(Reuters) - Germany is pushing for Greece to relinquish control over its budget policy to European institutions as part of discussions over a second rescue package, a European source told Reuters on Friday.
"There are internal discussions within the Euro group and proposals, one of which comes from Germany, on how to constructively treat country aid programs that are continuously off track, whether this can simply be ignored or whether we say that's enough," the source said.
The source added that under the proposals European institutions already operating in Greece should be given "certain decision-making powers" over fiscal policy.
"This could be carried out even more stringently through external expertise," the source said.
The Financial Times said it had obtained a copy of the proposal showing Germany wants a new euro zone "budget commissioner" to have the power to veto budget decisions taken by the Greek government if they are not in line with targets set by international lenders.
"Given the disappointing compliance so far, Greece has to accept shifting budgetary sovereignty to the European level for a certain period of time," the document said.
So , what's involved here ? First , Understand unless Greece submits , there is NO second bailout ! Second , what must Greece submit to - a) they must submit legally to commit absolute priority to future debt ! Now we see why the Troika is seeking further guarantees from the political parties to kiss the Troika rings. Stat revenues first and foremost has to go to debt payment- only then can the poor Greeks spend money elsewhere ! 2) Greece must relinquish control over its national budget to a Troika selected stooge ! Unbelievable stuff. and when , not if the Greeks don't comply ( as judged by the Troika ) , the Budget Commissioner of Greece has the power to tommy hammer Greece silly - think Greece has seen austerity up to this point ? It's just getting started friends. and this is the path that Portugal , Ireland , Spain and Italy will travel in the fullness of time. After the PIIGS , the next group of vassal states will be identified ( you can see which ones have the bullseye on their backs already ) , until the Troika runs the entire show ! One by one - watch the countries drop , falling under the control of the Troika - until the dream of the EU Super State has been achieved !
Sadly , are the Greek political parties in a uproar over the Troika edicts ? Heck , you know lapdog PM L- Pap is part of the Troika plan. But what about the Pasok , New Democracy and LAOS parties - have we heard their loud and angry voices yet ? There has been a symbolic gesture ( the reform Article to deregulate the Pharmacies failed ) , we have seen the typical political blustering , but what will these pols do when it comes down to the rubber hitting the road ? Is saving Greece more important than winning the April 8th election ( assuming it occurs on that date anyway and have the parties considering what they might be presiding over anyway ) , what will these parties agree to for their hotly sought after election to be held on time ) but rest assured , L- Pap is about to crack heads to achieve his masters' mission ! As noted below :
|Prime Minister Lucas Papademos is due to meet Saturday with the leaders of the three parties in his coalition government as he attempts to obtain agreement on the demands for reforms made by the European Commission, European Central Bank and International Monetary Fund, commonly known as the troika.|
Papademos will attempt to obtain a clear commitment from PASOK’s George Papandreou, New Democracy’s Antonis Samaras and Popular Orthodox Rally (LAOS) chief Giorgos Karatzaferis on the measures requested by the troika.
The failure of some PASOK and ND deputies to fully back a reform bill earlier this week has caused concern that Papademos will have trouble passing the legislation the troika has requested. The 10-page document distributed on Thursday calls for extra cuts worth 2.2 billion euros, 150,000 firings in the civil service as well as a series of structural reforms.
Papademos is due to take part in the European Union leaders’ summit on Monday and wants to travel to Brussels convinced that he has the backing of all three party leaders. There is considerable pressure on Greece to show a clear commitment to the steps being requested so that Athens can receive a second bailout, currently slated to be 130 billion euros.
“Greece has not only to commit itself, Greece has to deliver. Not all of the commitments have been fulfilled. That is one of the critical issues to confidence,” German Finance Minister Wolfgang Schauble said at the annual World Economic Forum in Davos Friday.
However, there were signs Friday that Papademos could face a tough task in extracting support from all three party leaders. Speaking in Parliament, Karatzaferis made it clear that he would not sign any written commitments if they were requested.
Speaking to Reuters Friday, Papademos indicated he was hopeful that talks with the troika could be concluded soon. “The aim is to complete the discussion with the troika by the middle of next week at the latest,” he said, adding that Greece had made some positive steps. “Much more has been achieved than sometimes appears to the public. There is some slippage in the implementation of the fiscal adjustment program and the reforms but internal devaluation is already taking place.”
Papademos added that the 2011 budget deficit would come in at about 9.5 percent of GDP and that there might be modest growth next year.