10th November 2011
The Guardian's Allegra Stratton reports on a view inside 10 Downing Street that Germany will eventually allow the ECB to back the euro to the hilt. The UK Prime Minister's advisers believe that Germany is currently playing a waiting game to extract more concessions.
Stratton quotes an adviser – "Germany wants to bank some wins [reforms in Italy, Spain and so on] before Merkel turns on the ECB taps. We understand that. Otherwise they feel they are just creating a dependency drip for other countries to rely on. The problem is, do we have time to bank commitments when the markets are finding these countries out But Germany's commitment to Europe is greater than her fear of inflation."