La Stampa - Italy | Tuesday, April 24, 2012
The end of Germany's financial dominance is nigh
The potential change of government in France, the government crisis in the Netherlands and the disappointing economic data for the Eurozone caused share prices to dip by an average of three percent on Monday, with French and Dutch bonds increasingly coming under pressure. Germany's financial policy dictatorship is coming to an end, writes the liberal daily La Stampa: "The true loser [of the first round of the French presidential elections] is Angela Merkel, who gave outgoing president Nicolas Sarkozy her full-hearted support. With her - perhaps hypothetical - goal of budget stability only attainable through great sacrifice, Merkel symbolises orthodox financial management. But financial as well as socio-political developments are moving in the opposite direction, towards less stability. The Merkel formula that presents austerity measures as the only cure no longer seems sustainable. The predominance of her criteria is clearly being called into question, without however anyone knowing what could replace them in order to save the positive effects that globalisation has had in addition to the many negative ones."
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