German Opposition Threatens To Scuttle ESM, And Spanish Bailout, Ratification

Sunday, June 10, 2012
By Paul Martin

by Tyler Durden
ZeroHedge.com
06/10/2012

Gradually, the key open items from yesterday’s Spanish bailout are getting some closure. First, we learned that Ireland, as speculated, will demand a comparable retroactive bailout renegotiation, an act which also puts the Greek elections a week from today in play. Then, we got definitive confirmation that the Spanish loan, coming at ~3% or half Spanish GGBs, is a priming loan, subordinating existing creditors. Finally, we learn that the ESM – the bailout mechanism at the heart of all current and future European bailout plans, and which still has not been ratified by Germany, is in danger of being scuttled by none other than the German opposition. The reason? According to a Reuters report, “A [Spiegel] report that German Chancellor Angela Merkel is not serious about implementing a European financial transaction tax threatens to undermine an initial deal struck last week with the opposition over the EU’s planned fiscal pact… The Social Democrats (SPD) and Greens are insisting on a plan for a transaction tax and measures to boost growth.”

The Rest…HERE

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