The money for the bail out will come from german taxpayers. The spanish government learned at last, at the beginning of 2012- the truth. That centre european economy (Banks, factories) is a dead man walking. That it has survived draining the blood of the poorer but healthier economies of the periphery (I mean the UK, Spain, Ireland, The Baltics). That mean that most of balance sheets in Germany and France, and the north of Italy, are commercial credits against the euro-area. If Spain defaults the entire centre european economy will collapse. From the very day Mr Mariano Rajoy knew that, all the empty talk of Ms Merkel about austerity was doomed. The problem now is how can you make it without german taxpayers to realize that their politicians have been lying since 2000, or even before. And I think: there is no way. So they blame us (And it is easy). You can find a 2004 article at ‘The Economist’ about “Europe after Aznar”. You can see at the EU commision webpage the shameful record of the proceeds for excesive deficit agains France and Germany, and how they died when Spain changed sides in 2004 with the new socialist government. You can read about how Basel III banking rules were adopted in 2003- to favour investments in public debt and mortgages of AAA rated creditors. The information about how the USA and centre Europe are screwing the world to save some of its banks and big corporations at the expenses of its own taxpayers and of other countries is there, for anyone able to read.
Of course we need a bail-out.And Germany needs a bail-out from the 1990s, not to mention Italy or France. With many, many conditions.
We (Spain) have to dismantle and rebuild the public sector. The industrial and banking lobby of centre europe has to close and be rebuild (I must stress .- Its not “Germans must pay for their sins”. Its “the industrial lobby, no matter wich country, and the banks that have financed it, must pay for their sins”). The EU Commission has to recover its role as treaties keeper. Right now it endorses a mad “new industrial policiy” designed for crazy politicians and equally insane industrials.
Neither the Euro, nor the Gold Standard is the rope that has tied us together. We were already tied. We have been since the industrial revolution. But we have failed in taking the right steps. From 1872 to today, our political institutions based on XIX century nationalism have boost suicide policies that have ended in two world wars. And since 2003, when the EU equilibrium was broken with Aznar´s departure, we are back in the track that has carried Europe from the world leading power in the XIX century to our current near-irrelevance. This new suicidal round, if completed, will let us in a third-world-status. And the EU experiment, the best thing that has happen to us in a century, was forced by the USA in a cold-war-environment. Pityful. Am I making myself clear? I guess not. We (Europe) need an industrial and institutional reform to adapt to a future shared with China, India, Brasil… We have to open borders to immigration, to trade, to less political intervention, we need a more independent Justice… and Nationalism and protectionism disguised as “welfare state protection” are in the way, and are leading us straight to hell. Neither the Gold Standard. Nor the Euro. Our anti-democratic institutions. Our nationalist Politics. Our History has been defeating our destiny for 100 years and is going to kill us all, if we let it happen again.