It's Official: German Economy Minister Demands Surrender Of Greek Budget Policy, Says It Is First Of Many Such Sovereign "Requests"

Tyler Durden's picture

While over the past 2 days there may have been some confusion as to who, what, how or where is demanding that Greece abdicate fiscal sovereignty (with some of our German readers supposedly insulted by the suggestion that this idea originated in Berlin, and specifically with politicians elected by a majority of the German population), today's quotefest from German Economy Minister Philipp Roesler appearing in Germany's Bild should put any such questions to bed. And from this point on, Greece would be advised to not play dumb anymore vis-a-vis German annexation demands. So from Reuters, "Greece must surrender control of its budget policy to outside institutions if it cannot implement reforms attached to euro zone rescue measures, the German economy minister was quoted as saying on Sunday. Philipp Roesler became the first German cabinet member to openly endorse a proposal for Greece to surrender budget control after Reuters quoted a European source on Friday as saying Berlin wants Athens to give up budget control." And some bad news for our Portuguese (and then Spanish) readers: you are next.

More:

"We need more leadership and monitoring when it comes to implementing the reform course," Roesler, also vice chancellor, told Bild newspaper, according to an advance of an interview to be published on Monday.

 

"If the Greeks aren't able to succeed themselves with this, then there must be stronger leadership and monitoring from abroad, for example through the EU," added Roesler, chairman of the Free Democrats (FDP) who share power with Chancellor Angela Merkel.

 

Reuters reported on Friday that Germany wants Greece to give up control of budget policy to European institutions as part of discussions over a second rescue package.

 

Greece, which has repeatedly failed to meet the fiscal targets set out by its international lenders, is in talks to finalise a second 130 billion-euro ($172 billion) package.

 

With many Greeks blaming Germans for the austerity medicine their country has been forced to swallow, officials in Athens dismissed the idea of relinquishing budget control as out of the question.

 

Finance Minister Evangelos Venizelos said on Sunday Greece was perfectly capable of making good on its promises.

 

"Anyone who puts a nation before the dilemma of 'economic assistance or national dignity' ignores some key historical lessons," he said in a statement before heading to Brussels for a European Union summit on Monday.

And by the way, this is just the beginning:

A government source in Berlin said Germany's proposal was aimed not just at Greece but also at other struggling euro zone members that receive aid and are unable to make good on their obligations.

So yes, it is true, and Germany is dead serious. Ball is in the Greek court now: just how far will the new technocrat PM go to sell its people in exchange for a few banker smiles?

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slaughterer's picture

Ok, I will +1 al of your cynical remarks.  But what is not being reported here is that Greece will finalize its debt-swap this week, and that this will be market positive.   The MSM is not making any reference to a default or Merkel's thought (falsely reported by BBC, as usual) that a Greek default is now more possible than ever.    Watch ES shoot up to 1330 overnight and 1350 over the next week.  Welcome to the bear cemetery.  Your gravekeeper is called Tom Stolper.   

Non Passaran's picture

Yeah I've read that. So what?
Any deal-under-duress in Greece would mean that private owners of all other eurozone bonds are exposed to same treatment elsewhere. How bullish is that?

Esculent 69's picture

At the plate, Greece. On deck, Italy. In the hole, Spain. Endgame, USA. The best part is when the second amendment is voluntarily/involuntarily unleashed in this nation. Better have some popcorn, a beer, smooth charleen, and night-vision goggles at the ready to eliminate the first traitor of this century and they're not talking about the banksters.  They will have fled the country to Argentina, or Davos before that ever happens so what do you have left. Mules and Pacaderms.

 

Esculent 69's picture

At the plate, Greece. On deck, Italy. In the hole, Spain. Endgame, USA. The best part is when the second amendment is voluntarily/involuntarily unleashed in this nation. Better have some popcorn, a beer, smooth charleen, and night-vision goggles at the ready to eliminate the first traitor of this century and they're not talking about the banksters.  They will have fled the country to Argentina, or Davos before that ever happens so what do you have left. Mules and Pacaderms.

caconhma's picture

 lolmao500,

You are 1,000% correct. German deserved to be raped and humiliated. It is disgusting to be an enforcer for the zionist banking cartel.

koperniuk666's picture

If you borrow money you must pay it back. 

