"We need more leadership and monitoring when it comes to implementing the reform course. If the Greeks aren't able to succeed themselves with this, then there must be stronger leadership and monitoring from abroad, for example through the EU" Philip Roesler, German Economy Minister, in an interview with Bild today.
And so it rolls on. Greece, unable to really pay its debts back to Germany or anyone, is struggling to follow the orders from Berlin. Even the newly appointed 'technocratic' Government, sanctioned by the EU, cannot follow the orders from German.
Why? Well when the orders are the to slash your public sector, wages and increase taxes to push up, induce a large recession and destroy pensions arrangements - well these are difficult to enact. The Greeks themselves in all the interviews I have seen are fearful of falling out of the Euro and the huge disruption that would cause.
What they can't see is that at least for them there would be light. Post-adjustment (50% devaluation, yikes) their economy may start to grow, tourism would pick up as would domestic industry. The Cityunslicker clan would book a now affordable summer holiday there. Better would be a Euro devaluation to enable adjustment alongside the current default talks. At the moment the default option is not being done to help Greece, but Europe. how can Greece default and yet still have GDP debt ratio of over 120% (by 2020, even higher today!)
I don't see this a good outcome very likely, even more worryingly is the quote above from a senior German minister. The Germans are clearly getting desperate as their ludicrous plans fall apart. Mario Draghi's huge lending spree by the ECB has prevented a 2008 style collapse in this quarter. The German plans would have ensured this. But what next for them as they continue to insist that everyone else is not only wrong but that they must follow our rules. What next, tanks to be dispatched to the Acropolis?
This scary posturing by someone who should know better is another huge attack on Democracy in Europe and of course at its heart is the contrarian German doublethink:
Germany will not countenance a debt union for the currency union nor give up any of its own democratic powers over its economy, but all other EU States must comply with Germany's instructions and follow their economic ideology to become good 'EU' Countries.
This ludicrous position is only going to end in tears for all.