Pan-European Greek Bailout Mutiny Gathers Steam, As Calls For "Euro Without Greece" Plebiscite Grow Louder
Just like last year at about this time, the tables are turning on the funders of the latest Greek bailout. As Athens News reports: "Austrian mass-circulation tabloid Oesterreich, expressing rising taxpayer resentment around the EU, called for an EU-wide plebiscite "to let those who have to pay for Greece decide" whether to rescue it again or preserve "a euro without Greece"...[it also said] zigzagging over Greek aid pointed to a lack of a strategy allowing "shameless financial markets (to) blackmail apparently helpless politicians", and it called for an EU-wide referendum." Elsewhere, Geert Wilders, head of the third largest Dutch political party, the Party For Freedom, said "Greece should leave the euro zone and reintroduce the drachma (pre-euro currency). No more Dutch tax money to the corrupt and de facto bankrupt Greek." So the end result is that once again neither the Greek nor the European population wants the latest bailout that is forced upon them by the banking system, which is terrified about what happens if failure is reintroduced as a final outcome. Yet while it will take a lot to organize Europe's conflicting popular interests, the immediate decision-making power resides with Greece, where in just over 24 hours the all-critical vote of confidence in the ruling party will take place, whose failure is simply unthinkable in terms of downstream effects for the Eurozone. And as anyone familiar with the constitution of "united" Europe can attest, the jettisoning of Greece from the currency union will be next to impossible without a thorough redo of the bylaws of not only the Eurozone but all other artificially unionizing constructs that will promptly be forced to unwind should Greece "just say no" to more banker bailouts.
From Athens News:
Ta Nea, a centre-left, pro-government Greek daily, welcomed what it said were signs from recent Greek negotiations with EU creditors that it would be able to spare the financially neediest Greeks from the next "austerity clamp".
"Our lenders and partners do not wish to see the Greek economy collapsing. In this context the government can argue that to achieve targets Greek society must not be exhausted."
But centre-left newspaper Ethnos said Prime Minister George Papandreou's Socialist government was caught "in an iron social and political vise" by popular resistance to more sacrifice.
"The stance of society (veers between) negative to massively angry. All parties are refusing to work with the government and are asking for elections," Ethnos warned.
The Eleftherotypia daily vented the view of many ordinary Greeks, blaming the EU and other outsiders for their crisis.
"Led by Germany the EU, instead of showing solidarity and trying to solve the problem as a family matter in the Union, confronted Greece. It imposed punishing rules... instead of providing help," Eleftherotypia said. "Today Greece is at risk of becoming Europe's little whore." Underlining the peril to some EU coalition governments inherent in showering more money on Greece, the leader of the Dutch rightist Freedom Party that props up the minority government said it opposed more largesse for Greeks.
"Greece should leave the euro zone and reintroduce the drachma (pre-euro currency). No more Dutch tax money to the corrupt and de facto bankrupt Greek," Geert Wilders said.
He said that if the Dutch government joined a new bailout for Greece, then it "will have a major and very serious political problem with my party".
In Germany, Europe's most widely read and influential newspaper, Bild said financially squeezed taxpayers were bristling at conservative Chancellor Angela Merkel's readiness to cough up more relief for Greece rather than her own people.
"Will the Greek crisis ruin all hopes for tax cuts in Germany? In Germany more and more citizens are asking themselves -- there is money for the Greeks but when will there be some for me, the simple taxpayer?" Bild said.
The conservative daily Frankfurter Allgemeine said Merkel was working feverishly to come up with a permanent EU financial stability regime "but is giving out the impression of a fire marshal in perpetual stress: several fires, few pails, no plan".
"The German government calls this 'crisis politics' ... But the citizen does not understand where this is going... this yo-yo-ing is difficult to explain to the voter," the German financial daily Handelsblatt said in an editorial.
"Political pressure on Merkel from the conservatives and her coalition is rising immensely," it said.
The liberal Munich daily Sueddeutsche Zeitung said Germans are "warily asking whether it can be right to tie up one package after another for a country being governed by corrupt elites.
"Should Greece not leave the EU, or reapply? ... For a long time the Greek crisis has not been (so much) about money but about the biggest asset the EU has -- its credibility. Its disastrous crisis management is making citizens, allies and financial markets nervous," the Sueddeutsche said.
End result: EURUSD jumps by over 100 pips in overnight central bank trading.
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