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tagged: austria, cash collaterals, euro zone, Euro-crisis, Finland, Germany, Greece, Greece's second bailout, loan guarantees, Netherlands, Ursula von der LeyenGerman Minister’s Collateral Proposal
Posted by keeptalkinggreece in Economy
Germany is apparently in need of Gold. Otherwise I can’t explain how comes a German Minister jumps in in the collateral discussion and claims ’rescue’ packages of eurozone members-countries should be covered by guarantees, as gold reserves and shares in state industries. Speaking to German state broadcast ARD, Labour and Social Minister Ursula von der Leyen, also a deputy president of the chancellor’s Christian Democrats (CDU), told German TV that future “bailouts should only be made against guarantees.”
“Several states are making big efforts to service their debt. This must be honored. But to keep up those efforts in the long term, collateral is needed,” the minister was quoted as saying by public broadcaster ARD.
It is worth mentioning that Von der Leyen’s proposal contradicts the official opinion of the German government opposing the collateral. According to Reuters, one official responded by saying her comments were not the German government’s position and that the most important thing was to link aid under the European Financial Stability Facility to “strict conditions” regarding fiscal reforms.
Furthermore, to guarantee aid packages with shares in state industries is actually absurd and impossible as EU and IMF loan agreements dictate the privatization of Greece’s state industries.
vdLeyen: We need soooo much Gold
I’m afraid, we have the case of another German minister who proves to be not appropriate informed about such crucial issues. But has an opinion and a point of view. Of course.
Greece agreed last week to provide AAA-rated Finland with cash collateral for the loans in a plan that sparked requests for similar treatment from Austria, the Netherlands and Slovakia.
Sources: Reuters, ARD, KeepTalkingGreece
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OMG,
Populism at work. She missed the Point completely. According to FTAlphaville the finnish Demand for Colateral could eventually trigger an Credit Event.
Link: http://ftalphaville.ft.com/blog/2011/08/23/660046/the-greek-collateral-grab-a-credit-event-after-all/
Sure, thats complicatetd stuff, to complicated for our beloved “Uschi”.
I have a feeling, that a rightwing part of Merkels Christian Democrats + a part of the Liberals a trying to set up a german Tea Party.
Lord, pls. send brain + common sense.
Greetings from a german Friend to Grecce
thanks for the FTAlphaville link; I didn’t know the Credit event option. A German Tea Party? with Herbal Tea, I assume lol
Hi,
I thought that a lot Greek people do agree that the “financial help” of the EU only help the banks and not the people itself and forces very bad restrictions on the Greek government.
So (IMO) the problem which have a lot of Germans is that now the German people has to pay the banks a lot of money – and that without any guarantees [which only could be asked from Greece].
In my opinion a final solution for Greece would be only a new start with cancel all the old debts and corresponding losses of the banks (and their investors)- Maybe also with a new idea of economic and money system.
But in the same way how it is unwarrantably to force the Greek people to pay (back) fiat money with their real values and work it is also unwarrantably to force the German people to pay fiat money with their real values and work without having a chance to see it anymore again!
This is my (minor) opinion to that issue.
The ask for shares in state industries seems to me in that case a real bad “competition” between the banks and the German government to get some valuable things in their hands.
Maybe keeptalkinggreece could explain me, why a lot of other countries should be aible to ask for guarantees (Austria, Finnland, Slowakia, Netherlands) but not Germany.
(As I told already, I don’t think that this so called “financial help” helps Greece(and the other countries) in anyway).
Michael
Nobody claimed all other countries should get guarantees but not Germany. In fact Germany opposes the collateral idea as it would most probably cause a ‘credit event’. Apart from the fact that it is not possible to ask a bankrupt to give guarantees. Not to mention the EU spirit… lol I believe it was a not wise action by the Greeks to accept an agreement with Finland.