EU Agreement: Bad for Germany, Bad for the World

Summary version—full article available at Seeking Alpha: http://seekingalpha.com/article/312904-eurozone-agreement-bad-for-germany-bad-for-the-world

At this week’s European Union summit, the 17 nations of the euro currency bloc, along with a few hopeful entrants, agreed to Germany’s condition of tighter, integrated fiscal oversight of national budgets.

The problem with the planned arrangement is that, like all previous attempts to resolve the eurozone’s government debt crisis (sovereign debt is is a misnomer for eurozone), it is doomed to fail.

The German government has become a riskier credit as a result of this week’s agreements. And that indicates that while Germany got what it wanted, what Germany wants is wrong for Germany, wrong for Europe, and wrong for the world.

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