Germany

Monti lashes out at Germany ahead of summit – FT.com

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Monti lashes out at Germany ahead of summit By Guy Dinmore and Giulia Segreti in Rome and Peter Spiegel in Brussels ©Reuters Mario Monti has set the stage for a tough fight with Germany at the EU summit this week, insisting that he will continue to push Italy’s proposal to use eurozone bailout funds in an attempt to stabilise financial markets. Italy’s technocratic prime minister’s frustration with Germany surfaced in a combative speech to parliament, saying he would not go to Brussels to “rubber-stamp” pre-written documents and was ready to extend the two-day summit until Sunday night if needed to … Read more

| ZeroHedge

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Spain IS Greece After All: Here Are The Main Outstanding Items Following The Spanish Bailout Submitted by Tyler Durden on 06/09/2012 14:52 -0400 Bank Run Bond Bridgewater CDS Creditors European Central Bank Eurozone Germany Greece Gross Domestic Product Ireland Italy National Debt Nationalization Portugal Sovereign Debt After two years of denials, we finally have the right answer: Spain IS Greece. Only much bigger. So now that the European bailout has moved from Greece, Ireland and Portugal on to the big one, Spain, here are the key outstanding questions.   via Spain IS Greece After All: Here Are The Main Outstanding … Read more

‘s too expensive to leave

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I’ve been struggling with a metaphor to describe the state of affairs in Europe.  I’ve got it now.  It’s a bad marriage .  All parties now realize they’d be better off ending it except they can’t afford the divorce.  At some point, my guess is that Germany answers the question, “Why are euro divorces so expensive?  Because they’re worth it.” or do they just learn to live together and make the best of it.  I don’t know the German psyche well enough to answer that one.  Perhaps one of our readers will hazard a guess?

Soros says Europe has three months to avoid catastrophe

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I don’t pretend to know what’s going to happen but I’ve said many times, the world would be much better off without the euro.  For reasons beyond my comprehension, the Europeans seem hell bent on keeping it.  Perhaps this speech from George Soros will make it clearer to you. Remarks at the Festival of Economics, Trento Italy June 2nd  

Spain’s Banking Rescue Should Become Example for Europe – Bloomberg

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Spain’s Banking Rescue Should Become Example for Europe   Europe’s leaders can’t save their currency union without figuring out a way to salvage the region’s banks. Spain is a perfect place to start.Perhaps no country better illustrates the mutually reinforcing links among the euro area’s banking, sovereign-debt and economic crises than Spain. Its banks are largely paralyzed amid concerns about heavy losses on real estate loans that, by various estimates, could require as much as 120 billion euros $150 billion in fresh capital to offset. Tight bank credit has in turn deepened the country’s economic slump, increasing banks’ potential losses … Read more

| George Soros

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It should be recognized that a disorderly default or exit from the eurozone, even by a small country like Greece, would precipitate a banking crisis comparable to the one that caused the Great Depression. It is no longer a question whether it is worthwhile to have a common currency. The euro exists, and its collapse would cause incalculable losses to the banking system. So the choice that Germany faces is more apparent than real – and it is a choice whose cost will rise the longer Germany delays making it. via Germany must defend the euro | The Great Debate.