Many thanks to Hermes for translating this article from last Saturday’s Die Welt:
The euro blows up in Europe’s debt crisis
The declarations of Merkel and Hollande were the last spasms of the common Euro-diplomacy. Political Europe has exceeded the limits of its capacity. Very powerful centrifugal forces are active.
During the last week it became clear that political Europe has exceeded the limits of its capacity. The common declaration of the French president Hollande and Chancellor Merkel about “doing everything possible in order to protect the Eurozone” was nothing more than a desperate rearguard action.
Because already in the third paragraph of the declaration it became clear how far apart the individual euro states, Germany and France included, are from each other in their perception of the crisis. It states that each of them has to “fulfill their obligations in their areas of competence”. One could understand this as a capitulation. Everyone has to see how to manage alone.
Increasing centrifugal forces
These are the last spasms of the common euro diplomacy. Agreements are found only on the surface, but below it powerful centrifugal forces are working, which increase steadily. One day Mario Draghi, the head of the ECB promises to give more help to bankrupt countries, and the next Finance Minister Schäuble takes the declaration back. Greece demands more time while new reports about the failures of the Greek government arrive daily and German politicians openly demand that the country leave the Euro.
A Spanish Minister speaks not about the problems of his country, but prefers to ask for more money from Germany. And regarding the tools, (direct or indirect bond purchase, help for banks and saving programs), there’s also no unity.
The euro is dying in the south
The German government has in fact a minority position only in the council of the ECB. But if one adds the eastern EU members, the situation looks very different. A deep divide between the north and the south. It’s only a matter of time until the moment arrives when we must be honest with ourselves and acknowledge that the thing is over.
The industrial sectors of the north and the south have not moved towards each other in the last eleven years, but rather they developed away from each other. And under these conditions the common currency makes no sense.