Germany Wants Greece to Cede Control of Its Own Budget
A recent proposal from Germany would have Greece ceding a great deal of control of its own financial and budgetary issues.
Germany, long considered the solidifying force behind the European Union, is increasingly pushing for beleaguered Greece to give up control of its own budget policy. The request comes amidst the ongoing discussions of a second rescue package for the troubled nation. With austerity measures largely unpopular and seemingly not working very well, central bankers seem intent on inflating in order to "solve" the debt problem in Greece. The problem is, Greece does not have the authority to inflate the Euro, and would need to decouple and go back to a sovereign fiat currency in order to inflate away its troubles.
Ironically, such a move would essentially force all those protestors in Greece to deal with austerity measures – without even knowing they’re doing it (until prices start rising beyond their ability to pay them). That Germany is even a part of the EU is a bit of a mystery, since it is clearly one of the strongest financially in the bunch and would have presumably foreseen something like this crisis coming. One source spoke of the Germany’s request, noting, "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."
That same source noted that various European institutions would be given "certain decision-making powers" over fiscal policy in that proposal and that "this could be carried out even more stringently through external expertise." The proposal further noted, "Given the disappointing compliance so far, Greece has to accept shifting budgetary sovereignty to the European level for a certain period of time." This, basically, amounts to Germany, et al, saying to Greece – "You had your chance and you’re clearly incapable of handling your financial business. Let us take over." On balance, it’s probably a good idea.
Ironically, such a move would essentially force all those protestors in Greece to deal with austerity measures – without even knowing they’re doing it (until prices start rising beyond their ability to pay them). That Germany is even a part of the EU is a bit of a mystery, since it is clearly one of the strongest financially in the bunch and would have presumably foreseen something like this crisis coming. One source spoke of the Germany’s request, noting, "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."
That same source noted that various European institutions would be given "certain decision-making powers" over fiscal policy in that proposal and that "this could be carried out even more stringently through external expertise." The proposal further noted, "Given the disappointing compliance so far, Greece has to accept shifting budgetary sovereignty to the European level for a certain period of time." This, basically, amounts to Germany, et al, saying to Greece – "You had your chance and you’re clearly incapable of handling your financial business. Let us take over." On balance, it’s probably a good idea.
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