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Eurointelligence Daily Morning Newsbriefing: Stench of a re-emerging crisis: no ESM bank recaps; anti-euro parties rises in Austria and Germany; Italy heading for a technical government (04.03.2013)
Klaus Regling says it will be very difficult to reach a political agreement on the ESM's capabilities to fund banks directly; says each country has a veto on this, and in some parliaments have co-decision rights; Wolfgang Schauble says Ireland is to blame for its own financial excesses and the recession that followed from it; he says there should be no joint liability for that debt - everybody should clean up their own house; an anti-euro party won around 10% of the vote in Carinthia and Lower Austria; an anti-euro movement by German academics, journalists and business people is about to establish itself as a formal party ahead of the 2013 federal elections; Portugal saw mass protests against austerity over the weekend; Jeroen Dijsselbloem will announce a symbolic end of austerity today - though it will be nothing of the sort in substance; Dimitris Kontogiannis argues that Greece would have had to incur less austerity if the troika had focused on structural deficits; the Spanish government is challenging the declaration of Catalonian independence in the Constitutional Court; a Spanish general said the army would intervene to keep Spanish unity; the SPD has forced a delay in one of the implementation laws of the fiscal pact; the party is also due to propose a tough financial sector regime with new taxes, new regulations and higher capital ratios; Beppe Grillo is calling for a referendum on the euro; he has now explicitly ruled out any alliances, and demands to form the government by himself; Matteo Renzi denied the report that he is ready to lead a Grand Coalition; Italian GDP is down 2001 levels; Roberto D'Alimonte says the parties of the Left have enough of a majority to vote for the next Italian president, who may sustain a minority government in power; Italy's most senior political commentators are calling for a technical government; Simon Wren Lewis has done the math on structural primary surpluses, and finds even the core of the eurozone is Austerian; Mark Schieritz is sympathetic to the idea of a wealth tax on Cypriot savers; Hans-Werner Sinn, meanwhile, tells El Pais that the only solution to Spain's crisis is for Spain to become like Germany.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Carrie (migeru at eurotrib dot com) on Mon Mar 4th, 2013 at 04:02:27 AM EST
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Hans Werner Sinn says Spain must become like Germany, or else leave the eurozone

In an interview with El Pais, Hans-Werner Sinn gave a blunt assessment of the transition that is needed for Spain. He said the crisis would last ten years, during which Spain would have to accomplish an internal devaluation of 30% (for Italy, his estimate is 10% only). He said this would require further austerity. He expressed that Germany would not shoulder much of the adjustment burden. The interview ended with the conclusion must become like Germany if it wants to survive in the eurozone.

by Number 6 on Mon Mar 4th, 2013 at 09:58:08 AM EST
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Does he mean like Germany now, or like Germany in the 1920s?
by gk (gk (gk quattro due due sette @gmail.com)) on Mon Mar 4th, 2013 at 10:03:21 AM EST
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Guessing Germany recently, with exports to Spain.
by Number 6 on Mon Mar 4th, 2013 at 10:58:38 AM EST
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"Hate the Sinn, love the sinner"

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II
by eurogreen on Mon Mar 4th, 2013 at 11:31:22 AM EST
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more like hate the Sinne,

if you speak German, that makes Sinn

by stevesim on Mon Mar 4th, 2013 at 04:04:46 PM EST
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