Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
That's the theory, but will Trichet run a policy that will be frowned on by Germany?

Angela Merkel dashes Greek hopes of rescue bid | Business | The Guardian

Angela Merkel, the German chancellor, mounted stiff resistance tonight to any swift bailout of Greece, as a rift opened up between European capitals over how best to tackle the risks posed to the euro.

Despite a show of Franco-German unity on the crisis and the first statement from EU leaders pledging to safeguard the currency's stability, hopes on the markets of a German-led rescue plan to shore up Greece's critical public finances were dashed by Merkel, who repeatedly emphasised that Athens would need to put its own house in order and brushed aside all questions of financial support.

"Germany is stepping totally on the brakes on financial assistance," said a senior EU diplomat. "On legal grounds, on constitutional grounds and on principle."

"Financial assistance" may not be the term for an ECB debt-purchasing programme, but the German attitude seems abundantly clear on the whole.

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Feb 12th, 2010 at 06:35:52 AM EST
[ Parent ]
"Germany is stepping totally on the brakes on financial assistance," said a senior EU diplomat. "On legal grounds, on constitutional grounds and on principle."

Legal grounds: do they mean the Lisbon Treaty?
Constitutional grounds: do they mean the German Constitution? Does it bind other EU states?
Principle: sure, Germans are monetarist hawks.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Fri Feb 12th, 2010 at 06:47:34 AM EST
[ Parent ]
I'm sure Merkel and Sarko would be quite pleased if the euro drifted down to $1.20-1.25. What better way to accomplish that than a vague statement of support for Greece. (I would note that LEP would also be quite pleased.)

Hey, Grandma Moses started late!
by LEP on Fri Feb 12th, 2010 at 07:07:41 AM EST
[ Parent ]

Display:

Occasional Series