Angela Merkel doesn’t want to back the creation of Euro Bonds. Nor does she want to contribute more to the EU bailout fund. Naturally Belgium, Greece, Italy, Portugal, and Spain want Germany to contribute more. Germany wants to spread German financial discipline to the rest of Europe, especially the southern sector — or else. She would insist that every country limit their budget deficits to 3% of GDP and limit their debt load to 60% of GDP. If they don’t they won’t get transfer payments from the cohesion funds. The rest of the countries say this is nonsense. They can’t do without cohesion funds.
Germany doesn’t care if its objections shrink the Euro Zone in size down to only a few like-thinking members such as: Finland, the Netherlands, and Austria. Maybe that would be more truly German.