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Greece Spends Bailout Cash On European Military Purchases

Tyler Durden's picture




 

As Greek standards of living nose-dive, loans to households and businesses shrink still further, and Troika-imposed PSI discussions continue, there is one segment of the country's infrastructure that is holding up well. In a story on Zeit Online, the details of the multi-billion Euro new arms contracts are exposed as the European reach-around would be complete with IMF (US) and Europe-provided Greek bailout cash doing a full-circle into American Apache helicopters, French frigates, and German U-Boats. As the unnamed source in the article notes: "If Greece gets paid in March the next tranche of funding (€ 80 billion is expected), there is a real opportunity to conclude new arms contracts." With the country's doctors only treating emergencies, bus drivers on strike, and a dire lack of school textbooks and the country teetering on the brink of Drachmatization, perhaps our previous concerns over military coups was not so far-fetched as after the Portuguese (another obviously stressed nation), the Greeks are the largest buyers of German war weapons.  It seems debt crisis talks perhaps had more quid pro quo than many expected as Euro Fighter commitments were also discussed and Greek foreign minister Droutsas points out:"Whether we like it or not, Greece is obliged to have a strong military".

 

From Zeit Online: Fine Weapons For Athens (Via Google Translate)

Frigates, tanks and submarines: A Greek military passes any savings package. And Germany benefited.

 

The Gift of the Greek Ministry of Defense has the man in the head: up to 60 fighter aircraft fighter for maybe € 3.9 billion euros. French frigates for about four billion, patrol boats worth 400 million euros, as much is the necessary modernization of the existing Greek fleet. Then it still lacks of ammunition for the Leopard tank , also would have two American Apache helicopters will be replaced. Oh, and one would like to buy German U-boats, total price: two billion euros.

 

What the man who goes in and out of Greece's Defence Ministry, in an Athens cafe is because of the sounds absurd. A State which is on the verge of bankruptcy and is supported by billions of the European Union wants to buy tons of weapons? The man in the café is often seen in photos next to the generals of the Army or Defense, he phoned often with these people, so he knows his way around. He knows how sensitive the issue, and would therefore - like most other party - are not named in the newspaper. He even holds for arms purchases currently not communicable. But could soon change that, he says: "If Greece get paid in March the next tranche of funding of € 80 billion is expected, there is a real opportunity to conclude new arms contracts."

 

If only one billion staying left, so the man could be, for example, the first Euro Fighter frigates or a binding order.

 

Really incredible: This spring, decides whether Greece survives in the euro area or the drachma back . On the morning of the internals in the café are freely divulged, physicians treat in Athens hospitals only in emergencies, bus drivers on strike, are still missing textbooks in schools and thousands demonstrate against state officials announced their dismissal. Greece's government announced a new savings program that barely spared a Greek.

 

Unless he works for the military or the armaments industry . On these two areas is in fact still almost passed without any austerity.

 

...

 

Under Greece's EU partners, there are few who speak out publicly in favor, stop the project immediately and Greek armor for a long time. One is Daniel Cohn-Bendit, leader of the Greens in the European Parliament: "From the outside, access to EU countries in practically all the rights of Greece. Nurses will cut the wages and everything should be privatized. Only in the defense budget, it means a sudden, it was a sovereign right of the state. It's surreal. "

 

Cohn-Bendit believes that behind the hesitation of Europe to entrenched economic interests. Main beneficiary of the Greek armament policy in Europe is just saving champions Germany. According to the just-released report, Arms Export in 2010 after the Portuguese, the Greeks - a state on the verge of bankruptcy - the largest buyers of German war weapons. Spanish and Greek newspapers spread the rumor at all, Angela Merkel and French President Nicolas Sarkozy would have remembered former Prime Minister of Greece George Papandreou nor the end of October at the edge of a summit meeting to finding solutions to existing or new arms orders complete. In Papandreou's environment is not confirmed, the federal government decided denied "messages, Chancellor Merkel and President Sarkozy had recently urged Greece to new arms deals, baseless," said a spokesman via e-mail.

 

...

 

Clearly this is apparently also become a state visit in Greece: German Government members expressed their export needs, and the Greeks reiterated their demand for imports. It has every known, "that Greece had invested too much in its military," so Linnenkamp. Yet the Greeks piled on over the years, enormous obligations.

 

...

