Military Review

Is Germany tired of Europe? Chancellor Merkel did not support the plans of the head of the European Central Bank

20
Last week, the attention of Europeans was focused on a two-day summit of EU leaders. Its central event was the action plan adopted in conjunction with Turkey to combat the migration crisis. The Europeans, annoyed by the uncontrolled influx of illegal immigrants, now expect that with migration to the continent, there will be order. Against this background, other issues on the summit’s agenda remained in the shadow. In particular, the meeting of EU leaders with the head of the European Central Bank, Mario Draghi. However, the discussion of the ECB’s monetary policy was held behind closed doors. The media got some results of this meeting. Chief among them - German Chancellor Angela Merkel did not support Mario Draghi’s plans to create a banking union in the EU.


Is Germany tired of Europe? Chancellor Merkel did not support the plans of the head of the European Central Bank


Growing European Debts Affect German Position

It is curious that four years ago (in the summer of 2012), when the idea of ​​a banking union in the EU was first voiced, Chancellor Merkel was her supporter. At that time, the head of the ECB was helped by the current chairman of the European Commission, Jose-Manuel Barroso. The union to its initiators was represented by the supervisory authority with powers of control over the activities of the largest banks in Europe. The interest of the European Commission was seen in the fact that a sort of pan-European bank reduced the national role in independent financial activity and, conversely, strengthened the authority of European officials.

For Mario Draghi, centralized control over banking was only part of the objectives of the ECB. Draghi no less expected to strengthen the protection of savings of Europeans through joint deposit insurance and to be able to directly recapitalize needy and troubled banks without long consultations with governments. Among other things, there was no need to look for borrowed funds in international financial institutions, such as the IMF. So Draghi hoped to reassure the EU financial market, which had not recovered from the 2008-2009 crisis.

After a number of meetings and consultations of European officials with the German government, Angela Merkel supported the idea of ​​a banking union in the EU, considering it appropriate in the medium term. Almost four years have passed, and now the German Chancellor has come out sharply against the new banking structure. What influenced the position of the German authorities?

Providing a medium-term perspective, the Germans hoped to create a banking union after stopping the threats caused by the debt crisis in Cyprus and in Greece. Subsequent events have shown that the crisis has only grown, affecting other countries in southern Europe. In Greece, it exceeded every conceivable scale and demanded investments of hundreds of billions of euros, mainly from the German economy.

Proku from this no longer. Greek debt increased from 89 billion euros in 2012 to 312 in 2015. At the same time, each tranche of financial assistance demanded new consultations, negotiations, agreements, the center of which was Germany - the main donor of European finance.

Debtors were pretty nervous about this, because the idea of ​​creating a pan-European bank in the form of a union, which would directly finance national banks if necessary, was liked not only by Greeks, but also by Portuguese, Spaniards, etc. They are certainly more comfortable with Degie, than German bankers, economists and the German government.

At the current meeting, Portugal insisted that the leaders of European countries make a formal commitment to determine concrete steps to create a banking union in the EU at the next summit scheduled for June. The initiative of the Portuguese was actively supported by many countries. But all outweighed the word of Angela Merkel.

German Chancellor opposed. The Germans are not at all smiling to provide a “joint insurance of bank deposits” to their existing load. Now Merkel does not stipulate his conditions for a vague medium-term perspective, but quite specifically: European countries must deal with their debt burden and increase financial stability. Without this, the Germans will not even discuss the creation of a European banking union.

European money becomes very soft

In the European media, where they commented on the information leakage from the March summit, Angela Merkel’s decisive statement was tied to a large election campaign that began in Germany, where the ruling CDU had rather shaky positions because of the crisis with migrants. To add to this an additional financial burden on the Germans, it means that the elections will lose to the ground.

The argument is, of course, serious. Success in the elections was and will remain the main goal of politicians. And Chancellor Merkel is no exception. But the fact is that the European economy today, to put it mildly, is not in the best shape. A week before the summit of EU leaders, a meeting of the Board of Governors of the European Central Bank was held, at which they recorded a very sad situation in the EU: the recovery of its economy almost stopped, the stock market went into minus, deflation returned.

In this regard, the ECB took quite radical measures. He announced a reduction to zero level of interest rates on loans, to minus 0,4% - on deposits and to 0,25% per annum - on margin loans. Mario Draghi's favorite brainchild has undergone a change - a quantitative easing program. (Redemption of public and private securities due to the issue of the ECB.) The monthly volume of this program, starting in April, will increase from 60 billion euros to 80 billion.

This program was launched last January. Draghi then determined its scope and timeframe: infuse 1.1 trillion into the EU economy. Euro to September 2016. It was assumed that this would increase consumer demand and the stock market, accelerate growth rates and - to an acceptable level of inflation.

