CDU Escalates Plans For EU Treaty 'Adjustment': Wants Option For To Kick Habitually Broke Countries Out Of Eurozone

Tyler Durden's picture

Yesterday we wrote that according to a Handeslblatt report, Angela Merkel is "investigating ways to enable countries to leave the Euro." Today Handelsblatt has a follow up with some very critical clarifications which change the equations of the European bailout all over again. Yesterday, the Handelsblatt reported that the CDU "wants to make it possible for European Union members to exit the euro area....A commission within the party, that is crafting a framework to be presented at a party meeting, has proposed allowing a euro member who doesn’t want to or isn’t able to comply with the common currency rules to leave the euro region without losing membership in the EU, the newspaper." In other words, the transition out would be "voluntary." So it is somewhat surprising that in under 24 hours we discovery that this proposal has just escalated substantially: according to the just released Handelsblatt update, "The CDU wants to change the EU treaties to not allow the departure of a debt-ridden country from the euro zone, but also their expulsion. From the request for the party on Sunday evening at Leipzig, by the Handelsblatt (Friday edition), the crucial word "voluntary" was deleted."

The google translation continues: "The relevant passage, which the party chairman and Chancellor Angela Merkel could not ignore politics is now "a member state of the monetary union should not be permanently willing or be able to comply with the common currency related rules, a departure from the € zone be possible without leaving the European Union. It is equal to other Member States which do not have the Euro currency. " In the original version of the resignation should be made possible only voluntarily." The conclusion: "The topic is likely the CDU party congress next week to play a central role. Have in the Commission proposal for the Congress about it already been a fierce debate, told the Handelsblatt of participants. Currently there is no provision in the EU Treaty, a country leaves the euro zone again." That Germany continues to stick a finger into the scab of the possibility of a two-track Eurozone should be quite concernging as it means that the CDU is fighting tooth and nail to preserve reelection chances, even at the expense of jettisoning stragglers such as Greece and Italy. Obviously this is predicated by popular demand. It appears that the German "anger" which we predicted back in July 21 is finally starting to boil up to the surface.

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redpill's picture

Get out, bitchez

GeneMarchbanks's picture

At least they're giving us an exit strategy...

dlmaniac's picture

Germans have themselves to blame: Why did they invite the PIIGS to the party to begin with?

Wolferl's picture

Cause everybody told us to be the good guys now. ;-)

GeneMarchbanks's picture

Weimer, Hitler, that horrible Eurovision song from last year. You mofos are better off forgetting...


GeneMarchbanks's picture

There you go. Think warm thoughts. Unlike the grim Kant, Hamann is great read. Heine too.

magpie's picture

You should read Herder's Metakritik. Best German philosophy book around.

Wolferl's picture

Herder is a giant few people know about.

Oh regional Indian's picture

Englad was kept out but in as a test case.

it worked.

England is ruined.

Unwashed, Wrung, Re-tired


Caveat Emptor

DormRoom's picture

cuz Goldman Sachs gave the PIIGs a nice shade of lipstick

walküre's picture

I would give you 1,000 green arrows!

Alex Kintner's picture

The PIIGS Pheromones were alluring. But they fermented into Fearomones.

Duuude's picture


"cuz Goldman Sachs gave the PIIGs a nice shade of lipstick"




Musta been red

Buck Johnson's picture

Your exactly right, many of those PIIGS shouldn't have been able to get into the EU much less the euro.  I think it was three things.  One, the bigger countries saw this as an opportunity to control the smaller ones financially and they needed them to buy or take much of their excess exports and services.  Two the elite in the banking and govt. circles wanted a union of europe in order to push their new world agenda.  And three, they where presented information that was cooked by Goldman Sachs to help countries like Greece and others to look viable for the EU.

TruthInSunshine's picture

Markets are ripe to crash.

This is far worse than 2008-2009, which didn't involve intractable problems (there may be something that some term a 'solution' in the offing, but it will be a sad joke and farce, as all proposed solutions to date have been, and it will inevitably involve massive pain to the maximum amount of 'risk on players' for an extended, butt hurt period of time) having to do with SOVEREIGNS and their nationalized 'private' banks.

Furthermore, back in 2008-2009 there was a cushion that had both accrued on balance sheets (as phantom and fleeting as it was) that could be whittled away at and used as a buffering method of trying to engineer a less hard landing (as hard as the landing turned out to be) and central banks, including the one headed by The Bernank, hadn't shot their wad.

Add to the accumulated private and public sector debt, which now desperately needs to be deleveraged, the incredibly economic fundamental weakness and 'jobs debt', which have only grown greater since 2008, giving less of an ability for monetary policy makers, governments (who've seen revenue fall and the outlook for future revenue get bleaker) and private sector actors to 'get their consumption on,' and I'm going to bet we're now underway in the 2nd wave of the financial and economic that everyone has been anticipating, yet hoping wouldn't arrive, or could be postponed further (unless they were short, in which case, they are probably about to have a very good stretch).

The Bernank broke all markets.


Caveat Emptor on the BTFD, bitchez.


