- Germany edition
- Change edition:
- France |
- Norway |
- Spain |
- Sweden |
- Switzerland
Merkel's bailout fund hits 'stumbling block'
Published: 22 Jun 12 12:21 CET | Print version
Online: http://www.thelocal.de/opinion/20120622-43321.html
Germany's President said on Thursday he would delay signing the EU fiscal pact and new bailout fund until the top court has examined a legal challenge. The Local’s media roundup looks at how newspapers interpreted the move.
- Some fear inflation if small euro coins cut (19 May 13)
- Did Merkel's politics hurt Germany at Eurovision? (19 May 13)
- Economists warn against German euro exit (18 May 13)
Many in the German media supported Gauck's decision to give the Constitutional Court up to three weeks to consider a legal challenge put forward by the far-left Linke party.
In doing so, the President had skilfully "avoided an unprecedented constitutional conflict,” the Süddeutsche Zeitung said on Friday.
By buying the court enough time to properly examine the challenge, both Germany's highest institutions could "escape the accusation of destroying the Euro with a rushed decision."
And given what is at stake for Germany, more scrutiny of the the planned ESM permanent bail out fund cannot be a bad thing, said the Münchner Merkur.
After all, Germany will be responsible for 27 percent of contributions to the ESM fund - expected to contribute €21.7 billion in cash and provide guarantees worth a further €168.3 billion.
It is for the ESM "that Germany has got itself up to the neck in financial adventures," the Munich-based paper added.
Daily paper Die Welt also showed sympathy with the President, who it said had taken a "political risk" when called upon to address "the core question of how German democracy and European politics can coexist in peace."
"In the case of the bail out law, Gauck alone has the answer and also the responsibility. Only his signature gives it legal force in Germany."
It is at times like this, said the paper, that Presidents show their "enormous power," which is enough to challenge even the will of the Chancellor.
And the move is indeed a further blow for Chancellor Merkel, whose "room for manoeuvre is getting smaller," said the left-leaning, Hannover-based Neue Presse.
Having - after long negotiations - finally succeeded on securing support from the opposition parties for the fiscal pact on Thursday, Chancellor Merkel was immediately dealt another "stumbling block," wrote the paper.
Chancellor Merkel - and those looking to rescue the euro - had been hoping for a "strong signal from Germany" said mass-circulation daily Bild. Instead, all they got was "a hammering" from the Constitutional Court.
The Local/DPA/jlb
What do you think? Leave your comment below.
Did Merkel's politics hurt Germany at Eurovision?
Eurovision Song Contest favourite Denmark won the competition on Saturday night, while Germany plunged to 21st place – the worst showing in five years – amidst speculation that it was payback for Angela Merkel’s hated policies. READ () »
Police warn against high-tech Islamist attacks
The Federal Criminal Police Office is warning of a new type of Islamist terrorist threat from the air that could attack both passenger and cargo planes as well as airport facilities, the Welt am Sonntag newspaper reported. READ () »
Some fear inflation if small euro coins cut
European Union proposals to eliminate one and two cent euro coins is annoying some Germans, including a few at the Bundesbank, while others think an EU idea to introduce one and two-euro notes is a good one. READ () »
Boy dies at Tropical Islands swimming pool
A 15-year-old boy died on Saturday at the popular “Tropical Islands” swimming and entertainment centre outside of Berlin, the Bild newspaper reported. READ () »
Wagner descendant slams composer
As the musical world lavishly celebrates Richard Wagner's bicentenary, the composer's great-grandson insists he is no spoilsport by denouncing the German master as a narcissist, woman-hater and an anti-Semite. READ () »
Bayern wins, Dortmund loses ahead of CL Final
If Saturday’s play was any barometer of what may happen at the Champions League final this coming Saturday, then Borussia Dortmund should be very nervous indeed. READ () »
Most Germans optimistic about the future
Although less than 50 percent of Germans are optimistic about their current situation, more than half think their future will be better and the number of pessimists in the country dropped, a survey released on Saturday showed. READ () »
Organic food stores expand rapidly
Organic food and health stores are undergoing a hefty expansion in Germany, with the Vitalia chain taking over several locations from the bankrupt Schlecker drugstore chain in Munich alone. READ () »
- 16/05 'At his final heartbeat I knew I had to act' »
- 14/05 'It's time Germany got over its speed fetish' »
- 13/05 'Germans are nice thanks to my Ami accent' »
- 09/05 Beate Zschäpe: neo-Nazi of mystery »
- 07/05 'The NSU trial is an aim in itself' »
- 06/05 'Racism is in society's wallpaper' »
- 06/05 'You can get pension payments back' »
- 02/05 Boy - the world's smallest film star »
- 30/04 'Women give the Catholic church a future' »
- 25/04 'Messi? I want to be Germany's Ronaldo' »
- Burning ship had tonnes of radioactive material »
- 'LHighlights
Latest news from The Local in France- 19/05 Ancelotti praises 'great pro' Beckham »
- 19/05 Disgraced ex-minister abandons re-election bid »
More news from France at thelocal.fr
Latest news from The Local in NorwayMore news from Norway at thelocal.no
Latest news from The Local in SwedenMore news from Sweden at thelocal.se
Latest news from The Local in Switzerland- 19/05 Swiss to face Sweden in world ice hockey final »
- 17/05 Thieves pinch Swiss jewels from Cannes »
More news from Switzerland at thelocal.ch
See all ads | Join the Marketplace
-
British Corner Shop
British Corner Shop - The online supermarket for expats -
Chambervelt Rooselain & Cie Ltd.