The Germans then actively protested, fearing a sharp decline in the euro. However, the threat of deflation and the concession of Mario Draghi in the form of the right to buy back securities in accordance with the quota of national banks in the ECB (it is the largest from Bundensbank) made the German authorities more compliant.

However, the dissenters remained. The Federal Constitutional Court of Germany consistently (in May, September and October) received three lawsuits against the country's government and parliament, which supported the ECB program. The names of the plaintiffs court (in accordance with their wishes) did not disclose. Only the chairman of the political party "Alliance of Progress and Breakthrough" Bernd Luke publicly acknowledged his appeals to the FKS.

The decision on claims has not yet been made, and the situation in the economy, in the meantime, is only getting worse. Not saved the situation even lower energy prices. Initially, they helped the ECB program to raise consumer demand, but then everything returned to their circles. In February, consumer prices fell by 0,2% compared to last year. The outlined deflation slowed down the growth of the economy. The stock market again went into negative. Problems added a low amount of investment.

On this not very favorable background, eurozone GDP, according to the British magazine The Economist, still remains below the peak 2008 of the year, while the US GDP is almost 10% higher than the pre-crisis maximum of eight years ago. The euro against the dollar fluctuates at low values ​​- within 1,12 and creates new problems for European banks and insurance companies. Faced with difficulties and the German economy. Last December, industrial production fell here and so far does not give much hope for steady growth.

The German media during the week, meanwhile, amicably discussed the problems of the Russian Crimea and even came to the smug conclusion that “Russia cannot afford the Crimea”. Although something else is obvious today: it was “not affordable for Germany” to bear the function of a European economic locomotive. This was confirmed by Chancellor Merkel, who avoided further integration in the EU banking community. It seems that Germany is tired of unstable Europe, and she herself has infected her sores ...
Author:
20 comments
Information
Dear reader, to leave comments on the publication, you must sign in.
  1. Enot-poloskun
    Enot-poloskun 21 March 2016 06: 33
    +4
    Tired of Germany? So come out! Stop feeding the parasites!

    But Germany does not leave the European Union ... Profitable.
    1. Observer2014
      Observer2014 21 March 2016 06: 57
      +11
      "Germany is tired of Europe? Chancellor Merkel did not support the plans of the head of the European Central Bank"
      You ask the Germans (from West Germany, not emigrants). What will they tell you. Beginning with the reunification to this day. I know for sure that the Germans are throwing such projects with specialists so that they would spend money there. You would know about their social packages before the reunification. So the Americans will throw another bullshit on the Germans. Then they will publicize on their "free" media, and those fools flock and let them spend money on all sorts of united Europe. Just imagine the scale of the German economy. And the country doesn't extract anything! True, there is no army. Their entire Bundeswehr is like a military sports camp.
      I told them a long time ago that the Germans would heal normally only in alliance with Russia. The Anglo-Saxons poisoned us as a specialist because our association with them is a caput of Anglo-Saxon abomination.
      1. oleg-gr
        oleg-gr 21 March 2016 11: 41
        +1
        Themselves called in the EU parasites, and now do not want to feed? But what about: are we responsible for those we tamed? There is nothing to pour crocodile tears.
      2. The comment was deleted.
      3. Cap.Morgan
        Cap.Morgan 22 March 2016 00: 09
        0
        Quote: Observer2014
        "Is Germany tired of Europe?
        I told them a long time ago that the Germans would heal normally only in alliance with Russia. The Anglo-Saxons poisoned us as a specialist because our association with them is a caput of Anglo-Saxon abomination.

        You did not confuse?
        Do you remember which country we fought the most in the XNUMXth century? Who was our ally there? Remembered?
        1. the villain
          the villain 22 March 2016 02: 01
          0
          Quote: Cap.Morgan
          Do you remember which country we fought the most in the XNUMXth century? Who was our ally there?

          Let's remember then who in the 20th century first unleashed the Russo-Japanese War, then pulled Russia into World War I, and WHO raised Adik and set him on the USSR. Yes, with such "allys" damn it, no enemies are needed.
    2. The comment was deleted.
    3. siberalt
      siberalt 21 March 2016 17: 43
      +1
      Interesting, of course. Or is Europe tired of Germany? Then we need a civilized divorce and divide the refugees among themselves, and even with their consent, whom they will choose as parents. Imagine what will startlaughing
  2. alpamys
    alpamys 21 March 2016 06: 43
    +6
    no benefit, who lived in Germany when there were marks and borders, can compare the level of that Germany and today, heaven and earth, the standard of living has decreased significantly.
    1. chikenous59
      chikenous59 21 March 2016 07: 09
      +5
      Quote: alpamys
      no benefit, who lived in Germany when there were marks and borders, can compare the level of that Germany and today, heaven and earth, the standard of living has decreased significantly.

