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Germany says Italy must reform despite deadlock
Published: 26 Feb 13 10:22 CET | Print version
Online: http://www.thelocal.de/politics/20130226-48195.html
Germany's foreign minister on Tuesday urged Italy to continue its policy of reforms after an inconclusive election and stressed that the crisis-hit eurozone member needed to form a stable government as quickly as possible.
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"This is not only in the interests of Italy, but the interests of Europe as a whole ... When it comes to beating the debt crisis, we are all in the same boat, whether we live in Germany, France, Italy or Spain," added the minister.
He stressed it was therefore important for politicians in Italy to take responsibility for the bloc as a whole, he added.
Italian elections ended in a stalemate in parliament between right and left after a crunch vote in which the real winner appeared to be a new protest party calling for a referendum on Italy's membership of the euro.
The campaign in Italy was marked by a reaction against the austerity measures pushed by German Chancellor Angela Merkel in a bid to beat the eurozone debt crisis that has propelled the 17-nation bloc into recession.
"Italy plays a central role for a successful overcoming of the European debt crisis and therefore we count on the new government to continue the policy of consolidation and reforms in a consistent matter," concluded Westerwelle.
AFP/mry
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Your comments about this article:
Err no, the unelected technocrat most associated with your "reform", Monti, got less than 10%. The biggest single party - the 5 star movement - explicity says "up yours" to your "reform"
"European Commission spokesman Olivier Bailly said that, while the Europe's executive body took note of the concerns of the Italian people, it also expected Rome to adhere to promises of reforms."
So to put that in plain english they"take note" of democracy before utterly disregarding the results of democratic elections" HA HA HA
Democracy crying out in it death throngs is totally ignored by those in power a very dangerous game to play.
Germany's choices are simple:
a) Print money like the US (they have increased the money base x4 since 2008), so they can give money to the southern europeans, keep the euro low, but as a result have high inflation in 5-10 years putting everyone on a fixed income in the poor house (pensioners, unemployed etc)
or
b) Leave the euro and go back to the Dmark. Exports will crash with a high Dmark, compnanies will stop hiring, the young will become unemployed and will stop paying taxes. Then in 10 years companies will go broke be unable to pay people pensions, etc etc etc.
Japan followed option b) they have now started to print money like nobodies business to get out of their "frugal, saving" mess.
Unfortunately at the start of a financial crisis the lender has the whip hand. At the end the borrower does, the borrowers in southern europe no have the whip hand, Germany has to keep giving them money otherwise Germany's future will be eaten by older generations pensions. It's sad but I don't see any other way out for the Euro zone.