Is German Anger Finally Coming To A Boil? Even Local CEOs Say Time To Exit Euro May Have Arrived

Tyler Durden's picture

It would appear that the German public (and political class to some extent) are beginning to see the European project in the same manner as we described back in July. As the increasing burden of saving the eurozone from its own excess falls on the shoulders of every Tobias, Dirk, and Heike taxpayer in Germany, even industry leaders, such as Wolfgang Rietzle, the CEO of Linde, this weekend according to Reuters, are suggesting a line in the sand has to be drawn and that "if we do not succeed in disciplining countries then Germany needs to exit." This has been very much a view we have held for months now that instead of the periphery limping away one-by-one, the very core of the foundation will simply decide enough is enough or as Reitzle notes (among many other critically insightful comments) "the willingness of countries to reform themselves is abating if, in the end, the European Central Bank steps in." This morning Germany's FinMin Schaeuble added to the potential separation chatter with his comments, via Bloomberg:


Hardly reassuring given the dreams of every GGB owner and BTP-exposed insurance company are banking on the ECB cranking the presses to 'secure' nominal returns in the real world. The EURUSD has opened down 40 pips or so on a slow Sunday afternoon as we remind hopeful investors (and the German public) of our comments from last July (which seem even more prescient now with the AAA downgrades and increasing reliance on EFSF and ESM mechanisms placing more burden explicitly on German taxpayers and "in doing so may have jeopardized anywhere between 32% and 56% of its entire annual economic output".  

Reuters: Linde CEO says Germany Should Mull Euro Exit

Germany should consider leaving the euro if efforts to impose fiscal discipline upon indebted euro zone countries fail, the head of industrial gases firm Linde (LING.DE) told German weekly paper Der Spiegel.


"I fear the willingness of crisis countries to reform themselves is abating if, in the end, the European Central Bank steps in," Linde's chief executive Wolfgang Reitzle was quoted as saying.


"If we do not succeed in disciplining crisis countries, Germany needs to exit," said Reitzle who was previously a board member at carmaker BMW (BMWG.DE) and head of Jaguar and Land Rover.


Asking Germans to pay more than 50 percent taxes to help fund other euro zone countries will erode the will of the German electorate to support rescue measures, Reitzle said.


Although this scenario is not desirable, he felt that German industry would survive working in a new currency.


"Of course it would lead the new currency - Deutschmark, North-euro or whatever it is called - to appreciate in value. But it would be by a lesser amount than feared," Reitzle said.


"Although this would lead to higher unemployment in Germany because exports would take a hit, pressure would increase to become more competitive."


Reitzle said the euro zone is unlikely to break up completely but Greece is not in a position to service its debt.


"The country is not in a position to restructure itself in such a way that it can remain in the currency union," Reitzle said.


"In the medium term Greece needs to exit. And the writedowns on Greek debt will not be between 50 to 70 percent, but in the end will be written down by 100 percent," Reitzle said.


So long as Greece remains in the euro it needs to be supported. "All in all this is a 500 billion-euro problem," Reitzle said.


Structural reforms need to continue elsewhere in places like Italy too, Reitzle said.


The year of destiny for the euro is not 2012, but three to four years down the line, Reitzle said.


Upon being asked whether Linde has a plan B to cope with a complete break-up of the euro zone, Reitzle said 'no'.


"Even if we had a recession for years in Europe, it would only impact 30 percent of our revenues," he added.


As the ESM is accelerated and deposits/investor-cash flood into German banks and bunds, the risks of subordination of existing sovereign bond holders and devaluation from non-German-euro-holding deposits is perhaps too much to bear for investors/savers and leaves the German politik, CEOs, and public at a critical decision point in terms of extending the socialist empire experiment (at their expense) or going it alone facing pain now for a brighter future - the Linde CEO seems convinced (and Schaeuble seems less than inspired by the euro-bond-based fiscal compact solution).

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Eireann go Brach's picture

Germany needs Obama to pay them a visit ASAP and deliver a hope and change speech!

maxcody's picture

Greece is what the U.S. will become if Obama and the dumocrats win nov 2012.

Kayman's picture

Greece is what the U.S. will become no matter which one of Wall Streets puppets win nov 2012.

There, fixed it for ya.

trav7777's picture

why the hell did they let a shit nation like Greece into their currency union in the first place??

There is a qualitative difference between the wops and the krauts.  They know it and have known it for a long time, no matter how hard the MSM tries to suppress it.  All ethnic groups are not equal.

seventree's picture

Nobody complained when the EU economy was riding high and Greek big spenders soaked up the output of export nations like Germany. Easy money while it lasted.

morning_glory's picture

Goldman Sachs helped them fix their books to meet EU entry criteria.,1518,676634,00.html

economics1996's picture

"All ethnic groups are not equal."


How long did it take you to figure that one out?

Oliver Jones's picture

Some people still haven't figured it out. If you have figured it out - and are foolish enough to say so - that makes you a racist, apparently.

Instant Wealth's picture

For geostrategical reasons:

Greece = Southeastern flank of NATO

Tompooz's picture

"All ethnic groups are not equal."

Greek Untermenschen, eh, Trav?

You are talking about the ethnic group right at the foundation of your civilization.

Ethnic groups do adopt new cultures, you know.

Jack Burton's picture

Really? What about the Republican candidate Romney? Will he not reverse the Obama socialist agenda and return America to free enterprise, low taxes, prosperity and world domination?

Romney is Republican, they can and will save America. Everything will change the day Romeny is sworn in. He is no puppet of "the street" nor will he cave in to all those willfully unemployed bums who refuse to get a job. He will stop the greedy old people form taking all that social security money and instead turn that money to good account in increased military spending.

