Financials rescue operations

There is rehabilitation potential for Greece. The actions of the federal government in the case of Greece recalls aid packages more and more politically motivated wrongful. Greece’s public debt is already back to the level before the first debt restructuring in which the private creditors had to give up about half of their claims.

The waiver of international creditors, who alone could liberate Greece substantial and lasting interest and principal payments, is politically taboo. Because neither party wants to explain in the months before the election on its own people, that the German taxpayer is involved with high tens of billions in rehabilitating Greece. The Greek government is still not being able to refer to his own people with a functioning financial management of public finance.

The other alternative, the exit of Greece from the euro area is in regards to the policy. “If the euro fails, then Europe fails, “- it is Merkel’s mantra for Germany, and Europe have to pay dearly – financially and politically.The Greece illusion in regards to European saviour can be expressed into a simple formula: More credit for zero interest! Promised grants are to nearly 250 billion.

For ten years, the Greeks had been deferred to the interest payments. The then – perhaps – of interest payable will be reduced to almost zero percent. Also promised for the future mortgage payments are paid in advance. The patch up structural problems has become a global political strategy. Whether in Japan or America, in Europe or the currently is played in Argentina. The policy is caught in a debt-financed prosperity illusion. This system is broken, due to the bankruptcy.

Problem concealment endangers democracy

Greece has been given a two-year deferment. That costs money, the money of German taxpayers. However, this fact and the issue of euro rescue, German politicians is treated quite restrained.”Politics ruins the character,” stated erstwhile Prince Metternich. Fits this verdict, not exactly the attitude of German politicians who say the sceptical people are not honest, what is going on?

Of course, we will pay the bill for the Greek and other euro bailouts. Frankly, it would be if the chancellor and the finance minister just said, ‘Sorry, we have a problem of political power in the German Bundestag. Our own government majority is not to forge another rescue package for Greece (or any other crisis countries). Whether we SPD and the Greens, as before, is assisted by the all-party coalition of the euro saver is uncertain. Finally, elected in ten months. Until then we have to just muddle through and hope that the euro is not an election issue. Here we are hopeful because the opposition has no interest in a Euro-election campaign.