Merkel: The Euro Will Fail Without Tough Love From Germany

angela merkel

Photo: AP

Germany has been the willing bearer of other European countries’ financial problems thus far, but don’t expect the status quo to continue forever, warned German Chancellor Angela Merkel in Latvia.Reuters:

“The current crisis mechanisms have time limits. Germany will not support prolonging them willy-nilly because someone says, ‘now that we have such a great rescue mechanism it can just carry on like that for ever’,” Merkel said in Riga.

Instead, the European Union should implement budget and finance reforms, she said in a speech in the Latvian capital.

In fact, if Germany is too nice, then the Eurozone will be long-term broken:

“I’m making this clear because I’m firmly convinced that if Europe wants to carry on the success story of its domestic market and its joint currency, we need to be straight with ourselves and pursue solid budgetary and financial policies,” the chancellor added, according to the text of a speech.

“But too much willingness to help at the outset will weaken the euro,” she said, adding that Germany would press for tighter EU rules to enforce budget deficit limits.

Germany grudgingly played ball once, as the largest financial backer of Europe’s recent 750 billion euro rescue package. However, don’t expect a repeat next crisis.

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