Germans turning against the euro

[lovuian]

Germans turning against the euro

http://feeds.bignewsnetwork.com/?sid=ffd325bafd7ff32c

Big News Network.com Thursday 2nd June, 2005 (UPI)

Top German finance officials recently discussed abandoning the euro over fears the single currency was doing serious harm to their economy.

Germany's Stern magazine reported Finance Minister Hans Eichel called a secret Berlin meeting last week, which included Axel Weber, the Bundesbank chief and began with a briefing by Joachim Fels, Morgan Stanley's eurozone economist.

Fells discussed the enveloping budget deficit crisis in southern Europe, notably Italy, and warned of a meltdown risk that could break up the euro-zone, the Telegraph said Thursday.

He told them high-debt states were unlikely to leave the eurozone by choice, but Germany and a few other nations could save themselves by leaving.

Earlier this week Fels repeated his warning, saying Europe was now on a slippery slope toward disintegration and instability. The risk of a euro wreckage has risen significantly
more...

This is just completely falling apart!!!

[bluedeminredstate]

1. It would appear to solve that pesky

Euro problem for the US...

[Maple]

2. The EU isn't about to

break up, so relax.

Too much prosperity and peace.

This story has already been denied...scoffed at even.

[lenidog]

4. I wouldn't bet money on it staying together.

[Maple]

5. Then you'd lose

a good bet.

[lovuian]

8. I disagree Maple as a person who has relatives in Germany

the Euro has not brought prosperity but has cause them to lose money!!!

[Maple]

11. The EU is doing very well

It's not always distributed evenly, but Germany has been held back by it's own problems.

Absorbing East Germany for starters.

[rfkrfk]

36. currency yes, people no

[lenidog]

12. Yeah its helped countries like Italy but not one like Germany

[Maple]

18. They knew that

going in.

[lovuian]

21. But did the people know how much it was going to hurt their

pocketbooks!!!

[lovuian]

6. So these meetings didn't happen???

I would love to read the article

[Maple]

14. Here tis...

Euro collapse report 'absurd': Bundesbank chief

1 June 2005

BERLIN - The president of Germany's central Bundesbank on Wednesday rejected as "absurd" a report saying he had taken part in a meeting at which the possible collapse of the euro was discussed.

In a statement, Bundesbank chief Axel Weber, said he would never take part "in such an absurd discussion".

"The euro is a success story," said Weber in the statement.



http://www.expatica.com/source/site_article.asp?subchannel_id=52&story_id=20613&name=Euro+collapse+report+'absurd'%3A+Bundesbank+chief

[lovuian]

16. Thanks Maple Intersting Maybe these Secret Minutes are like

Cheneys Energy Minutes ... Never happened but did!!!

food for thought thanks for the article!!!

love this sentence!!!

Stern magazine based the story on what it says are secret minutes it obtained of a meeting last week between Eichel and Weber.

Berlin's finance ministry, according to the report, says Germany has lost what used to be its interest rate advantage under the old Deutsche mark
.........................

if you were a banker in Euros you sure wouldn't want people to know you were thinking of dumping them!!!

[HuckleB]

31. Indeed: German govt says reintroduction of the deutschmark 'not an option'

http://www.forbes.com/business/feeds/afx/2005/06/03/afx2074926.html

[lenidog]

3. Doesn't suprise me

The Germans were very hesitant to give up the Mark for the Euro to begin with. The German economy and governments had made the Mark one of the strogest currencies in the world and they were hesitant to give it up for an untried currency and one that could get harmed by letting unstable economies like Italy or Spain into the mix.

[Maple]

7. Germany had to

absorb an entire other country...it takes awhile for a pig to get digested by even the best python.

[lovuian]

9. But does the German people want to be saddled with Italy's Debt

thats the question???

[lenidog]

10. Very true

and the average former West German isn't happy about that either. They had a poll in Germany a month or two ago that something like 60 or 70 percent wish they had never gone through re-unification because they believe it has cost them and the economy too much.

