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According to a Reuters exclusive, "Germany is pushing for Greece to relinquish control over its budget policy to European institutions [ZH: read ze Germans] as part of discussions over a second rescue package, a European source told Reuters on Friday." Reuters add: "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," the source said.'
At that point Goldman will merely appoint one of its retired partners as Greek president and Greece will become the first 21st century German, pardon, European colony. But at least it will have its precious euro. We can't wait until Greek citizens find out about this quiet coup.
A budget commissioner has to be appointed by the Eurogroup with the task of ensuring budgetary control. He must have the power a) to implement a centralized reporting and surveillance system covering all major blocks of expenditure in the Greek budget, b) to veto decisions not in line with the budgetary targets set by the Troika and c) will be tasked to ensure compliance with the above mentioned rule to prioritize debt service.
The new surveillance and institutional approach should be formulated in the MoU as follows: “In the case of non-compliance, confirmed by the ECB, IMF and EU COM, a new budget commissioner appointed by the Eurogroup would help implementing reforms. The commissioner will have broad surveillance competences over public expenditure and a veto right against budget decisions not in line with the set budgetary targets and the rule giving priority to debt service.” Greece has to ensure that the new surveillance mechanism is fully enshrined in national law, preferably through constitutional amendment.
RULE GIVING PRIORITY TO DEBT SERVICE
Update 2: the first local headlines are coming in now, from Spiegel: Griechenland soll Kontrolle über Haushalt abgeben (loosely Greece must give up domestic control), and Kathimerini: Germany proposes Greece relinquish some fiscal powers, sources say
Originally posted by LeBombDiggity
reply to post by Vitchilo
Well Greece can't have it both ways.
It can't keep spending money it doesn't have then expect everyone else in the Eurozone to pay for it all. Their politicians have shown themselves completely incapable of running their own finances.
So the decision for them is very simple. Concentrate your minds, act responsibly and pay your own debts. If you can't handle that ... yet still want to stay in the Euro ... then voluntarily relinquish control of your nation's finances to those who can put it back in order (that's the very same people you expect to bail you out).
And if you can't do that ... get the hell out of the Euro. Because the convoy's leaving the stragglers behind.
As to what you say about advocating a coup, stringing people up from lamp posts etc ... get a grip.
Originally posted by Recollector
Greece gov said that this proposal is "out of the question".
GREEK GOVERNMENT SPOKESMAN DECLARES THAT THE BUDGET IS SOLELY ITS RESPONSIBILITY - DJ
As to what you say about advocating a coup, stringing people up from lamp posts etc ... get a grip.
Originally posted by Krusty the Klown
reply to post by Vitchilo
So you are saying that the EU is going to make slaves of the Greek people? The EU is going to make the Greek people work for no wages? You really think this is going to happen?
Not in so stark terms no. But they will be forced to service an untenable debt for the foreseeable future
Philipp Roesler became the first German cabinet member to openly endorse a proposal for Greece to surrender budget control after Reuters quoted a European source on Friday as saying Berlin wants Athens to give up budget control."
A government source in Berlin said Germany's proposal was aimed not just at Greece but also at other struggling euro zone members that receive aid and are unable to make good on their obligations.