Merkel wants ‘permanent’ supervision of Greece, warns of war


‘Nobody should take peace for granted,’ says Merkel

euobserver.com | Oct 26, 2011

By Valentina Pop

Brussels – Peace should not be taken for granted if the euro fails, German chancellor Merkel told MPs Wednesday (26 October) ahead of the eurozone summit where an increase of the bail-out fund firepower may lead to Germany’s own state assets being taken as collateral.

In a dark blue jacket reflecting the mood in and about the eurozone, Merkel abandoned her usual cautious rhetoric warned outright of a war.

“Nobody should take for granted another 50 years of peace and prosperity in Europe. They are not for granted. That’s why I say: If the euro fails, Europe fails,” Merkel said, followed by a long applause from all political groups.

“We have a historical obligation: To protect by all means Europe’s unification process begun by our forefathers after centuries of hatred and blood spill. None of us can foresee what the consequences would be if we were to fail.”

“It cannot be that sometime in the future they say the political generation responsible for Europe in the second decade of the 21 century has failed in the face of history,” the chancellor continued.

She was asking for the parliament’s “political” green light on a negotiation mandate for the EU summit, beginning later today in Brussels. The summit is seeking to increase the firepower of the €440 billion-strong European Financial Stability Facility (EFSF) to stop the sovereign debt crisis spreading to countries like Italy and ultimately, France.

The Bundestag approved the measure by a large majority, with 503 members in favour, 89 opposing and four abstaining.
German ‘risks’

While stressing that Germany’s contribution to the EFSF loan guarantees would continue to be capped at €211 billion, she said she could not exclude there may be “risks” for Germany linked to the EFSF increase of firepower. Her own party colleagues had demanded that she clearly excludes German state assets, such as the central bank’s gold reserves, to be put as collateral for the EFSF lending power.

“Nobody can clearly estimate if there will be such risks. What I can say is that we cannot exclude it,” she said, insisting that the current situation is pushing European leaders into “uncharted territories”.

“Not to take these risks would be irresponsible. There is no better and more sensible alternative. Europe and the world are looking at Germany,” the chancellor said.

Looking ahead to the summit, the chancellor repeated her long-standing stance that “there is no silver bullet, no simple solutions. We will still deal with these topics for years from now.”

She repeated her insistence that the EU treaty had to be changed, in the medium term, to be more strict on countries breaching the euro deficit rules.

“Where does it say that any treaty change has to take 10 years or that there should be no more changes after the Lisbon Treaty,” she asked.

EU leaders last Sunday agreed to have an evaluation presented to them in December by council chief Herman Van Rompuy about the possibility for a “limited” treaty change.
‘Permanent supervision’ for Greece

On the three euro-countries currently propped by EU-IMF loans, Merkel said Ireland was on “the right path”, Portugal showed it could implement the promised reforms, while Greece was still “at the beginning of a long road.”

For the first time, as opposition MPs noted later on in the debate, Merkel had words of praise for the ordinary Greek citizens feeling the brunt of the austerity measures demanded by international lenders. “People in Greece have to stomach a lot of sacrifices. They deserve our respect and also a sustainable growth perspective in the eurozone.”

According to the latest report of the so-called troika, consisting of experts sent from the European Commission, the European Central Bank and the International Monetary Fund, Greece will need even higher debt restructuring and losses for private lenders compared to what EU leaders had agreed upon on 21 July.

“But debt restructuring alone does not solve the problem. Painful structural reforms have to be made, otherwise even after debt restructuring we’re back to where we are today,” Merkel warned.

That’s why, she said, Greece would have to be “assisted” for quite some time. “It’s not enough that the troika comes and goes every three months. It would be desirable to have a permanent supervision in Greece,” she said, adding that this issue would be brought up at the summit.

In return for what seems to be an unprecedented sovereignty loss in an old EU member state, Merkel promised German investments and mentioned a meeting of local representatives from Germany and Greece in the coming weeks.

2 responses to “Merkel wants ‘permanent’ supervision of Greece, warns of war

  1. EU and Banks are Weapons of Mass Slavery
    Bad loans are actually toxic loans because they are poisonous. It is a calculated gamble and a secure one with the definite support from the governments of creditors, namely: Germany; UK; and France.
    Defaulting countries are now under exploitative control; it also happened in the past many times and in many countries.
    The core of the problem was irresponsible lending by banks. A credit bubble was created through banks’ lending out money to individuals and businesses to acquire assets that proved to be worth less than the amount of the loans. This was especially true in the real estate sector – something we also saw happening in the United States.

    What is called “irresponsible lending by banks” is actually a deliberate act of sabotage for the sovereignty of specifically targeted some European states.
    It is a replay of the tragic comedy “The Merchant of Venice”. Cutting a iuſt pound of his fleſh. But can the money lenders take their loot without dropping blood?

    These debts were made with evil intentions and they must be either written off or rescheduled by the people without additional usury.

  2. Financiers’ Reich is Buying Some European Countries
    Major German and British investment banks and financiers are taking over Europe in an advanced leap to globalist hegemony.

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