In an unusual admissions, Angela Merkel highlighted a “beginning point” for eurozone instability.
In a remarkable flashback confession, ANGELA MERKEL named the “beginning point” of the eurozone crisis.
Northern European countries frequently complain that the economies of southern eurozone countries are a burden on their tax systems, believing the rhetoric that richer eurozone members are paying more to save the rest of the bloc. However, according to Spanish economist Stuart Medina Miltimore, southern EU members such as Italy, Spain, and Greece have kept the Brussels machine afloat. According to the founder of the Spanish Association Red MMT, the huge trade surpluses of countries like Austria, Germany, and the Netherlands, which are generated by their exports to Southern European countries, are based on the debt that these countries have been carrying for years since joining the European Economic Community.
“In actuality, net transfers from northern to southern Europe are minuscule,” he stated.
“At the end of the day, they’re probably making a lot more money from net exports to southern Europe.
“The cost of their colossal trade surpluses, particularly Germany’s, is really monstrous – I believe it is about 8% of GDP in some years.
“Essentially, the European Union has allowed northern European countries to capture markets, including Italian markets, Spanish markets, Portuguese markets, and Greek markets.”
Mr. Miltimore’s views are diametrically opposed to those of German Chancellor Angela Merkel.
Mrs Merkel claimed in 2013 that Greece should never have been allowed to join the eurozone, blaming former German chancellor Gerhard Schroeder.
The German chancellor’s outburst came as she tried to persuade voters that she was still harsh on struggling eurozone countries, only a month before crucial elections.
“Greece shouldn’t have been let into the euro,” Mrs Merkel told a crowd of 1,000 supporters of her Christian Democratic Union in Rendsburg.
“Chancellor Schroeder accepted Greece [in 2001]and undermined the Stability Pact, and both actions were profoundly incorrect, and one of the origins of our current problems.”
Mrs Merkel emphasized her goal for a robust euro, but cautioned that it could only be achieved via changes in troubled nations like Greece.
“That [a unified euro region]is such a treasure, such a blessing, that we cannot put it in doubt,” she continued.
“It is for this reason that the euro is more than a currency.
“As a result, we’ve demonstrated solidarity, but solidarity is always related to.” Brinkwire Summary News