Monday, May 12, 2014

STILL WATERS RUN DEEP


 







Often the real turbulence lay just below a calm surface.

That appears to be the case in Franco-German relations. For some it's just a matter of what's new? For these people it's like water and oil. They're never going to mix well together.

For others Franco-German relations represent the heart of the matter which is whether the European Union survives. To many the Germans are sticklers for rules. The French? Well, they're just sticklers.

It's no secret 15 years after Europe's bureaucrats rolled out what is basically a monetary union France has yet to meet the EU-mandated ceiling of 3% debt of GDP despite receiving a two year deadline extension.

The Germans come from a long-time concern about a strong currency, something French politicians privately loathe. It's hardly a secret that many in France blame the strong euro for its economic woes. French politicians would like a more French-tinged EU. For the Germans that represents an economic Achilles they have sought to avoid for decades.

Toss in the turbulence surrounding the Ukraine and matters get even murkier.

http://www.reuters.com/article/2014/05/12/us-germany-france-analysis-idUSBREA4B02H20140512

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