The left-leaning Berliner Zeitung writes:
“People in the euro crisis have become accustomed to one constant: What Chancellor Angela Merkel categorically rejects today can still be implemented tomorrow. That makes the euro-bond debate … so exciting. A ‘no’ from Berlin doesn’t necessarily mean the last word.”
“There are many indications that Germany will have to finally give in again and accept one of two solutions: Either increased bond purchases by the ECB or euro bonds. But in exchange, Merkel will exact a price. She wants to use the acute urgency to construct a euro zone that corresponds to her vision…. If Europe allows this new currency union with rigid controls for countries that exceed debt limits, then Merkel will open herself up to things she has so adamantly rejected. But she’s begun a dangerous game. It could come to pass that that the currency union she wants to stabilize according to German plans may no longer exist. Then even the best treaty amendments won’t help.”
‘Never let a crisis go to waste’ is all politicians’ catchcry. But if Europe wants a real union and they aren’t mature enough to live up to their Maastricht treaty obligations of deficits and debt to GDP then so be it that Merkel forces them with the threat of economic catastrophe before saving them but the markets are extremely powerful and may destroy the union quicker than she can reform it. It is one ballsy move that will either make her a stateswoman if it succeeds or a reckless hack if she fails. Talk about a hail Mary pass!