Things In Europe Go From Bad To Worse As Germany's FDP Party Seeks Referendum Over EFSF

Tyler Durden's picture

No sooner has the EFSF "passed" the German constitutional court (with large caveats, most notably that the German government will have a much greater say in any and all future European bailouts, assuming such are actually needed and the Euro does not implode), that we learn that yet another hurdle for the Greek bailout presents itself courtesy of primary fund provider, Germany, which is now finally very angry (as suggested first here "The Fatal Flaw In Europe's Second "Bazooka" Bailout: 82 Million Soon To Be Very Angry Germans, Or How Euro Bailout #2 Could Cost Up To 56% Of German GDP" two months ago) at what it realizes is an ongoing transfer without checks and balances (remember: the insolvent PIIGS hold all the trump cards) of capital from Europe's prudent workers to those who are, well, not. To wit, according to the Spiegel, German FDP Party has just announced that it will seek a referendum on the ESM/EFSF. What this means is that while the hurdle is not insurmountable from a legal perspective, it will merely add further uncertainty to the final bailout of a country that according to the market at least is 100% bankrupt in an alternative universe in which fundamentals matters.

Google translated:

Several front against the Liberals make permanent euro rescue ESM. With a membership vote, a group wants to prevent the FDP politician Schäffler and stag party for the approval of the aid package.


The Christian Lindner letter reached Friday afternoon by 17 clock by messenger. Since then, should the weekends of the FDP-General to be thrown overboard. In order to prevent the approval of the FDP faction in the Bundestag for permanent euro rescue ESM in the fall, a group aimed at the euro-skeptic Frank Schäffler and the Old Liberals Burkhard Hirsch, a membership vote on. "The discussion in the FDP on more measures to rescue debt-ridden countries in Europe is an important political issue and requires a broad discussion in the FDP," it said in a letter to FDP General Secretary Christian Lindner on Friday. The letter is from SPIEGEL ONLINE.


In a decision that the critics of the euro rescue measures apply to "permanent emergency measures for which Germany is liable for the debts of other European states." It continues: "The FDP opposes hence the establishment of a permanent European Stability Mechanism (ESM)." Should not the previously agreed measures prove to be sufficient, says the FDP in favor of over-indebted countries in an orderly exit from the to allow Euro to avoid a messy break-up of our currency. "


For Chancellor Angela Merkel (CDU) and the FDP, the party leadership is bad news. And it comes at an inopportune time. Just ECB chief economist Juergen Stark has resigned. In addition, the conservative-liberal government is currently fighting for the majority of the extended, temporary rescue EFSF. Now threatens the later vote on the following permanent pilot chute for ESM to be cliffhanger. Lacks the Chancellor with such a central issue in European politics with a majority, it could mean the end for the black-yellow coalition.


Especially since it is not excluded that the Euro-critics with their application be successful. 3,400 signatures have to collect the protesters for the action, which is five percent of about 68,000 FDP members. It provides for the Rules of Procedure. The last and only time the FDP had consulted their members in 1997 when the Great eavesdropping. The party leadership has the opportunity to amend the critics with its own alternative proposal to counter. One-third of the members involved in the decision, the result is official policy position of the FDP. The faction in the Bundestag must vote accordingly.


Initiator of the request is € tireless critic Frank Schäffler. That he is supported by Burkhard Hirsch, a Liberal of the old school, his concerns should give a new impetus. "I'm for Europe. But I am afraid that the way we want to save the euro, it says that we will divide Europe at the end," said Hirsch SPIEGEL ONLINE. "I am against a slide into a debt union. So far, all the billions we have paid to Greece, led to no result."

We expect the market will take the usual several hours to process this.

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swanpoint's picture

Things, Bitchez!

AldousHuxley's picture

Germans have history of world wars. Don't make them angry. They are already angry from Mercedes Benz association with Chrysler.


