STOCK MARKET WATCH -- Thursday, 5 June 2014

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17. Opinion: Europe's Juncker Bond

http://www.spiegel.de/international/europe/opinion-why-germany-should-say-no-to-juncker-a-973540.html

Let's be clear: Jean-Claude Juncker is no friend of Germany. More to the point, the man is only friendly to the Germans so long as they are willing to cover the debts of their neighbors without grumbling too loudly. But as soon as Berlin suggests that other countries first take a look at their own spending before asking for German help, Mr. Juncker becomes indignant. Those well-behaved Germans, who he has praised in the past for doing so much for unity on the Continent under Helmut Kohl, quickly become barbarians in his eyes, unwilling to learn anything from the past.

Here are a handful of examples. During the peak of the euro crisis, there came a point when German parliament didn't immediately rubber stamp a part of some bailout package, preferring to take its time to clarify some details. An indignant Juncker railed: "Part of the problem is acting as if Germany is the only virtuous country in the world, as if Germany is having to foot the bill for all the other countries. That's very insulting to the others." When Germany insisted that countries requiring aid commit to stricter budget discipline, he stated: "Why does Germany bestow itself the luxury of constantly deciding domestic policy for others when it comes to the issue of the euro? Why does Germany treat the euro zone as if it were some kind of franchise in its own chain?" When Germany rejected the idea of euro bonds, he had this to say: "This method of erecting taboo areas in Europe and not even considering the ideas proposed by other people is a very un-European way of taking care of European business. Germany's thinking is a bit simplistic."
Disregarding the Electorate

Word has it that Jean-Claude Juncker now wants to become European Commission president. The only person at the moment who has the power to stand between him and this goal is the German chancellor. On the flip side, support for the former Luxembourg prime minister is greatest in places that have the most to gain from his rise. So it's worth recalling just how this man thinks -- a man who is being peddled as the only obvious candidate by interested parties.

Juncker is basing his claim on the results of the European election, which this time was allegedly not only about voting to determine the distribution of seats in the European Parliament, but also the nomination for the far more important post of the European Commission president. The deception started at the very beginning. And it was Juncker, of the conservative Christian Democrats, and his co-candidate Martin Schulz, of the center-left Social Democrats, who unleashed this illusion that the election would be about more than filling the seats in parliament. They did so to position themselves for more powerful offices. The fact that this fiction is now being maintained doesn't make it any less of a fiction.