The German bailout package, presented by Chancellor Angela Merkel on Monday, was unprecedented in size. And, so far at least, it seems to be working. German commentators, though, are skeptical about its long-term prospects. German Chancellor Angela Merkel hopes her bailout plan will nip the financial crisis in the bud. On Monday, Chancellor Angela Merkel unveiled the German contribution to the world wide bailout of financial institutions: €500 billion ($679 billion) in total, including €400 billion in loan guarantees for the country's ailing banks. Underlining the gravity of the crisis, Merkel signalled that she would request that the German parliament expedite its passage of the plan. But, cautious optimism was the order of the day. "We're taking rigorous action to ensure that what we have experienced doesn't get repeated," Chancellor Angela Merkel told reporters. The markets took her at her word: the German blue-chip index, DAX, closed Monday with gains of over 11 percent and on Tuesday saw continued growth. Merkel's bailout plan also elicited an immediate reply from German commentators, who likewise welcomed the news, if with slightly more hesitation than the stock market.
The German bailout package, presented by Chancellor Angela Merkel on Monday, was unprecedented in size. And, so far at least, it seems to be working. German commentators, though, are skeptical about its long-term prospects.
German Chancellor Angela Merkel hopes her bailout plan will nip the financial crisis in the bud. On Monday, Chancellor Angela Merkel unveiled the German contribution to the world wide bailout of financial institutions: €500 billion ($679 billion) in total, including €400 billion in loan guarantees for the country's ailing banks. Underlining the gravity of the crisis, Merkel signalled that she would request that the German parliament expedite its passage of the plan.
But, cautious optimism was the order of the day. "We're taking rigorous action to ensure that what we have experienced doesn't get repeated," Chancellor Angela Merkel told reporters.
The markets took her at her word: the German blue-chip index, DAX, closed Monday with gains of over 11 percent and on Tuesday saw continued growth.
Merkel's bailout plan also elicited an immediate reply from German commentators, who likewise welcomed the news, if with slightly more hesitation than the stock market.
I wonder to what extent it is hers rather than Steinbrück's. *Lunatic*, n. One whose delusions are out of fashion.
