Eurozone finance ministers want the equivalent of seats in the Greek Parliament as a condition of the release of bailout funds, demanding oversight of the economy.
Speaking after a conference call between the 17 eurozone finance ministers on Wednesday, Jean-Claude Juncker, head of the so-called Eurogroup, praised the progress Greece had made.
But he said more work was needed to strengthen oversight of how Greece would implement its austerity plans.
Some countries are demanding that the Greek economy must be put under much tighter surveillance, giving the eurozone far more control over what Greece does with its money.
That reflects scepticism that Greece will be willing or able to deliver on its promises of reform. In return, angry comments have emerged from Athens about demands made in Berlin and elsewhere.
“Tighter surveillance,” ay? You know, if somebody wanted to come in and run the frankly laughable Greek tax collection system, that might actually be an advance. But I think the finance ministers, are really desiring an effective veto over a sovereign government. They want the major Greek political parties to sign a document saying that they will implement all the austerity measures passed earlier this week, regardless of who wins Parliamentary elections in April. This is like, say, Canada, demanding that Democrats and Republicans in this country sign a document agreeing to Social Security cuts regardless of the electoral outcome. Isn’t that what the election is about? And by the way, the two leading parties in Greece have actually agreed to this.
Eurozone leaders now plan to hold back the full bailout funds until more action is seen on Greece’s promises, perhaps until after the April elections. Why don’t they just throw Greece out of the euro and get on with it? Greece cannot possibly implement all the changes they just passed without impoverishing the country nearly into oblivion. And the Eurozone finance ministers aren’t going to get their full value out of the deal without Greece having to come back again hat in hand, because the likely outcome of the bailout and austerity combo is more indebtedness requiring another bailout. So let’s rip off the Band-Aid here.



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Anyone else hear the sound of hobnailed boots marching in lockstep while reading this? Very faint but I swear I heard it.
“Pantomime government” straight ahead. Not elected, not representative, nothing–just occupied (though by reps from TPTB).
Private sources inform me the EU is about to change the name of their currency from the Euro to the Merkozy. Details later. That is all.
Here’s a better idea: how about the EU placing a 51% majority of Keynesians into the Bundestag, and an 80% majority onto the board of the Bundesbank?
Let’s face it: all the Greek political parties know they have no choice because the only way to fix Greece’s real problem is to start effectively collecting taxes on both the rich and the middle class. And nobody has the guts, or a plan, to do so. If you can’t (won’t) increase revenues, and you can’t borrow any longer, you have to cut spending.