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Not So Fast: Finland And Holland Will Block ESM Bond Buying
While the bailout ball is in the German constitutional court, which has 8 days to decide, and potentially put the entire timeline of Europe's bailout in limbo should it cogitate longer than July 9 without handing over the ESM law to the president, in effect forcing the country into a Euro bailout referendum, it is easy to forget that there are other AAA-rated countries in Europe, which also have a say as to who gets bailed out. As of this morning, it appears that Germany may increasingly be the only one left footing the insolvency bill as both Finland and Holland said "Ei" and "Nee" respectively.
From Reuters:
Finland and the Netherlands will block the euro zone's permanent bailout fund from buying bonds in secondary markets, the Finnish government said on Monday, despite European leaders' decision last week that rescue funds be available to stabilise markets.
Euro zone leaders agreed at the summit on steps to shore up their monetary union and bring down borrowing costs for Spain and Italy, but they had given few details on the use of the temporary EFSF and permanent ESM rescue funds.
ESM bond buying from secondary markets would require unanimity and that seems unlikely because Finland and the Netherlands are against it, the Finnish government said a report to a parliamentary committee.
And more, also from Reuters:
Finland will block the euro zone's permanent bailout fund from buying government bonds in the open market, the Finnish government said on Monday, while The Netherlands also indicated opposition to the bond-buying idea.
Comments suggesting a rough time ahead for the idea followed euro zone leaders' agreement at a summit last week to take steps to shore up their monetary union and bring down Spanish and Italian borrowing costs.
They gave few details on how they might use the temporary EFSF and permanent ESM rescue funds to buy bonds.
A Dutch finance ministry spokesman said on Monday his government did not like the bond-buying idea but did not explicitly say the Netherlands would block the plan, saying only that it would evaluate purchases on a case-by-case basis.
"The prime minister said on Friday he is not in favour of buying up bonds," said Niels Redeker, spokesman for the Dutch finance ministry. "Using the existing instruments to buy up bonds will be expensive and can only be done if there is unanimity (between member states). That means the Netherlands would need to vote in favour."
On the insistence of Spain and Italy, now in the eye of the euro debt storm, euro zone leaders decided last week to soften slightly the terms on which countries that observe EU rules and recommendations can get euro zone help to lower market premiums.
So while Germany is indeed left all alone to preserve the European dream, we wonder: just what is the reason to keep calling Europe a "Union" when this is rapidly becoming the biggest misnomer of all time?
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"The Netherlands" please!
"Holland" is for tourists...
Collapse on! Bitchez!
Up in smoke Bitchez!
I just heard some Dutch-sounding dude, Eric somebody, on Bloomberg radio say that Holland doesn't like it but won't block it.
As famously remarked by Lady Thatcher “Socialism works ….. until you run out of other people’s money”. Looks like the EUSSR is finally going to find out the hard way exactly that.
A comment she plagurised from someone else...
Your insistance on attacking Socialism is quite laughable- firstly the EU is not socialist (maybe you should look up what socialism is before you start applying labels)
secondly (and most amusingly) - it's CAPITALISM which has run out of other people's money - this is why banks have resorted to fraud and fixng LIBOR rates to 'earn' money.
I presume you knew all this - or should I assume you're just another parrot who loves to repeat a simple catch phrase thinking it makes them look clever?
So true.
No, it is a transition from the inequities of capitalism to fascism. Fascism is to be transformed to socialism to remedy its corruption. Socialism will them be transformed into communism to resolve it's inefficiencies and then Communism will transform into totally anarchy to relieve itself of absolute tyranny. It doesn't really matter much where we are on the path if we know where it's heading. We just know we are nearing the point where there is more fear of liberty than longing for it.
Might I suggest that you look up capitalism?
That's when you fuck up, you fail. You don't get billions of taxpayer money blown into your ass.
Whatever you want to label that, it certainly isn't capitalism.
Crony + Capitalism = Crapitalism.
