be paranoid.
While everyone seems to agree on the need for fiscal union in Europe, Merkel herself spoke this week about the need for political union, which is something totally different, and probably would give Germany a lot more say in the politics of countries that were failing to meet budget obligations, and so on.
So maybe paranoia is the wrong word: As the entire world waits for Germany to give some kind of greenlight to a bailout that might actually work (the ECB one) its starting to flex its muscle.