Tuesday, 27 September 2011

Germany Slams 'Stupid' US Plans to Boost EU Rescue Fund

THE DAILY TELEGRAPH: 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 Scha[e]uble 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. » | Ambrose Evans-Pritchard | Tuesday, September 27, 2011

I'm so pleased that Frau Merkel and Herr Schäuble have had the courage to tell Obama to keep his nose out of Europe's business. What can Obama tell others about solving their debt crisis? He can't solve his own! If anyone's debt is "scaring the world," it is the incredible debt of the USA! People who live in glasshouses shouldn't throw stones. – © Mark

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