[Maple]

13. A little late to

worry about it.

[lovuian]

15. Your right but it makes for Political Hot Water & Germans are NOT

HAPPY!!! with the Euro!!!

[Maple]

17. Germany will survive

The EU is a new concept in the world after all...just a baby politically.

There will be lots of problems and speed bumps...but it's a goal worth working towards, and I'm sure Germans are up to the task...as are the French and the Dutch and the...

[lenidog]

19. You are quite correct in that department

[Baclava]

39. Nationalism on the rise?

Is Poland safe?

[HuckleB]

28. True enough.

Still, overall, this would be an odd time to bag out on a currency that's done quite well.

[lovuian]

20. I'm sure Germany will survive but will the Euro???

thats a currency with No Country truly backing it!!!

[Nihil]

24. People in glass houses?

Given the situation of the US dollar, I doubt anyone will try to push
the Euro aside just yet ... or maybe some nutcases would be prepared
to gamble on a currency whose "backing country" is so deeply overdrawn
that its survival depends on continuing international cooperation not
to admit that the Emperor's Clothes are non-existant?

There are just so many global collapse possibilities teetering on the
edge at the moment, it would only take one "unfortunate event" for a
real meltdown.

[Julius Civitatus]

35. Wrong, dude. Twelve countries back up the Euro

and did bet the house on this currency. This is no joke.

http://en.wikipedia.org/wiki/Eurozone

[Iterate]

22. This is faux/Murdoch bullshit

Did anyone take the trouble to see who these people are?

They took a story with some slight marginal truth and have attempted to turn it into a big news stampede, echoed by others of their ilk, which just coincidentally aids their right-wing buddies. Sound familiar?

There are epic struggles going on behind the scenes as Europe reshapes itself, struggles for power, position, and control that go on daily. This is just one of them. Neocons, big corporate, big banking, political interests, wings, and parties, and some guy from Madrid who wants to keep his three hour lunch break; they're all trying to influence how this turns out, each for his own reasons.

Just look at the groups and understand what they want out of this: one Europe or many nations, one market or many, one workforce or many, one political voice or many. Do that and it's easy to see that the consensus is for unification (right-wing excepted), but with controls and protection.

Having said that, this is not a time where broad generalizations work very well.

Except for this one: Nothing is falling apart.

[Cessna Invesco Palin]

25. Isn't UPI the moonie wire? n/t

[Julius Civitatus]

32. Yup. It's a Murdoch lie. They are bent on trashing EU

And spread bad news, even if it takes Fox-News style of lying in the European continent.

[fujiyama]

23. If this is true

it's very interesting to note especially after the recent rejection by both France and the Netherlands of the EU constitution.

[macllyr]

26. I think this is a plan to force the Euro to drop

I suspect all these declarations are part of a concerted action to make the Euro drop to 1,10 – 1,15 USD. Expect the rumors of several countries leaving the Eurozone to swell in coming weeks. After all, if the Constitution was going to be adopted by all countries, the Euro would probaly rise to 1.5 USD. And then, no more Airbus sales....

Mac L’lyr

[Kellanved]

27. the report has been denied. It is absurd anyway.

While it is true that the Euro is the main cause for Germany's economic trouble (at least according to about 100% of all macroeconomists not following a political agenda), leaving it would hardly help. The reason for the economic problems is not the Euro itself, but the Kohl government's fuckup when managing the monetary reunification. The GDR money was valueless, but the GDR citizenz were allowed to exchange it for Deutschmarks.
That itself is okay, but the money came directy from the printer - to compensate the DeutschMarks exchange rate would have needed to drop by about 20%.
When the exchange rates for the Euro became fixed, Germany entered with a currency 20% above its real value, hence now eveything in Germany - including labor - is 20% more expensive than it should be.

