Berlin and the ECB hold the key to the future of the single currency. Will the latest crisis finally force their hand?
From The Telegraph, By Jim O’Neill, 3:22PM BST 28 Jul 2012 – So, the big question is – how do you solve the Spanish crisis? In fact, how do you solve the whole euro crisis?
The simple answer is, first, I don’t think there is anything much more Spain can do. Second, the solution to Spain’s dilemma is, I believe, the solution to the euro problem.
A defiant Angela Merkel is doing no more than defending the interests of her own electorate.
Let’s say this again, just in case a single sentient being on the planet has missed it: Germany cannot simply decide to bail Greece (or Spain, or Italy, etc) out of its debts. OK? However much Angela Merkel is nagged, berated, bullied and patronised by Barack Obama, David Cameron, or the BBC/Guardian axis that regard the preservation of the euro project as critical to their own interests, she cannot just revoke, in a unilateral act, the rules of German government or of the Bundesbank.