That's what I call it.
Governments run by corporations that writes laws to favor corporations above all else.
Once the government becomes involved in skewing the price system you no longer have capitalism.
It is the country I was born iin and was a World Power in the 16th Century.
Don't ever underestimate the Dutch.
Especially Dutch Schultz.
Don't ever underestimate the Dutch.
Indeed, "Going Dutch"
I spent 2 weeks with a family in Edinburgh when I was a student. The subject of how "thrifty" the Scots were came up during a dinner conversation. We were told that if we thought the Scots were "thrifty" we clearly hadn't ever been to Holland.
Bicycles for -gasp- transport. Shoes carved from tree stumps!
You should go to Belgium, even worse. Not kidding.
I am Dutch and we tend to overestimate ourselves, although the country is not doing bad for its size.
That's funny and I don't mean to be rude!!! Great cynicism! Being a loser m'self, I can relate!
That is true. Remember the Boer War and the battle of Sole Bay.
"Using the existing instruments to buy up bonds will be expensive..."
and probably completely exhaust the facility in less than half a year. (He forgot to say).
I have always liked the "Low Countries", but I guess that now applies to the PIIGS.
So is the ESM.
Not passing to Gauck before July, 9th wont trigger a referendum at all. Weird conclusion.
IMHO Finland will first leave the eurozone. Not Greece, not Germany!
FINxit?
FIXIT !!!
Finis...
As someone said before- It is alway hardest for the first person to leave a crap party.
For the second it is much easier.
put all the EFSF/ESM on Oanda. @ 1:100 - it brings out the unicorns.
The Emperor Has No Clothes. Pass it on....
The Emperor has a little wiener. Pass it on...
The Emperor is circumcised
The empress has no clothes pass it on...
as a Belgium citizen it comes hard for me to say this but GO HOLLAND!! at least they're still sane!
I wish my corrupt socialist government would also grow a brain...
Import and implant a brain from Iceland.
"GO HOLLAND" would be like "GO BAVARIA" or "GO TEXAS" ;-)
Greets to Belgium and pass me a GULDEN DRAAK :D
My father used to smuggle food into Holland from Belgium during WW2. Time to unite if the cause is worthwile, si?
Since when does Belgium have a government LOL?
Sane goes for the people, i tell you. Government is insane, for many years. A savior called Fortyun got shot 10 years ago, from that moment people are fucked by mainstream politics, and people, incl myself, are getting sick and tired of these europhile fuckups. Watch 12 sep.
The Netherlands said NO to a EU constitution. What we got was 98% of this constitution called the Lisbon Treason.
So, to hell with fascist big money and their servants in The Hague.
But EZ indices are up on the German Justice Minister saying he is "confident" that Karlsruhe will not delay the ESM.
Maybe it was Merkel's plan all along. She knew she couldn't blatantly say no to the new bailouts so she is using Finland and Netherland pull the rug for her. It would be funny when Germany is the only country jumping to avoid falling down while Italy and Spain gets the rug pulled under them.
Maybe if Spain and Italy would roll up a few technocrats in a rug they could relearn how to jump.
You're giving waaaaaay too much credit to that lying, spineless, opportunistic - and delusional - Maoist bitch.
Listen to what she says. She does know that a defeat can't be sold to voters, but still she BELIEVES in all that crap - that the ESM is a good investment, that further integration is necessary and POSSIBLE, bla, bla bla.
Her delusion keeps her from seeing the conflicts that will ultimately arise -for her, too - when the ESM will(?) be in place and starts to demand (not ask for) cash that isn't there. And remember, last week, one day after her defeat she successfully peddled that shit to the parliament.
What a fucking disgrace.
Anyway, I'm prepared to see her go from hopeful thorugh frustrated to absolutely terrified. And, unless for instance Finland exits first, I almost count on her to agree to some form of Eurobonds, weakened and under a different name.
"Finland & Holland will stop ESM Bond Buying"
I sure hope so.
