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Greece Becomes the First Eurozone Country to Accept Fiscal and Political Union

Updated on November 29, 2012

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.


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    • KeySignals profile image

      Crowdsourcerer 5 years ago from Dubai

      The "luck of the Irish" is deserved and paid for by that country for sure.

    • CHRIS57 profile image

      CHRIS57 5 years ago from Northern Germany

      Your conclusion is quite right. Greece may not be aware, but the country lost sovereignty and is on its way to accept fiscal union.

      This is a very uneasy situation. As much as all this may be evident outcome of the game set up by lenders and borrowers, it gets more and more undemocratic. People in countries like Greece have no more possibility to influence their fate, but people in countries like Germany also have no choice but to accept decisions from government, not even legislation can intervene.

      What scares me is that nothing is really done about levelling the huge productivity gaps between Eurozone members. TARGET2 in October was at 1040 Billion surplus with FIN, NL, L and D, while 1000 Billion deficit were held by the PIIGS. With the exception of Ireland (they will make it), all PIGS are in real trouble - and that is talking about economy in general, not just public debt spiraling.