The Guardian view on the Greek negotiations: out in the cold or in chains

[GliderGuider]

The Guardian view on the Greek negotiations: out in the cold or in chains

The Greek crisis began like the proverbial cloud that was no bigger than a man’s hand and has grown into a perfect storm which has shaken Europe to its foundations. Regardless of the final outcome of the negotiations, what unfortunately can be said with certainty is that the union’s fault lines have all but burst under the pressure.

Between France and Germany, between north and south and east and west in the union, and even within nations, there are now profound differences, only potential before, which it will take a long time to resolve. The past few days have seen Paris commit itself to keeping Greece in the euro and the union in a way which puts President François Hollande on a collision course with hawks in the German government, headed by the finance minister, Wolfgang Schäuble. France’s mentoring of Greece as that country made its own final proposals did not seek an easy or soft arrangement, but nor did it envisage Greece’s reduction to the status of a debt colony, not too different from the conditions once imposed on Egypt and China in the imperial era, with foreigners in controlling positions in its economy.

Mr Schäuble’s recent interventions in the talks, coming out in the leaks which have been his ministry’s way of influencing the debate for many weeks, have placed tougher and tougher options on the table. It seems that if Greece leaves the euro, he would not repine; but if Greece stays he wants to see it in manacles. He has canvassed the idea of a “temporary exit” for Greece from the euro for five years, a plan for which there is no legal precedent and one which most people see as a sneaky way of setting things up for a permanent departure.

He has emerged as an advocate of a solution that would hand over much of the Greek economy to foreigners, including placing some of its national assets in a trust based in Luxemburg that would hold them as collateral for money advanced and privatise them as needed. In an echo of German reunification, this would treat Greece almost as if it were the German Democratic Republic, an entity that had lost its political credibility and whose assets could be disposed of at will. While European and IMF supervision of Greece’s affairs has long been a reality to some extent, this would take it to a new level. The demand put to the Greeks on Sunday, that they rapidly pass a whole raft of reform bills before negotiations can even begin, also has Mr Schäuble’s mark upon it.

Chancellor Angela Merkel now has to choose between alienating her closest partner in the union and her closest allies at home. She may well end up by doing both. Forcing Greece out would undermine the basic relationship with France, and alienate other countries such as Italy and Spain. Keeping Greece under humiliating conditions would not be much better, the Italian prime minister, Matteo Renzi, said on Sunday .

[tblue37]

1. KnR. nt

[malaise]

2. Don't know if people realize that Greece needs global support

Give up fiscal sovereignty - are these fucking neo-liberals mad????

Fuck Merkel and the rest of them!!

[truebluegreen]

3. They are mad...what I wonder

is how much of this crap is enough?

[malaise]

4. Something's got to give

This cannot continue - banks and corporations over people - NO NO NO!!

[hill2016]

5. great

let me know when the US and UK decide to contribute some of their own money to help Greece out.

[MattSh]

6. Adopting the Euro was the first big step to giving up fiscal sovereignty.

Robert Mundell, evil genius of the euro | Greg Palast | Comment is free | The Guardian

The idea that the euro has "failed" is dangerously naive. The euro is doing exactly what its progenitor – and the wealthy 1%-ers who adopted it – predicted and planned for it to do.

...

But Mundell, a can-do Canadian-American, intended to do something about it: come up with a weapon that would blow away government rules and labor regulations. (He really hated the union plumbers who charged a bundle to move his throne.)

"It's very hard to fire workers in Europe," he complained. His answer: the euro.

The euro would really do its work when crises hit, Mundell explained. Removing a government's control over currency would prevent nasty little elected officials from using Keynesian monetary and fiscal juice to pull a nation out of recession.

...

"It puts monetary policy out of the reach of politicians," he said. "[And] without fiscal policy, the only way nations can keep jobs is by the competitive reduction of rules on business."

He cited labor laws, environmental regulations and, of course, taxes. All would be flushed away by the euro. Democracy would not be allowed to interfere with the marketplace – or the plumbing.

Complete story at - http://www.theguardian.com/commentisfree/2012/jun/26/robert-mundell-evil-genius-euro

[malaise]

8. Thanks

This won't end well for Europe

[Ghost Dog]

7. Krugman (via The Guardian): Eurogroup list of demands is madness.

http://www.theguardian.com/business/live/2015/jul/12/greek-debt-crisis-eu-leaders-meeting-cancelled-no-deal-live

Anger at the demands on Greece, gathered on social media under the hashtag #thisisacoup is gaining traction.

Nobel laureate economist, Paul Krugman, has lambasted the summit developments in his column at the New York Times, and thrown his support behind #thisisacoup.

... Suppose you consider Tsipras an incompetent twerp. Suppose you dearly want to see Syriza out of power. Suppose, even, that you welcome the prospect of pushing those annoying Greeks out of the euro.

Even if all of that is true, this Eurogroup list of demands is madness. The trending hashtag ThisIsACoup is exactly right. This goes beyond harsh into pure vindictiveness, complete destruction of national sovereignty, and no hope of relief. It is, presumably, meant to be an offer Greece can’t accept; but even so, it’s a grotesque betrayal of everything the European project was supposed to stand for...