Merkel: Markets Won’t ‘Blackmail’ Euro Leaders

[marmar]

(Bloomberg) German Chancellor Angela Merkel said investors are trying to “blackmail” governments into helping debt-strapped European countries, underscoring the need for all euro-area governments to reduce debt.

“After the states bailed out the banks, the financial markets are again trying to blackmail states and tell them, ‘You’ve made so much debt,’” Merkel said today at a rally of her Christian Democratic Union in the eastern city of Brandenburg, about 50 kilometers (30 miles) from Berlin.

The solution is to press “countries that are highly indebted to really do their homework and get their debt down,” she said. “A Europe with a common currency requires common duties.”

Merkel is underlining her stand on the euro region’s debt crisis in local election rallies in August before national lawmakers vote next month on a second aid package for Greece and an expansion of the powers of the European Union’s crisis fund. ...........(more)

The complete piece is at: http://www.bloomberg.com/news/2011-08-26/merkel-says-markets-won-t-blackmail-euro-leaders-into-sovereign-rescues.html

[Poll_Blind]

1. We'll see.

Even though Europe has been cracking down (that's probably too strong a term) on the influence that banks have, governments are stll subservient to banks and it should be the other way around. The problem is that countries with high debt just want to borrow more and banks make it easy for them. But when it comes time for the banks to collect, countries are not so happy about the deal.

Is it much of a surprise the answer (IMO) is politicians who aren't so fond of taking the easy way out?

PB

[blindpig]

2. another dog & pony show...

why should the boss have to blackmail his subordinates?

[Amonester]

3. Constructive suggestion: tax the wealthy more.

And no, they won't suffer being taxed more. Maybe they will rethink about being 'constructive participants' that want to help the majority of 'struggling to just go by' and repair the damages done so far by excessive greed.

My two cents (and not only mine...).

[xchrom]

4. angela? either you and your banks are going to stand behind the eurozone or you aren't.

you can't whine about common duties -- since some of your banks are at the heart of the fuck up.

now you need to get behing the euro bonds, a closer european union -- or come up w/ a better plan.

europe has helped supply germany w/ a great deal of prosperity -- think about that.