Wikileaks document: US-German paper reveals Euro-misjudgment

Ignorance and a good understanding of politics: When the crisis hit
Greece, was glad the federal government to be able to conceal the
truth of the Germans.

One may think about Wikileaks, what you want. But now there paper
published by the U.S. Embassy in Berlin to the government in
Washington illuminates a very special way, the German attitude to the
Greek crisis. Strictly speaking it is a document that appalling
ignorance and gross miscalculations of the German side also reveals
how their political understanding.
Angela Merkel, Nicolas Sarkozy and George Papandreou at the EU summit
on 11 February 2010 in Brussels

The confidential document from the U.S. Embassy on the Wikileaks
website: The publication could be uncomfortable for Germany

In the paper there are records of meetings, the Ambassador Philip D.
Murphy and his staff with senior government officials and financial
managers conducted in Germany. Murphy, by the way even from the
financial sector.

The Harvard graduate was 23 years in the employ of the New York
investment bank Goldman Sachs, he worked for them in Frankfurt, New
York and Hong Kong, and from 2003 to 2006 he was senior director in
the New York headquarters.

Sufficient information to citizens denied

All records from Murphy's message came in the weeks leading up to the
EU summit in February 2010. At that time the Greek debt crisis became
acute. But the federal government refused to appear to perceive the
seriousness of the situation and inform the public adequately. In any
case, put the records to this conclusion.

Before the summit, the situation of the Greeks within the German
government has been back and forth discussion, write the U.S.
diplomats. Only the government had wanted to conceal their citizens a
foreseeable disaster as long as possible.

Scenario one: catharsis
Greece's Euro exit the monetary union and division

"No one appreciated the idea that German taxpayers who had already
been worried about the German record deficit, to say that they have to
foot the bill for the irresponsible behavior of another country," says
the diplomat's report.

An employee of the Ministry of Finance have stated to embassy staff,
the citizens of Germany were in the situation in Greece is almost
"disgusted". Thus the German Government was pleased that at the EU
summit on 11th February 2010, no concrete assistance for Greece had
been agreed.

"Chancellor Merkel is relieved that they do not explain to their
citizens now have, why the federal government must increase its debt
to save the Greeks," wrote the U.S. diplomats.

"A bailout would set a precedent"

Wolfgang Merz, a senior official at the Treasury Department,
evaluated the outcome of the summit therefore extends to the U.S. side
as follows: ". It would involve too many downside risks to start now
relief", adding: "Moreover, would a rescue package for the Greeks a
precedent for EU countries like Spain and Portugal make it. "

At that time, the German expert was also an intervention of the
International Monetary Fund should not be imagined. It is highly
unlikely that the IMF will ask for a bailout for Greece, Karlheinz
Bischofberger said of the European Central Bank, the U.S. diplomat.
That it turned out differently, is now known.
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While listening to the U.S. diplomat's assessment of their German
interlocutors patiently. Their analysis, however, painted a very
different picture of the situation.

In the evaluative summary of the paper for the U.S. government sign
the diplomats: "In fact, the federal government to play, the ECB and
the private German economist Ernst Greek predicament and its effect on
the stability of the euro down."

Pointed at the exits of Germany

Most notable are statements with which the Chief Economist of
Deutsche Bank, Thomas Mayer quoted. In conversation with Ambassador
Murphy is said to have pointed to some real exit opportunities in
Germany from the euro zone.

He referred to an alleged decision by the Federal Constitutional
Court from the 90s. Accordingly, a withdrawal was possible in Germany,
"if the monetary union to an inflation zone" or the German taxpayers
to the "de facto savior" would.

Therefore, Mayer had a "Chapter 11 for all euro-zone states" proposed
"to put all the states in distress among financial supervisors, was
brought back to their house in order." Unfortunately, it does not give
serious discussion on this proposal, Mayer regretted the U.S. diplomat
said.

Meanwhile, this has probably changed. After the recent summit, there
is evidence that Greece could be the first economic guardianship of
the Euro zone.