Stay tuned. We’ll know shortly…
Outside Germany, a consensus has developed on what Mrs Merkel must do to preserve the single currency. It includes shifting from austerity to a far greater focus on economic growth; complementing the single currency with a banking union (with euro-wide deposit insurance, bank oversight and joint means for the recapitalisation or resolution of failing banks); and embracing a limited form of debt mutualisation to create a joint safe asset and allow peripheral economies the room gradually to reduce their debt burdens. This is the refrain from Washington, Beijing, London and indeed most of the capitals of the euro zone. Why hasn’t the continent’s canniest politician sprung into action?
Admittedly, I’m in a dilemma:
I certainly feel in close agreement to the statements of the article, but, coming from The Economist, I distrust.
What then? Who should one believe in?
Actually, in no one.
At this point, I don’t need The Economist to tell me what to think. The only advantage I can see in these ideas being published in the famous weekly magazine is the fact that maybe (just maybe) some more people will stop thinking this crisis will be solved with austerity and budget control.
The other thing that is undeniably true is that Mrs. Merkel has “that” power today.
Will anyone do something about it?