Protest against Potsdam

Germany, brilliantly shaping up a plan for its European conquest by adding national pride and support, one propaganda piece at a time:

AUGSBURG/MUNICH (Own report) – In the run-up to this weekend’s annual “Sudeten German Convention,” the Bavarian regional government has announced the introduction of a memorial day in commemoration of German resettlement. Beginning 2014, the second Sunday in September will annually be dedicated to the commemoration of the German victims of “flight, expulsion and deportation” as a result of the Second World War. The designation of this memorial day is one of the German political establishment’s measures, to seek to embed the notion that the resettlement was “an injustice” in the mindset of future generations. Based on this – historically erroneous – opinion, Germany can raise advantageous political claims vis à vis Eastern and Southeastern European countries. Besides the creation of a memorial day, Bavaria is also supporting, with 20 million Euros, the establishment of a “Sudeten German Museum” in Munich. The German Bundestag has earmarked another 10 million Euros to the project. An exposition, which could serve as the centerpiece of the museum, put the legitimacy of the founding of Czechoslovakia into question, using controversial quotes from Nazi sources. The Bavarian prime minister will be honored, with a Sudeten German Homeland Association award at Sunday’s events for his support of the “expellees.”

Cyprus Bailout Gets Even Worse

The amount Cyprus will have to pay to fix its financial sector jumped by €6 billion, Cyprus announced April 11. Originally, Cyprus was going to receive €10 billion from international lenders, and raise €7 billion itself. Now, the latter figure is €13 billion.

Cypriot President Nicos Anastasiades wrote to European Commission President José Manuel Barroso and European Council President Herman Van Rompuy pleading for more money, but he was ignored. Germany made it clear it was not willing to give any extra.

Welcome to Berlin, Europe’s new capital

You’re not only looking at the de facto leader of Europe, which still most people don’t realize it for what it is, but you’re also looking at the next potential world leader. Critics can laugh at the notion, but when one is ahead of the curve, today’s jokes are tomorrow’s reality.

Berlin does not feel like an imperial city. The new government buildings – the chancellor’s office, the Bundestag and the foreign ministry – have all been designed with plenty of glass and natural light, to emphasise transparency and democracy. The finance ministry is, admittedly, housed in the old headquarters of the Luftwaffe. But most of the grandest architecture – Unter den Linden and the Brandenburg gate – is a legacy of the Prussian kings. Modern Berlin presents a more welcoming face, and has become a magnet for tourists and teenagers.

Yet while the German capital has deliberately eschewed the trappings of imperial power, the fact is that Berlin is increasingly the de facto capital of the EU. Of course the EU’s main institutions – the commission and the council – are still based in Brussels. But the key decisions are increasingly made in Berlin.

Germany Says ‘Great Uncertainty’ About US Debt

German Finance Minister Wolfgang Schaeuble questioned on Tuesday how the United States could deal with its high levels of government debt after November’s presidential election.

In a speech to the Bundestag lower house of parliament to open a debate on the 2013 German budget, Schaeuble said worries about U.S. debt were a burden for the global economy, hitting back at Washington which has criticized Europe for failing to get a grip on its own debt crisis.

In private, German officials often express concern about U.S. debt levels and the inability of politicians there to reach a consensus on how to reduce it, but Schaeuble’s public remarks underscore the extent of the worries in Germany.

Full article: Germany Says ‘Great Uncertainty’ About US Debt (CNBC)

The day we’ll find out what Germany wants

The meeting of the European Central Bank of August 2 has been declared crucial for Spain and Italy, who are waiting for help. This will be the moment we find out who in Germany — be it the Chancellor or the President of the Bundesbank — is to decide on its position on the crisis.

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What will happen now, in this stage of existential doubt over the euro? For a few days it seemed that Angela Merkel, Chancellor, and her finance minister, Wolfgang Schauble, accepted the proposition of the southern countries like Spain and Italy, supported by France, traditional partner of Berlin but afraid of being backed into a corner by Germany: that the European Central Bank (ECB), together with the European bail-out funds, would come to the rescue of their doomed sovereign debt.

Opinion these days has tended to emphasise that Germany has shifted its position, even though its two most visible leaders in this matter have not made a single statement backing that purchase of debt or any other additional measure. However, from Germany there has clearly emerged the outright rejection by the economic establishment, led by the Bundesbank, Germany’s central bank. Influential German economists, politicians and industrialists have rallied round this flagship institution. The arguments of the debate are known, and they are not worth repeating here.

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A historic day

It is obvious that Merkel cannot go back to the Bundestag to request more resources for another bailout, which was just around the corner for Spain and Italy, as the markets were anticipating too – right up until Mario Draghi, the head of the ECB, delivered his spell-binding utterance last week.

Without the political space to orchestrate a Greek-style bailout and under unyielding pressure from the markets, the most comfortable solution for Merkel was to dump the dossier into the hands of the ECB, which in national terms means the Bundesbank. The latter, observing the manoeuvre – that is, it would be the bank that would run the risk of absorbing the losses if the operation turns out badly – has stonewalled.

This would be the logic of a clash between Merkel and the bank, and not the logic of a division of roles. If this scenario is true, the ECB council meeting on Thursday will see the emergence of an alliance between central bankers from southern Europe and the majority of the eurozone governments, including Germany, against the Bundesbank and some allied central banks. A historic day.

Full article: The day we’ll find out what Germany wants (Presseurop)

Europe’s debtors must pawn their gold for Eurobond Redemption

The consolidation of power continues flowing back towards Germany as sovereign EU nations become indebted into slavery through economic extortion and subjugation. At this point, it’s hard not to say the Fourth Reich and the Holy Roman Empire are returning as even the German-Vatican connection is growing closer once again. Also see a previous post “Europe to Seize Greece’s Gold” for further information.

The German scheme — known as the European Redemption Pact — offers a form of “Eurobonds Lite” that can be squared with the German constitution and breaks the political logjam. It is a highly creative way out of the debt crisis, but is not a soft option for Italy, Spain, Portugal, and other states in trouble

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In effect, Germany would share its credit card to slash debt costs for Italy, Spain and others. Yet it is the exact opposition of fiscal union. While eurobonds are a federalising catalyst, the fund would be temporary and self-extinguishing. “The fund is a return to the discipline of Maastricht with sovereign control over budgets,” said Dr Benjamin Weigert, the Council of Experts’s general-secretary.

The ingenious design gets around the German constitutional court, which ruled in September that the budgetary powers of the Bundestag cannot be alienated to any EU body under the Basic Law — the founding text of Germany’s vibrant post-War democracy.

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Germany would have a lockhold over the fund, able to enforce discipline. Each state would have to pledge 20pc of their debt as collateral. “The assets could be taken from the country’s currency and gold reserves. The collateral nominated would only be used in the event that a country does not meet its payment obligations,” said the proposal.

Full article: Europe’s debtors must pawn their gold for Eurobond Redemption (The Telegraph)