Comment & Debate
Sundeep Matharu. “Europe’s $1 trillion Bailout Might not be Able to Save the Euro from Going Down.” TopNews. May 2010: “The Euro’s largest player, the European Central Bank, has yielded to political demands and, amongst other things, will start purchasing sovereign bonds in the market. This transmits the danger of default from financially extended countries such as Greece, Portugal and Spain to the Euro zone all together. And the ECB has to finance it by successfully printing Euros, further weakening the currency. A feeble Euro will make exports more gung ho. But if the Euro goes too down, its rank as a reserve currency will deteriorate.”
German Chancellor Angela Merkel said in early May of 2010 in response to the announced bailout: “We are not only helping Greece but we stabilize the euro and thus help people in Germany.”[1]
Guido Westerwelle, German foreign minister and vice chancellor said in May of 2010: “We have to protect our country and Europe from taking damage. Protecting the currency is politically of utmost importance.”[2]