The Greek "Choice": Hand Over Sovereignty Or Take Five Year Euro "Time Out"

Tyler Durden's picture

For those who missed today's festivities in Brussels, here is the 30,000 foot summary: Europe has given Greece a "choice": hand over sovereignty to Germany Europe or undergo a 5 year Grexit "time out", which is a polite euphemism for get the hell out.

As noted earlier, here are the 12 conditions laid out as a result of the latest Eurogroup meeting, which are far more draconian than anything presented to Greece yet and which effectively require that Greece cede sovereignty to Europe, this time even without the implementation of a technocratic government.

  1. Streamlining VAT
  2. Broadening the tax base
  3. Sustainability of pension system
  4. Adopt a code of civil procedure
  5. Safeguarding of legal independence for Greece ELSTAT - the statistics office
  6. Full implementation of autmatic spending cuts
  7. Meet bank recovery and resolution directive
  8. Privatize electricity transmission grid
  9. Take decisive action on non-performing loans
  10. Ensure independence of privatization body TAIPED
  11. De-Politicize the Greek administration
  12. Return of the Troika to Athens (the paper calls them the institutions... for now)

One alternative, generously presented to Greece, is for the country to put some €50 billion of assets - the best ones - in escrow to creditors. A more polite was of putting would be a Greek secured loan. This is how the Luxembourg FinMin Pierre Gramegna laid it out:

"A few new ideas were added to the table, especially one which is very important for some member states, which is that Greece would put a portion of its assets into a company that would be more independent from Greece."

"More independent" from Greece and "more dependent" to Berlin.

Greece would place about €50 billion of state assets into an independent company. Those assets could serve as collateral against aid loans, Gramegna says. "It would act as a kind of guarantee. There is great hesitation from the Greek side and now the heads of state and government have to choose."

"It would be a company structure based in Luxembourg, which would be managed from Greece with supervision by the European Commission and by the European Investment Bank. It would remain in Greek hands but it would create more assurances if it was known that a lot of assets were in this company."

"If one knows that the third bailout package would cost more than EU80B, one understands that countries are urging for some guarantees from Greece."

In other words, Greece is told to set aside a quarter of its GDP for Europe to do as it sees fit, and which can be "seized" if Greece is seen as veering away from its third bailout promises again.

And since Greece has no option but to promise everything and the moon, it will surely comply hoping that it is once again allowed to promptly forget all the promises as soon as it pockets some of that €86 billion in new bailout funds just to unlock the €120 billion in deposits held hostage in Greek banks by the ECB, even if the resulting debt will push Greek debt/GDP well above 200%.


Because the alternative is, and we quote...

"In case no agreement could be reached, Greece should be offered swift negotiations on a time-out from the euro area, with possibly debt restructuring."

... from the Eurogroup document:

No wonder Tsipras looks like this at the moment:

Somehow we think that if the only "alternative" is ceding sovereignty to Merkel and the rest of the northern European state, the vast majority of the population - which now clearly understands there is little further upside from remaining in Europe - may just opt for the aptly named "time out" from the most destructive experiment in Greek history. And even beg to make it permanent.

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lakecity55's picture

"Spread your cheeks so I can get this strap on into your asshole. Sorry I have no lube."
"OK, Angela."

Racer's picture

Leave out the 'sorry' bit!

invisible touch's picture
invisible touch (not verified) Racer Jul 12, 2015 12:20 PM

how they pay for 5 years if they are timeout of euro for 5 years, what money they use...?


Looney's picture

What happened to Europe?

Can’t it produce a dozen, a handful, or at least ONE PERSON who can be called “The Great”?

Tsippie-boy, Schauble, Merkel, Hollande, Dijsselbloem, Draghi, etc. – what a disgrace!

If the old bitch (Europe that is) is to give birth to at least one more Puppy the Great, it should get… ummm… fucked? ;-)


remain calm's picture

Dear EU, ECB, IMF,

The sovereign nation of Greece defaults immediately. Thanks for all your consideration. 

Hope you survive all the collateral damage from your derivative exposure, not. And go fuck yourself

Love ya,


chubbar's picture

Exactly, and make sure there is no wiggle room on language. Specifically state on national TV that you are NOT paying the debt and that you are defaulting. Let Douche a bank try to convince everyone that this isn't a default.

The Black Bishop's picture

And what about:

"Privatize electricity transmission grid"

Someone is looking to milk the ordinary greeks, thats for sure. Not like you have much of a fucking choice if you want heat for food/water etc.

AlaricBalth's picture

The right of self determination among a culturally autonomous people to determine their own destiny within the international community must be inalienable.

My friends in Greece, George Orwell said, "If you want a vision of the future, imagine a boot stomping on a human face...forever". That boot is the Troika. If you don't shed the shackles of debt slavery now, the opportunity may never arise again.

