"It would appear that the German public (and political class to some extent)
are beginning to see the European project in the same manner as we described
back in July.
As the increasing burden of saving the eurozone from its own excess falls on the
shoulders of every Tobias, Dirk, and Heike taxpayer in Germany, even industry
leaders, such as Wolfgang Rietzle, the CEO of Linde, this weekend according to
Reuters,
are suggesting a line in the sand has to be drawn and that "if we do not
succeed in disciplining countries then Germany needs to exit." This has
been very much a
view we have held for months now that instead of the periphery limping away
one-by-one, the very core of the foundation will simply decide enough is enough
or as Reitzle notes (among many other critically insightful comments)
"the willingness of countries to reform themselves is abating if, in the
end, the European Central Bank steps in." This morning Germany's FinMin
Schaeuble added to the potential separation chatter with his comments, via
Bloomberg:
- *SCHAUEBLE SAYS ECB AS LENDER OF LAST RESORT WOULDN'T CALM MKTS
- *SCHAEUBLE SAYS JOINT EURO REGION BOND SALES NOT A SOLUTION..."