Germany declares economic war   By Ambrose Evans-Pritchard Economics  167 Comments Comment on this article      Ill-informed belligerence: Peer Steinbrück Remember that Herr Steinbrück is not a journalist, pundit, or back-bench maverick. He speaks officially for the German government and for the German nation on the international stage. Every assertion that he made about Britain in his interview with Stern is either factually wrong, or such a serious distortion of events that it amounts to a smear. Furthermore, it was quite threatening. What he said, in effect, is that Germany will marshal its forces to ensure that a chunk of the British economy is shut down - whatever the social consequences. This is the closest thing I have seen to a declaration of economic warfare in Western Europe in my lifetime. “There is clearly a lobby in London that wants to defend its competitive advantage tooth and nail.” Stern said that he sees “dark powers at work” in Britain. He accused the UK government of “doing its best” to sabotage stricter financial regulation at the G20 in Pittsburgh. This resistance will be crushed. “We WILL effectively change the rules on the financial markets. Politics is sometimes like a locomotive which comes slowly up to full speed.” “The British financial industry gains 15 per cent of the gross domestic product, in Germany is it six per cent.” Britain is out of step with the rest of Europe in trying to keep this “advantage going.” It must “share the burden” of the financial crisis in the form of a tax on exchanges. “The central question is who pays the bill? It cannot be that the citizens of Europe should carry the whole cost.” Britain was having…

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