WSJ..."FRANKFURT—Jürgen Stark, Germany's top representative on the European Central Bank's executive board, is resigning, a blow to an institution struggling with its credibility in Germany over its controversial decision to restart its government bond-purchase program."

Ahmeexnal's picture

False flag attack to prop up the markets?
Breivik's imaginary buddies about to make headlines?

slewie the pi-rat's picture

lemme just jump the string like swami salami, ok?  who fuking carez?

c'mon, BiCheZ!  junk me!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

in trying to keep up w/ the other ad-bot T-R-0-0-Lz, such as oobrien, oo0RI, and bob_d, and will post this same post all fuking day long, b/c i don't hava blogsite...except for zH, of course, where i may have a "subscriber" or two.  who knowZ?

Q:  has the West's unfettered and  unlawful aggression in libya helped destabilize NATO & turn the EU into a pushover for the muslims or the girl scouts? 

well, the moQ is still somewhere or other, and THE Council which has promised elections w/in 8 months is demanding his surrender as well as those who are still armed and ready, willing, and able to keep fighting 
US "intelligence" is now saying he is in some desert oasis, so i guess that place will get "surgically flattened" pretty soon if all the "bad guys" don't come out with their hands up
the press is now reporting a "total" of 6 who were "rendered" to libya on condiefuking rice's watch "under" g.w. "puppet" bush
here's the recent bodycount: At least 30,000 Killed, 50,000 Wounded in Libyan Conflict
anyone interested in "doing the math" only needs to "estimate" how many were "combatants", subtract, and get the innocent civilians not protected by the ~10,000 NATO bombings.  oh, the "statisticians" are saying the "final" totals may be adjusted upwardZ in a "few weeks"
and, as we remember the "reason" that the USA now has a policy of torture and denial of, NOT "human rights", but denial of LAW & JUSTICE to all, please consider what the best freaking presidential candidate of the century has to say about this 9.11 weekend~~~yeah, the guy who has been on the ballot in all 50 states for the last two elections, ralphie-boy nader:
The Empire is Eating Itself » Counterpunch: Tells the Facts, Names the Names
L0L!!!  (if you take a few minutes to read this piece, you will understand why he is the best candidate.  if he runz, of course, no matter wtf tyler is hallucinating, politically, these daze)

p.s. risk off, BiCheZ!
p.p.s. no mo coffee for tyler. ever!  but he does look fabulous in that Dow 11,000 hat w/ the two "fat fingers" for the oneZ! 

tooktheredpill's picture

if someone says bitchez one more time...

edotabin's picture

Overused as BITCHEZ may be, I still think its better than "bailout, bailout, bailout" and "eurbond, barroso, rompuy" and all the other crap we have been reading over and over and over and over........

Going down .................BITCHEZ!!


BlackholeDivestment's picture

13 Banks ah Bailout Go Go and NWO 911 German Curveball. Steeee ...rike.

Oh regional Indian's picture

i think what everyone needs to notice here is the classic sleight of hand played by the.........wait for it..... CORPORATIONS.

Keep the people buried with political shennanigans, distractions, perhaps soem religion thrown in.....but the corporations always come out fine!

Germany is booming in India. As is Japan. Just BOOMING. Japan has the low end, Germany has the high end. Both have been here a long time, Mercedes Benz, Bosch, Siemens, it. Honda, Toyota, Komatsu, all plum partnerships with India's sell out Globalists the tatas, mahindras, ambanis...

They will have no problem leaving German's/Japanese hanging if push comes to shove. They never outsourced here, set up factories, both countries. With primary German ownership and management.

The corporations are doing fine, using simple labour arbitrage and regulatory capture and bribery to spin their web around the globe.

It's not about the Germans or the Greeks or the Americans or the Indians.....


