Friday, June 18, 2010

Germany tries to blackmail Spain into more cuts

Germany (or at least some German officials) tried to play dirty and plant rumors about the Spanish government being on the verge of needing IMF help in order to try to get the Spanish to go for an even harsher austerity program.

Sort of like shooting someone in order to convince them to donate blood.

Spain retaliated by releasing the results of recent stress tests that showed Spanish banks doing better than average (which Germany had opposed).

I really hope that more European governments realize that Germany is playing with a very weak hand with their austerity drive. Sovereign default in Europe is a game of mutually assured destruction, and Merkel is not willing to pull the trigger.

1 comment:

Anonymous said...

Merkel did much better than anyone else in Europe as we know by now and certainly better than the US oficials with a significantly worse result.