A Transmission Belt of German Supremacy

https://www.german-foreign-policy.com/fileadmin/introduction/images/maps/3_europa/16_italien.gif

 

ROME/BERLIN (Own report) – German politicians and media are intensifying pressure on Rome in anticipation of today’s EU Commission verdict on Italy’s national budget. Already last week, EU Budget Commissioner Günther Oettinger announced, in reference to the Italian deficit, that the Italian government must “correct” its draft budget. Media reports refer to a “black week” for Rome. Negative reporting – like rating agencies’ devaluation of Italy’s creditworthiness – can contribute to the destabilization of Italy’s financial and credit markets. The country’s current downward spiral threatens to re-escalate the banking crisis. Whereas Berlin insists that the EU take sharp measures against deficits, Germany’s Finance Minister at the time, Wolfgang Schäuble had prevented the EU Commission from taking measures against excessive surpluses, which the commission sees as potentially just as destabilizing. Germany has been achieving these surpluses year after year.

Continue reading

German economy left SHATTERED after Brexit vote, shock new figures reveal

CONFIDENCE in Germany’s economy has plunged in the wake of Britain’s vote to leave the European Union, dramatic new figures have revealed.

Business morale in Europe’s biggest economy tumbled in August at its fastest rate since the height of the eurozone debt crisis in 2012, showed the closely-followed economic institute Ifo survey.

The monthly 106.2 reading – from 108.3 in July – is now sitting at its lowest level since February. Continue reading

ECB paralysed by German court decision as deflation threatens

Last week’s ‘thunderbolt’ ruling on eurozone rescue policies by Germany’s top court marks a serious escalation of Europe’s governance crisis and may ultimately force Germany to withdraw from the euro, the country’s most influential magazine has warned.

A sweeping report by Der Spiegel said the court ruling amounts to a full-blown showdown between Germany and the European Central Bank over the methods to shore up southern Europe’s debt markets.

“It is nothing less than a final reckoning with the crisis-management strategy pursued by the ECB. The German justices insist that the German constitution sets limits on the ECB’s crisis strategy. In a worst-case scenario, the Court could forbid Berlin from contributing to efforts to save the euro or even force Germany to leave the currency zone entirely,” it said. Continue reading