 

But in the spring of 2010 reminded Foreign Minister Guido Westerwelle (FDP), the Greek government to the order of € Fighter, just weeks before the Greek bankruptcy. "Westerwelle called for a commitment to the Euro Fighter," says someone who has experienced the talks closely. The Foreign Minister also assured again in the Greek daily newspaper Kathimerini: "We do not urge the Greek government to buy. If (they) but, at any time whatsoever, a decision to purchase fighter aircraft meets the Euro Fighter countries want to be represented here by Germany, will be considered in the decision. . This is within the European Union, but completely normal, "A few weeks later Westerwelle called in the stock market newspaper more discipline from the South:" We expect before, there are discussions about aid that Greece executes fully their own homework to consolidate policy. "

 

How does that work? Not at all, is the defense expert Linnenkamp: "It was totally irresponsible to speak in the midst of severe economic crisis, the issue of Greece's Euro Fighter at all."

 

...

 

Dimitris Droutsas is one of the few Greeks who speak openly about these figures. By June 2011, he was of Greek foreign minister. "We have not spent so much money on defense, because we made it fun," he says. The Greek foreign borders must be secured against the waves of migration from North Africa and Asia, almost daily there are conflicts with Turkey. "As Foreign Minister I was always in the afternoon a message from the Defense Department with the list of Turkish violations of our airspace." Greece also been watching with concern the increasing activity of the Turkish navy in the Aegean Sea and have seen a good 35 years on the "Turkish invasion" Cyprus . Since then, the Greeks lived in a state of fear. That with Turkey give an arms race, although both countries are in NATO, Droutsas deems legitimate: "Whether we like it or not, Greece is obliged to have a strong military" point.

 

...

 

Resistance in its own population as Droutsas Greeks need not fear. The Greek military security sector promises to the people - and jobs. In a country without its own significant industry that is worth much. German defense companies have recognized this early and with Greek companies closely intertwined. Someone who mitverhandelte long, says: "In Greece, the arms deal as a give and take anywhere. What do I get in return when I buy a tank with you? Always it was also about compensation. Any politician who signed a treaty with the Germans hoped that a corresponding portion flows back. "

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Mon, 01/09/2012 - 13:38 | 2046976 pufferfish
pufferfish's picture

Perhaps they're Hungry for Turkey?

Mon, 01/09/2012 - 14:05 | 2047075 Caviar Emptor
Caviar Emptor's picture

Nope. It's to foght off their own citizens. Happened many times before

Mon, 01/09/2012 - 14:32 | 2047183 kito
kito's picture

i really doubt they need 3.5 billion dollar of modern weaponry to fight off their own citizenry.....

Mon, 01/09/2012 - 13:39 | 2046980 Catullus
Catullus's picture

Circle jerk

Mon, 01/09/2012 - 13:42 | 2046990 pufferfish
pufferfish's picture

Syria's'ly. Olive oil might not be the only type they obtain soon. 

Mon, 01/09/2012 - 15:08 | 2047323 Think for yourself
Think for yourself's picture

Well said. How to get rich while fucking the peasants?

 

  1. Secure massive bailout with the peasants as collateral.
  2. Spend bailout money on MIC gear, thereby sending the principal to the same agentur that created the debt in the first place without actually paying the debt.
  3. Argue for the danger of debt crisis.
  4. Go to 1.
Mon, 01/09/2012 - 13:39 | 2046981 ThisIsBob
ThisIsBob's picture

Can we sic them on Iran?

Mon, 01/09/2012 - 13:41 | 2046989 SokPOTUS
SokPOTUS's picture

*That* would be unexpected.

Mon, 01/09/2012 - 13:57 | 2047049 lolmao500
lolmao500's picture

Sell that as ``payback`` for when Persia tried to invade Greece.

Mon, 01/09/2012 - 15:08 | 2047333 BigJim
BigJim's picture

Wasn't Alexander the Great payback enough?

Tue, 01/10/2012 - 08:50 | 2049692 Archduke
Archduke's picture

+1. Another way to read this is "Europe is investing in its Mediteranean armed forces".

With elements of the Russian fleet parking off Syria, uncertainty with regards to Suez,

and a major power struggle happening over Hormuz and the Caspian, this may not seem

like a bad idea.  Now core european nations in this austerity climate could not possibly

justify a spending boost, but greece does nicely: it can't possibly sink faster at any rate.

This is win-win for Europe.  the handouts boost core production and serve its interests.

Mon, 01/09/2012 - 13:39 | 2046982 BlueStreet
BlueStreet's picture

Sorta like folks buying Christmas gifts with their welfare payments.  What a great world we live in.  

 

 

Mon, 01/09/2012 - 13:43 | 2046996 SokPOTUS
SokPOTUS's picture

I think they *should* get me a gift for all I do for them.  I'm sure it will be arriving any day now...

Mon, 01/09/2012 - 13:52 | 2047029 NotApplicable
NotApplicable's picture

More like using the last of your remaining credit at the payday loan place to borrow the money to build the gallows from which you will swing. Well, that and a forty.

