[lbo-talk] Prepare for riots in euro collapse, Foreign Office warns

James Heartfield Heartfield at blueyonder.co.uk
Tue Nov 29 18:19:40 PST 2011


Doug: ‘It's kind of hard to see what Germany wants. I've been asking lots of smart people that question for months and there's no consistent or convincing answer. Ideology? Material interest? Habit? Really hard to say.’

I am surprised. German policy has been pretty consistent for the last fifty years. Politically the goal is never to be in the vanguard, always to be with allies. Economically the goal is export led growth, with Western Europe as the first market for German goods, its security blanket, and beyond that, world exports. Around 2003 extra european exports were growing quicker than those to Europe, but not that much. Through the EU Germany fostered the purchasing power of the smaller nations, as a useful fringe. Fiscally, Germany is ‘committed’ to prudent policy, but that is often ignored, but never to the point that it jeopardises the standing of the German banks. Fiscal conservatism remains a central plank of Germany’s authority over the European Union.

Their aim is not to bounce Greece or Italy out, but to force them to surrender more of their policy-making – not to Germany – but to the European Commission.



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