Monday, September 24, 2012

Six Degrees of "Germany Should Pay"

Every time I hear EU politicians speak (other than a few hilarious exceptions), I like to mentally play a game called 'Six Degrees of "Germany Should Pay"'.

A la 'Six Degrees of Kevin Bacon', the prediction is that from the initial premise of the argument, within six steps of the chain of logic will come the conclusion that German taxpayers ought to be contributing more money.

For instance, here's one I heard a little while ago:
-Different European banks currently face a variety of different regulatory regimes, so...
-To overcome the discrepancies in liquidity and solvency that this creates, Europe needs a central banking regulator, so...
-As part of having a central banking regulator, there will be the need to have a central bank deposit guarantee, so...
-This will mean the need for a fund to bail out insolvent European banks, so...
-Germany should pay!
Here's one I didn't prepare in advance, taken from a random Google search of 'EU Politician Proposals'

EP President Schulz Proposes Economic (Bubble) Zones for Greece under EU Control

Let me merely number the quotes taken directly from the article, with the verbiage removed

Growth-Plan: Special Economic Zones to rescue Greece
[1] Greece has enacted a rigorous austerity program, but the country also needs a strategy to get the economy back on growth track.
(blah blah, boilerplate about creating growth)
[2] Cuts alone would not bring growth, Schulz said in a SPIEGEL interview, “so I’m looking for a special economic zone in Greece.”
[3] For it, a “Growth Agency” should be created, Schulz demands.
[4] In this agency, European and Greek politicians should jointly identify promoting eligible projects and control the cash flows.
(blah blah PR nonsense)
[5] Prerequisite for this SEZ is a commitment to the euro in Greece, a willingness to reform in Athens and investment allowances for companies that invest in Greece. And so... (drumroll)...
[6] Germany should pay!
And that's being generous with what counts as a step.

Try it with a few others and see how often I'm wrong.

As I've said, the $1 trillion question is when German taxpayers are going to get sick of of their designated role as  the chumps at the table week after week buying dinner for their friends who mysteriously keep forgetting their wallets. Let's kick that horse a little longer and find out!

There's a related EU politician game of 'Six Degrees of "Europe Needs Greater Centralisation"', but that's less fun to play because the number of degrees rarely exceeds two.

No comments:

Post a Comment