Now we really are going to find out who is too big to fail and who is too big to save.

*p.s. The Bernank & Paulson-Geithner, instead of letting the forest fire clear out all of the dead wood, scrub and other flammable material that maks for great ignition sources of future and more damaging forest fires, doused the fire in 2008-2009 with TARP/TALF/QE1, 2, 2.5 injections, rescuing the Very Important Friends of the New York Branch of the Federal Reserve 'Bank,' while failing to do anything remotely constructive in addressing the fundamental illness of the real economy, and the bitch is going to burn hotter this time.

DormRoom's picture

In a world where 2 + 2 = 4, there's no way PIIGs or Germany doesn't exit in 12 months.  They're giving the plutocracy time to buy hard, or convert assets, before the middle class is left holding the bag.


Class struggle is more pronounced now than at any time in the last half century.  But it is being masked by the public relations industry.


Without cheap, and easy credit scar tissues are being exposed.



walküre's picture

Presently the "middle class" is the buffer between poverty and wealth.

As a buffer they act as bootlickers to the top and kicking down on the bottom. When they change their loyalties and recognize the top for what it is, an insatiable parasite with no productive value to the rest of the world, it will be too late.

The bottom never had a chance to get heard. The top plays the middle very well until the top doesn't care anymore!

centerline's picture

Until the middle can longer support the top.

MachoMan's picture

This.  The paradox of production

MachoMan's picture

That's always what the middle class is...  it's just that there are less people to complain when the middle class is a higher % of the populace and the table scraps are larger...  in other words, the problem is less noticeable...  but ever present.

The same in virtually any system...  more or less.

GeneMarchbanks's picture

Sometimes you make stone-cold sense and I think you deserve green(pun intended) but then you do this:


DormRoom's picture

“If you're not a liberal at twenty you have no heart, if you're not a conservative at forty you have no brain.” -W. Churchill

View From Germany's picture

Well, in Churchills time that made sense - if you had a bit of education or some heritad weatlh, at 40 you were a made man, and, of course interested in maintaining the status quo.

But today?


TruthInSunshine's picture

I just wanted to add one comment about something the Abby Joseph 'I Make Money Even If You Lose Your Ass/iTulip' Cohen's of the world spout off about all the time; the notion (pun intended?) that there's publicly traded U.S. corporations are flush with cash.

Abby would never complete what could be a constructive and rational fully analyzed assessment by adding to that statement that these same U.S. publicly traded corporations have now accrued a record 12+ trillion in debt.

But not to worry, "there's a lot of cash on the sidelines" (much of it in highly volatile, *subject to quick and painful loss account types, not to exclude 401(k)s, and all will be well, according to cnBSc.

GeneMarchbanks's picture

' "there's a lot of cash on the sidelines" (much of it in highly volatile, *subject to quick and painful loss account types, not to exclude 401(k)s, and all will be well, according to cnBSc. '

Uh-huh. At best, if there's any left, it is immobile.

PaperBear's picture


pauhana's picture

You gotta love those "Christian" Democrats!

jdelano's picture

Td--been thinking, and maybe this is a bit egocentric, but it seems like whenever you guys expose something that is going to nuke the market, tptb immediately dump all their resources into masking the problem. Since this is the only credible skeptical analysis forum out there that moves in real time, I'm convinced that tptb are assiduously monitoring this site to figure out where the fire is that they have to put out--what I'm getting at is, next time you guys see a really nasty hole in the market, maybe keep it to yourselves for a while and see if they figure it out on their own or not. Hate to think zh is inadvertently doing the idiots a huge favor....

Subprime JD's picture

Death to the EuroPonzi!!

bob_dabolina's picture

O/T just shorted oil

GeneMarchbanks's picture

I'm frozen... I want to... just can't bring myself to do it. I was thinking clearly earlier but now I'm self-conscious. Yesterday it should've been down three bucks IMO.

Smiley's picture

What a bunch of fucking idiots!  No sympathy.

blu's picture

Such artfulness! We are being presented with some of the best theater the world has seen since -- well I suppose since some time in the 1700's.

undercover brother's picture

That's the ticket Merkel.  Allow them to exit and at the same time to save face.   You go girl! 

NotApplicable's picture

This is just the next step in their Hegel exercises. The backlash from which will create the mandate they could not achieve via the ballot box years ago.

Deadpool's picture

"Voluntary" with a gun to your head.

pmcgoohan's picture

The market has been real chatty today

Mediocritas's picture

I wonder if this has anything to do with the recent ISDA "no such thing as a voluntary default" decision? In other words, if a euro member voluntarily leaves the euro (with intent to depreciate like hell), it doesn't count as a credit event.

NotApplicable's picture

Well, they're just words. It isn't like they mean anything.

Tramp Stamper's picture

I think the voluntary part was going to be a way for Germany to opt out and say " To hell with all of this shit "

undercover brother's picture

wouldn't blame them. i was under the impression they were reluctant to sign that treaty from the get go.  

Dr. Engali's picture

I love that guy. I wish we had a few like him in our body politic.

PaperBear's picture

Which body politic ?


USA has Ron Paul.