Is Angela Merkel Unknowingly Sealing Germany’s Fate?
The thin and unsustainable veneer of European cooperation is turning into utter chaos aka volatility. Merkel does not want to provide bailouts for member nations but instead wants country-specific investors to take a haircut on their investments. There’s nothing wrong with that. Germany’s bailouts are likely unconstitutional anyway as we may soon find out.
Why should Germany bail anyone out? But if Germany is no longer willing to bail out the consumers of its capital in Ireland or Spain or Greece or elsewhere, then why would European Union member nations have any reason to remain as slaves to Germany or the EU? The entire construct would be without benefit. Member nations would do better to eject from the European Union and rebuild their economies alone where they have substantially greater flexibility and sovereignty to do what is in the best interests of their people.
But of course, I expect that is exactly where we are headed in one way or another. Merkel is messing with fire. Germany will pay the price in either outcome.
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