Germany's Weimar Republic ....

SAMARAS WARNS THAT GREECE FACES DISASTER...Greece's prime minister has warned that the economic crisis in Greece is now so severe that society risks collapse, and urged its international lenders to agree its desperately-needed aid trance soon. In an interview with German business newspaper Handelsblatt, Samaras said: Greek democracy is facing perhaps its greatest challenge. He cited the rise of the fascist Golden Dawn party (which won parliamentary seats in the last election) as proof that Greece is staring into the abyss.

There is a real risk of the social order collapsing, he said, thanks to "the rise of a right-wing extremist, one might say fascist, neo-Nazi party."

Samras argued that Greece faced the same fate as Germany's Weimar Republic (whose collapse amid economic chaos heralded the rise of the Nazia in the 1930s). And Samaras pointedly insisted that Greece could not make further cuts, saying the existing plans "already to to the bone". Poverty is growing, and unemployment at record highs [youth unemployment has reached 55.4%] he added: More and more people have to go to soup kitchens of church and charities to get a hot meal. Highlights from the interview are here on Handelsblatt's website (in German). Google translation into English here.

Reuters also has separate details of the interview. It reports that Samaras warned that Greece cannot manage beyond November without its injection of international aid (worth around €31bn) . "The key is liquidity. That is why the next credit tranche is so important for us," Samaras told the business daily Handelsblatt. Asked how long Greece could manage without it, he said: "Until the end of November. Then the cash box is empty." Samaras also suggested that the ECB could lend a hand by accepting lower interest rates on the Greek debt is already owns, or allowing those bonds to 'rollover' rather than be repaid. He also suggested that a Spanish-style banking rescue could help: I could also imagine the recapitalisation of Greek banks as is being considered for Spain, which would be not accounted for on its state debts but carried out directly via the ESM. That would be a significant relief.....On the Samaras interview. Yes, the echoes with Weimar (rise of the NSDAP through austerity, rise of Golden Dawn through austerity) are valid. But, what isn't valid is the economic background. Weimar saw american lax credit suddenly withdrawn, Greece has the biggest economic assistance program in history.