History explains all....The EU is experiencing its 'Stalingrad'
moment....Sheer hubris makes it impossible for the EU to make the right
decisions. Draghi's wears his vanity as if it alone is enough to save the EU.
His vision is correct in his eyes, and to him that is all that matters, and that
imprisons him in a course of action that is clearly failing. He is the only one
who can't see it, though his generals nod their approval to maintain their
salaries and privileges. Even Greece has deferred the worst effects of their
austerity measures, which means that there will be no avoiding mounting civil
disorder. If Golden Dawn show some political maturity (which they haven't so
far) they'll walk in to power. Samaras is trying to defuse the Golden Dawn
threat with some cynical changes to citizenship law but that's only upsetting
his coalition partners. His government is doomed to collapse. European
governments should focus on spending cuts, not tax rises to get their deficits
down, according to the head of the European Central Bank. Mario Draghi said
that the ECB's action (via its €1 trillion LTRO bazooka and announcement of the
OMT programme) had helped to calm markets, but that it was up to governments to
regain credibility.The growing tension between Germany and Greece was on show
today as public sector workers stormed a building where officials from the two
countries were meeting in the Greek city of Thessaloniki. Police had to form a
shield around German Consul Wolfgang Hoelscher-Obermaier as he tried to enter
the building. They also pelted him with water bottles and coffee in a protest
against austerity measures. The workers chanted: "It's now or never!" and held
up mock gravestones and banners proclaiming "Fight until the end!" ...Workers
said that they were furious at comments by German envoy Hans-Joachim Fuchtel,
who reportedly told journalists on Wednesday that it takes 3,000 Greek public
sector workers to do the work of 1,000 of their German counterparts. Mr Fuchtel
is Angela Merkel’s special envoy to Greece. Michael Meister, a member of
Chancellor Angela Merkel's Christian Democratic Union party, told reporters that
he could "live with" giving Greece more time to bring down its debt levels,
adding that the EU had "many tools" to enable this to happen. However, he said
that a writedown of Greek debt would be unacceptable to Berlin, and that MPs
would not rush through a vote on the country's next aid tranche.
Access Investments-Building Awareness - European Union-ROMANIA
Friday, November 16, 2012
History explains all....
History explains all....The EU is experiencing its 'Stalingrad'
moment....Sheer hubris makes it impossible for the EU to make the right
decisions. Draghi's wears his vanity as if it alone is enough to save the EU.
His vision is correct in his eyes, and to him that is all that matters, and that
imprisons him in a course of action that is clearly failing. He is the only one
who can't see it, though his generals nod their approval to maintain their
salaries and privileges. Even Greece has deferred the worst effects of their
austerity measures, which means that there will be no avoiding mounting civil
disorder. If Golden Dawn show some political maturity (which they haven't so
far) they'll walk in to power. Samaras is trying to defuse the Golden Dawn
threat with some cynical changes to citizenship law but that's only upsetting
his coalition partners. His government is doomed to collapse. European
governments should focus on spending cuts, not tax rises to get their deficits
down, according to the head of the European Central Bank. Mario Draghi said
that the ECB's action (via its €1 trillion LTRO bazooka and announcement of the
OMT programme) had helped to calm markets, but that it was up to governments to
regain credibility.The growing tension between Germany and Greece was on show
today as public sector workers stormed a building where officials from the two
countries were meeting in the Greek city of Thessaloniki. Police had to form a
shield around German Consul Wolfgang Hoelscher-Obermaier as he tried to enter
the building. They also pelted him with water bottles and coffee in a protest
against austerity measures. The workers chanted: "It's now or never!" and held
up mock gravestones and banners proclaiming "Fight until the end!" ...Workers
said that they were furious at comments by German envoy Hans-Joachim Fuchtel,
who reportedly told journalists on Wednesday that it takes 3,000 Greek public
sector workers to do the work of 1,000 of their German counterparts. Mr Fuchtel
is Angela Merkel’s special envoy to Greece. Michael Meister, a member of
Chancellor Angela Merkel's Christian Democratic Union party, told reporters that
he could "live with" giving Greece more time to bring down its debt levels,
adding that the EU had "many tools" to enable this to happen. However, he said
that a writedown of Greek debt would be unacceptable to Berlin, and that MPs
would not rush through a vote on the country's next aid tranche.
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Jens Weidmann said that Greece's finances were an exception within the 17-nation eurozone because the country's debt level "is not sustainable."
However, he said that problem can only be fixed after the country's politicians deliver on the promises they have made to steer Greece back to financial health.
Mr Weidmann told a gathering of business leaders in Berlin:" One should ask, if it would create trust if Greece were to receive a debt writedown today, or would it not make more sense to give the prospect of a writedown that one would need to regain market access when the reforms are actually carried out."
He hinted that Greece could be given a pledge as some sort of carrot now, promising that its eurozone creditors will eventually forgive some debt, giving Greek leaders a further incentive to push through reforms. The relief, however, would not come until all agreed measures are pushed through, he added.
"We have seen drastic reforms here, but they are not yet sufficient," Mr Weidmann said. "The path that we have in front of us is still a long one."
"Mr Weidmann also argued that granting Greece debt relief now would in effect create moral hazard - leading to a situation in which leaders in other bailed-out nations, such as Portugal and Ireland, would no longer be able to push austerity measures"
Indeed, Ireland just announced today that public transport (state owned of course) fares are being hiked up by up to 17.9% next month as the first in a number of price hikes over the next few years. The minister for transport (Leo Varadkar - there's a good Irish name for you) was nowhere to be found today and didn't utter a peep.
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