172 German professors can’t be wrong
The economists' outburst suggests little readiness to get into detail. It appears more an attempt to fuel public fears
By D.S. | BERLIN
OR PERHAPS they can. A letter from 172 German-speaking economists published by the daily Frankfurter Allgemeine Zeitung (FAZ) lambasts the steps taken towards a banking union by euro-zone leaders at a summit last week in Brussels. It has unleashed a counterblast from government heavyweights and their economic advisers, leaving the public even more confused.
The euro-zone chiefs were far from agreeing on anything like a banking union—but let that pass. The 172 academics are indignant and warn of dire consequences for German citizens when they end up guaranteeing balance-sheets three times the size of all euro-zone public debt.
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