Brexit
Out of context: Reply #300
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- Dillinger0
"Ignore all the shouting - Brits will get their Norway-style trade deal"
"Of course, the main player in all this will be Germany. Germany calls the shots. Over the past five years, the pretence of a European Germany has given way to the reality of a German Europe. This is the new deal.
As a result of this, the eurozone is Ersatz Deutschland, where the rest of the countries are little more than policy eunuchs, emasculated by German fiscal straightjackets and German creditor obsessions.
Again, if you doubt this, watch the ongoing implosion of the Italian banking system, which will dwarf even the great Irish banking crisis.
Italy wants to recapitalise its banks using government money because it fears a complete collapse of its crippled economy. Germany is saying no. As always, German decisions reflect the interest of German industry.
This is entirely understandable. It means that the interests of German carmakers that sell tens of thousands of cars to the UK every year will influence the attitude of German politicians towards the deal that Britain gets. Already Angela Merkel is urging the Commission to back off and give the British time to sort themselves out.
So because of German industrial interests, Italy, the friend with the broken banking system, will be treated harshly by Germany, while the UK, now the putative political enemy, will be treated more favorably. In short, the anti-EU Brits will get a better hearing from the Germans than the pro-EU Italians.
It is this apparent mistreatment of so-called allies that initially drove Brexit" - David McWilliams
- Let me get this, Italy wants to recapitalise its own banks while relying on money from the european bank. And Germany asked Italy to reform the italian bankingcoldarchon
- system AGES ago. Now that it is failing without any reform, they want to fix it with the rest of Europe as donor.
And you think Germany is the bad guy?coldarchon - 'Italy wants to recapitalise its banks using government money' - basically they want to prop up their lenders so they can pass EU tests later this month.kingsteven
- the EU have told them they can guarantee liquidity for lenders if they collapse, but they can't prop them up before hand (or they should have reformed earlier)kingsteven
- I wish Brexit had anything to do with the mistreatment of our fellow EU members. Didn't seem worried that Ireland are paying off 42% of EU banking debt.kingsteven