There is no alternative to keep Greece through loans from the euro zone countries and the IMF of national bankruptcy – Merkel and her finance minister said this on Friday in parliament. Economists blog author Oswald Metzger disagrees. Of the recently agreed aid to Greece, mainly speculative investors would benefit. With a debt restructuring process, the country would have been better served.
Only Germany is not innocent. With the softening of the stability criteria, the federal government would have made such crises possible. This week in the German Bundestag, the word “alternative” to the most used word of the Chancellor and the Federal Finance Minister in the debate about the Greek rescue, in order to justify the more than 22 billion euros, with which the German taxpayer is liable if Greece after the next three years, did not come off the ground. What kind of world are we living in?
All financial crises will always have the same profile shape because all the players know that the collapse of housing bubbles, the losses are socialized. Business as usual! The gigantic profits were indeed realized by professional strategists for years before the taxpayer had to shoulder the risk of default via government bailout policy. In the case of Greece is similar. In 2000, the crucial mistake was made when in Brussels the political majority, found the Greeks to make admission into the euro zone.
Many insiders put even then the soundness of the Greek financial and economic policy in open question. Nevertheless, critics were appeased with the “no bail-out” clause, is ensured by the Maastricht Treaty that a euro-participating country not for liabilities and debts of other participating countries must adhere or pay.Nevertheless, Europe has watched a decade, as the southern Europeans in the euro area exceedingly indebted further public and private households.
They had so suddenly supposedly leeway because the interest rates because of the euro yield fell massively. Instead we to deal with structural reforms in pensions and pensions, or to tax policy, we continue unabashedly to manipulate the budget statistics and lived on credit.