No one knows what the future may hold, but be assured, history will remember when Greece stood up to its oppressors and rekindled the fire of democracy once more.

tlnzz's picture

Greese would be better treated if they belonged to the Mafia. At least there, they put you out of your misery when they would be done with you.

strannick's picture

Eurocrats better be careful, Dump a little debt, import some cheap Russian gas, and Greece might. go all Iceland on their asses... Now what kind of example would that be for the rest of the Euro debt slaves??

Occident Mortal's picture

Greece should just declare on the state legislature that the Greek government no longer recognises any debt obligations to non Greek entities that were entered into prior to 1st July 2015.


Then Greece should declare war on pacifist demilitarised Germany and just bomb Dusseldorf back to the stone age.


How do you like them apples? 

TruthInSunshine's picture

Snap elections in Greece according to RanSquawk reports?

Anyways, Greece is setting up like the European Union equivalent of the Lehman failure circa-2009, especially if reports in financial press as of an hour ago are true (there's no way Greece will be able to stay in EU no matter what it agrees to at this late juncture, and Portugal is on deck, as northern EU block has done the math and decided neither can pay even 30% of existing debt back, let all e new credit extended, under any scenario - watch for Spain to be interrogated next).

But that's not the biggest global worry from a macroeconomic viewpoint - China's meltdown (which the Chinese Central Planners can't arrest, even halting 50% of stock market liquidity) is, coupled with sickness in Italy, Spain, France, and the Asian "Tigers" plus Brazil and India.

All accumulated debts of past 6 years in sovereigns plus record debt on books of publicly traded corporations (issued to buy back stock and fuel acquisitions), plus record private/household debt is now rearing its ugly, monstrous debt at the most inopportune time.

Laowei Gweilo's picture

well when a child steals money from adults, they often have to other get beaten or have a timeout by sticking their nose in a corner....


true to life, i suppose

new game's picture

3x world gdp is a threshold of swantyme or swansong, the fat lady sings, ha...

Save_America1st's picture

It's not just a Greek thing...handing over sovereignty to the elitist, sociopaths of the NWO scum is their demand against the entire world. 


Fight back.  And don't ever forget it. 

Ace006's picture

That first paragraph seems really risky.

Oh regional Indian's picture

I read recently, with some trepedition, how Germany/Berlin were once again becoming a center of power.

The game is quite clear.

The US gets crushed, CaAmexico is one giant war material producer (material and living), EU will take on Russ-Asia, Israel will attempt to wolf down arab territory while the ME burns, Pacific and South China area keep bubbling with NOK/Tiwan/Senkaku/Reef island shit....

Iran is the pivot...

The 4th Reich is on, but it looks nothing like what one expected..

rccalhoun's picture

this is a golden opportunity for O to ride in on his great black stallion and save the day

Skateboarder's picture

It's going to be a nauseating next few years seeing the words "democracy", "freedom", "human rights", etc. bandied around as the drivers of the upcoming sovereign nation M&A as people are further impoverished and enslaved. Secession is a neat concept, but the motherfuckers would sooner genocide everyone than let a group of people live free from centralized opression on this rock.

Oh regional Indian's picture


Very Dune-ish scenarios playing out is how I see it at some point (perhaps getting "seriously weird" in 2019ish), once India and China have had their ridiculous booms to be followed by general, all around busting.

Only increasingly tangential solutions can untangle this mess...

Skateboarder's picture

At some point, people have to say fuck you to odious debt. What are they gonna do, send in the guns, and turn the people into prisoners?

There is no way to stop this clusterfuck of exponentiation and growing indedebtedness of the people through the government to private banks owned by private individuals. If enough people band togther and say fuck you to the banks and banking altogether, we might make some progress.

For fuck's sake, there is absolutely no reason why a man should go hungry on this planet. So much food is simply thrown away, it's disgusting. Changes start from the heart, on how you treat people. There were indeed societies (India had some) in which basic necessities like foods were made free for everyone as a basic principle of living and working together. We can do it again, but it requires disconnecting from the rat race. Regardless, the one thing that binds all transactions is money, and that is the $IMFS (Dollar-based International Monetary-Financial System) as FOFOA calls it. Barter of physical goods, or exchange of labor is the only other option, because as you know, making your own money is "UHH-LLEEE-GULL."

A planet full of programmed to be "me-me-me" apes indebted to a bunch of dark lord motherfuckers via the channels known as "bank" and "government". God, what have we gotten ourselves into?

I think I need a beer.

God's picture

Whatever you have gotten yourself into you can get yourself out of.

That is why I invented guns, rope, and tree limbs.

Nobody For President's picture

Skateboarder, make that two beers - I'm buying. You are so right on...

Al Gophilia's picture

They do belong to the Mafia". Word out of Brussels is that Tsipras has pledged $50B of sovereign assets to creditor in exchange for his job.

weburke's picture

the elites are buying up greece then italy and spain on the cheap. evict the rabble.

Al Gophilia's picture

They just bought Greece. Rise up or eat shit. Oust these carpet baggers. They are destroying our countries.