America is headed for brighter days under the great republican president "Romney".

LooseLee's picture

Romney is 'Obama-Lite'.....Ron Paul is our ONLY hope. Huntsman would be better than Romney...

pods's picture

No, our only hope is that enough of the populace become familiar with the reasons why Ron Paul is so popular amongst learned people.

Until I hear the phrase "fractional reserve banking" on a daily basis in real life we are still doomed.


YBNguy's picture

If I ever hear rehypothecation on a daily basis Ill nut myself.

StychoKiller's picture

Mr. Huntsman is now looking for a different gig...

pods's picture

An a new horse is breaking out of the pack and is moving up on MDB fast....................


Milestones's picture

Good tongue in cheek--dear Gawd thats what I hope it is!!!          Milestones

StychoKiller's picture're joking, right?

The Republicons and Decepticrats are two sides of the same coin, the Leviathan Party.

Ms. Erable's picture

I laughed so hard reading that I nearly crapped my pants. Romney = AFP (Another Fucking Puppet); parts are interchangeable with the Obamatronic '08 model.

aquagreen73s's picture

I think what you meant to say was: "Greece is what the U.S. will become no matter which one of the Wall Street puppet parties wins in nov 2012 unless it's Ron Paul in office."

StockProdigy's picture

Obama wins we become Greece sooner. Romney wins it will be delayed a year or two.

surf0766's picture

We are already Greece and worse.

Central Bankster's picture

Mittbush Romnobama is a change of pace?

Whatsoever's picture

The US, UK, Japan are in much worse state than Europe will ever be.

And this won't change for a long time, no matter what obstacles the american or british financial industry tries to implement for us.


Note, that e.g. Italy is in far far far better state than what is reflected by american and british crowds and media.

Reading knowledge helps, sometimes at least.

Greetings from Vienna.


mattu13048's picture

Who cares about these morons. Let's trade, man. Enjoy this shit:

Stoploss's picture

The Euro is dying an ugly and painful death.. WHO KNEW!!??   LOL!!

Zero Govt's picture

He did deliver "Hope & Change" pre-election in Berlin

He didn't deliver "Hope & Change" post-election.. was more like "More the Same.... only Worse"

Ho hum, that's politicians for ya

PY-129-20's picture

I remember that one. He was very popular over here. He had no achieved anything. Did that matter? But as a Berliner I know what they were hoping for back then. Another Kennedy.

I think Obama could've won the election over here too. Not that Merkel would be the better candidate. That's the dilemma. We Germans don't have a good candidate. At least you have Ron Paul and a choice. Me? Nothing. Just the same crap over again.

I will probably vote for the Pirates. But even in that case I'll gain no hopium in exchange. What a country! Ha! I guess Robotrader would love it. All these record numbers in the MSM now - and they matter nothing and will matter nothing and it will dawn upon the ignoro.

Instant Wealth's picture

Warning PY !

Pirates party plans to forbid trading of derivatives

... and, of course, Greetings to Berlin from a former FU student

americanspirit's picture

Followed by Timmy to kick ass and get those Krauts in line

cossack55's picture

Not too tough when you are holdin' all of the Krauts gold.

non_anon's picture

yeah, whatever Obama touches turns to shit

Eireann go Brach's picture

Fucking Double post.. Or just lend Merkel his TelePrompTer!

Ghordius's picture

Dear ol Wolfgang Reitzle is not exactly the most representative source, he made aquisitions in the UK and is cherishing his contacts with the Guardian. The way he posed it is also telling...
But hey, it's The Guardian, it has to cater to it's reader's tastes and prejudices - one of them is that the diabolical EUR has to die...

The Big Ching-aso's picture



Newsflash:   The still magnificently productive Germanic people aren't gonna let any more FUBAR foreigners play 'Let's Bury Our Carbunkled Schnitzelgrubens Up Their Heinies' without a hefty reciprocal price.    Who in phuck can blame them?  That gig's kaput.

Zero Govt's picture

Ghordius, have you ever met/read the Guardian newspaper???

a bigger bunch of Pro-EU progressives/Marxists you could never meet

Ghordius's picture

The British version, yes, sometimes, the American version, never.
"Pro-EU progressives/Marxists"? A bit more moderate than this I'd say. The convictions I am writing of are National, though. As I find out whenever I am on dear old Blighty...

navy62802's picture

That's the collateral backing Italian bonds. Haha.

Tyranny is Love's picture

What the price tag on the Ship?


And which company owns it?


An asset that big will be on someones books, and with hyper-rehypothecation in the City of London its likely to be an asset backing a lot of paper.

Please correct me if I'm wrong and the shipping industry operates differently, As this is new to me. Thank you of MF Global.

Reese Bobby's picture

Q. Why does the new Italian Navy use glass bottomed boats?
A. So they can steer clear of the old Italian Navy.

Al Gorerhythm's picture

Germany being the rock; Satellite nations the ship of fools?

Tompooz's picture

"Shipwrecked off the Island of Ponzi"

Ag1761's picture

You will succombe to German discipline, now where/when have we heard that before.

Dick Darlington's picture

Meanwhile in Hungary the EUSSR flag gets it.

Ghordius's picture

LOL - and what kind of reaction is this supposed to cause?
It's not one of the holy ones...

Zero Govt's picture

they're shouting "Burn it, burn it, burn it" ...awesome

the EU flag should be Commie red with a fascist Nazi symbol in the corner to be accurate ..Brussels is a toilet of humanity, can't wai for the shithole to collapse

..and I'm down in Budapest tomorrow, hope to burn one myself if the protest is still going