Mon, 01/09/2012 - 14:28 | 2047171 Cathartes Aura
Cathartes Aura's picture

it's the JPM SNAP benefit card model - issue the card with credits, add limitations on what can be "purchased" with the credit, and stick the populace with the debt.

just expanded to nationstate level, tested on amrkns, exported.

Mon, 01/09/2012 - 13:39 | 2046984 Council of Econ...
Council of Economic Terrorists's picture

Unicorns, Skittles, Rainbows and Apaches.

Mon, 01/09/2012 - 13:40 | 2046985 ebworthen
ebworthen's picture

You can't make this stuff up.

"Reach around", aye.

Mon, 01/09/2012 - 13:43 | 2046995 EndTheMedia
EndTheMedia's picture

Germany just sold greece a stealth 60 foot wooden horse. 

Mon, 01/09/2012 - 13:44 | 2047002 SokPOTUS
SokPOTUS's picture

Who are they going to use it on this time?

Mon, 01/09/2012 - 13:46 | 2047009 EndTheMedia
EndTheMedia's picture

They are not sure yet. The germans just told them to store it in on there largest airfield.

Mon, 01/09/2012 - 14:23 | 2047157 wandstrasse
wandstrasse's picture

like in 'Monty Python and the Holy Grail' we forgot to get inside the horse before placing it in Greece...

Mon, 01/09/2012 - 13:45 | 2047000 NotApplicable
NotApplicable's picture

Molon Labe!

Mon, 01/09/2012 - 13:44 | 2047001 tony bonn
tony bonn's picture

yes greece is obliged to have a strong military to destroy its people and to attack on a moment's notice whenever the usa orders it to do so...

Mon, 01/09/2012 - 14:01 | 2047061 agent default
agent default's picture

Oh yaeh?  Have you ever taken a casual look at the weapon systems deployed by the Greek armed forces?  It is a clusterfuck of Russian, East European, West European and US systems.  Exactly how they run logistics for all this crap is beyond me.  Then again, if weapon purchases are governed by politics, this is what you get.

Mon, 01/09/2012 - 14:32 | 2047189 Cathartes Aura
Cathartes Aura's picture

it's more about the purchasing, less about using what one bought.

growth, passed hand to insane hand.

Mon, 01/09/2012 - 14:36 | 2047208 Zero Debt
Zero Debt's picture

Simple. Greece military procurement department got tired of Russian hookers and wanted to try something new, and so on.

Mon, 01/09/2012 - 13:47 | 2047010 non_anon
non_anon's picture

a bloodbath awaits

Mon, 01/09/2012 - 13:47 | 2047012 Alex Kintner
Alex Kintner's picture

If they won't eat the cake, Let them eat Hellfire Missles.

Mon, 01/09/2012 - 13:49 | 2047018 Reptil
Reptil's picture

Oh... great. Dutch taxpayer money (roughly 5 billion) for useless secondhand militairy equipment.

<facepalm>

Mon, 01/09/2012 - 13:50 | 2047019 yogibear
yogibear's picture

Their getting into the guns, ammo and food thing.

Mon, 01/09/2012 - 13:52 | 2047030 Hephasteus
Hephasteus's picture

So the IMF is doin the same playbook. GE needs money we'll give you money to buy a nuclear power plant but you have to pay us back a debt that can't be repaid. A defense contracter needs money. We'll pay for your social programs if buy enough planes.

Also used by Intel. 1986. You can buy 100 286 chips if you buy 1000 8086 chips. But we don't want your 8086 chips we want your 80286 chips. You can buy 100 286 chips if you buy 1000 8086 chips.

Same playbook. You can pay your government employees and keep them from rioting if you buy 3 planes.

Fair efficient markets run entirely off coersion.

Mon, 01/09/2012 - 13:54 | 2047034 lolmao500
lolmao500's picture

Greece needs to overthrow these scumbags, get the fuck out of NATO and the EU, arrest all the bankers, HANG THEM. And tell any fucker who is upset to FUCK OFF.

Mon, 01/09/2012 - 14:03 | 2047070 Caviar Emptor
Caviar Emptor's picture

It will take lives. Actually, the exact number of lives equals the killing potential of the arms they bought

Mon, 01/09/2012 - 14:09 | 2047098 lolmao500
lolmao500's picture

Of course it will take lives. Freedom is paid for in blood.

Mon, 01/09/2012 - 14:04 | 2047071 Rakshas
Rakshas's picture

They could take the Icelandic aproach default on the lot, then invite the GOP candidates over for another debate, pipe the bullshit into the Santorini Caldera  that should increase the pressure to critical levels enough to cause an eruption that should finish off what's left of the EU........ just a thought...

Mon, 01/09/2012 - 14:05 | 2047076 MsCreant
MsCreant's picture

We all need to overthrow these scumbags, Greece is not special. Different fucking day, same fucking shit.

