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German Lawmakers Prep For Greek Eurozone Exit - Handelsblatt

Tyler Durden's picture




 

Yesterday it was Fitch setting the groundwork. Today the natural escalation has arrived, with a Handelsblatt report that German coalition lawmakers saying they are open to a Greek farewell. To wit: "Politicians of the CDU-FDP coalition will no longer look on the
goings on passively. Given the uncertain political situation in Greece are advocating for a withdrawal of the crisis-Mediterranean Heads of State from the euro zone. "We should offer Greece, leaving the euro zone controlled, without withdrawing from the European Union."
For now this is merely posturing, as Greek is doing all it can to make it clear it does not need Germany. Of course, Germany has no other choice but to reply the way it has. The only problem is that the Nash equilibrium is now of mutual defection, which is the worst possible outcome for Europe, and even worse for US taxpayers, whose cash via the FRBNY's FX swaps will be used to rescue Europe when the dominoes finally tumble. But at this point, this it is pretty much a given.

Google translated from Handelsblatt:

Politicians of the CDU-FDP coalition will no longer look on the goings on passively. Given the uncertain political situation in Greece are advocating for a withdrawal of the crisis-Mediterranean Heads of State from the euro zone. "We should offer Greece, leaving the euro zone controlled, without withdrawing from the European Union," said the CDU budget expert Klaus-Peter Willsch Handelsblatt Online. It came to the Germans not to prescribe the Greeks, how they should live. The election results from Sunday but put to the conclusion that the Greek people not willing to take the considerable effort on which they need to lead the country to be competitive. "The dogma that no country is allowed to leave the euro zone, has already caused too much damage on European policy," added Willsch. The introduction of a new currency was tested many times. "It also offers more opportunities than a stubborn Greece Continue tracking the chosen erroneous path."

 

The vice chairman of the CDU parliamentary group, Michael Meister said, though, that it was not the aim of the EU partners, Greece expelled from the euro area. "However, it is clear when the new Greek government, contrary to expectations, the contracts comply, they will have to answer the announced consequences," said the CDU politician Handelsblatt Online. Champion Europe looks for well-prepared. So the last few years were in Europe as well as nationally, "well used" was to make provisions - with the Rekapitalisierungsgesetz, with the extended euro rescue EFSF or the future permanent rescue ESM including fiscal pact. "We are so much further than at the beginning of the crisis," said Master.

 

Nevertheless champions Greece urged to contract compliance. The Greek politicians are following the election required by the weekend to put together a government. "We can not assume the role of the Greek Parliament, nor a Greek government," he said. "We have assured the packages I and II of Greece, our support contract. We look to the future Greek government, no matter how it is composed, that it is true to the contract itself, "said the conservative politician.

And just to make sure the message is heard loud and clear, here is Spiegel as well:

As Greece struggles to form a coalition government in the wake of the May 6 parliamentary elections, several German leaders voiced their demands Wednesday that the country stick with the austerity measures negotiated as part of the most recent bailout package.

 

"Greece must know that there is no alternative to the agreed to restructuring arrangement, if it wants to stay a member of the euro zone," Jörg Asmussen told the German business daily Handelsblatt.

 

Asmussen, who is a member of the executive board of the European Central Bank (ECB), essentially issued an ultimatum to Greece, according to the paper, telling politicians in Athens that if they abandon the austerity measures that go with the second rescue package of €130 billion, the country's European Union backers will cease making their contributions.

Popcorn time.

 

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Wed, 05/09/2012 - 07:23 | 2409405 maxmad
maxmad's picture

Collapse Bitchez!  or should I say zusammenbruch bitchs!

Wed, 05/09/2012 - 07:30 | 2409416 Oh regional Indian
Oh regional Indian's picture

Cannot stop laughing.

Got something in my mail, went and looked around sure enough, the HARP program?

haaaaaah!

Home Affordable Refinance Program (HARP

i say Bye bye Ms. and Mr. Amewican Pie. you've been HARPED.

By the way, Germany's ACH-illies heel is mortgage financing.

Hypo, Gropo and HARPo, coming to get you.

ori

the-year-the-time-and-the-place-of-our-dam-ming/

Wed, 05/09/2012 - 07:33 | 2409419 j0nx
j0nx's picture

You gotta stop drunk posting. Each successive post making less and less sense.

