Government Building, Dublin. Photo: (Wiki) – Government Buildings, Dublin, Ireland, by Mike Peel, http://en.wikipedia.org/wiki/File:Government_Buildings,_Dublin.jpg – 12th August 2005, Photograph by Mike Peel (www.mikepeel.net).
Irish Times – The German Chancellor has “warned” (RTE News) that her country’s financial strength should not be overestimated by those who believe German money can solve every problem. Angela Merkel has also warned against overstraining the resources of Europe’s biggest economy. Merkel rejected solutions to the eurozone debt crisis such as issuing joint euro bonds or creating a Europe-wide deposit guarantee scheme.
Ms Merkel said such proposals were "counter-productive" and would also violate the German constitution. – RTE News
* The implication of Merkel’s remarks would seem to be that Germany regards itself as being insulated from the European crisis. If Merkel is correct about Germany’s fiscal position, than prospects for an ESM fund sufficient to deal with the crisis would seem to be distinctly weak, as it is unclear as to just where the money for this “bailout” fund is to come from.
It is hardly likely, moreover, that Russia or China are going to open their coffers into a bottomless bank deposit fund. Perhaps this will be made clear in the coming days, as if Merkel is correct about the available German reserves, then Ireland is in a very serious position, given the state of the economy.
Perhaps Minister Noonan, currently promoting the European Stability Mechanism Bill, (ESM), can clarify.
Angela Merkel warns those who think German money can solve all problems, RTE News, 9:55am, Friday, 15th June 2012 – http://www.rte.ie/news/2012/0615/merkel-germany-cant-solve-eurozone-crisis-alone.html