The way that Greece has been manhandled this past week is exposing a new Germany.
Over the past week, we have seen the clearest, most naked display of German aggression since the end of World War ii. Germany, of course, has been ruling the eurozone for years. Der Speigel even called Germany the new “Fourth Reich” earlier this year. But for the most part, Germany has concealed its dominance behind a fig leaf of consensus.
That ended this week.
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While the Greek “compromise” deal may have averted an outright economic collapse in Greece in the short-term (although one would be hard pressed to describe the current situation on the ground as anything other than a depression) and may for the time being allow EU officials to cling to the notion that the euro is “indissoluble,” the fraught negotiations that took place over the weekend in Brussels laid bare for all to see the unbridgeable gap between EMU nations.
If there were any doubts about who runs the show, German FinMin Wolfgang Schaeuble erased them on Sunday by pushing through a term sheet that effectively strips Greece of its sovereignty on the way to seizing state assets and relegates its people to perpetual debt servitude. If this is the meaning of a currency “union”, it’s not entirely clear why any state would want to be a part of it. Continue reading
While a Greek (pre) deal in some format was largely expected this weekend (especially following the unprecedented humiliation of Greece that would allow the Troika to repay… the Troika) the biggest stunner from the past 48 hours was Schauble’s insistence (which as we subsequently learned had been coordinated with Merkel) that either Greece accepts draconian terms which will strip the country of its sovereignty, or it will suffer a 5 year “time out” from the Eurozone. Continue reading