So here we had another item of news. Yesterday, you could read in the SZ:
December, 1st, 2012 12:28 hours
Moody’s downgrades ESM and EFSF
Rating agency no longer grants top rating to the rescue fund
First they downgraded France. Now, as a logical consequence, they do likewise with the rescue fund. The Moody agency lowered the credit rating of ESM and EFSF by one point. This means that saving the Euro might actually get quite expensive.
Well, so much on the SZ articlet.
But first, let me give you a few numbers:
Germany is the most important country when it comes to paying into ESM and EFSF. So far, we guarantee for 29.07 % +. The “plus“ is due to special regulations, such as Slovakia – but we are only talking one or two hundred million euros in this context.
Then there are, of course, France (20.4 %), Italy (17.9) and Spain (11.9). Also part of the group is, for instance, “Tu Felix Austria”: with 2.8 %. Other members of the group (or is it more like a coup?) are Belgium (3.5 %), Finland (1.8 %), Greece (with 2.8 %, like Austria!), Holland (5.7 %), Ireland (1.6 %) and Portugal (2.5 %). It is only little consolation that financially strong countries such as Malta and Cyprus only guarantee with 0.4 and 0.9 %.
(Quelle: SMP, EFSF und ESM – Allianz Global Investors) [PDF] )
I hope the numbers are correct. Who can tell these days?
In other words, more than half of the countries that should stabilize the rescue fund are already protected by the fund. France, Italy and Spain together already hold a majority of 50.4 %!
And for those who are too stupid to understand, Moody’s even explains it. The short version of what they say is:
The credit standing of a “rescue fund“ can be no better than the credit standing of those upholding it.
Now isn’t that a very simple and easily understandable conclusion. And what is the reaction of the German politicians? They think Moody’s forgot to take the strong political feeling of unity of €-country into consideration when they did their evaluation. That is what I saw them say on TV yesterday.
All that I can think of in this context is the ingenious Baron who, when caught in the swamp, had the absolutely brilliant idea of pulling himself up by his own pigtail and thus saving the situation. What a pity that said Baron Münchhausen is also known as the Baron of Lies.
And it will soon be Christmas. It could get the slogan: hurrah – isn’t that going to be fun. What a nice mess it is going to be!
RMD
(Translated by EG)
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