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German discontent spreading, says Marta

Monday, 29th August 2011

While the UK enjoyed a Bank Holiday Monday, the European Parliament's Economic and Monetary Affairs Committee held an extraordinary meeting to discuss the sovereign debt crisis with the President of the ECB, Jean-Claude Trichet and Commissioner for Economic and Monetary Affairs, Olli Rehn.

The meeting took place as news emerged that Angela Merkel's coalition was in crisis as she no longer had enough votes to secure backing to her and Sarkozy's Eurozone 'rescue' plan. Merkel's Bavarian sister party the CSU have rebutted the Franco-German plans and said that EMU countries in crisis should be allowed to default.
 
In committee this afternoon, UKIP MEP and former European Commission Chief Accountant Marta Andreasen asked Mr Trichet to face the music and allow default.
 
She said: "Markets look to countries in trouble, but they also look to the reaction of the stronger countries in the Eurozone. Take Germany and France: In Germany discontent is spreading. I rarely find myself in agreement with the German CSU but in a paper that is threatening the make up of Merkel's coalition they want to tear up the Franco-German plan and allow banks that cannot survive to go bankrupt and also allow countries to default. They have finally seen the light! Will you face the music and suggest likewise?
 
"In France, the parliament there cannot agree on the constitutional zero deficit scheme. How long will the ECB continue to ignore these reactions?"
 
Mrs Andreasen added: "You should reconsider lowering the ECB refinancing rate by a full percentage point (100 basis points) to try and get our economies  moving again."

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