IRELAND “CAVED in too soon” to EU pressure to accept a bailout, according to a rebel from German chancellor Angela Merkel’s coalition partner.
Free Democrat (FDP) parliamentarian Frank Schäffler suggested that not everything being demanded of Ireland is “in its own best interests” while French and German national interests explain pressure for Ireland to raise its corporate tax rate.
“At heart Ireland caved in too quickly to the pressure of the larger countries, it was in effect forced into the rescue fund,” Mr Schäffler said. “That was to calm the markets but they haven’t calmed, which is the lesson for the future: rescue funds don’t solve the problem but act like oil on the flames.”
At tomorrow’s FDP conference in Rostock, Mr Schäffler and 14 supporters will present a motion calling for the Bundestag to halt German ratification of the permanent EU rescue fund (ESM).
They argue that it will “hobble” member states by making it difficult to pursue responsible finance politics and self-responsibility. They want a European insolvency law with obligatory creditor involvement and a new measure for states breaching euro zone rules to “leave for a short time”.
Finally, they want a robust eurozone sanctions mechanism where punitive measures cannot be halted by heads of state.
“The party leadership hasn’t exactly embraced me but, in the party, support has risen considerably in the last half year,” said Mr Schäffler in his Berlin office. He describes his campaign as an attempt to broaden the appeal of the FDP, amid a leadership struggle and disastrous poll ratings.
“We are destroying the European integration idea because in this crisis, and Ireland is the best example, it’s not the rich helping the poor . . . but the poor helping the rich,” he said.
The “Liberal Awakening” movement has shaken up the leadership of FDP, usually seen as a party for self-employed better earners.
In the eyes of the FDP rebels, the party could attract support by forcing a broad discussion in Germany on its future path in the EU, closing a widening gap between voters and a political elite that Mr Schäffler says is “still drunk on Europe”.
He has proposed that Greece be assisted to leave the euro zone if it wishes and suggested Portugal should sell off gold reserves.
The FDP politician insists he is not a populist nor a eurosceptic and wants to start an EU debate in Germany before extremists seize the initiative.
“We’re experiencing just the start of the crisis, not the end, and we will be confronted over again with these (EU) questions, making it important that we have answers,” he said.