Insurance and financial planning for English speakers in Germany -
Weiss Institut
Free yourself from Smoking addictions, Sugar craving and Alcohol addictions -
PsyShrink Frankfurt
The Expat Psychologists in Munich, Frankfurt and worldwide -
Shiply Worldwide Ltd
Shiply the Online Transport Market Place -
PsyShrink Munich
The Expat Psychologists in Munich, Frankfurt and worldwide
Jobs in Germany, in English784 jobs available
603 new jobs this week
30 new jobs today- Grid Modeling Expert (m/f) - Stellenausschreibung TenneT
- Market / Business Intelligence Leader (m/f)
- Analyst Predictive Maintenance (m/f)
- Trade Marketing Manager (f/m)
- Opportunity for Medical Information Scientists and Information Managers as Epidemiological Data M...
- Trainee to work in business development for Daimler Insurance Services
- Sales Professional (m/f)
- Finance Administrator (Account Payable & Travel Expenses)
- Customer Interaction Specialist for French, English (f/m)
- Marketingassistenz (w/m)
Blog- Apr/09 Touring Tempelhof – Europe’s Largest Historical Monument
- Apr/09 Spring in Berlin 2013 – Where, What Why and When!
- Mar/12 Living Like a Local – Tell us what you think and win a weekend in Berlin!
- Feb/04 Escaping the City – Our Recommended Suburban Getaways
- Feb/04 Berlin Tegel Airport Transfers – How to get into the City
EssentialsDating
Looking for your own blonde bombshell? Or is the strong, silent type more your style? Find a German sweetheart here.Weather
"After clouds comes clear weather," say the Germans. But what about after that? Find out in The Local's weather section.Blog
German stuff that's distracting us today.Noticeboard
Whether you want to buy, sell, hire, announce or promote something, here's the place to do it - completely free of charge.Discuss
Debate the news, ask for advice, make friends - or just let off steam.RegisterRegister now for:
> Free use of noticeboard
> Special discounts
> Weekly news roundup
> Unlimited use of discussNews from the Goethe-Institut- “Preserve the proven, shape the new” – the International Bach Academy in Stuttgart
For more than thirty years, Helmuth Rilling shaped the international Bach Academy; now he is succeeded by Hans-Christoph Rademann. - ‘Open Mike’ – Fireworks with the Buddha
The Berlin ‘Open Mike’ entered this year its twentieth edition. - On the Stage, the Spoken Word Prevails
In January 2013 the annual meeting of the Dramaturgical Society took place in Munich; its theme: “Speaking on Stage – and about Theatre”... - The Magician of Images – Klaus Ensikat
With the technique of an Old Master and subtle humour, the award-winning graphic designer and illustrator Klaus Ensikat has for fifty years produced ingenious illustrations for literary classics and children’s books.... - A Picture Every Day – Philip Waechter
Philip Waechter, son of the famous illustrator and cartoonist Friedrich Karl Waechter, is one of the best-known contemporary writers and illustrators of children’s books....
News from Young Germany- German first feature film in Cannes
A directorial debut from Germany makes it to the competition “Un Certain Regard” at the famous film festival on the Côte d’Azur. - Traveling Germany: Europa-Park
Think theme parks:Roller coasters, colorful rides, entertainment, thrills. Think Germany: Europa-Park is the largest amusement park in the country, second in Europe only to Disneyland Paris. - Frankfurt – the digital hub
The Internet hub in Frankfurt am Main is the largest in the world and places Germany in a leading position in the digital world. - The European Year of Citizens
2013 is the European Year of Citizens. They‘re invited to contribute their ideas for the EU, and to discover more about their rights as EU citizens. An example: labour mobility. - Neuschwanstein Castle: In Photos
Neuschwanstein is the most popular tourist attraction in Germany. And for good reason. King Ludwig II's castle looks like it fell out of a book of fairy tales.
News from DeutschlandOnline- Theatre festival between the Saar and the Mosel
The Festival Perspectives in the German-French region around Saarbrücken is staging European theatre, dance and music productions. - The European Year of Citizens
2013 is the European Year of Citizens. - Europe Day, Robert Schuman and Class 4a
Enthusiasm for the idea of Europe – in the 60th European Competition, schoolchildren from Germany show what this could look like. - Relief organizations
The portals presented here provide information on the help programs offered by different organizations.
