Yes, indeed 'the German racket' (© the late Nick Ridley) continues to trundle and rumble its way along in its unstoppable manner like a Tiger tank heading for Normandy. A prize example of just what a prize this European nonsense is for the Germans lies in the banking sector which is due shortly to come under strict guidelines issued from Brussels. Well, that's everyone else's banks but not the Germans'!
As the WSJ reports, exceptions are being made for the huge class of German neighbourhood banks, called Sparkassen, whose gross wealth is around the €1 trillion level:
Germany's public savings banks have become the most powerful little lenders in the world, exploiting their political clout to punch loopholes into Europe's postcrisis banking laws. [...]
In late-night negotiations last December, German Finance Minister Wolfgang Schäuble ensured that day-to-day supervision of all but one of the 417 Sparkassen—the largest, the Hamburger Sparkasse is the exception—will remain in German hands, even when the European Central Bank becomes the euro zone's banking policeman next year.
Because these banks are very local they produce a great stream of income for local authorities and politicians, thus, there has been no arguments in the German political classes about the necessity of protecting their little milch-cows from those nasty men in Brussels:
As soon as the proposal was made, German members of the European Parliament sprang into action. They maneuvered themselves into the powerful negotiator positions in all four major parties—from the far left to the conservatives—and rewrote the bill so the Sparkassen rescue mechanism could remain separate.
"You cannot put a sheet of paper between me" and the Socialist negotiator on the bill, Burkhard Balz, a representative for German Chancellor Angela Merkel's conservative party, told the Danish diplomat who was leading the talks for EU member states. Mr. Balz confirmed the tenor of his comments.
So, given that, Dave, dare one ask how well you did in protecting British banks?
Oh, as good as that! Best not ask for details, then.
