One can only assume that the German 'Iron Lady' would actually prefer Greece to 'Foxtrot Oscar' out of the EU. At least, that is the only interpretation I can put on her extraordinary intervention on the very eve of the Greek general election. According to The Telegraph she said yesterday:
"That's why it's so important that the Greek elections preferably lead to a result in which those that will form a future government say ‘yes, we will stick to the agreements’,” [...] "We will have to speak to any government. I can only warn everyone against leaving the currency union. The internal cohesion of the euro zone would be in danger."
Anything more likely to prod Greek voters, fed up with what they see as German bullying, into the polling booths to vote for the 'Loony Lefties' who say(?) they will refuse to comply with the terms of their EU loan I cannot imagine. Incidentally, I query what the 'Loony Lefties' say because, let's be honest, if any Greek politician said it was going to be sunny tomorrow you would instantly try and remember where you left your umbrella!
In any case, whilst it might be raining and pouring over most of Europe it's an ill wind . . . and all that jazz. Germany is actually doing rather well out of all these current woes. Quite apart from the fact that their industry has been helped enormously over the last 20 years by a euro currency, weakened by the very Med nations whom the Germans lecture, which trades at a fraction of what a DM would; but now investors are, in effect, paying Germany to look after their money as they pile in to German bonds at a loss rate simply because they want safety. This, according to Spiegel means that Germany will balance its budget in the next two years:
The European sovereign debt crisis has plenty of losers, but arguably one clear winner: Germany. Demand for German bonds, seen as the safest haven in the euro zone, has pushed Berlin's borrowing costs so low that some investors are effectively paying Germany for the privilege of lending it money.
Now German economists have calculated that Germany could reach its cherished goal of a balanced budget by as early as next year, as a result of its bargain borrowing costs -- provided, that is, the euro crisis doesn't escalate.
Nick Ridley's prescient words cannot be repeated too often, the whole thing was, is and remains, "a German racket"!