Feb 262012
 February 26, 2012  Posted by at 10:32 am Finance
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Euro37In a radical first, German Interior Minister (Innenminister) Hans-Peter Friedrich has stated, in Der Spiegel, that he thinks Greece should leave the Eurozone in order to regenerate (regenerieren) itself and restore its competitiveness.

The way to achieve this, according to Friedrich, is not to throw the Greeks out, but to make them an offer they can’t refuse – create incentives that [they] can’t say ‘no’ to… – (Anreize für einen Austritt zu schaffen die sie nicht ausschlagen können).

Let’s put it this way: either Friedrich will be out of a job by Monday, or you have just seen Germany’s new approach to the Greek drama.

On Monday, the German Bundestag votes on the new Greek bailout. It seems certain to go through. However, a Bild am Sonntag poll shows that only 33% of Germans are in favor of the bailout. Thin ice in Berlin, in other words. Time to get the broom and the carpet out.

I’ve said several times in the past that it might come to this, and there are a few options as to what might happen next.

First, Portugal and Ireland will in all likelihood also come knocking for an offer they can’t refuse. And so might the country where such offers were -ostensibly- invented, Italy.

Interestingly, Merkel and her people must feel (and have surveys prove them right) that their voters prefer a lump sum for Greece now over continued bailout support, even if initial costs are much higher. How those same voters will view a whole series of those lump sums for the entire periphery is up in the air, especially when they figure out what the real costs will be (which will be “artfully” hidden at first).

Second, there’s the little detail of credit default swaps. Can Greece leave the Eurozone without defaulting? Can Portugal and Ireland? Italy?

Whatever else happens, rest assured: if Hans-Peter Friedrich still has his job by Tuesday morning, Germany has a new -albeit unofficial – policy towards Greece in place.

After that, their predictions for what might happen next are as good as yours or mine; they will have opened a minefield where they are at the very best the one-eyed in the kingdom of the blind.

Home Forums German government wants Greece to leave Eurozone

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    In a radical first, German Interior Minister (Innenminister) Hans-Peter Friedrich has stated, in Der Spiegel, that he thinks Greece should leave the E
    [See the full post at: German government wants Greece to leave Eurozone ]



    $2 Trillion Rescue Package

    The authors wrote: Others also left no doubt the cash is needed to calm markets and secure economic growth. “In order to overcome the crisis, you have to get ahead of the curve and have a big enough bazooka,” said Olli Rehn, European Commissioner for Economic and Monetary Affairs.

    So is Germany’s plan to entice Greece to leave the Eurozone before (or after) the “bazooka” is deployed?



    Off-topic, but how do you think peak oil will affect the paper industry? It seems to me that it will benefit since electronic readers to be continually recharged and replace while there is only a 1 time energy demand to make a book or magazine and it can be reused many times.




    One small thought about Ireland: it will never voluntarily leave the euro. Europe is Ireland’s hedge against Britain and it was desperately eager to join. It’s important to remember that culture and history sometimes outweighs economics.


    Alexander Ac

    But but but Merkel said Greece can’t leave Eurozone, since other countries would like to leave…


    el gallinazo

    On topic:

    !0 minute speech by Nigel Farage


    Also my pick for Oscar: category – con job



    el gallinazo

    I think whether Friedrich has a job on Tuesday depends on how he votes on Monday. If he votes with Merkel, then I think she will ignore his speech. The Boyz who pull Merkel’s strings will not let the EMU go softly into the night. Like how can they have a one world government (their wet dream) if they can’t hold western Europe together. If they cannot dazzle the sheep with their footwork, they will use the military. What we need soon is a really good war – none of this proxy shit.



    That YouTube is pretty f….g hilarious with Closed Caption on.

    I had to laugh.



    LG wrote: If they cannot dazzle the sheep with their footwork, they will use the military.

    What are the odds that the Adrams tanks purchased by Greece in Oct 2011 will be pointed at Greek citizens in the near future?

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