Mon, 01/09/2012 - 15:15 | 2047359 BigJim
BigJim's picture

If Greece displeases its masters, they'll just let Turkey annex the Dodecanese Islands and most of the Northern Aegean.

Mon, 01/09/2012 - 13:57 | 2047039 AC_Doctor
AC_Doctor's picture

A new leader of the Greek people will soon emerge and the Greeks will take back what is rightfully theirs and litter the streets with traitors hanging by short ropes.  It will also happen here someday soon...

Mon, 01/09/2012 - 13:59 | 2047040 Manipulism
Manipulism's picture

Next Bilderberger meeting 2012 at Haifa - Hotel Rothschild.

No joke.

So no war with Iran until then.

Dont know the date.

Mon, 01/09/2012 - 14:45 | 2047254 Cathartes Aura
Cathartes Aura's picture

with more and more "conspiracy theory" stuffs becoming so obvious, rubbing the collective noses in their own denial, some folks will have steep learning curves this year, and some will continue to pay close attention to the final puzzle pieces being fit into the story.

they really don't care to be "secretive" about much any more, do they.

Mon, 01/09/2012 - 15:55 | 2047485 Manipulism
Manipulism's picture

Why should they?

Nobody cares or do something.

I am amazed not one banker or Pol is shot down from a broken shee so far.

What are your guns for mericans?

Shoot yourself?

Mon, 01/09/2012 - 13:57 | 2047041 agent default
agent default's picture

Apparently the way it works is this:  Greece agrees to buy useless European junk in return for a bailout.  It is just extortion from France and Germany, to sell crap that would not stand a snowball's chance in hell in a real war, to a country whose economy doesn't stand a snowball's chance in hell.   Don't you just love European solidarity?

Mon, 01/09/2012 - 13:56 | 2047042 LongSoupLine
LongSoupLine's picture

Iranian attack puppets.  Look deeper folks...look deeper.

Mon, 01/09/2012 - 13:58 | 2047043 Jack Burton
Jack Burton's picture

Fucking beautiful!  What more do you need to know about the elite 1% who have carried out a revolution from above against civil society.

Doctors only treat emergencies while billions of Euros pour into weapons systems. So Greece needs to be able to fight who? Turkey? They are both in NATO aren't they? Or does NATO want Greece well armed in order to boost it's invasion and bombing forces for the next attack on an oil producing state?

The great rip off continues, Greeks are being suckered big time.

Mon, 01/09/2012 - 14:08 | 2047091 MsCreant
MsCreant's picture

The average Greek does not know about this shit at all. They are not being suckered, they are being lied to. 

Austerity, riiiight.

Mon, 01/09/2012 - 14:56 | 2047293 wandstrasse
wandstrasse's picture

well said, JB. It is a shame to be human. Very few ones are the incarnation of evil while most - including myself - are stupid enough to eat the bad tasting and viscous bait of some ridiculous wealth illusion.. whoa shopping useless stuff via my smartphone..this is really it... while others let themselves enslave / slaughter / starve and blame everyone but not the right ones for their dire fate, if they blame anyone at all... <\rant>

Mon, 01/09/2012 - 13:56 | 2047044 americanspirit
americanspirit's picture

In the midst of all this let's keep in mind that Greece has leased major airbase space to Israel and that Israeli AF aircraft are now more or less permanently stationed in Greece. So of course Greece has to update its own war machinery to be able to keep up with the pace of its new best friends. One wonders if Israel is also sharing a few of its nukes with the Greek Generals - you know, just between friends.

The psychopaths are indeed running the asylum.

Mon, 01/09/2012 - 14:49 | 2047270 Cathartes Aura
Cathartes Aura's picture

batting a thousand on that one sir!

not much else needs be said.

Mon, 01/09/2012 - 13:57 | 2047047 Kaiser Sousa
Kaiser Sousa's picture

hilraious...every day brings a new insult to the debt slave citizenry of this bankrupt, bullshit, banker run kleptocracy,. but oh wait...

did u c Tebow yesterday???

the bitch ass american populace deserves the ass fucking their getting on the daily...WHAT YA'LL GONNA DO ABOUT IT????????

now, off to my coin dealer....ur welcome

Mon, 01/09/2012 - 14:02 | 2047063 Jack Burton
Jack Burton's picture

I missed Tebow! But I did catch ManU against ManCity in the FA cup!

Who cares about being ripped off by the elites when Ronney scores a cracking header and ManU moves on in the FA cup!

The bread and circus shows must go on, and they will go on! Ingnore the giant banker rip offs, watch the games. Pretty soon we will be thowing Muslims to the lions at the forum.

Do NOT follow this link or you will be banned from the site!