If you plan to not pay it back you are a criminal.

 

If you borrow too much then you are stupid. But dont blame Germany

GeneMarchbanks's picture

'but also at other struggling euro zone members that receive aid and are unable to make good on their obligations.'

Desperation.

Ghordius's picture

Not Yet. Roesler is floating the FDP's Plan B for an EU solution towards budget superlaws, so that the ball lands firmly in Monti's camp. Now the question is what Rome will do with it. If they play with it, A New Agreement might start. If not, well, they tried.

GeneMarchbanks's picture

Um, "superlaws"? go ahead and elaborate please and feel free to laugh quietely to yourself because of my ignorance, but, doesn't this essentially mean that there is no 'firewall' and it's M.A.D just as we've assumed?

Ghordius's picture

Gene, I don't claim any superior knowlegde, only opinion here.
The Germans and the Swiss (and in part the Austrian) are agonizing since two decades about restricting national budgets by constitutional means. The problem is national pride/autonomy. Serchword "Schuldenbremse".
Now CHF-land "has it". The FDP "wants" it, the CDU/CSU likes the idea IF the others do it too, the SPD is fine with it if it's the EU governing it.
It is a political will manifesting, the equivalent of wanting to "live within means". The natural partner to second this in the EU club would be Italy anyway.
----
Sorry, I had a friend who summarized treaties and constitutional laws to "superlaws" or "compacts".

malek's picture

A Schuldenbremse is the most ridiculous concept ever - try by law to force politicians to keep a balanced budget, the same politicians who can change the laws.
Pure bullshit.

GeneMarchbanks's picture

"Schuldenbremse" is one hell of a word and an even better concept, the question is what all this will be interpreted as especially by the media? Intentions are one thing consequences another.

Even German words are losing meaning...

Ghordius's picture

Well, if the Italians go with it - for which Monti might get the broad support, then the French will follow.
The Italian opinion is not entrenched in this and ready to follow a serious political initiative starting from Berlin, as nearly the whole EZ.
Poland is even kicking for it.

DoChenRollingBearing's picture

"Important People" are meeting in Davos.  They are talking about Europe and what to do.  What will happen?  Who knows?  But, for all the blather, they probably will not do much.  George Soros even offers up some blather.

I review this weekend's Barron's at my blog, including Jonathan Buck's article on Davos, among various other items of interest in this issue of the paper. Interested in taking a look?  Gmail me at my name and promise you will behave.  I ask for good behavior as I have had two spammers/bots/trolls get through the gates.

Dermasolarapaterraphatrima's picture

"a deal is near" I heard via grapevine......very close....no sweat....important people are working on it....maybe tonight...tomorrow.....very near....lol.

Mr Lennon Hendrix's picture

You have trolls?  That means you are moving up!

Snakeeyes's picture

The sounds eerily familiar to 1930s Germany.

As Woody Guthries once wtote, "Some rob you with a 6 gun and some with a fountain pen."

 

evolutionx's picture

Its not Greece, its the System which is bankrupt!

For many years it has been absolutely crystal clear to some of us (sadly a very small minority) that many major sovereign nations are bankrupt as well as the world financial system. Banks are only surviving because they, with the blessing of governments, are allowed to value trillions of dollars of toxic and worthless assets at full value. And on top of that there are more than $1 quadrillion outstanding in derivatives. These are outside the banks’ balance sheets and there are virtually no reserves against them. The banks are netting the value down to virtually nothing and then applying a miniscule reserve against this net amount. First of all, the netting is only valid when the counterparty pays.

More

http://www.mmnews.de/index.php/english-news/9031-deus-ex-machina

Hedgetard55's picture

" First of all, the netting is only valid when the counterparty pays."

 

     That truth will come to kill the banks.

