While German Chancellor Andrea Merkel works to hold together her ruling coalition, members of her center right and Christian coalition are fighting to stop the ever expanding bailouts of poorer euro nations and the growing risk it poses to German taxpayers.
In a ever growing drama, Germany’s constitutional court is deciding today to rule on lawsuits it as been considering against German participation in the European bailout program. The outcome of of Ms. Merkel’s parliamentary struggle will depend on this ruling.
Investors seeing the handwriting on the wall are fleeing to the Swiss Franc, bonds and gold. Switzerland is now fighting this currency turmoil and considering a cap on the value of the Swiss franc at 1.2 francs per Euro, implemented by “unlimited purchases of the Euro” to save it’s Swiss exporters from bankruptcy.
Meanwhile Greece is balking under the direction of the German Finance Minister when reminded that the disbursement of international loans and Germany’s participation depends on Greece making progress on it’s deficit.
Failure for Ms. Merkel to hold together her own coalition and the growing discontent among the German people, who will bear the brunt of carrying the euro could spell it’s disaster.