As we noted earlier, Angela Merkel’s inability to hold her bluff is costing her political credibility in Germany.
The Telegraph’s Ambrose Evans-Pritchard captures the response of German leaders, who seem intent to undermine any confidence in the system:
Christoph Steegmans, spokesman for the finance ministry in Berlin, insisted that “nothing had changed” as a result of the weekend pledge by eurozone states for €30bn of loans. Help is “not automatic” and cannot be activated if any state objects. “The fact that the fire extinguisher has been primed says absolutely nothing about the probability of a fire,” he said.
Frank Schäffler, a Free Democrat finance expert in Mrs Merkel’s coalition, said the rescue deal is “clearly a subsidy” and violates the EU summit deal in March. “We’re on very thin ice legally,” he said, hinting at likely court challenges.
Professor Ekkehard Wenger from Würzburg University said the aid for Greece is “another step on the slippery slope downwards. All rational economic rules are being thrown out of the window. This is a bottomless pit.”
“In the short-term this may calm things but within 10 years the eurozone is not going to exist any longer in its current form,” he told Handelsblatt.
Of course, 10 years is a long time! In the meantime, no reason not to keep on buying.
Business Insider Emails & Alerts
Site highlights each day to your inbox.