You are here

Merkel makes U-turn on Grexit?

Angela Merkel wants to stop Athens leaving the euro at any cost – even it means manipulating the figures in the upcoming troika report – as a Greek exit would jeopardize her chances of reelection, according to the German newspaper Der Spiegel.

Recently, whenever Angela Merkel has been asked what she plans to do about Greece, she replies with the words, “We are waiting for the troika report.” The troika report, a fact-finding mission to Greece consisting of the European Commission, the International Monetary Fund (IMF) and the European Central Bank (ECB), was supposed to submit its findings at the end of August, but Greece’s fate is now not expected to be decided until November; after the US Presidential elections.

According to Der Spiegel, Merkel needn’t bother waiting for the troika’s conclusion, as in fact she has already made up her mind.

Until recently Merkel was prepared to drop the debt-ridden Balkan nation if it failed to meet its requirements, but now regards a Greek departure from the euro as involving too many risks. 

Source and full story: Russia Today, 10 September 2012

Comments

Germany rightly fears that its arms scam will end if Greece dumps the euro currency. The Greek military also has a vested interest in defending the euro, as I will explain at bottom.

The Greek population is only 11 million (the same as the city of Moscow), yet Greece buys more arms per capita (by far) than any other European nation. From 2002 to 2006, Greece was the world's fourth biggest importer of conventional weapons. As a proportion of GDP, Greece spends twice as much as any other EU member on weapons. Greece’s military budget accounts for nearly 4 % of national economic output, compared with the eurozone average of around 2 %.

Germany’s biggest arms buyer is Greece. Germany and other nations make tanks, guns, bombs, planes, subs, boats, etc and sell them to Greece on credit, thereby increasing the Greek debt load. Payment is extracted via austerity. The Troika will not give “bailout” money unless Greece continues to participate in this scam. Thus the Greek masses starve, while Greek military bases continue to fill up with ultra-expensive weapons that sit unused. (Greece bought several hundred Leopard battle tanks from Germany, but had no money to buy ammunition for the tanks.)

Here is where those Greek weapons come from…

USA – 42%
Germany – 25.3%
France – 12.8%
Netherlands – 5.8%
Italy – 3.2%
UK – 2.%

The scam gets worse all the time. In order to buy all those weapons, Greece added 6.24 billion euros to its debt in 2007, and another 7.1 billion euros in 2010.

Greek politicians share the blame. They buy foreign-made weapons in secret. Purchases are not discussed in parliament.  Thus the Greek politician tells Germany or the USA, “Send me fifty tanks at a price of ten million each. I will dump the $500 million debt onto the peasants in the form of austerity. When the Troika issues its next bailout, ten million of those dollars will go straight to my Swiss bank account. Deal?”

The politicians’ excuse for this is that the endless weapons are needed to counter the “Turkish threat,” even though Greece and Turkey fully cooperate as members of NATO. There has never been a debate in the Greek parliament about whether the “Turkish threat” really exists.

Once in a while the arms deals go sour. In April 2012, former Greek defense minister Akis Tsochadzopoulos took a bribe of 8 million euros (US $10.2 million) from Ferrostaal (a German company) to accept four Class 214 submarines. The bribe was exposed because the German submarines turned out to be useless (full of glitches). Athens has taken delivery of only one of the subs, but Germany says the Greek masses owe the money for all the submarines anyway.

The point is that the weapons scam depends on the euro currency. If Greece dumps the euro, and simply prints money to buy those weapons, then austerity will end. Foreign bankers will not be able to demand that Greece sell its public assets at a tiny fraction of their fair value.

The Greek army has 156,000 personnel. (The German army has 250,000 personnel, but the German population is 7.5 times larger than the Greek population). 

If Greece dumps the euro, and the arms scam comes to and end, then those 156,000 Greek army parasites will be unemployed, and will be crushed by austerity, along with everyone else.

Thus the Greek army will continue to defend the euro currency at all costs. 

Theme by Danetsoft and Danang Probo Sayekti inspired by Maksimer