Nowadays I feel that the phrase EUROPE NEEDS GERMANY HELP can sound more familiar than GERMANY NEEDS EUROPEAN HELP. When we talk about eurobonds is is in someway like saying EUROPE NEEDS GERMANY HELP.
But there is something that worries me. It seems as if Germany could save a bit the eurozone by just accepting eurobonds and by the others accepting German austerity.
Living in a peripheral country needing a bailout for the banks it is easy to look at Germany and say: How lucky they are! I wish my country was in German position.
But if you think over and over it it is not very difficult that Germany is too in a very dramatic and stressful situation!
As far as I see the current situation in the eurozone the only solution I see to stop the attack to weaker countries is that Germany pays in someway the bills of peripheral countries. Eurobonds is the euphemism for that.
But let’s imagine that tomorrow Angela Merkel wakes up in a very rare mood and accepted that. Imagine that Angela Merkel said: “I HAVE CHANGED OF MIND. WE CANNOT REMAIN LIKE THIS. GERMANY IS GOING TO PUT ALL ITS STRENGTH TO DEFEND THE EURO. GERMANY ACCEPTS EUROBONDS AND TO PAY TH BILL AND ALL IS NEEDED IN ORDER TO SHOW TO THE WORLD THAT AN ATTACK TO THE EURO IS AN ATTACK TO GERMANY”
Well, if Germany did that it is obvious that in countries like Spain, Portugal, Greece, etc we wouldbe delighted! No more worries! The powerful Germany putting all its money to save us!
But then …
What would happen in Germany?
Well, it would be a nightmare in Germany! People in Germany would be so so angry that Angela Merkel would not last even a second more as chancellor!
Germans, I believe, have the feeling of being very careful in doing things in a proper way so they are proud of their country and its achievements. So, it is not strange they see they deserve to have a wealthy country because they do things in a right way for that goal. So to pay for countries which they see that have not acting in a proper way must be almost a crime.
I think this is the real dilemma now in Europe. If we want the euro to survive it is necessary that money from Germany goes to the weaker parts of th eurozone.
So I think that Angela Merkel is asking so much austerity to peripheral countries because it is a way to show to Germans that something is asked to the peripherla countries in exchange.
I think the dilemma is now a terrible one! If Germany does “not pay the bill” then the eurozone collapses and quite soon. On the other hand if Germany “pays the bill” then Germany has to get quite sure that the eurozone is under control.
But my big worry is that even if we have MEHR EUROPE, as Angela says, would this compensate the Germans?
I say that because I feel that having MEHR EUROPA is going to be a difficult path as states will have to lose sovereignty. But for peripherla countries it could be good as it means to have a strong currency. But for Gemrnay?
I am afraid that Germany could find that it creates a strong euzone but that the prize for that is a Germany that pays the bill.
And I can assure you that if a territory has the feeling that it is paying the bill that cannot be good.
Can you imagine Germany having to transfer a lot of money to Spain and at the same time having in the future an increase in jobless people?
So when I say that GERMANY NEEDS EUROPEAN HELP what I mean is that I find it is necessary that we realise that Germany is too in a very difficult situation.
Who says that a more integrated Europe would be a more peaceful Europe? I cannot imagine that a eurozone that needs money to pay the bills can last for long.
If Germany has too much power in the eurozone we will have a lot of friction as some countries would feel they are asked too much austerity. On the other hand if Germany is obliged (by US, China, etc) to bring stability to the eurozone by “paying the bill” then we will be creating a dangerous climate in Germany!
So I imagine one way to help Germany is to acknowledge the good things we can learn from Germany and try to have these good things in a European level.
We need to create in the eurozone more places like Germany. If the eurozone is to succeed it is necessary that we take the good things from each country.
I have friends in Germany. How on earth can I explain them that their country must pay the bill for Spain? Why should them accept that? The only way I see for them to accept that it is to get them assurances that Spain is not going to waste the money.
In Spain there are a lot of houses that are not sold. We had the real estate bubble and now some banks are in trouble because they put money there. Why not come, for example, the Gemran, to live in Spain?