Signs of the Fall

slewie the pi-rat's picture

hey, toy boy!

nice ads today!  evrybody sure loves the way they don't show that they go to the aardvark site no mo, too!

thanks for the fortune telling!  and helping the zHeads to understand current events more deeply

if "germany sinks the EU", will you and yer touch-hole buddy, falak penis, go back to telling the whole world how "germany won WWII"?   you haven't mentioned that "thesis" since the german high court ruled (cum caveats) that the euro bonds weren't "illegal" have ya?

whatza matter, wind shift on ya? 

mick's picture

well remembered - that "germany won ww2" nugget was one of the stupidest comments ever posted

kaiten's picture

Just to make it clear. FDP is talking about party referendum, not nationwide.

Roger Knights's picture

Thanks -- the Google translate was unusually unclear.

A nationwide referendum is the next logical step for the FDP to call for. Such referendums will be called for in other countries too, like Finland, Slovenia, Slovakia, and ...  The euro-elites won't be able to keep control of the political process.

Bluesdog's picture

"They are already angry from Mercedes Benz association with Chrysler."

LMAO. Dude when taken in context of your post and the original article, that has to be funniest line of Month if not year. Freakin hilarious!


Clorox Cowboy's picture

Long AKs, non-GMO seeds, colloidal silver...and NFLX

Azannoth's picture

The FDP is dead in the watter they might not clear the 5% entry point in the next election, thus they got nothing to loose and this would be a very popular move if they could block the PIIGS bailout

good luck to them

CrashisOptimistic's picture

This is true, but the reason this is powerful is that in a secrecy of the ballot booth, people will vote to be German and not European.

Politicians in parties might fear being told they are returning to nationalism and not being good Europeans if they speak out so publicly, but the public . . . in secret . . . will vote their own pocketbooks every single time.

A referendum vote by the people would kill all the bailouts.  It's powerful.

redpill's picture

This is a time game now, a match between how long it all gets stretched out, and how long it takes Greece to officially default. Although in the end I don't think the ECB would ever allow the latter to happen.

Spitzer's picture

What is right with the Euro is what is wrong with it.

How does debt default result in hyperinflation of the Euro ? It doesn't. The Euro will fall just like the currencies in the Asian financial crisis but it will not hyperinflate. The dollar sure will though.

Betting against the Euro currency is not a god idea.

mayhem_korner's picture

I was taking the bet that the ECB would let Greece default.

Spitzer's picture

My bad. I would take that bet too.

The Fed wont let Greece default though. Haha poor dollar.

Instant Wealth's picture

Back in the old days, I took the bet that they would allow ITALY to join the eurozone. I knew the whole thing was rotten from the start (... oh, yes, and I won that bet, of course). 

maxmad's picture

Seriously, I thought someone would have to be awake to get on to ZH?  hmmm..  Maybe I'll try getting on while I'm asleep!

Id fight Gandhi's picture

It's about time the Germans tell the eu and Greece to get fucked. Theyre just dead weight.

Scisco's picture

Two words: vendor financing.


Lord Welligton's picture


Although it doesn't always work out does it.

Scisco's picture

It falls apart when accounts become due. Which should be in 3 .. 2 ..

John McCloy's picture

Wow..and that's the ballgame folks. Please remember to toss out your crackerjacks.

SilverRhino's picture

I wonder if it's possible to do a PUT on the USDEUR exchange rate.  Anyone know?  I bet parity is coming.  :)

Roger Knights's picture

There are "markets" (multiple bets on the year-end EUR/USD ratio on Intrade, but unfortunately trading is thin and spreads are wide. I have an offer in, at 50:1, that the euro will reach parity with the dollar, but there have been no bids. I have managed to place a few short sales on the eur/usd ratio at other levels. Here's the link:

One can also bet on whether any country will leave the eurozone by the end of this year or subsequent years. Trading is fairly active. Here's the link:

mayhem_korner's picture

The roaches have realized the lights are on and are headin' for the exits.

Josh Randall's picture

Germany is taking their marbles and going home

TruthInSunshine's picture

Germans are about to make liverwurst out of any of their politicians that support the EU 'redistribution mechanism,' so their politicians are trying to hatch schemes as to how they can perpetuate the Ponzi on the sly, aka stealth-like.

