Angela Merkel: Germany can’t do more for artists, or Italians will say we are rich
mainThe FAZ has obtained a transcript of the Chancellor’s conference-call comments to her party, ahead of an EU summit at which she resisted demands for the creation of Eurobonds.
Asked why Germany was not doing more to support performing artists during lockdown, Merkel reportedly said:
Deshalb solle sich die Bundesregierung auf zentrale Bereiche der Wirtschaft konzentrieren, statt immer neue Versprechen zu machen. Wenn etwa auch Künstler mit Steuergeld gerettet werden sollten, werde man dies in Spanien und Italien vermerken und darauf verweisen, dass Deutschland offensichtlich über genug Geld verfüge.
Therefore, the federal government should focus on central areas of the economy instead of making new promises. If, for example, artists were to be saved with tax money, this would be noted in Spain and Italy, and reference would be made to the fact that Germany obviously has enough money.
this is most likely fake news. not from a credible source.
A simple google search proves you wrong:
https://m.faz.net/aktuell/wirtschaft/vor-eu-gipfel-merkel-lehnt-eurobonds-ab-16733345.html
I know FAZ, but it’s not a credible source, meaning an anonymous source. I’s also not in line with the actual policies of the federal government.
FAZ is one of the most well regarded German newspapers?
Frankfurter Allgemeine Zeitung is roughly equivalent of the Wall Street Journal or the Daily Telegraph (uk)
Ah – Murdoch-level “news” then?
No, she has read the libretto of The Twilight of the Gods and anxiously checked Germany’s central bank account.
How old school. Central banks have no accounts. They have hot air blowers.
she s absolutely right. it would be a crazy waste of money to take part in Euro-Bonds. Germany and the EU are helping a lot with their money but in other ways.
Any currency without fiscal transfers or debt mutuality is inherently unstable. In a normal currency the interest rate is set for to for marco level. To offset the damage to of the wrong interest rate/exchange rate there is debt mutuality and fiscal transfers. Germany knew this when it signed up to the Euro and the Euro’s creators always intend that any crisis would push further integration. Germany cannot have it’s cake and eat it. Germany exchange rate would about 20% higher than the Euro’s. Germany exports within and without the Euro zone benefits from membership but Germany thinks is can dodge the price of the single currency.
If Germany does not want to pay the price for membership then it should leave the Euro. Leaving the Euro would be good for Germany’s debt levels and the drop in value of the Euro would help Southern Europe. If Germany just buries its head in the sand, Italy and Spain will leave and default on their debt, creating an even bigger crisis. The status quo is not sustainable.
Ron writes: “Any currency without fiscal transfers or debt mutuality is inherently unstable.”
No, I am afraid this isn’t correct. Historically all countries basically shared a currency since they were all on a gold standard (or silver standard). It was only in the 20th century when this link was abandoned. The system was VERY stable. Some people think the abandonment of Bretton Woods system is what made the system unstable.
“…or Italians will say we are rich”
Italian insults are usually more damning than that.