“The Community shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of any Member State, without prejudice to mutual financial guarantees for the joint execution of a specific project”.
- Article 104b, Maastricht Treaty, 1992.
“We have a Treaty under which there is no possibility of paying to bailout states in difficulty”.
- German Chancellor, Angela Merkel, 1 March 2010.
And before the Irish ‘forced loan’ …..
“The euro is in danger – if we do not avert this danger, then the consequences for Europe are incalculable, and then the consequences beyond Europe are incalculable.”
- German Chancellor, Angela Merkel, 19 May 2010.
“We cannot allow the bankruptcy of a euro member state like Greece to turn into a second Lehman Brothers […] The consequences of a national bankruptcy would be incalculable. Greece is just as systemically important as a major bank”.
- German Finance Minister, Wolfgang Schäuble, 18 April 2010.
“There is a grave threat of contagion effects for other member states in the monetary union and increasing negative feedback loop effects”.
- Bundesbank Chief, Axel Weber, 5 May 2010.