LeBalance's picture

banks are not mortal.

impacts will be felt by those who are.

palmereldritch's picture

“Corporations are people, my friend,”- Mitt Romney

http://www.washingtonpost.com/politics/mitt-romney-says-corporations-are...

Hence they are not immortal. Start pulling plugs, for the sake of the healthy to stop the contagion...not like it's real euthanasia.

Irish66's picture

The big question is:  To which side will the American banks take?

dracos_ghost's picture

"The big question is:  To which side will the American banks take?"

Both.

prains's picture

"The big question is:  To which side will the American banks take?"

 

Both....All.....Short them all mercilessly

Cheesy Bastard's picture

Eventually, the American banks will take it in the backside.

wandstrasse's picture

The big question is:  To which side will the American banks take?

Yes.

DosZap's picture

Irish66,

 To which side will the American banks take?

 

Better yet, WHO will America cede their soveringty to, when OUR day arrives.

Guess we know exactly how the NWO comes into force, and how its enforced.

ChickenTikka's picture

"This is the endgame, Blade."

 

-Blade 3

memyselfiu's picture

mmmm chicken tikka

now i know what i'm going to make for dinner...thanks!

AndrewJackson's picture

And too think Eurodollar option volatility is 1.5 bps/day in the front months... Can't wait too see what happens after the greek default.

EL INDIO's picture

They should also move the EU’s HQ from Brussels to Berlin.

Hitler’s dream would finally be a reality.

Uncle Remus's picture

Deutschland, Deutschland über alles...

Ghordius's picture

You both do know the difference between EU and the FRG, don't you?
"ze Germans" are not alone with some notions.

Ahmeexnal's picture

"ze Germans" are not alone

When the going gets tough and blood runs in the streets, your loyal french poodles will abandon you to your fate.  Just like it has happened numerous times throughout history.

KlausK's picture

Don't be complicated. Everybody here is having fun parading their knowledge of nazi-vocabulary so don't spoil their amusement.

jm's picture

"Germany demands Greece give up its sovreignty" generates more heat than "Greece's creditors demand conditions on debt forgiveness."

Add some heat to a goofball cast that knows somethign close to nothing and you have a real dumbassification. 

 

Uncle Remus's picture

It's all so clear now. Hippies are Hitlers fault.

The English building the VW? Talk about aspirations above their station.

President Palin's picture

"Deutschland, Deutschland über alles..."

... or rather: Deutschland, Deutschland OHNE alles...

KickIce's picture

If you were struggling financially and also being strongarmed into assisting a sibling, would you not want some kind of control over your own money?

Uncle Remus's picture

Blitzschuld.

[edit] Hündinnen

falak pema's picture

Not again, this has ben posted, discussed and rejected by Greek government, as posted here in ZH. WHat sort of sick joke is this; an april fool's scam in january???

Not even Merkel can be that dumb...Mensch!

ucsbcanuck's picture

She's not. This is a prelude to throwing her hands up and saying "Hey I tried. You're on your own now."

falak pema's picture

well, that is called a "disorderly bankruptcy" and the consequences have been discussed in detail. Is Merkel ready for that?

It starts a chain reaction in 2012, and signs the imminent collapse of Portugal, as the bonds there as in Spain will spike...

So, then we are in contagion in 2012...I thought they wanted to kick can in 2012! 

Is there a pilot on this NWO EUro Oligarchy plane? All of Euro banking will now burn if it gets so ugly in Greece/portugal/spain, as in UK as in...USA...O'bammy election...???

Mrs LAgarde says she needed 1 T fund for that eventuality. Right now she has 200B...

Uncle Remus's picture

"Oy. I tried. You're on your own now."

wandstrasse's picture

She's not. This is a prelude to throwing her hands up and saying "Hey I tried. You're on your own now".

The entire sad and boring farce summarized in one short sentence, excellent ucs. TPTB are blackbelts in dialectic mass manipulation. Germany is the last place where more debt can be squeezed out. It ends when Germany is carpetbombed to death with debt like Ireland, US, Greece, Japan, Italy etc. are already dead today.