We're all in it together - except Germany!

Yes, indeed 'the German racket' (© the late Nick Ridley) continues to trundle and rumble its way along in its unstoppable manner like a Tiger tank heading for Normandy.  A prize example of just what a prize this European nonsense is for the Germans lies in the banking sector which is due shortly to come under strict guidelines issued from Brussels.  Well, that's everyone else's banks but not the Germans'!

As the WSJ reports, exceptions are being made for the huge class of German neighbourhood banks, called Sparkassen, whose gross wealth is around the €1 trillion level:

Germany's public savings banks have become the most powerful little lenders in the world, exploiting their political clout to punch loopholes into Europe's postcrisis banking laws. [...]

In late-night negotiations last December, German Finance Minister Wolfgang Schäuble ensured that day-to-day supervision of all but one of the 417 Sparkassen—the largest, the Hamburger Sparkasse is the exception—will remain in German hands, even when the European Central Bank becomes the euro zone's banking policeman next year.

Because these banks are very local they produce a great stream of income for local authorities and politicians, thus, there has been no arguments in the German political classes about the necessity of protecting their little milch-cows from those nasty men in Brussels:

As soon as the proposal was made, German members of the European Parliament sprang into action. They maneuvered themselves into the powerful negotiator positions in all four major parties—from the far left to the conservatives—and rewrote the bill so the Sparkassen rescue mechanism could remain separate.

"You cannot put a sheet of paper between me" and the Socialist negotiator on the bill,     Burkhard Balz, a representative for German Chancellor Angela Merkel's conservative party, told the Danish diplomat who was leading the talks for EU member states. Mr. Balz confirmed the tenor of his comments.

So, given that, Dave, dare one ask how well you did in protecting British banks?

Oh, as good as that!  Best not ask for details, then.

 

 

Comments

[dearieme]

German Exceptionalism.

[Furor Teutonicus]

xX "You cannot put a sheet of paper between me" and the Socialist negotiator on the bill, Burkhard Balz, a representative for German Chancellor Angela Merkel's conservative party, XX

What a bloody surprise! (NOT)

What do you expect from a party run by a damn commy cow, than to side with the fascist left?

[David Duff]

As so often, DM, you start my morning with a chuckle!

But, FT, your really must "calm down, dear". She may, or may not, be a "cow", I haven't listened into her personal 'phone calls so I don't know, but she is certainly not a "Commy". A German nationalist, by which I mean, a German who places German national interests above all else, yes, but who can blame her for that? I wish 'Dim Dave' was more of an English nationalist!

[backofanenvelope]

Frau Merkel's background is rather unclear. She may well have been an informant for the Stasi - like many other East Germans.

[David Duff]

Maybe, BOE, but who are we to judge from the safety of dear, old 'Blighty', Gawd bless 'er?!

[Michael Adams]

Sad to say, BoE, and please be sure that I include both branches of our family equally in this, but whatever Frau Merkel may or may not have done in East Germany, we have not been tested in the same way, yet.It does give a new dimension to "Lead us not into temptation."