Thread: Is Germany a Cash Cow?

Is Germany a Cash Cow?

Most of poor European countries like Portugal, Spain, Belgian, Italy, Greek continuously demand more German's money for its supposed small and poor "relatives". But it is difficult to understand why just Germany is nominated to became Cash Cow of EU. Why not France or Putin's Russia? Or probably Saudi Arabia or Nigeria.
Germany is part of EU and already pays more as 35 % for European budget. Enough is enough, not 50 or 70 % for wasteful "brothers". And German money belong to its people, not to crybabies from Bruxelles of Athene.
If EU beggars will not stop their discussions than Germans can begin to discuss whether they should leave Euro or not. At best panhandlers should ask for money by new elected communist President of France who promised pie from the sky and Paradise in France.He is a nice guy and is about to throw $$$ billions out of the window.

Vision of poor Europeans: Germany as Cash Cow.

I think we are looking at a problem where both sides of the argument are correct.

On the German side (the right), they are correct that other EU countries need to make structural reforms to their economies to maintain a certain level of competitively.

On the other side France (the left) are correct that an economic plan based only on slashing the public sector, in turn removing billions of euros from national economies is self defeating when your primary goal is to get your finances in order, this will only lead to recession.

What we need is a bit of common sense and innovative ideas about creating growth in very different economies with not alot of money - unfortunately these ideas are currently non existent.

Europe is trying to forge a united society step by step, but as in the UK London creates a massive amount of our national GDP and inevitably other parts of the UK benefit from this distribution of wealth. This happens in all countries - the problem with the Eurozone right now is people want to have one foot in one foot out - while many are now looking to put both feet in (Eurobonds or ECB as lender of last resort) the Germans who have never had it better can't see what all the fuss is about. In my view Merkel's lack of strong leadership has allowed the Greece farce to cripple the economic recovery of Europe.

Originally Posted by edao

Europe is trying to forge a united society step by step,....In my view Merkel's lack of strong leadership has allowed the Greece farce to cripple the economic recovery of Europe.

Europa as an united society is a dumb idea, especially when the money go from rich to poor countries. Merkel will be voted out not later as in the next elections. As former professional DDR - Communist she is incapable to manage right the European Crisis.

Originally Posted by Ostap Bender

Is Germany a Cash Cow?

Yes, that World War II guilt still works apparently, even after all these years.

Originally Posted by Anders Hoveland

Yes, that World War II guilt still works apparently, even after all these years.

Even more than before, now where the southern states struggle.

And the welfare recipients are not only gluttons, but also fastidious.

Germany's riches are built on their exports, which have been boosted by an artificially low Euro. Had they still had the Deutschmark, the value would have shot up, making their exports too expensive. Time to pay the bills.

Originally Posted by Colonel K

Germany's riches are built on their exports, which have been boosted by an artificially low Euro. Had they still had the Deutschmark, the value would have shot up, making their exports too expensive. Time to pay the bills.

Bull(*)(*)(*)(*). No Eurocrisis without Euro, man...

In many ways what's going on in Greece demonstrates how democracy can fail.
The Greeks are voting for their won destruction, like a room of terminal cancer patients voting on who gets to go first in Russian Roulette.
Germany and France should draw a line under it and make the decision for them, make plans for a 'orderly default and exit from the EU and Euro' leave them to fall into civil war and the wrath of the Turks, they have burnt all their bridges in Europe.

Originally Posted by Colonel K

Had they still had the Deutschmark, the value would have shot up, making their exports too expensive.

I do not believe it because it is a leftist politically correct lie for dumb Germans.Without Euro both the life quality and amount of exports would be higher.

Originally Posted by Ostap Bender

I do not believe it because it is a leftist politically correct lie for dumb Germans.Without Euro both the life quality and amount of exports would be higher.

Of course. But the Euro came with a set of regulations, which cost Germany dearly. Read here:

Originally Posted by Bleipriester

The Euro is a real desaster for Germany. With its introduction came two new rules:

1.) Interest subsidy:
The powerfull EU-members (Germany) pay more interest and the weak pay less interest.
For example:
A German home builder currently pays 4% APR for a 36 month loan. In spite of great safety. Quarterly repayment.
A Swiss home builder currently pays 1,75% APR for a 36 month loan. once grace.
Before the Euro, the German and Swiss percantes were similar.

This makes an annual German contribution to the weak EU-memberstates (EU) of about 100 billion Euro.


2.) Foreign trade surplus:
Since the introduction of the Euro, Germany has to give away its complete annual foreign trade surplus to the weak EU-members (EU). With that money, Germany pays (via ECB) their uncovered imports.

This makes an annual German contribution to the weak EU-memberstates (EU) of about 150 billion Euro.


----
Total costs of the Euro for Germany up to the present: 3000 billion Euro!!!

In spite of that "help", the weak EU-members (EU) are going bankruptly and Germany has to pay even for that! With the ESM.

It is not time for Greece to leave the Euro-zone, but for Germany!
Without the extreme increase of Germany´s efficiency in the last decade, Germany and therewith the entire EU would be bankruptly long ago.

http://www.uspoliticsonline.com/inte...u-members.html