There is a misconception, and not just
in America, that Germany pays for bailing out its lazy and/or
confused neighbors. But that is simply not true. At least not yet.
The bailout fund was designed two years ago to be financed by all
Eurozone Member States according to their participation in the
European Central Bank. On paper, it should be the 17 of them, but the
bailed out countries, Greece, Ireland and Portugal, are excluded and
their part is adjusted with a slightly increased contribution from
the others.
Germany is the largest contributor, as
the largest and richest country in the Monetary Union, and has to
back the issuance of 29% of the bonds for the 780 billion euro fund.
But everyone is in it. France's share is 22%, Italy's, 19%. Spain's
amounts to 12,75%.
In fact, troubled Spain is now the
fourth largest contributor to the fund, another argument for Berlin
against bailing out the State or its banks. The next one,
Netherlands, backs less than half of that share. If the Spanish State
were to receive aid, the adjustment of its share would be the most
painful so far. Among the three forgiven countries, the largest share
would have been for Greece, and just 2,8%. A fund with less partners
would be the scenario that Germany has feared in the last two years.
The stepping out of Spain would start to compromise seriously the
future of the fund itself and its substitute, more permanent one that
should be in place next year.
