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| Europe |
| Germany slams 'stupid' US plans to boost EU rescue fund |
| 2011-09-27 |
| Germany and America were on a collision course on Tuesday night over the handling of Europe's debt crisis after Berlin savaged plans to boost the EU rescue fund as a "stupid idea" and told the White House to sort out its own mess before giving gratuitous advice to others. German finance minister Wolfgang Schauble said it would be a folly to boost the EU's bail-out machinery (EFSF) beyond its €440bn lending limit by deploying leverage to up to €2 trillion, perhaps by raising funds from the European Central Bank. "I don't understand how anyone in the European Commission can have such a stupid idea. The result would be to endanger the AAA sovereign debt ratings of other member states. It makes no sense," he said. Mr Schauble told Washington to mind its own businesss after President Barack Obama rebuked EU leaders for failing to recapitalise banks and allowing the debt crisis to escalate to the point where it is "scaring the world". "It's always much easier to give advice to others than to decide for yourself. I am well prepared to give advice to the US government," he said. The comments risk irritating the White House. US Treasury Secretary Tim Geithner has been a key driver of plans to give the EFSF enough firepower to shore up Italy and Spain, fearing a drift into "cascading default, bank runs and catastrophic risk" without dramatic action. |
| Posted by:tipper |
| #3 "Bundesverfassungsgericht" > D *** NG IT, THIS IS WHY GOD INVENTED TEXTING! |
| Posted by: JosephMendiola 2011-09-27 23:27 |
| #2 I don't think ratings will matter much at this point. What Geithner is proposing would simply violate the German Constitution, and the Bundesverfassungsgericht has already ruled on that matter. |
| Posted by: European Conservative 2011-09-27 22:49 |
| #1 The result would be to endanger the AAA sovereign debt ratings of other member states Wolfie has failed to notice those debt ratings are already in danger. |
| Posted by: Anguper Hupomosing9418 2011-09-27 22:15 |