Merkel in Campaign Mode

Merkel Sees No Alternative to ‘Arduous’ Euro-Area Overhaul – Bloomberg.

The German Chancellor was rallying the base today in a convention in Lower Saxony. She merely repeated Germany’s position, which is aid in exchange for austerity. Of course, when it comes time to actually give the aid there is always a reason for a delay.

She will continue delivering this message as long as it maintains the status quo ahead of elections. On one hand, Germans enjoy the benefits of the common currency, but on the other, they do not wish to pay for these benefits. Her fickle voters are the reason for her wishy-washy message.

Merkel said in regard to austerity:

“It’s arduous, but I see no other option that leads to a decent outcome,” she said in a speech to a regional convention of her Christian Democratic Union party today. “It isn’t some kind of pressure that were creating to make you suffer.”

Actually, there is another option that leads to a decent outcome, but more for the periphery than for Germany; each of these countries should leave the eurozone and revert to their national currencies.

While she claims that she will defend the euro, she means something else

“Trust means that everyone fulfills their commitments,” she said. “Trust is good, but verification is better. That’s what I’ll continue to fight for in Europe, every day.”

She wants Spain to follow the Greek scheme. Basically, the troika will give Spain a list of impossible to implement reforms and insist that each is followed to the letter. Just like Greece, Spain will not be able to deliver and will not receive the amount of aid agreed upon but just enough to keep it in a coma and in the eurozone.

Beware of Germans during campaign season.

 

 

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