First it was all this pressure on Greece for a euro exit. The last toothless idiot in rags sailing on a wrecked boat around a remote island felt obliged to say something on the issue. Greece became the global scapegoat, whether with or -even without left-wing SYRIZA government. Those Europeans who criticized PASOK and Nea Dimocratia for not implementing the Memorandum of Understanding and threatened to stop bailout tranches for exactly this reason, suddenly became font of the two pro-bailout parties, when Greek left emerged as second at the May 6 elections.
Disneyland at full speed: rigid acrobats and mourning clowns, burned fire spitters and cut sword swallowers, all together in an overcrowded looping train of horror. Barroso, van Rompuy, Merkel, Schaeuble, Meuble and their -euble parrots for journalists have been screaming in panic for the last three weeks “pull the plug, pull the plug”, let the Greek patient die. Meanwhile indeed, many Greek patients saw the death with their own eyes due to shortages in medicine and medical supplies. But I won’t elaborate on this issue here… Neither I would write about how much money left the Greek banks due to this frenzied, horror-spreading circus.
Spains’ Banking Crisis
Suddenly is quiet about Greece. Rather quiet, I should clarify, then nobody forgets Greece. Silence on the eastern Mediterranean front, turbulence on the west one. Spain is collapsing. Faster than one blinks with his eyes. Banking crisis. Property Bubble and price speculations in real estate.
Prices rose 201% from 1985 to 2007. In the second quarter of 2005, the total mortgage debt of Spanish families was € 651,168,000,000 with a continuing grow at 25% per year. Banks offered 40-year and even 50-year mortgages recently. Amid a Pan-European crisis.
Spanish banks collapse threatens the country’s finances and the ghost of euro exit now hanging over Madrid. Even before Greeks step out of their homes to cast their votes on June 17.
Despite PM Rajoy’s denials, it looks as if bailout countries would welcome a new member in their club, as soon as upcoming weekend.
Who is to blame for the Spanish collapse? “Greece”, of course, should one want to believe German Finance Minister.
The Schengen Option
Yes, it is rather quiet about Greece. The agenda of euro panic-makers made a turn towards the West. And yet. Pressure on Greece continue. As the euro member countries fall apart one after the other, German Chancellor Angela Merkel spoke of “Europe of Two Speeds”.
And EU home affairs ministers unanimously vote yesterday Friday (June 7) to accept the re-introduction of internal border controls in the Schengen area, eyeing Greece and its difficulties to tame the influx of illegal immigrants coming from Turkey. No, dear, EU ministers are not worrying about the presence of estimated one million illegal immigrants in Greece. They worry, that they may flee to other European countries, should a euro exit, a civil war or some kind of Noah’s floods would sink the debt-ridden country.
EU Ministers Vote to Reintroduce Border Controls
EU home affairs ministers voted unanimously yesterday (7 June) for the re-introduction of internal border controls in the Schengen area, dwarfing the decision-making role of EU institutions in that policy area. The Commission regretted the decision and MEPs vowed to reject the draft legislation.
At a meeting in Luxembourg, EU home affairs ministers agreed on new rules that would allow countries to reintroduce border controls, if one state persistently fails to stop illegal migrants from entering Europe’s Schengen zone.
Such a decision would have to follow careful monitoring of the external borders, which reveals a “serious threat to public policy or internal security” in the EU.
Checks between the countries failing to meet standards and other EU states could be put in place for six months at a time, with possible extensions up to two years.
“There must be no weak links in the chain when it comes to illegal migration,” Danish Justice Minister Morten Bodskov told a news conference after the meeting. “Steps need to be taken quickly if Schengen cooperation is under threat.”
To ensure the EU’s external borders are well protected, the ministers also agreed to step up monitoring of how checks are conducted.
One country that could come under increased scrutiny is Greece which regularly faces criticism for failing to protect its border with Turkey (see background). (EurActiv)
PS I still vehemently try to resist to conspiracy theories….