But they can't, and they won't, because it's not possible at this point...

They already tried to sneak one by with the 'Eurobond' crap.

max2205's picture

Great News: we filled the gap from Sept 7th....weee onward and upward

RobotTrader's picture



If the Euro bounces from oversold conditions, there will be an irresistable urge to buy any and all crappy cyclical stocks.

Too many guys want to "Make Their Year" in 2011.

Trichet single handedly caused the "double dip" with his rate hikes and then finally foamed at the mouth about "price stability".

Now the Euro is in free fall and credit spreads are blowing out so all it will take is for some bureaucrat to utter some soothing "words" to turn things around.

Spitzer's picture

Euro Fed primary dealer bankruptcies will result in dollar printing, not Euro printing. 

The ECB is divorced from the commercial banking sector in Europe.

DaBernank's picture

Why not stick with the "every thing that's wrong with X is what's right with X" line? After all, it could apply to everything.

You should be honest from now on and admit that the ECB has less gold than even the netherlands: (as of May 2011) 501.4 tonnes, 18.8% of its total reserves, market value: $18.6 billion. No sovereigns are going to give an ounce more to the ECB if gold actually begins to see its historical persona.

The ECB is loaded with public debts of member states and there is no end in sight. It is officially not beholden to political interests but of course it is. It is not technically intertwined with SocGen but the ability to recapitalize off the back of the French will be severely compromised if SocGen pulls a Lehman. The ECB is also officially unallowed to *directly* monetarize the European States' deficit spending, which just means that there's a magical "off-balance sheet" entity which gets inserted between point A and point B. And there are also 16 little National banks all transferring the shit from their balance sheets to the ECB, hoping somebody else defaults first - guess who? Opa! Balance sheet acrobatics does not a solid bank make.

Perhaps Spitzy and I can agree on one thing: if you have Dollars, buy gold. if you have Euros, buy gold.

PulauHantu29's picture

Germans don't want to take it up the Butt (w/o the Lube) for Bankers Bonuses?

Can't imgaine why they are angry?

rayban's picture

This initiative, if implemented, is likely to seal the end of the current coalition. Angela might be replaced pretty soon.

Cone of Uncertainty's picture

This is such horseshit.

Germany will play right into the hands of these bankrupt countries.


RobotTrader's picture



GDX just turned red, SMH green.

All the Waxie Parness "Red Light" and "Green Light" or "Stop" and "Go" programs probably issued a buy signal.

Cdad's picture

This rise in the dollar through the 200 day is bound to play hell with EVERY algorithm out there.  Short term pops in anything should be sold...period.

SheepDog-One's picture

A rising dollar thru the 200 is the FED's worst possible nightmare....they survive by devaluing the dollar to keep their phony assets inflated. This could end very badly any minute, the FED central banksters will spare no lives to save themselves.

Of course all idiots like Robo sees is a green color and get excited like a dumb cow,

Cdad's picture

Correct.  And this dollar rally has legs, Dog.

ReactionToClosedMinds's picture

Sorcerer's Apprentice just getting started ..... US$ ironically looks like intermeidate term strenghten ... for all the worst reasons too

TruthInSunshine's picture

USD is going to be the least ugly currency at the dog pound for some time.

Relativity, bitchez.

(Bernank & Timmay G don't mind, as it makes their job of tnote selling much easier)

mayhem_korner's picture

So what would they do to combat the flight to the USD?  The only thing they know is to print.  Do they have enough ink on hand, or are you saying they'd have to unleash the $1B FRN...?  What's a Ben to do?

scratch_and_sniff's picture

looks like Greece is on the denial, just after european close too, well thats a supprise.

Stax Edwards's picture

My read of it says that should the EFSF (that has already been approved), be insufficient (which it is), they oppose a permanent ESM mechanism.

So not convinced this is exactly groundbreaking news.

Edit: Correct me if I am mistaken, but the headline of the post is wrong is it not?