Germany and its puzzles Greek
April 6th, 2010
The atmosphere in recent weeks to 1, Willy-Brandt in Berlin is very tense. The headquarters of the German Chancellery, one of the largest buildings in the world of executive power - size 8 times the White House - full of thousands of officials busy on serious topics of the hour, the unemployment rate soaring to economic recovery through the fight against tax evasion.
However, the issue of greatest concern to Angela Merkel, the German Chancellor and his closest is on the financial chaos in Greece and its consequences for the euro zone.
Given its solid economic fundamentals, excellent side at the rating agencies, and disciplined management of public funds precepts worthy of the greatest strategists of the Wehrmacht, Germany was able to resist
However, the issue of greatest concern to Angela Merkel, the German Chancellor and his closest is on the financial chaos in Greece and its consequences for the euro zone.
Given its solid economic fundamentals, excellent side at the rating agencies, and disciplined management of public funds precepts worthy of the greatest strategists of the Wehrmacht, Germany was able to resist
the crisis of other EU countries.
Berlin is not only the leading power of Europe in many respects, it remains essentially its economic engine. This position poses a dilemma for him because its dependence on other countries of the Union (for its exports) and non-tariff barriers (Agreement) force her to help them.
Clearly, Germany has to "breathe" Marshall Plan for soft bellies of the economic chain of the federation if it does not itself suffer eventually. Angela Merkel and her Finance Minister Wolfgang Schauble have long been reluctant to deeper involvement of Berlin to help the economies of the EU disabilities. They feel strongly that some of their neighbors use Europe as a scapegoat for their internal problems.
This mistrust explains their choice not to use the European Central Bank and the Bundesbank as major donors, preferring the IMF and other transnational channels so as to leave the risk on a larger platform of financial actors and countries .
It must be said that Greece has not been recently a model of economic management in the eyes of German observers and financial markets. Far from being a dwarf geostrategic as Iceland, Greece a strong economy (mainly based on tourism and the maritime industry) ranked 26th on list of IMF (GDP per country in 2009).
But the fact is that the surrealist countries, led now by the Prime Minister Georgios Greek-American, was convicted of falsification of accounts statistics on its entry into the European federation.
The executive must take Hellene to grips with the problem of deficit and debt service, and fiscal austerity programs are bound to increase social movements in the months ahead.
Other countries of the old continent have a similar prognosis, and are grouped under the acronym of English not PIGS (pigs). These countries are Portugal, Italy, (Greece), and Spain, they also have savings undermined by the collapse of the housing market, the rising unemployment, the industrial base crumbled and massive relocation of firms private.
The European authorities will react for sure to avoid a snowball effect is potentially harmful to the rest of Europe. Many options available to them, help direct the ECB to Greece on a partial redemption of debt by the Greek ECB through grants transnational structures such as the IMF and an increase in protectionist measures to stop the bleeding pending economic (eg shoes war with China).
About the author:
I am a professional financial markets (as a trader but also as a lover of financial instruments) that has a solid experience in managing business risks. Am bilingual and fluent in English.
My interests revolve around the issue of interdependence, in particular the essential interconnection that must bind the economics and social harmony to fulfill our collective destiny. I attach special importance to issues related north-south geo-strategic relations, the nature and capacity of social wealth in the process of promoting sustainable economic growth, the structural roots of poverty in the (supposedly ) Third World, and finally, the new dynamic created by the (supposedly) emerging countries.
Furthermore, I am a graduate MBA (Master of Business Administration) from Rutgers University in New Brunswick in the state of New Jersey, and I am accountant training. I own 5 other professional certifications in management, financial control, auditing, and investment analysis. In addition, I have two master's degrees in business management and accounting obtained at Monroe College in New York.
Berlin is not only the leading power of Europe in many respects, it remains essentially its economic engine. This position poses a dilemma for him because its dependence on other countries of the Union (for its exports) and non-tariff barriers (Agreement) force her to help them.
Clearly, Germany has to "breathe" Marshall Plan for soft bellies of the economic chain of the federation if it does not itself suffer eventually. Angela Merkel and her Finance Minister Wolfgang Schauble have long been reluctant to deeper involvement of Berlin to help the economies of the EU disabilities. They feel strongly that some of their neighbors use Europe as a scapegoat for their internal problems.
This mistrust explains their choice not to use the European Central Bank and the Bundesbank as major donors, preferring the IMF and other transnational channels so as to leave the risk on a larger platform of financial actors and countries .
It must be said that Greece has not been recently a model of economic management in the eyes of German observers and financial markets. Far from being a dwarf geostrategic as Iceland, Greece a strong economy (mainly based on tourism and the maritime industry) ranked 26th on list of IMF (GDP per country in 2009).
But the fact is that the surrealist countries, led now by the Prime Minister Georgios Greek-American, was convicted of falsification of accounts statistics on its entry into the European federation.
The executive must take Hellene to grips with the problem of deficit and debt service, and fiscal austerity programs are bound to increase social movements in the months ahead.
Other countries of the old continent have a similar prognosis, and are grouped under the acronym of English not PIGS (pigs). These countries are Portugal, Italy, (Greece), and Spain, they also have savings undermined by the collapse of the housing market, the rising unemployment, the industrial base crumbled and massive relocation of firms private.
The European authorities will react for sure to avoid a snowball effect is potentially harmful to the rest of Europe. Many options available to them, help direct the ECB to Greece on a partial redemption of debt by the Greek ECB through grants transnational structures such as the IMF and an increase in protectionist measures to stop the bleeding pending economic (eg shoes war with China).
About the author:
I am a professional financial markets (as a trader but also as a lover of financial instruments) that has a solid experience in managing business risks. Am bilingual and fluent in English.
My interests revolve around the issue of interdependence, in particular the essential interconnection that must bind the economics and social harmony to fulfill our collective destiny. I attach special importance to issues related north-south geo-strategic relations, the nature and capacity of social wealth in the process of promoting sustainable economic growth, the structural roots of poverty in the (supposedly ) Third World, and finally, the new dynamic created by the (supposedly) emerging countries.
Furthermore, I am a graduate MBA (Master of Business Administration) from Rutgers University in New Brunswick in the state of New Jersey, and I am accountant training. I own 5 other professional certifications in management, financial control, auditing, and investment analysis. In addition, I have two master's degrees in business management and accounting obtained at Monroe College in New York.
