This won’t last…

She hit out at Mr Hollande for blocking EU supervision of national spending and supporting eurobonds, which she warned would “mask” divergences between Germany and “mediocre” or declining eurozone economies, such as that of France.

If you look at the development of unit labour costs between Germany and France, differences have now been growing a lot more strongly, a topic that must be discussed,” Mrs Merkel said. telegraph

Mrs. Merkel is so mean. She insists on noticing a productivity divergence. That will not endear her to the French/Italian/Spanish/Greek cultures which reject the crazy Anglo-Saxon idea that you work for what you get.

In the end the Germans get to make a choice – do they let the kids keep the credit card for another year or two or do they cancel the account and tell the children they are on their own.

It is one thing to help the kids make rent for a short month, it is quite another to pay the rent year in, year out.

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One thought on “Euro-Realism

  1. I am amazed that the Euro has held on this long. I cannot begin to imagine the havoc we will see in the financial markets over the next two years when all of the crap that was swept under the carpet is eventually disgorged. I am fairly certain that the depressingly bad economic data that we’ve been allowed to see is only the tip of the iceberg.

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