Germany and America were on a collision course on Tuesday night over the handling of Europe’s debt crisis after Berlin savaged plans to boost the EU rescue fund as a “stupid idea” and told the White House to sort out its own mess before giving gratuitous advice to others.
German finance minister Wolfgang Schauble said it would be a folly to boost the EU’s bail-out machinery (EFSF) beyond its €440bn lending limit by deploying leverage to up to €2 trillion, perhaps by raising funds from the European Central Bank.
“I don’t understand how anyone in the European Commission can have such a stupid idea. The result would be to endanger the AAA sovereign debt ratings of other member states. It makes no sense,” he said.
Mr Schauble told Washington to mind its own businesss after President Barack Obama rebuked EU leaders for failing to recapitalise banks and allowing the debt crisis to escalate to the point where it is “scaring the world”.
“It’s always much easier to give advice to others than to decide for yourself. I am well prepared to give advice to the US government,” he said.
[More]
See Also:
EU chief: We must unite over debt crisis
Debt crisis is a ‘baptism of fire’ for the European Union
Europe Set to Vote on Tougher Rules for Currency
Afternoon Updates:
12:12 pm EDT, September 28th, 2011 – Can bankrupt Greece take lessons from Argentinian default?
12:13 pm EDT, September 28th, 2011 — Sarkozy in dire straits seven months before election
12:14 pm EDT, September 28th, 2011 — Pressure grows on Greece as Italy hit by downgrade
12:16 pm EDT, September 28th, 2011 — Jenkins: Without a growth plan, the EU faces financial Waterloo
12:17 pm EDT, September 28th, 2011 — Obama’s Euro-Crisis Lecture Is ‘Pitiful and Sad’
12:18 pm EDT, September 28th, 2011 — Merkel’s Chancellorship at Stake in Key Euro Vote
12:20 pm EDT, September 28th, 2011 — Berlusconi Locked in Risky Vendetta with Minister
12:21 pm EDT, September 28th, 2011 — EU division fears cap world market gains
12:22 pm EDT, September 28th, 2011 — Architect of euro says Greece must go
12:24 pm EDT, September 24th, 2011 — Doubts creep into Greek rescue
12:25 pm EDT, September 28th, 2011 — European Commission financial tax opposed by UK
12:32 pm EDT, September 28th, 2011 — Euro Crisis Makes Fed Lender of Only Resort as Funding Ebbs
I know there is a lot here today and I do not expect visitors to read it all. Just the parts that may be interesting.
Having said that I will say this. All hell is breaking loose in “La La Land” and there is much more which I will post in the morning. This situation does not look good and in truth, there is no way it can.
The EU has run into a brick wall.