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Greece Becomes the First Eurozone Country to Accept Fiscal and Political Union
The Troika Seals the Deal
It is now becoming clear that Greece has done a deal with the Troika, to exchange its private sector debt for a debt to the Troika. Greece has thus effectively handed over political and fiscal control to the Troika. Should Ireland, Italy, Spain and Portugal want to get some of the benefits "enjoyed" by Greece, they will have to follow suit and hand over control. Greece is thus no longer an issue in relation to the European debt crisis, other than to serve as a template and warning for other countries to follow austerity or hand over control. It has left the Eurozone whilst remaining inside the Eurozone. One could look at it as the first country to accept fiscal and political union.Unfortunately for these other countries, following austerity means that they will eventually hand over control, when their economies have died the death.
The real signal will come from Greece, if/when the Nazis hit the parliament and try an "Ouzo Hall Putsch". What will then materialize will be the details of the secret protocols of the Troika's recent aid to Greece; and Imperator Barbarroso will have his first casus belli for a fight. There should be suspicions about how militant these Nazis are in any case; as they seem more interested in bashing foreigners than other Europeans.
It's therefore game set and match; and the end of the real European crisis. All outcomes now lead to political and fiscal union, one way or the other. What was most interesting to observe, was that even though the Catalans wanted independence they still wanted to be European. This signals that no country in the Eurozone has the political intentions and capabilities to go it alone; not even France.
- Greece Agrees to Borrow to Pay for Debt Buyback - NYTimes.com
The government said it would have to borrow 10 billion euros to 14 billion euros to pay for a debt buyback that its international creditors have demanded.
- Separatist parties win Catalonia election in Spain| Reuters
BARCELONA, Spain (Reuters) - Separatists in Catalonia won a large majority in regional elections but a poor result for the biggest Catalan nationalist party will complicate a push for a referendum on independence