Germany slams 'stupid' US plans to boost EU rescue fund

[Rockntractor]

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.


By Ambrose Evans-Pritchard

11:50PM BST 27 Sep 2011



German finance minister Wolfgang Schauble 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.

The comments risk irritating the White House. US Treasury Secretary Tim Geithner has been a key driver of plans to give the EFSF enough firepower to shore up Italy and Spain, fearing a drift into "cascading default, bank runs and catastrophic risk" without dramatic action.

http://www.telegraph.co.uk/finance/f...scue-fund.html

[lacarnut]

Good for him. Obama and Tiny Tim do not know their ass from the hole in the ground.

[KhrushchevsShoe]

Germany is right in that we should be taking advice from them, not giving it.

[Starbuck]

Germany is right in that we should be taking advice from them, not giving it.

For once I agree with your assessment. There is absolutely no one in the Obama Administration who has the experience - or even intelligence - to go messing around in financial matters. They should turn the whole thing over to some other, more experienced, group of leaders until we can replace them legally.:p

For that matter, a randomly selected group of 10th graders could do better than the administration whom you so correctly castigated.:)

[Tipsycatlover]

There has never been an American president bitch-slapped like obama.

http://www.spiegel.de/international/...788807,00.html