CSU Leader Horst Seehofer
As I suggested this morning, the Bavarian CSU would be adamantly against bailing out Greece. This report from the FT this evening bears out that theory. Merkel cannot hold a majority in Germany without the CSU. They supported her to get the Lisbon Treaty signed, but are clearly not willing to go any further towards European integration.
The CSU is already at loggerheads with Merkel over a German bank bail-out package, let alone helping Greece. See Bloomberg link HERE.
Germany has nothing to spare to save the Euro. Like Britain, she has to save herself first.
Might we say that, as far as the CSU is concerned, ‘The Yuck Stops Here’. If this report is correct, maybe we have seen the high watermark of European integration.
FT – OBSTACLE TO MORE DETAILED AGREEMENT ON GREECE SUPPORT NOW IS LACK OF GERMAN JUNIOR COALITION PARTNER CONSENT-EU SOURCE Link Here.
The CSU are very provincial in their outlook, and they wear very provincial outfits. See This.
Extract from my this morning’s post – The EU And Euro Lose Strategic Significance
Merkel’s CDU is in coalition with the Bavarian CSU which has far stronger views of the problems the EU is causing the German economy. Alsdo Merkel cannot ignore the German majority view that Germany cannot continue propping up the EU forever. As long as Greece doesn’t become a political basketcase, and an opportunity for others to subvert the security of Europe, the survival of the eurozone and the EU is not as significant strategically to the world as once it was.
See BBC – ‘EU Ready To Act But….No Details’ HERE. Greece needs 11% of GDP merely to finance interest on its current debts which are 125% of GDP. There must be no way out.
Merkel was quoted in FT Deutschland – Griechenland wird nicht alleingelassen”, sagte Bundeskanzlerin Angela Merkel (CDU). “Aber es gibt Regeln, und diese Regeln müssen auch eingehalten werden, und auf dieser Grundlage werden wir eine Erklärung verabschieden.”
My German is patchy. I think she is saying – Greece will not be left alone. But there are Rules,and these Rules must also be observed, and on this basis will we present a Declaration. It doesn’t sound like the problem’s solved, does it. In Germany rules have to be obeyed, and there are rules preventing countries in the Euro bailing out other countries. The CSU did not want to sign the Lisbon Treaty, but consented. They are not now going to agree to its terms being broken….