As turmoil continues to grip European financial markets at the prospect of a sovereign default by Spain or even Italy, the emergency Euro-summit scheduled for Thursday this week is looming large in importance. This is all the more true in view of the fact that European Council President had tried to get everyone together for a summit last Friday – but no one was interested then, even as market rates on Italian debt skyrocketed.
The key figure at the summit, as always, will be German Chancellor Angela Merkel, fresh and possibly even slightly sun-tanned off an official visit to various African countries. Just as she is preparing for Thursday’s meeting, however, scattered press speculation has arisen to the effect that Helmut Kohl – the German Reunification Chancellor, and probably the mentor who did most to make Merkel what she is today – now cannot hold himself back from criticizing her Eurodebt policy. Die macht mir mein Europa kaputt! is the catchy quote from Kohl – “She’s destroying my Europe!” – and it comes from a fairly reputable source, namely the German news-magazine Der Spiegel. Ed Harrison over at Credit Writedowns identifies this Spiegel article and provides his own translation. (more…)