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Merkel went to the European Council to try to prevent an agreement to publish the tests for all (30 or so major) banks

That's why she went? The government announcement heads the agenda with the financial transfer tax, as something on which a strong joint position would be needed as signal ahead of the G20 summit. Next is the Franco-German push for punishing deficit violators... the stress tests aren't mentioned.

As for what the government thinks and says behind closed doors, we can only speculate, but in this article, written during negotiations,

  • they claim that the German government supported the idea in principle, but raised the problem that such a publication would require the consent of the banks themselves according to German law;
  • the speaker of the finance ministry is quoted with an argument countering the bank lobby, saying rumour-feeding markets could be cooled down with transparency;
  • a state secretary of the finance ministry is quoted with the more combative "if a bank has nothing to hide, it can publish a stress test without demur";
  • the same state secretary is quoted countering Axel Weber -- who supported the release with forked tongue and echoed DB boss Ackermann in calling for preemptive bailout funds -- saying that Germany already has one (Soffin) and other countries could use it as model if they don't have their own already.

(On the financial transfer tax, they note that Britain and Sweden were against.)

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Thu Jun 17th, 2010 at 05:12:47 PM EST
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