Comments on: Europe’s self-help http://blogs.reuters.com/hugo-dixon/2012/01/23/europes-self-help/ Mon, 18 Apr 2016 14:55:08 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: FBreughel1 http://blogs.reuters.com/hugo-dixon/2012/01/23/europes-self-help/comment-page-1/#comment-155 Mon, 23 Jan 2012 19:06:44 +0000 http://blogs.reuters.com/hugo-dixon/?p=245#comment-155 Again an excellent article, Mr. Dixon.

The reason we Northern Europeans are against contributing towards a larger ESM fund is that Italians are even richer than most Europeans. Only Belgen, Luxembourgers and the Dutch are more wealthy. Sorry, but not the Germans. Italian households have around 175% of GDP in net savings -thus free equity – at the bank which amounts to $5 Trillion. Almost twice the entire governmental debt of 120% of GDP. Italy is a G8 country with a productive population that has conservatively saved around 20% of net household income per year. While the Italian – Berlusconi – Government in the last decade has been very supportive towards their population, it is now time the Italians start to take care of their own economic system. Or to cough up higher interest rates via taxes. Such is life.

Mrs. Merkel is a well-informed lady, and her assesment that Germans don’t have to bail out Italians is absolutely fair. When it comes to the IMF, the IMF has always been good for their money. Addtional contribution is an assesment every country can make itself. But one can certainly questions whether Italy should be the IMFs main focus.

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By: Gordon2352 http://blogs.reuters.com/hugo-dixon/2012/01/23/europes-self-help/comment-page-1/#comment-154 Mon, 23 Jan 2012 15:46:45 +0000 http://blogs.reuters.com/hugo-dixon/?p=245#comment-154 I agree the IMF should not be used to bail out the eurozone.

Perhaps you don’t realize the ECB has just recently started up their “printing presses” and are doing just fine in creating their own bubble without any help from us.

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