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Monday, 2 March 2009

Merkel says 'Nein' to eastern Europe

Gordon may spin the line that the weekend meeting of Europe's Heads of State and Government was about agreeing a common line on measures to tackle the recession, but it was really about the fragile eastern European nations asking Germany to release the purse-strings on Hans and Trudi's savings to get them out of trouble. And Merkel said no.

When the camouflage comes off there are no two more protectionist nations than France and Germany. France is going all-out to protect its car brands. And Germany, I think, will hang on to its money until the crash bottoms out and the fire-sale starts.

How the ordinary people of eastern Europe will react to the divergence between the brave Euro rhetoric and the self-interested Euro reality doesn't take much guessing.


Budgie said...

Go to Germany: the cars on the street are German. Go to France: the cars on the street are French. Go to Britain: the cars on the street are almost anything but British.

When we joined the EU we had the biggest and best aviation industry in Europe. Now we have lost the civilian capability (except for wings) and we are only capable of joint ventures for military. All we have left is Rolls-Royce. How long before that is taken over by the Germans?

We have this peculiar attitude that foreign people will look after us.

Silent Hill said...

Rolls Royce is owned by Volkswagen already isn't it?

Budgie said...

Yes, the cars business is, but it was split off from the aero engine side some time ago.

Rolls-Royce plc is involved in aero engine, power generation, nuclear reactors (primarily for submarines) and the oil and gas industry, amongst others. It is vastly bigger than the car business, and is Britain's biggest and most successful engineering business and exporter.

Budgie said...

Corrections to the above comments:

Rolls-Royce Cars is owned by BMW

Bentley Cars is owned by VW.

Rolls-Royce plc is the aero engine etc, manufacturer and is accurately portrayed above.

Anonymous said...

The German cars are German by brand name only. Most of the parts and assembly takes place in Slovakia and Slovenia.