“A beer for the gentlemen, and a wine or fruit-based drink for the ladies. Those are the rules. Where would we be if we didn’t have any rules? France. Where would we be if we had too many rules? Germany.” Pub Landlord
Everyone seems to be scratching their heads as to why Frau Merkel will not sign up to the wondrous sunlight uplands of EMU.
There are two German Court rulings that matter.
The first one, is the ECB has to follow the same fiscal rules and regulations of the Bundesbank, It cant backstop sovereigns end of, its illegal.
Secondly, Was last months Constitutional court ruling that the BBC and the like seem to think paved the way for a big bail out. Which basically says any bailout fund or measures have to be temporary and that Eurobonds or the sharing off debt risk was also illegal.
The German constitution was deliberately set up so that the centre did not have too much power, The idea that they will throw it out and act in a way that will almost certainly bring any politician who does so into the dock in front of a judge is not just hopeful but plain crazy.
Now I imagine that there will be some sort of Euro fudge and everyone will pretend that this is the Bazooka and all will be well, but if you believe that then you might as well believe in fairies, what they have is a peeshooter and when everyone has scrambled to pick of the peas and hide them away as fast as they can, then the shit will seriously hit the fan.
Germany has gone as far as it can go, except of course if it chooses to leave EMU, which is not as far fetched as it might have seemed only three months ago.