Leaving the Euro wouldn't help though: Germany's economy depends on exports and trade. Without a trade block like the EU, it would be royally fucked indeed.


Alas, the report in the OP is absurd. There are upcoming elections, no way something like that would be discussed just now.



http://www.expatica.com/source/site_article.asp?subchannel_id=52&story_id=20613&name=Euro+collapse+report+%27absurd%27%3A+Bundesbank+chief

[lovuian]

38. While the report has been denied the Minutes of the Meeting

remain Secret!!! WHY???

[struggle4progress]

29. There's concerted covert action by Negroponte's boys ..

.. to scuttle the EU.

[Julius Civitatus]

33. Yes. Also the PNAC called for boycott any other economic power

that could overshadow the USA. How nice of the "free market" crowd!

It's interesting that when other countries start developing successful alternatives to the American economy, the "free market fundamentalists" quickly call for boycotts, trade barriers, import bans and such.

Hypocrites.

[HuckleB]

30. Germany, Bundesbank Hail Euro, Reject Failure Talk

Germany, Bundesbank Hail Euro, Reject Failure Talk

http://www.bloomberg.com/apps/news?pid=10000100&sid=a1Gy1vtDyQhU&refer=germany

"The German Finance Ministry and the Bundesbank hailed the euro as a success, rejecting a magazine report that they have discussed the possibility the currency shared by 12 European countries may fail.

The weekly magazine Stern today said the Bundesbank President Axel Weber and Finance Minister Hans Eichel held talks with economists on the issue last week.

The euro was close to an eight-month low against the dollar today after French voters' rejection of the European Union's constitution and a deteriorating growth outlook undermined some investors' confidence in the economy's prospects in coming years. Morgan Stanley's Joachim Fels said today he is ``worried about the long-term viability of the euro.''

Weber ``is not taking part in any such absurd discussion,'' his spokesman at the central bank, Wolfgang Moerke, said in an e- mailed press release. The euro is ``a success story,'' he said, echoing a comment made by Finance Ministry spokeswoman Sandra Hildebrandt in a telephone interview.

..."



Sounds like someone's trying to stir up a pot that doesn't exist.

[Julius Civitatus]

34. They'd rather kick Italy out of the Euro-zone than have Germany leave

And I expect the EU to get tough on Italy and their NEVER-ENDING budget problems.

PS: They knew that Italy was going to be a problem if it entered the Euro zone. They knew it well, and I remember reading about it all over. There was a great concern that Italy endemic economic problems were going to pull down the Euro and hit the pocketbooks of the rest of the EU members. It's no surprise.

I expect the EU to have a serious intervention-style chat with Italy in the coming months.

[rfkrfk]

37. advice for the Dutch, deficits are your friend

do what everyone else does.
stop being the chump.

[Baclava]

40. Deja-vu......"EU leaders forced to calm jitters over euro"

By Anthony Browne, Brussels Correspondent

THE political crisis that has engulfed the European Union since France and the Netherlands rejected its proposed constitution yesterday threatened to spill over and damage the euro.
Embattled EU financial leaders spent the day defending the currency, dismissing talk of its break-up as “absurd”. One senior EU official said: “Euro notes and coins are for ever, like the euro.”

In a symptom of the seriousness of the creeping doubts, Roberto Maroni, the Italian Welfare Minister, had suggested in an interview with La Repubblica that a referendum should be held on bringing back the lira. The euro had “proved inadequate in the face of the economic slowdown, the loss of competitiveness and the job crisis”, he said.

“Wouldn’t it be better perhaps to return, temporarily at least, to a system of dual circulation of the euro and lira?” He cited Britain as an example of a nation “growing and developing by holding on to its own currency”.





http://www.timesonline.co.uk/article/0,,13509-1640754,00.html

[HuckleB]

41. Ah, so politicians can point to the Euro for blame,

when the economy dips. Now I get what this is all about.

:eyes: