Here is a summary of my judgement about the fancy Berlin-Paris so-called "Rescue Policy" in favor of the PIGS-states payed by German pension receivers and taypayers:
What happened in May 2010?
(summary only)
1) Berlin decided about a (far too) large rescue package for bankrupt Greece.
2) Berlin decided for a huge rescue package for the other PIGS states
3) Both decisions will be an enormous burden for Germany far beyond the current generation and includes the danger, that those financial mega-obligations will generate tax increases and decreases of retirement pensions and social welfare payments. So once more the poor people which are totally not to blame for the Greek non-solidarian behavor pay for its compensation though the efficiency of those rescue packages is by no measn guaranteed
4) Berlin and Paris, the masterminder in the EU have more or less dissolved the ECB, at least they have abolished its independence (which - remember - was the main argument for us eurosceptics (and our scepticism turns out to be justified by now) to say yes to the euro. Berlin and Paris have nont only authorized the ECB to print bank notes as its liking (which was strictly forbidden when the ECB was established) but have directly instructed it to do so quickly and intensively. They also require that the ECB shall buy junk bonds extensively, i.e. that the ECB shall compensate losses for which the ECB is not responsible.
This deformation of the ECB, but already the rescue package for Greece Berlin and Paris violate the EU treaty which - with good reason (as economy directive) - excludes any mutual debt compensation in the EU. This EU-article was put into the EU treaty exactly for that reason, that such PIGS-behavior would get rewards via rescue money from other non-pigs-countries.
These are the facts.
Now the necessary alternatives / what has to be done:
(now after Bruxelles has made its decision, I refrain from a very detailled operationalisation of these alternatives)
1) anulation or at least large reduction of both (the Greek and the general European) rescue packages and much more severe threats via sanctions, if the PIGS countries do not implement necessary economic and financial disciplin.
2) Re-inauguration of the ECB in its status as it has been at its founding: as an absolutely independent safety body for the Euro currency without the right to print Euro bank notes and to buy junk bonds.
3) Sincere bankruptcy handling for the PIGS-countries identically as it is for bankrupt companies and indivduals. There have been drafted solid blue prints by economy experts how the PIGS can go bankruptzu handhaben wäre, wurden bereits genügend in der Wirtschaftsexpertenpresse vorgestellt. What is lacking is the political courage in Bruxelles.
4) Re-Introduction of Drachme, Escudo, ir.Pound und Peseta for the PIGS countries.
5) With all those measures above: a new start of the EU, this time as an EU with diffent speeds. Which is no new or shameful idea for Europe but has been recommended already 10 years ago by Euro-sceptics when the Euro has been started.
Thus every country in the EU can decide how much monetary and economic disciplin it want to achieve. Correspondingly all EU-countries will be classified and there is no mutual liability. This was the good order for decades and only the profit aims in the European economic establishment has lured us to the Euro with its problematic consequences of which we all are now the victims.
Every politician should be asked by now, wheter s/he is for the Paris/Berlin decision and why and why s/he does not plead for alternatives. So we can have an intensive controversial political debate in Germany. I would like that.
(text for the cartoon below: "The saving policy continues. We abolish the German president post and change the castle where he resides into a casino")
(summary only)
1) Berlin decided about a (far too) large rescue package for bankrupt Greece.
2) Berlin decided for a huge rescue package for the other PIGS states
3) Both decisions will be an enormous burden for Germany far beyond the current generation and includes the danger, that those financial mega-obligations will generate tax increases and decreases of retirement pensions and social welfare payments. So once more the poor people which are totally not to blame for the Greek non-solidarian behavor pay for its compensation though the efficiency of those rescue packages is by no measn guaranteed
4) Berlin and Paris, the masterminder in the EU have more or less dissolved the ECB, at least they have abolished its independence (which - remember - was the main argument for us eurosceptics (and our scepticism turns out to be justified by now) to say yes to the euro. Berlin and Paris have nont only authorized the ECB to print bank notes as its liking (which was strictly forbidden when the ECB was established) but have directly instructed it to do so quickly and intensively. They also require that the ECB shall buy junk bonds extensively, i.e. that the ECB shall compensate losses for which the ECB is not responsible.
This deformation of the ECB, but already the rescue package for Greece Berlin and Paris violate the EU treaty which - with good reason (as economy directive) - excludes any mutual debt compensation in the EU. This EU-article was put into the EU treaty exactly for that reason, that such PIGS-behavior would get rewards via rescue money from other non-pigs-countries.
These are the facts.
Now the necessary alternatives / what has to be done:
(now after Bruxelles has made its decision, I refrain from a very detailled operationalisation of these alternatives)
1) anulation or at least large reduction of both (the Greek and the general European) rescue packages and much more severe threats via sanctions, if the PIGS countries do not implement necessary economic and financial disciplin.
2) Re-inauguration of the ECB in its status as it has been at its founding: as an absolutely independent safety body for the Euro currency without the right to print Euro bank notes and to buy junk bonds.
3) Sincere bankruptcy handling for the PIGS-countries identically as it is for bankrupt companies and indivduals. There have been drafted solid blue prints by economy experts how the PIGS can go bankruptzu handhaben wäre, wurden bereits genügend in der Wirtschaftsexpertenpresse vorgestellt. What is lacking is the political courage in Bruxelles.
4) Re-Introduction of Drachme, Escudo, ir.Pound und Peseta for the PIGS countries.
5) With all those measures above: a new start of the EU, this time as an EU with diffent speeds. Which is no new or shameful idea for Europe but has been recommended already 10 years ago by Euro-sceptics when the Euro has been started.
Thus every country in the EU can decide how much monetary and economic disciplin it want to achieve. Correspondingly all EU-countries will be classified and there is no mutual liability. This was the good order for decades and only the profit aims in the European economic establishment has lured us to the Euro with its problematic consequences of which we all are now the victims.
Every politician should be asked by now, wheter s/he is for the Paris/Berlin decision and why and why s/he does not plead for alternatives. So we can have an intensive controversial political debate in Germany. I would like that.
(text for the cartoon below: "The saving policy continues. We abolish the German president post and change the castle where he resides into a casino")
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