German Economists Mobilize Against ESM
July 11, 2012 (EIRNS)On July 5, a group of 172 German economists put out a public declaration denouncing the European Stability Mechanism (ESM) and calling on citizens to mobilize nationwide. Initiated by Prof. Hans-Werner Sinn, president of the Munich Ifo Institute, the appeal has been signed by numerous "heavyweights" in the world of economics, such as Prof. Klaus Zimmermann, former head of the German Institute for Economic Research (DIW); Freiburg economist Prof. Bernd Raffelhüschen; and Dortmund statistics Prof. Walter Krämer.
Crafted in remarkably non-academic language in order to have a broad public impact, the appeal asserts that the planned European banking union will only
A banking union, the professors correctly point out, means "collective liability for the debts of the euro system," adding that
Taxpayers, pensioners, and savers of the still solid countries "cannot be held liable for covering these losses," the declaration states, demanding that
The appeal falls short of calling for Glass-Steagall legislation, but it does have the potential to move in that direction.