November 20, 2012

Misconstruing Germany Will Be Death of Euro

Megan Greene, Bloomberg

AP Photo

Even if Germany were willing to sign up to pooled assets and joint tax collection, the old U.S. adage “no taxation without representation” applies in Europe, too. A body that could raise taxes across the euro area would have to be firmly embedded within a democratically elected institution at the European level. This would involve a huge transfer of sovereignty from the Bundestag -- Germany’s parliament -- and the German Finance Ministry to the European level, for which there is zero appetite in the German ministries.

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TAGGED: Greece, Angela Merkel, Eurozone, Euro, Germany, Europe

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