Saturday, January 28, 2012

Weekend Post - Open thread !

Happy Saturday ! In light of the news item that Germany had proposed of Friday  that Greece bow down to the EU and surrender budgetary control to Brussels , naturally the question was how would Greece respond ? Well , here is the Greek response !

Greece 'will not discuss' EU budget control

Greece will not cede control over its budget to the European Union as has been proposed by Germany as a condition for a second bailout, Greek government sources have said.

"There is effectively a 'non-paper' that was presented to the Eurogroup," one of the sources said on Saturday, referring to reports that Germany had submitted a proposal to have the eurozone assume control over the Greek budget before it receives a new bailout.
"Greece will not discuss such a possibility," said the source. "It is out of the question that we would accept it, these are matters of national sovereignty."
Al Jazeera’s Andrew Simmons, reporting from Davos, said the possibility of the EU having any oversight of a member-state's buget has huge implications for the future of the European bloc.
"Basically, the EU would be taking over the budget and telling the Greeks what they can do and they can't do," Simmons said.

"What their saying in Greece point blank is you can't do this," he added.

   So , who is bluffing here - Greece or Germany ? Is surrendering  sovereignty over their budget and pledging payment of debt before engaging in any other state spending  pre-condition for bailout number 2 ? By the way , is the second bailout 130 billion or 145 billion - and what happens if Iran cuts off their oil to Europe ? Oil jumping to 140 or higher for Brent will blow up the budgets of Greece , Italy and Spain as surely as any bunker bomb !  Even if the Greek government chose to do , who believes this would go down quietly with the Greek people and what about the military - where do these vital interest groups stand on the latest Troika demands ? Watching this unfold , what must the people of Portugal , Spain and Italy think ? Do they hear the whistling of the executioner's blade coming down toward their necks as well ? Stay tuned - things are starting to move a bit faster......