The world to teach Germans to…un-German

José Manuel Barroso, Angela Merkel, German Federal Chancellor, and Jean-Claude Trichet, former President of the European Central Bank (ECB), from behind (from left to right)

Italians and Greeks are trained tax dodgers for millennia now, while Spanish banks lately discovered how to usurp their depositors’ money. No wonder then why the three Mediterranean nations found it difficult to endure the Teutonic straight euro money jacket. As for the Portuguese and the Irish they both followed those Med attitudes and the five countries have now arrived at the conclusion that they cannot cope with the German miser way of living and doing business.

What is new however has to do with what the rest of the world thinks is right for Europe; the Med relaxed attitude or the German austere ideology? It seems that the International Monetary Fund, representing the other global economic powers like USA, China, Russia, India and Brazil have now concluded that the European South is right! Christine Lagarde, the head of IMF, said it plainly this week in Tokyo, during the annual general assembly of the Fund: “Greece must be given two more years to apply its austerity programme”.

This was divine music for the Greek ears. Lagarde however is not making a gift to Athens but rather to Washington and Beijing. The idea is that the IMF and the White House are now definitively convinced that Eurozone’s obstinacy for austerity is holding back global growth. And the culpable party is obviously Germany, not allowing the European Central Bank to settle the over-indebtedness problem of Greece, by cutting down the value of the country’s debt obligations. Berlin insists that the ECB should not help governments, unlike what all the other major central banks do.

The truth is however that the part of the Greek debt ECB holds, has been acquired in the secondary market at discount prices around 50% to 60% of its nominal value (below par). The ECB though demands that Athens pays the maturing Greek bonds at 100% (par value), thus making huge profits on the corps of the passing away Greek economy. Those profits are then passed to its major shareholders, with the largest being Germany. If this is not looting then words have lost their meaning. Coming to Madrid, Germany again is playing hard ball and retreats from what the European Summit of June 2012 has decided, that is, to support the Spanish ailing banks with up to € 100 billion.

This money could come directly from the European Stability Mechanism, not counting as Spanish state debt. Berlin and its followers in The Hague and Helsinki are now saying that the decision of June refers to…future debts not the existing ones, as if everybody else are morons…This is a position which cannot be held for long. The American presidential election does not play any role here. Obama or Romney will tell the Germans that the US and the world are asking Berlin to come down to earth and abandon once and for all the German tradition of believing in wrong ideas, an attitude detrimental to everybody, even to Germans themselves.

Two world wars stand witnesses to that. In such an environment Germany will soon accept to decisively help its Eurozone partners in the Mediterranean, along with Portugal and Ireland, by relaxing the imposed austerity, with the euro slightly receding vis-à-vis the dollar. It is the only way for the global economy to revitalise itself and enter a new virtuous cycle of growth engulfing the developed and the developing countries.

Advertising

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

“France will be there, it will always be there!”, French President Hollande says in a rather disorganised speech; the Sting reports live from World Economic Forum 2015 in Davos

Rule of Law: Commission launches infringement procedure to protect the independence of the Polish Supreme Court

Commission deepens criticism on German economic policies

UN health agency spotlights stalled effort to close health divide across Europe, in new report

Families deserve answers when loved ones go missing in conflict: Security Council adopts historic resolution

Erasmus+: a turning point in the lives of 5 million European students

First-ever global conference of national counter-terrorism chiefs will strengthen cooperation, build ‘resilient’ States, says top UN official

Marking international day, UN experts call for urgent action to end racial discrimination, in wake of New Zealand anti-Muslim attack

Spanish vote – bad luck for Greece: Does Iphigenia need to be sacrificed for favourable winds to blow in Eurozone?

Nigeria: UN chief ‘appalled’ by killing of aid worker; calls for release of remaining hostages

Large parts of the world are growing more fragile. Here are 5 steps to reverse course

3 charts to help you understand the American shale boom

Harnessing the power of nature in the fight against climate change

New York to London in 90 minutes? These companies think it’s possible

Access to healthcare is not enough – high quality care has to be the target

Using CO2 as an industrial feedstock could change the world. Here’s how

How artificial intelligence is redefining the role of manager

UN chief encouraged by release of Cameroon opposition leader

The good news on pensions: sustainable equals profitable

Women lose most from the climate crisis. How can we empower them?

Air pollution: How to end the deaths of 7 million people per year

6 ways countries can prepare for the next infectious disease pandemic

COVID-19: What the evidence so far means for containment

Removing deadly mines means ‘new horizons and hope’, clears a path to SDGs, says UN chief

3 ways AI will change the nature of cyber attacks

EU: Centralised economic governance and bank supervision may lead to new crisis

More billions needed to help Eurozone recover; ECB sidesteps German objections about QE

COP25: Developing nation’s strike hard

Friday’s Daily Brief: hunger in North Korea, human rights in Iran, updates on DR Congo and Benin

Obama, Crimea and the TTIP pill

Are e-cigarettes as safe as they claim to be?

104 countries have laws that prevent women from working in some jobs

What we need is more (and better) multilateralism, not less

SMEs and micro firms sinking together with south Eurozone

UN agencies launch emergency plan for millions of Venezuelan refugees and migrants

Corporations must help shape a better world – or risk being left behind

Young people demand a transparent job market: new campaign launches on international interns day

China revisited by the former Ambassador of Hungary to China

Coronavirus vs flu: how do they compare?

Africa Forum aims to boost business, reduce costs, help countries trade out of poverty

We can save our ocean in three steps – if we act now

‘The welfare of the Libyan people’ the UN’s sole agenda for the country, says Guterres in Tripoli

The European Parliament floating over the South China Sea

Vital food crops destroyed in Syria amid upsurge in fighting across Idlib, Hama

Which country offers the cheapest mobile data?

5 rules for making employers and employees trust each other again

Gig economy: Employment Committee MEPs want to boost workers’ rights

Half the world’s refugee children not in school, UN agency finds

Fairer, simpler, more flexible EU farm policy: MEPs vote on post-2020 reform

Why medicine is relevant to the battle against climate change

Risks rising in corporate debt market

Are we sleepwalking into a new global crisis?

Rohingya emergency one year on: UN says thousands of lives saved, but challenges remain

Mexico must increase foreign bribery enforcement: full implementation of anti-corruption reforms could help

Why exchange programs are essential for the medical students of the 21st century

Understanding the gender gap in the Global South

German banks suffer of nausea amidst rough seas

The end of Spitzenkandidat: EU leaders concluded unexpectedly on EU top jobs

Ambassador Zhang Ming: “Work Together for a Better Globalization”

From Policy to Reality: Discrepancies in Universal Health Care Systems across the European Union

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s