Markus Kerber, magaging director of the Federation of German Industries (BDI), want to see German and European industries taking leadership to resolve the Euro crisis. As banks and governments are locked into their own problems, European industrial leaders should take the helm and try to stimulate growth with significant investments.
On Wednesday Germany again sold 2 year-Bunds at negative yields. The yield was at 0.06%. This was the lowest value ever. The yield was at 0.06%. This was the lowest value ever. At the moment these are perceived to be a safe haven in the bond market amid ongoing uncertainties in Spain and Italy.
German Chancellor Angela Merkel is not willing to move ahead quickly with allowing direct aid for European banks from either EFSF or ESM. Instead, she confirmed that every state will have to guarantee for its banks. This will lead to higher deficits in states where banks need to apply for money from the bailout funds.
Germany, already one of the most desired countries for refuges may face a tough challenge in financing additional social benefits for people seeking for asylum. The Constitutional Court ruled that the benefits refugees are entitled now are far too low, forcing the German government to draft a new law with significantly higher payments to be financed by the taxpayer.
Guido Huelsmann, professor for economics at the University of Angers, France, is convinced that the Euro will lose greatly on his value through and this will finally lead to the break-up of the common currency in the Euro zone.
In an analysis, Citi concludes that the current legal framework for the ESM does not offer special protection for taxpayers as suggested to the German parliament ahead of last week's vote. The subordination clause would trigger the CDS, why such a protection is legally not possible without blowing up the system. German politics finds itself under scrutiny over not telling parliament the truth.