- Analyst Predictive Maintenance
- Grid Modeling Expert - Stellenausschreibung TenneT
- Market / Business Intelligence Leader
- Contract Manager
- Dipl. Ingenieur (FH) /Techniker
- Account Manager - Academic Sales - Germany
- Application Development Engineer Nutrinova
- Berater Regulatory Affairs
- Business Process Analyst
- Channel Sales Representative
- 17/05 paid internship
- 17/05 Florida resident seeks job in baden Baden Germany
- 17/05 Berlin Writing Group
- 17/05 cheap car hire
- 15/05 Queen size bed & frame
- 15/05 Feste Stelle
- 21:23 Sunday Night Clubbing
- 21:10 Raining again , will it ever end?
- 20:59 Cycling tours around Munich
- 20:52 Is learning 'der die das' impossible?
- 20:49 English-speakers living in Bayreuth
- 20:44 Saturday Night Shindig, the 30-somethings meetup
- 20:31 Splendid meetup of the mid-20s people (STOMP) - Mu
- 19:32 Machines that exchange coins for notes
- 19:22 M-Net not switched on due to Telekom delay
- 18:20 Recommended home internet and TV providers
Start trading shares, equities, forex, etc. No commission on equities; Low min. margins. Apply for a CFDs account now!
'Charming, old, beamed cottage for holiday let in Jesus Pobre, Alicante, Spain
www.littlehouseinspain.com/
Professional and qualified consultancy on all insurance and finance matters in Germany, Telephone: +49 2163 571 1740, Email: bg@albatross-assurance.com
www.albatross-assurance.com
Visiting Berlin anytime soon? Book your hotel in Berlin here.
For home-from-home holiday accommodation, search for a Berlin apartment to rent.
Your comments about this article:
The ECB and eurozone governments, as well as bailing out other members states, have quietly been rescuing German banks and, by extension, German savers. Without these emergency operations, the eurozone would have broken up, German banks would have gone bust and the savings of many ordinary Germans might have been wiped out. More likely the German taxpayer would have had been forced to bail out those banks.
So, as the German people distribute blame for the situation in which they find themselves, they should not ignore their own bankers. If those institutions had not made these investments and financed the current account deficits of Germany's neighbours for so many years, their country would not be on the hook for hundreds of billions of euros of bad debts.
Yet this is something German politicians refuse to acknowledge.
h--p://www.independent.co.uk/news/business/comment/ben-chu-germany-is-not-bailing-out-europe-it-is-rescuing-itself-7912743.html
The euro crisis is man-made by Merkel and Sarkozy, who intervened into Greek insolvency, likely to help some German and French mismanaged banks out from their liability.
All and any banks willingly help anybody to get indebted too much if the credit liability is by political decision taken to the taxpayers. Prudent and responsible management of public or private funds is not made by agreements of any kind but with the controlled money supply. When the banks bear their credit responsibility, they shut off the money supply in time. This is the only way and one of the fundamental principles of the economy. European Stability Mechanism (ESM) is just the opposite, to break the principle of good management, in fact a radical neocommunist idea.
The Greek debt is 30% over the GDP and such a debt has never been paid anyone else but the inflation. Greece is a sovereign state, which bankers cannot execute by an auction. It can simply stop paying the debt but is wise Greece shall pay its debt to the last cent with 30-year bonds. Along the time, the Inflation will erode the real value of these bonds to the loss of the creditors but their books stay sound, as the bonds are long term receivables. No crisis will be anywhere. You have not even heard about the case in 1987, when Brazil paid its outstanding foreign public debt this way. The inflation of dollar made the real value of these bonds in 2006 to be at 20% of the face original value and Brazil paid them in advance.
Having no new credit available, but old debt "frozen" at least for 30 years in bonds, Greece must and can adjust its economy without any social crisis.
European Stability Mechanism (ESM) and all related measures shall be annulated, the EU governments shall each focus in managing and ruling of their own countries, let the market economy work free and EU shall continue its valuable service as an platform of cooperation between the independent member nations, being in service, but not in charge.
There is no reason to anyone get out of euro, not to expel anyone of it, unless someone starts issuing counterfeit money and destroy its value by inflation.
Euro is just a monetary unit to measure the value of goods and services, as meter is a unit to measure the length and kilogram to measure the weight. We may substitute any of them with new ones, but the things will no be changed.
Merkel and Sarkozy made fatal mistakes and may not have the character to admit and retreat. Thanks Frenchmen, Sarkozy is now out and thanks President Joachim Gauck, Merkel will go.
Germany is indeed rescuing Europe, when banks loan money to countries (buy bonds) the is an agreement that the money will be paid back. If said countries are run by buffoons whose grasp of economics would make a third world dictator blush - being dictated by backhanders/bribes then its up to the countries respective populations to act and vote the clowns out. I find it ridiculous to blame the lenders..they were lending to governments not crack addicts living in Glasgow.