Wed, 05/09/2012 - 07:44 | 2409446 Oh regional Indian
Oh regional Indian's picture

It's okay, they make more sense to me than "Phyzzzz FTW", or " GOLDDDDD", or "Pwnd Bitchezzzzzz" or better yet "I Luuuurve Kyle Bass, I wanna be Kyle Bass".

 

Are you aware of the HARP program? 

Have you heard of Hypo real estate? It's Germany's biggest mortgage lender. It's the thing No one wants to talk about.

Germany to call out Greece is actually HYPO-critical. Get it? DIM-bulb?

So, Hypo and Harp... get the joke? 

On a long enough time-line, average ZH reader comprehension falls to?

You got it.

Gold, Phyzz, Bitchez, said not once but a few times from someone who makes a LOT of sense apparently... here Indian, want some beads and firewater?

Grow a brain cell and the ability to think tangentially, it will help in what is directly upcoming.

ori

Wed, 05/09/2012 - 07:50 | 2409450 GeneMarchbanks
GeneMarchbanks's picture

'On a long enough time-line, average ZH reader comprehension falls to?'

We're almost at the desired goal of zero, ORI. Almost.

Wed, 05/09/2012 - 08:11 | 2409479 Don Diego
Don Diego's picture

yes he gets tiresome, I junk him every message he says and I don't read them of course.

Wed, 05/09/2012 - 08:49 | 2409555 Oh regional Indian
Oh regional Indian's picture

Good to see an honest dumb junker at least.

Howdy Don. That was my up-arrow for you.

ori

Wed, 05/09/2012 - 14:37 | 2410765 Don Diego
Don Diego's picture

another ORI post, another junk.

Wed, 05/09/2012 - 08:03 | 2409462 Element
Element's picture

This shit would have been sorted out in three hours flat if Hank and Timmah were unelected officials ... in Brussels.

Wed, 05/09/2012 - 07:32 | 2409418 BigJim
BigJim's picture

And gold is being monkeyhammered down to $1580!

If I were in Greece I'd be buying physical, hand over fist.

Italy, Spain, Portugal, Ireland, too...

Wed, 05/09/2012 - 07:34 | 2409423 j0nx
j0nx's picture

The people there aren't able to buy shit unless someone forgot to tell me that the coin dealers are taking olives these days as payment.

Wed, 05/09/2012 - 07:38 | 2409429 EscapeKey
EscapeKey's picture

Meh, who cares. I'm not looking to sell tomorrow anyway.

Wed, 05/09/2012 - 07:22 | 2409409 Gauthijm
Gauthijm's picture

Bye Bye Greece

 

Were all prepared (Germany says) now you can leave !

 

Wed, 05/09/2012 - 07:30 | 2409415 scatterbrains
scatterbrains's picture

Once the Euro fracking begins how close to zero should I let the 10yr get before going all in TBT ?  I'm thinking I should hold out for .01%  though.

Wed, 05/09/2012 - 07:35 | 2409424 PivotalTrades
PivotalTrades's picture

Getting my head handed to me, been there a month. Figured the writing was on the wall and that the math was apparent to all.  Wait for some blow off top..you might be right at .o1

Wed, 05/09/2012 - 07:33 | 2409421 youngman
youngman's picture

"and even worse for US taxpayers, whose cash via the FRBNY's FX swaps will be used to rescue Europe when the dominoes finally tumble. But at this point, this it is pretty much a given"

 

Yes it is....will the word be liquidity...just like the HFT´s use...liquidity....whats a few more trillion

I see the people...losing faith in the politicians.....there my friends is the change....big changes coming...and they all will not be pretty or good...

Wed, 05/09/2012 - 07:38 | 2409432 j0nx
j0nx's picture

You, my friend, give the American people too much credit. They will continue to take it in the pooper blissfully unaware that they are even being sexed. As long as football and reality tv are still broadcasting on the idiot box and beer is in the fridge (nevermind that it's $7.00 for a fucking 6-pack of coors light these days) then all is well with the proles. People I hear are still blaming those damn A-rabs for the price of gas and wondering why food has gotten so expensive. Sheep were designed to be sheered. I have lost all patience with my fellow citizens and their idiocy. I feel like I'm trapped in the movie idiocracy, particularly when I'm amongst liberals.

Wed, 05/09/2012 - 07:54 | 2409454 Solarman
Solarman's picture

The problem is it is so opaque it cannot even be explained how the FED hurts us by doing this.  Hell, I am totally engaged and don't fully understand all of the moving parts.  People say hyperinflation, but today it sure looks like debt deflation destruction.

