Merkel in Trouble at Home Over EU Bailouts

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PostFri Jul 06, 2012 8:07 pm » by *WillEase*


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Bavarian Gov. Horst Seehofer warns German Chancellor Angela Merkel that bailing out European nations could result in a breaking of the coalition.

The most loyal ally of German Chancellor Angela Merkel is threatening to pull down the government over Germany’s European Union bailouts as Mrs. Merkel struggles to persuade Germany to make concessions to Europe.

Horst Seehofer, chairman of the Christian Social Union (csu) and premier of the state of Bavaria, warned that Germany’s contribution to eurozone bailouts was “borderline.”
http://www.spiegel.de/international/eur ... 42380.html

“The time will come when the Bavarian government and the csu can no longer say yes,” he said in an interview with Stern magazine July 3. “And I wouldn’t then be able to support that personally either.”

“And the coalition has no majority without csu’s seats,” he added.

“My biggest fear is that the financial markets will ask: Can Germany cope with all that?” he said. “That is the point I regard as the most dangerous of all.”

The csu is the sister party to Merkel’s Christian Democratic Union (cdu). The two parties are almost the same organization—the csu exists only in Bavaria where cdu does not compete with it. The two groups select a common candidate to stand for election as chancellor.

Meanwhile, a poll indicates a majority of Germans support Seehofer’s position. Almost 60 percent are opposed to Germany giving up sovereignty over its national budget to the EU, according to a poll of 1,004 people conducted by Forsa on behalf of Stern magazine June 27-28. Nearly three quarters said the EU shouldn’t become a federal state.
http://www.bloomberg.com/news/2012-07-0 ... shows.html

These events show that Germany needs to receive a lot more concessions before it is ready to really bail out the eurozone. The German public and parliament are far from persuaded that they need to help Europe for their own good. And without the assent of parliament, Merkel can’t bail out Europe.

And even if Merkel can get political support for a full bailout, it may be political suicide.

Germany’s not going to part with its cash until it gets terms that a German chancellor can sell to the public. And Europe won’t be willing to agree to those terms until the crisis gets worse.

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