Monday, 5 December 2011

This week is going to be a bad one for France

Nicolas Sarkozy and Angela Merkel are going to meet on Monday to put together yet another "save the Euro" plan.  The problems remain the same; Eurozone economies are uncompetitive, growing old and insolvent.

Sarkozy would like Germany to use its tax receipts to prop up the failed states in Southern Europe.  Merkel, understandably, is a little reluctant to hand over German resources in order to fund the Mediterranean money pit.  She thinks, again quite reasonably, that Germany should get something in return. She demands that the Eurozone forms a "Fiscal Union". She thinks that effective German control over continental fiscal policy seems a fair swap for Italy and the other waster countries receiving German tax receipts.

During the meeting, Merkel will probably remind Sarkozy of a new ZDF poll that shows that the percentage of German votors who approve of the Chancellor's handling of the crisis has risen sharply over the last month - from 45 to 63 percent.

The sad truth for Mr. Sarkozy is that his position is rather vulnerable.  Mrs Merkel, in contrast, has the money and rock solid political support back home.  The political concessions will be only going one way this week; from west to east across the Rhine.


Stevie b. said...

Salmond of the Scot Nats seems to think that salavation at Independence lies (cozily perhaps) with the French. Good luck with that one - at least they have 1 thing in common - they're both desperate - and when the French get downgraded from AAA they'll have yet more in common.....

Anonymous said...

Scotland is delusional.