More Pressure on Germany To Cave In
June 28, 2012 • 8:08AM

In her government statement Wednesday afternoon in the Bundestag, German Chancellor Angela Merkel repeated her sharp criticism of the EU leadership paper, saying that it puts "guarantees" too much into focus, instead of more "competition and reforms." Instruments like euro-bonds, euro-bills, and debt redemption funds were not possible according to the German Constitution. She stressed, "also, economically, I consider them wrong and counterproductive." For the June 28-29 European Council meeting, in Brussels, she expects a lot of controversy.

Tuesday, before the FDP parliamentary faction, Merkel had promised she would not give in to the demands on Eurobonds or similar proposals, "as long as I live." This reportedly prompted some to get up and tell her, "We wish you a long life!" Der Spiegel reports that the government vehemently opposes the EU leadership for a joint debt union. Yesterday, also, the Foreign Ministry had criticized the "master plan" of the EU leaders. State Secretary Michael Georg Link remarked that, while the Eurozone should be kept, no confidence is won by a mutualization of debts.

The financial daily Handelsblatt reports official government estimates that Germany is already in a bind, with EU310 billion in guarantees.

Meanwhile, attacks and pressure on Germany are continuing. Probably as a signal, yesterday, a minor U.S. agency, Egan-Jones Ratings Company, downgraded Germany from AA- to A+, saying that "whether Greece or any other country leaves the currency union or not, Germany will in any case be left with massive additional outstanding claims." Then, they attack Merkel for her resistance against Eurobonds and her fiscal austerity demands, which leads "to further tensions" with other EU member-states.

This echoes the line of outrageous attacks by George Soros in the last several days, such as yesterday's interview in Der Spiegel, warning that if Germany doesn't buckle, it will become "hated." There, he heaped praise on Finance Minister Wolfgang Schäuble as "representative of the Germany of Helmut Kohl. He is the last European standing, and he is a tragic figure, because he understands what needs to be done, but he also realizes the obstacles that stand in the way, and he cannot find a way to overcome these obstacles."

Soros says that "Germany will always do the minimum to preserve the euro. Doing the minimum, though, will perpetuate the situation ... The result will be ... Germany is seen as an imperial power ... hated and resisted, because it will be perceived as an oppressive power."

Spiegel asked Soros repeatedly, "How is this that Germany's fault?" Soros replied that it was France and Germany which pushed for it. Then, he says, in typical mafia fashion, that back then, "Germany that was always willing to pay a little bit extra to reach a compromise that everybody accepted, because Germany was so eager to get European support for reunification. That was called the 'farsighted vision,' which created the European Union," and Germany profited most from it.