Monday, July 2, 2012
Merkel: Just Say Nein to Eurobonds
Wall Street Journal
July 1, 2012
The European financial crisis has created an unusual mix of allies. Politicians, hedge fund managers, liberal pundits and the financial press are determined to convince German Chancellor Angela Merkel that economic salvation requires the European Central Bank to issue eurobonds.
Prior to last week's European Union summit in Brussels, the Organization for Economic Cooperation and Development endorsed French President Francois Hollande's plan to do just that and insisted Mrs. Merkel agree. She wouldn't, but at the summit she was all but held captive until relenting to some other bailout.
Meanwhile, money managers have waged their own campaign to get Mrs. Merkel on board. Financier George Soros has predicted dire consequences for Europe if Germany does not acquiesce. Harvard historian Niall Ferguson accused Mrs. Merkel of repeating the mistakes of Weimar Germany that led to the collapse of democracy. He did not use the "N word," but we all know an appeal to German guilt when we see one.
Each faction has its own reason for pressuring Germany but all share a common characteristic: They are wrong.