      But the Greeks, Spaniards and Portuguese at the expense of Germany live well near you))
      They love you, you are generous and flexible, the USA will not let you lie.
    2. chikenous59
      chikenous59 21 March 2016 07: 12
      +3
      Quote: alpamys
      the standard of living has decreased significantly.

      It still depends on how you count.
      You have decreased, someone has grown, everything is the same as in Russia.
      I get 10 rubles, my deputy’s neighbor receives 1000 rubles, the average salary with us is 505 rubles) Beauty ...
      1. rotmistr60
        rotmistr60 21 March 2016 07: 20
        +3
        I get 10 rubles, my deputy’s neighbor receives 1000 rubles ...

        If your neighbor is a deputy, then you obviously do not get 10 rubles., Tk. live in an elite house. Although your example is well understood.
  3. strelets
    strelets 21 March 2016 06: 51
    +5
    Germany could not afford to support the entire European home, especially when "come in large numbers here." In general, too luxurious social policy ruined more than one budget.
  4. Const
    Const 21 March 2016 06: 56
    +2
    To the neighbor’s evil, that’s what the EU’s unification is.
  5. rotmistr60
    rotmistr60 21 March 2016 07: 22
    +2
    it became impossible for Germany to bear the function of a European economic locomotive

    The time comes and "leadership" becomes a burden to the detriment of its fellow citizens, especially if you constantly look into the mouth of the United States.
  6. AID.S
    AID.S 21 March 2016 07: 24
    +1
    Germany has signs of economic prostatitis against the background of chlamydia from "refugees".
  7. Pvi1206
    Pvi1206 21 March 2016 07: 53
    +2
    German Chancellor Angela Merkel does not support Mario Draghi's plans to create a banking union in the EU

    Germany urgently returns its gold reserves to the country from abroad.
    That says a lot. Perhaps there will be a return to the national currency in the event of a collapse of the dollar.
  8. atamankko
    atamankko 21 March 2016 09: 52
    +1
    Frau took a wide step, forgot that she was wearing trousers.
  9. olimpiada15
    olimpiada15 21 March 2016 09: 54
    +2
    The United States does not need strong economies, including its allies.
    They combine the economies of Western Europe with the sole purpose of weakening.
    What can we say about Russia, which shows elements of self-awareness if they ruin the economy of its allies, supporting all US initiatives.
    One must think about the risks that the economy of the Russian Federation carries with European integration with countries that are not able to defend their interests against the hegemon.
    As for Germany, whether there will be more.
  10. Petrik66
    Petrik66 21 March 2016 11: 05
    +1
    Well, if we compare the problems of Germany and Russia, then - someone has small pearls, and someone has dry bread. Russia again repeated its negative experience of the 19th century. Let me remind you that Alexander the First and the Second, Nikolai - were actively friends with the German principalities, then with Germany, the "Holy Unions", etc. German and Russian are two brothers forever. Then, the German brother sent us, believing that the Russians are pigs and, in general, occupy the German living space. Bismarck is like a correct German and said that there is no need to fight with Russia (well, thanks for that - a great criterion for assessing a country's loyalty to Russia)). The Germans sent Bismarck and fought twice with the Russians, everything ended very badly for Russia and even worse for "proud" Germany. Under Brezhnev, we again became strong friends, under Gorbachev, we became even stronger friends, and Yeltsin even conducted for a German friend. They used us, practically for free - in a friendly way. But then, BB became our guarantor. In general, he offered his German friends to become our only gas hub in the EU ..... A royal gift. Frau (the Germans really screwed up) got scared and refused. Well, we still decided not to wash, so by rolling to achieve our goal and put our eggs (gas) in one basket, they say: well, the Germans will not let us down .... But they let us down and how they let us down. The elderly lady is not Catherine II, she took us for ..... and is not going to let us go. Well .... at least not going to fight (yet).
    1. alex74nur
      alex74nur 21 March 2016 12: 47
      +1
      Let me disagree with you. Europe lived in Peace and tranquility only when Germany and Russia were friends. The main instigators of the two world wars were the Anglo-Saxons, they are also the main beneficiaries. And today, the Yankees and the Britons are doing everything to prevent the rapprochement of Germany and Russia.
      1. Cap.Morgan
        Cap.Morgan 22 March 2016 00: 14
        0
        Quote: alex74nur
        Let me disagree with you. Europe lived in Peace and tranquility only when Germany and Russia were friends. The main instigators of the two world wars were the Anglo-Saxons, they are also the main beneficiaries. And today, the Yankees and the Britons are doing everything to prevent the rapprochement of Germany and Russia.

        What prevented us from being beneficiaries?
        Not before. We were preparing for the world revolution.