Wed, 05/09/2012 - 07:36 | 2409428 Rubicon
Rubicon's picture

Long goats

Wed, 05/09/2012 - 07:43 | 2409431 bdc63
bdc63's picture
Goodbye, Farewell, Alvederzane, Goodnight

 ... don't let the door hit you in the ass on the way out ...

Wed, 05/09/2012 - 08:25 | 2409501 DutchDude
DutchDude's picture

It's Aufwiedersehen ;)

But yeah, i concur! Now the rest of the PIIS...

It's actually The Day of Europe today... Irony's a b*tch

Wed, 05/09/2012 - 07:44 | 2409442 slackrabbit
slackrabbit's picture

They should have listend to MEP Nigel Farage when he told them to prepare a back up plan, but the Eucrocrate were determined not to face reaility. By the time they sort out a back up plan now, it may be too late. As you know know, some hedge funds will want to see a chaotic default and protfit from that. 

Cyncial Note: If you own gold, you will be labled a hedge fund...

Wed, 05/09/2012 - 07:45 | 2409443 Coke and Hookers
Coke and Hookers's picture

"We should offer Greece, leaving the euro zone controlled, without withdrawing from the European Union,"

This is a bit like offering a serial rape victim that he'll not be raped anymore - but will have to live with his rapist though.

Wed, 05/09/2012 - 07:45 | 2409444 rebelscum1967
rebelscum1967's picture

All data irrelevant. BTFD. groundhog day.

Wed, 05/09/2012 - 07:48 | 2409449 trampstamp
trampstamp's picture

Don't forget to turn off the lights!

Wed, 05/09/2012 - 07:55 | 2409456 Catequil
Catequil's picture

"We should offer Greece, leaving the euro zone controlled, without withdrawing from the European Union."

IMHO, this is the worst possible response to be said.

It would be far better if it was "There will be consequences for Greece, that stretch far beyond leaving the Euro zone AND the EU."

I'm fed up with my trading decisions being a hostage to all this Greek BLS. Let them go and farewell to Greece, if you ask me!!!

Wed, 05/09/2012 - 07:55 | 2409457 agent default
agent default's picture

Prepare to buy the epic dip.

Wed, 05/09/2012 - 08:10 | 2409475 Monedas
Monedas's picture

If you want to be "Slick Willied" out of your stash....please go for it !  Just, don't come knocking at my bomb shelter door for a "hand out"....I'll give you a "toe up" (your ass) !     Some of the most dangerous loose cannons will be the "weak handed investors" who wake up on TSHTF morning after and discover they don't possess any PMs ?     Monedas     1929     Comedy Jihad Antidote To Piers Morgan's Bully Pulpit Cheerleading For "The Bully Puppet" (BO Juice) !

Wed, 05/09/2012 - 08:14 | 2409483 Don Diego
Don Diego's picture

Don't worry Barroso said he had a plan that would work if they stick to it.

Wed, 05/09/2012 - 08:20 | 2409491 the not so migh...
the not so mighty maximiza's picture

See you in Valhalla.

Wed, 05/09/2012 - 08:21 | 2409494 Its_the_economy...
Its_the_economy_stupid's picture

The Troika now holds the majority of Greek Debt. Thus, the people (taxpayers)have been forced to buy Greek debt at nominal value while the banks that loaned the money escape their folly. Thus, the people grab ankles while the bankers socialize their losses. Who says it will be any other way going forward?

Wed, 05/09/2012 - 08:33 | 2409517 Sandmann
Sandmann's picture

The Politicians will now privatise State Retirement Funds and load them up with Greek Debt to get it off the taxpayer books

Wed, 05/09/2012 - 08:39 | 2409528 bnbdnb
bnbdnb's picture

"Greece will never leave the Euro."

Wed, 05/09/2012 - 08:43 | 2409539 tmosley
tmosley's picture

So when the Euro hits zero, silver will be what?  -$150/oz?

lol

Wed, 05/09/2012 - 11:29 | 2410094 paulie
paulie's picture

Greece should have been defaulting long ago but they trusted big ass Merkel.

No  other PIIG should trust that bitch any longer.

 

Sun, 05/13/2012 - 23:24 | 2422656 qiongqiong
qiongqiong's picture

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