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Schaueble wants low interest loans: Germany mutates from tormentor to savior of euro-crisis countries?

Germany will help the broke countries of the euro zone South: Spain, Portugal and Greece. Finance Minister Wolfgang Schaeuble plans that German state Development Bank KfW will give loans of  low interest rates to small and medium enterprises in Portugal and Spain, and most likely also in Greece.

According to weekly DER SPIEGEL,

Many companies in the crisis countries of eurozone can hardly acquire loans despite the low interest rate policy of the European Central Bank. Now, Germany wants to help: The Federal Ministry of Finance plans that the state development bank KfW prepares a loan program for small and medium enterprises in Portugal and Spain.

KfW will award the loans to sister institutions in the euro-crisis countries, which in turn would have sufficient capital for investment in the domestic economy. In this way, companies would benefit from low interest rates in Southern Europe.

The German government is yet to discuss the details for the KfW loan program. German media speak of a total loans amount of a one-digit-billion euro.

A spokesman for Finance Minister Wolfgang Schaeuble said that Germany would help both countries [Spain, Portugal] with various initiatives.

Extend loan aid also to Greece

SPIEGEL refers to a letter of Schaeuble to Economy Minister Philipp Roesler. In his letter Schaeuble speaks about extending the low-interest rates loans program also to Greece. “I mean, in addition we should also offer bilateral aid,” DER SPIEGEL quotes from Schaeuble’s letter. (via t-online.de)

I cannot say with certainty what caused Schaueble’s U-turn and now he tries to mutate Germany from notorious economy-tormentor to economy-patron, supporter and savior.

Wolfgang Schaeuble, the enthusiastic austerity-groupie, maybe went to confess his sins and saw the light…

Did the priest in his neighborhood advice him, that a good Catholic has to support all faithful without exception and not only fellow  Catholics? Impossible. Schaeuble is baptized Protestant. Most likely the pastor advised Shaeuble, that his noble deed aimed only at Spain and Portugal would create a bad image for the Christian Democratic Union less than six months ahead the elections…

nevertheless, German opposition parties Socialdemocrats (SPD) and the Greens oppose Schaeuble’s plans claiming “it is too late” and that “plans for real economic growth are due”. I think, they did not elaborate.

 

 

 

 

 

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3 comments

  1. hmmm. So, let’s get this straight. First, banks like Defta (German), Hypo (German), Deutsche Bank(German), Commerzbank (German) flood the EU banking system with cheap money and bring it to it’s knees.
    Then, the peripheral countries of Europe are brought to their collective knees through austerity measures imposed on them at the behest of mainly Germany (or rather it’s banking system), and the German banks are effectively recapitalized with peripheral taxpayers money. Now that these institutions have money again, while peripheral Europe drowns in even more debt, the next part of the take-over is flagged.
    By making “loans” to the businesses in the periphery, these businesses then obviously become tied to the lender through this debt, making it perfectly legal for the lender to call in that debt at any time they want (which is the nature of bank loans, it’s in the small print!). If the debt cannot be honoured, then the bank is also perfectly within it’s legal right to sell the business through receivership or bankrucpy procedures. I wonder what the selection criteria for elegible businesses will be? Would it be energy, transport, communications, information companies, or would it be the life blood of a local community like the cornershop, the one-man taverna, the small travel agent etc? And who are the potential buyers, no doubt already lined up? It wouldn’t be our friends in the hedge funds and related companies, would it?

    The neo-liberal economic programme in full swing;
    – Offer cheap money and create super debt, then create an economic death zone by calling in the debt.
    – Syphon of existing finance through “legal” measures.
    – Destroy social support structures and create a pool of very cheap labour without work or any means of sustaining any economic life in the death zone
    – Enforce a business death zone through excessive taxation
    – Once resistance is broken, pretent to be the knight in shining armour offering financial assistance
    – Once accepted, open the trap door and use the financial “assistance” for what it really is, a noose around the neck of those desperate enough to take it.
    – Hang them till all residual resistance is throttled out of them
    – Take over the newly created serf-states and crack the whip on them, hard, while making obscene amounts of profit you can stash in tax havens and off-shore bank accounts.
    – Make sure your friends are protected while executing all of the above.

  2. cyril mc donnell

    is he mad! what the [excuse the language] fuck about ireland do you all think we are idiots

  3. He doesn’t even think about you, isn’t that obvious from the policies they are enforcing? He only needs the leaders to be idiots to push this through on your behalf, and that condition is unfortunately more than fulfilled. “Ye all”, or the people are irrelevant as far as these boys are concerned. The sad thing is that they are right because the people have allowed these guys to hijack our countries, institutions and future, thus making ourselves indeed totally irrelevant in their scheme of things.