Already facing an immigration and European integration crisis that is shattering the country’s democratic foundations in the postwar era as never before, another nightmare looms on the horizon for Germany’s political and business elite: the prospect of Britain leaving the European Union. This explains why an embattled German Chancellor Angela Merkel—fully aware of the enormous … [Read more...] about Merkels Brexit Problem
Politics
Draghi´s German Nightmare
Berlin – Just in time for the May European elections euro area leaders reached a compromise on the Single Resolution Mechanism (SRM) and the Single Resolution Fund (SRF), the second pillar of the European banking union project. As the ECB assumed the key role in defusing the eurozone sovereign debt and banking crisis with the levers of … [Read more...] about Draghi´s German Nightmare
European Parliament is wrong blocking Single Resolution Mechanism/ Single Resolution Fund`s inter-governmental part
Our readers will find several earlier postings on this website explaining that Berlin was dead set against using Art 114 TFEU as legal basis for a Single Resolution Mechanism (SRM) connected to the needed backstop of a Single Resolution Fund (SRF). Therefore, German finance minister Wolfgang Schaeuble and German chancellor, Angela Merkel, only accepted a compromise on the … [Read more...] about European Parliament is wrong blocking Single Resolution Mechanism/ Single Resolution Fund`s inter-governmental part
More Snowden revelations on spying out the Eurozone?
Last year, when I was preparing another analysis on the eurozone´s Herculean task of implementing European banking union, also my friends at the Washington-based “The International Economy” were shocked by the spy scandal humiliating German chancellor Angela Merkel and showing Europe´s – and particularly Germany´s – mindboggling vulnerabilities. The International … [Read more...] about More Snowden revelations on spying out the Eurozone?
From Deauville to Cyprus
When the history of the euro area sovereign and bank debt crisis is written, the way the troika of Eurogroup finance ministers, the European Central Bank, and the International Monetary Fund managed the rescue of the outsized Cyprus offshore banking center will be useful as a case study to document the extremely fragile state of European Monetary Union at that point in time. … [Read more...] about From Deauville to Cyprus