More bad theater. Their leaders will compromise just like every single European and American politician before them.
All kneel to the monetary power.
"Men of Principle" is a dead concept from that past.
Political "Will" and moral principle have been replaced by spineless maggots praying that the overlords look upon them favorably and throw some coins in their direction.
Fixing debt with more debt is wishful thinking and will mathematically kill you one day. Ask Steve Jobs about that. Oh, you can't, he's dead.
some bad vibes creeping in...again.
Nee Nee Nee- So the vote came down to some guys living in the forest who adore shrubbery. Yes that is a bit creepy.
"While the bailout ball is in the German constitutional court..."
Its a tax on the people via currency devaluation...government taxes, the people pay.
Approved!!!
"the bailout ball is in the German constitutional court, which has 8 days to decide"
There is no time limit set for the court. Problem is, the president can and will sign the damned enablement act whenever Merkel puts enough pressure on him, and since the thing is irrevocable, the court can say afterwards whatever it wants, won't change a thing. This was almost the same scenario a few years back with the EFSF. The then German president Köhler signed the EFSF laws, bending under Merkel's pressure - and resigned 10 days later.
This would result in a very serious and open constitutional crisis.
I cannot imagne that just yet.
First the Dutch PM needs to grow a pair.
Well finland maybe, certainly not the dutch.
Our prime minister has a rubber spine, with the coming elections he will say he is against it, but his actions proof otherwise.
Beekgezicht spreekt met rubberen graat en gevorkte tong.
"Yup, emergency procedure is 85% majority. Finland + Netherlands have <8% share of ESM, so couldn't block." - a tweet on telegraph uk blog. Any truth to it? Market still green.
Hopefully the Finns will prove themselves to be as gutsy as their grandparents were in the Winter War of 1939-40 agains the USSR, the first incarnation of the EU.
Gotta love the pre-election posturing.
Prime Minister of Holland? (Netherlands whatever suits you...)
We have no Prime Minister, since the government dissolved. We're all belgians now.
Someone's throwing out draconian laws nevertheless... why waste a perfectly good summer with technical details?
They'll say yes. They're "yes-men".
The Dutch say no they have done so often before, unfortunately the Dutch are completely ignored by their elected politicians, of course they get ignored after these same politicians have promised them prudence on forward EU integration. Bunch of cockroaches in "Den-Haag". They won't block anything. The Dutch themselves however are completely fed-up with Europe and have every reason to be. 10 yrs. back a lot of Dutch particularly well educated (properly indoctrinated might be a better term for it) were in favour of the EU and the €, despite feeling a little loss of purchasing power (officially denied of course by statistics from the national statistics bureau "cbs"). The less well eductated had a higher resentment of the € and the EU (They skipped the indoctrination classes and relied more on their instincts). Today there are only a few people (Not including the talking heads put up on national television) particularly well educated people that are still pro EU and pro €. I guess proper indoctrination (well educated) only carries so far and the Dutch were lied to once too often. Unfortunately the politicians will just go on ignoring the public anyway.
Anybody hoping the elections in September will change a thing forget it (Nigel F that includes you and UKip). The socialist party who says it is anti EU and € will win the election on that promise; however they will not turn on Brussel once elected. They are commies themselves. They'll turn round and explain to the masses that just elected them on that promise that EU is not such a bad thing after all and in order to form a workable majority they have to consent in order to establish a coaltion of enough willing.
Mark my word.
... until your own country will be again the target of speculation.
The main problem in the EU is not only the lack of solidarity but in the first place lacking brains ....
It will take longe than July 9th- the constitutional court has just set the date for ESM-ruling at July 10th.
In practice, Finland and Holland cannot block any decisions of the ESM. The treaty says that "in case of emergency", unanimous decisions are not needed and 85% majority will be enough. Finland and Holland have together 7% of the votes.
It is very easy for the the EU Commission and the ECB to declare such emergency .