Summary: Germany used it power over the European Monetary Union to institute a monetary policy that disproportionately benefited itself, to the disadvantage of the periphery nations. Germany prospered, they lost competitiveness. Now Germany acts to continue the game, attempting to force the losers to stay in the game. Now it’s Greece’s turn to go under the hammer. Will they comply or resist?
- The Financial Times breaks the story
- Update: The Greek government responds
- Update: Replies to Greece by the EU and the German goverment
- For more information about the European crisis
(1) The Financial Times breaks the story
“Call for EU to control Greek budget“, Financial Times, 27 January 2012 — Opening:
The German government wants Greece to cede sovereignty over tax and spending decisions to a eurozone “budget commissioner” to secure a second €130bn bail-out, according to a copy of the proposal obtained by the Financial Times.
In what would amount to an extraordinary extension of European Union control over a member state, the new commissioner would have the power to veto budget decisions taken by the Greek government if they were not in line with targets set by international lenders. The new administrator, appointed by other eurozone finance ministers, would take responsibility for overseeing “all major blocks of expenditure” by the Greek government.
Here is the “proposal” obtained by the FT. Only fools would accept this insulting and contemptuous offer.