Tuesday, February 09, 2010

The End of Sovereignty (II) (Financial crisis in Greece)

Newsletter 2010/02/04 - The End of Sovereignty (II)

ATHENS/BERLIN (Own report) - The European Union has submitted to German demands, imposing unprecedented cuts in the Greek national budget, resulting in a large loss of jobs, cuts in wages and high increases in taxes. This was caused by Berlin's apprehension that Greece's budget deficit could lead to a serious crisis and burden the Euro. Business circles are even speculating about an end to the European monetary union. The Greek government must now report to Brussels every two - three months and show evidence it has made drastic cuts in its state expenditures. Berlin rejects financial aid from the International Monetary Fund (IMF) that it often imposes on non-European countries. This aid would be linked to conditions on the European Central Bank in Frankfurt. The demand that Athens take drastic austerity measures does not stop Berlin from pressuring Greece to buy expensive warplanes. In Athens, the German foreign minister insisted, at the beginning of the week, that they acquire Eurofighter jets (made in Halbergmoos, Germany). Berlin's austerity dictate is very controversial. A Nobel Prize laureate in economics accuses the German government of "deficit fetishism" and predicts that the measures will peter out with no effect.