Bring back the DM?
Why do they do it? This was asked by a friend of Germany; we had been talking about the contributions countries make to the EU coffers and the fact that the Germans always appear to pay more than anyone else. this would be a good question to ask Angela Merkel and, without her reply, the reasons can only be guessed. Perhaps the plan is to pay so much to the EU that they end up de facto owners of it all. As the financial crisis takes another turn we learn that Greece is set to follow Ireland and offer full security to bank deposits. It will soon be time to make a list of EU member countries who do and don't offer this service; because the way things are going soon Germany may stand alone with the UK.
From THIS article in the Telegraph we get the following quote -
Greek officials said the state would cover "all bank deposits, whatever the amount." The move follows the dramatic decision by Ireland this week to guarantee the deposits and debts of its six biggest lenders in the most sweeping bank bail-out since the credit crisis began.
We also see -
The whole of Europe will have to do the same thing, otherwise Europe will have a split banking system," said Hans Redeker, currency chief at BNP Paribas. British banks are already facing a haemorrhage of deposits to Irish banks that now enjoy the AAA sovereign rating of the Irish state.
The article goes on -
The Greek move puts fresh pressure on Germany to back the mounting calls for an EU lifeboat fund to shore up Europe's struggling banks, even though such a plans are anathema to Berlin. Chancellor Angela Merkel warned that there would be no "blank cheques" for those who get into trouble.
Berlin fears that any such fund is a Trojan Horse that could ultimately leave German taxpayers footing the bill for a massive bail-out of southern Europe as the region's booms turn to bust. Key ministers are now frantically trying to stop the idea gaining a serious head of steam.
I find it rather funny that at this late stage Berlin is worried about a big bill for the German taxpayer as it's been that way, paying over the odds for the EU, for so long. Mind you the typical German has never forgiven his parliament for getting rid of the Deutschmark. So could this be the point at which it gets hard to keep the typical German onside when it comes to total love and devotion for the EU?
It's all very well saying EU member countries should not offer the 100% deposit safety scheme as this is against EU law, so what? It is against the law for young black boys to smoke cannabis at the back of the top deck on Birmingham buses but they do.
And what if the Germans get uppity, can we blame them, they have paid out and we will all be the worse off if they don't continue to foot the EU bill. So what if they stop paying? We will have to remember the Noël Coward song -
'Don't Let's Be Beastly to the Germans'
And on behalf of dear Noël may I apologise for the cigarette in his hand.