Thursday, June 14, 2012
Germany, Europe’s Rich Uncle, Is Losing Its Patience
June 14, 2012
Germany is feeling more and more like the rich uncle in a poor family. Its spendthrift relatives in the euro area are lining up to shake down their wealthier kin for loans that they may never be able to repay.
Actually it's worse than that: Those poor relatives seem to have forgotten that their uncle has already given them a lot of money.
Chancellor Angela Merkel warned in Berlin today that "all resources, all measures, all packages will end up being smoke and mirrors if it becomes clear in the end that they extend beyond Germany's capacity." Agreeing with her was Hans-Werner Sinn, a government adviser, who noted in a New York Times op-ed that Greece has already received the equivalent of 29 Marshall Plans from Germany, which stands to lose more than $1.35 trillion if the euro fails.