Lovely front cover from this week's issue of The Economist, which uses the metaphor of a sinking ship to highlight the state of the global economy. As for the request to Mrs Merkel about starting the engines (i.e., promoting growth), the accompanying article makes things clear:
To an astonishing degree, the fate of the world economy depends on Germany’s chancellor, Angela Merkel. (...)
Throughout this crisis, Mrs Merkel has refused to come up with a plan bold enough to stun the markets into submission, in the same way that America’s TARP programme did.
In short, even if her strategy has paid some dividends, its cost has been ruinous and it has run its course. She needs to lay out a clear plan for the single currency, at the latest by the European summit on June 28th, earlier if Greece’s election spreads panic. It must be specific enough to dispel all doubt about Germany’s commitment to saving the euro. And it must include immediate downpayments on deeper integration, such as a pledge to use joint funds to recapitalise Spanish banks.
COMMENT
Well, the Spanish banks have been bailed out, but will that be enough to calm the markets?
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• Angela Merkel, swimming instructor (The Economist)