CPL's picture

The 4th Reich rising to rule for a million years since that's exactly where it's heading with no one is backing up from their worthless and counter productive fiat regime.  I'm bullish on cheap soap and lampshades myself right now in the current paradigm evolving.

Manthong's picture



1.    Go to Iceland and get their play book.

2.    Arrest and prosecute your bankers and obvious government criminals

3.    Sue GS for the entire debt

4.    Confiscate all German/Dutch/Belgium assets.

5.    Set an example for the rest of the periphery

6.    Have a nice primal scream

Charming Anarchist's picture

Greeks should do this.  Greeks should do that. 


Who?? how?? exactly? 

The preatorian class is a layer of the matrix that is often overlooked. Who controls the Greek police and military forces? 

Al Gophilia's picture

Yes, it is more than the Greeks Should Do This and That, now. Particularly now that the cat is out of the bag with Tsipras selling the people out in exchange for his job. Your point is well taken, we all have to rise up before we're all doomed to the same fate. Perhaps it is too late to consider any other way.

Escrava Isaura's picture



All debts can be paid as long as the new credit is larger than the current debt…..


Wait a minute, unless you find a Ghawar oil field under your back yard.


Sorry, I have forgotten the second option.


Manthong's picture

Persian: “This is Blasphemy!”.

Schauble: “This is Blasphemy!”.

It works.

Lumberjack's picture

That was called electric deregulation here. Now with all the global warming bullshit and crony stimulus waste, watch what happens. Europe is seeing the result and we are to a small point seeing it here. Stay tuned.

layman_please's picture

 "Privatize electricity transmission grid"


that's what it's all about. blatant asset stripping. at least from the financial point of view.

the best thing about the state companies is that they are monopolies. with that move they are buying an entire industry (or market).

Spitzer's picture

Just imagine being Greek and getting your electicty bill from Blackstone in a couple years.

Dapper Dan's picture

I wonder who will get Greece’s merchant fleet...


Greek Merchant Fleet Tops World Tonnage Ranking

Abaco's picture

Solar would mitigate that.

SHRAGS's picture

Simple, the EU Investment bank will tax sunshine, just like the attempt to outlaw the collection of "private" water that fell from the sky in Boliviar 

(2000 Cochabamba protests


Of course, that comes in the next phase when when once again, *ANOTHER* loan is required.  The best part is they will wait until the Greeks have installed the panels - the EU bankers don't even have the CAPEX, cash from the sun!  Imagine the ROI.


Premier of Ontario Naughty Naughty Lesbian Carpetmuncher Kathleen Wynne is privatizing the Ontario CANADA electricity grid too, Z/H. Ottawa Ontario CANADA is the coldest capital city in the effing World, and we are presently paying about $1.15 per litre of regular gas when oil is $56 per barrel.  If anyone in the Western World is getting milked it is Ontario residents above and beyond what Greeks are getting. Greeks may be taking it up the wazzooo from Merkel, but Wynne is jacking us all off at once with her super-Lesbian carpetmuncher strength in her Linguistically forked tongue that spews lies, God damned lies, and statistics that only a neoliberal can love.

Ouagadoudou's picture

Look who's already biggest private shareholder of Greece telecom and electricity......

newbie vampire's picture

Some of dem ole folks can't even afford food.   If it weren't for the soup kitchens, they would have been long gone.   At the end of the day, Greece has got to tell the EU to fuck off.   What is the point of being part of some entity that treats you so appalingly.

somecallmetimmah's picture

Can't they have a referendum or something? I thought this was a dummocracy?

Al Gophilia's picture

A 5 year internal suspension will let them off the hook, the ptb able to then claim that a default hasn't occured, ergo, no derivitave trigger. Another 5 years of this? Dang!

Lea's picture

"Can’t it produce a dozen, a handful, or at least ONE PERSON who can be called “The Great”?"

I'm European. We have plenty of great guys, great thinkers, experts of all kinds and good, sensible, smart blokes galore.
They are not in power anymore than they are in the USA, where you also have your good guys. Who are NOT in power because they are not corruptible.

Trouble with the good people being you can't buy them.

Lumberjack's picture

Thank You! On behalf of many who devote their time and effort (and what little they have), to do the right thing.


"We are richer than Jamie Dimon".


LJ 2015

OzFan's picture


A new system must be created by people outside of the current. Scum, zio's, cabal elite vile vermon and Reggie Love penis lovers will never, can never offer true hope and a honest way forward. The old system must be 100% crushed and eradicated.


That's all I've got to say.

Elliott Eldrich's picture

"What happened to Europe? Can’t it produce a dozen, a handful, or at least ONE PERSON who can be called “The Great”?"

Be very careful about what you wish for. 

"Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men." - Lord Acton

Augustus's picture

What happened to Europe? 

Can’t it produce a dozen, a handful, or at least ONE PERSON who can be called “The Great”?


Perhaps Europe can again produce a great leader.

But it sure won't be Tzipass.

He appears to have that look of a child who just found out that there is not really a Santa Claus.  He sure seems quite old to have just found that out.