Euro crisis is here, Merkel is chasing windmills, her policy aggravates problems rather than solving them, noted the article.
According to the columnist Wolfgang Münchau, “The much-advertised pragmatism of Angela Merkel has proven to be an optical illusion.” He explained that the policy of the Chancellor in the field of dealing with the euro crisis is comparable to the efforts of homeowners fighting moisture by repainting the walls. Münchau likens Eurozone to a patient who is suffering from a chronic disease. He cites the decline in growth in the Eurozone countries while he notes that the “disease” is less noticeable in Germany.
Concernng the Greek and Portuguese debt, he said: “We are in front of the internal contradictions of a Monetary Union, which only wants to be monetary and nothing more. Rather than resolving the debt crisis with a summit over the debt, we aggravate the problem, transferring the debt from one corner of the system to the other. This looks good, but in reality it doesn’t change anything in the indebtedness of Greece and Portugal.”
The German columnist also questioned the policy of purchasing government bonds by the European Central Bank (ECB), which he accused of neglecting the traditional monetary policy and watching the fall in inflation without taking any measures.