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Eurogroup moves in heavy artillery: Dijsselbloem threatens Greece with “Capital controls”

In a further effort to bring Greek government on its knees, the country’s lenders creditors have moved in the heavy artillery. Eurogroup head Jeroen Dijsselbloem fired a Thor-caliber mortar that exploded right in the middle of a banking field already damaged by high levels of deposits flight.

[German Heavy Siege Mortar - Thor]

Mortar piece labelled “Thor” is stated in the caption to have been used in the Sevastopol siege operations during WW11. Thor has been claimed to have a caliber of  500-mm and 600-mm.

Now, Dijsselbloem gave it another hit and claimed  that “Greece may need ‘Cyprus style’ capital controls if it does not meet obligations to its creditors in July that.”

Speaking on Dutch radio station BNR Nieuwsradio, Jeroen Dijsselbloem said that if Greece does not meet obligations to its creditors in July that controls such as those implemented after the Cypriot bail-out in 2013 could be implemented.

Ongoing uncertainty over negotiations between Greece and its creditors has led to massive capital flight from the country’s banks. Fears that a deal would not be done this February led to withdrawals as high as €1bn (£720m) in a single day.

Jeroen Dijsselbloem, who is also the Dutch finance minister, said that listeners should “think about Cyprus” as an example Greece could follow. “The amount of cash … is declining by the day,” he said in a separate interview with RTL Nieuws.

Capital controls such as those implemented in Cyprus could ease the pressure on Greece, Mr Dijsselbloem suggested. The Cypriot measures limited withdrawals from banks and how much money could be taken out of the country.

Such controls are often hard to lift once implemented.

Figures from the Bank of Greece released on Monday showed the country had fallen back into primary deficits over the first two months of the year. Greece was in the red by €684m in January and February, compared to a €139m surplus it registered over the same period last year. (Telegraph)

Worth noting is that Jeroen spoke in Dutch and German, so he was addressing listeners of other countries than Greece. I suppose that Dijsselbloem does not dare to give an interview to Greek media.
Of course, there are a big question as why, they did not impose capital controls in 2010, 2011, 2012, 2013, 2014. But, No! Because some ministers (like Hardouvelis) had to send their money abroad first?
They could have also had Greece default in 2010. But, No! First they had to rescue  their own banks and then go for a PSI.
Now, they play the Grexit, Grexident and Capital Controls cards. After 5-6 years of economic bleeding for the majority of people in Greece, this is a real big ******.
artillery
The Rail Gun: This weapon is reported to have 112 grooves in the rifling, and to fire a base-fuzed ‘anticoncrete’ shell (Betongranate) which weighs about 4,400 lbs, is 6 ft 9 in long, and has a copper driving band 2.76 in wide.”  (Heavy artillery used in Sevastopol siege operation: Thor mortar, Rail Gun source.)

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20 comments

  1. Two options now. Either SYRIZA gives up on everything and follows the orders of the TROIKA.

    Or Greece leaves the Euro and SYRIZA can print all the drachmas it wants and give presents to its supporters, such as hiring civil servants and paying them drachmas and just printing money as and when he needs to cover the bankrupt pension funds.

    After witnessing the last few days, I am thinking number 2 is the best solution for everyone.

    • That would destroy Greece, since they would also have to leave the EU thus would lose a significant advantage over other southern countries. The reason being that capital control is against european law, as Varoufakis explained it some time ago perfectly. Plus the new currency would most likely drop somewhat close from 30% to 60% of the current euro value, instantly DOUBLING their debt. Add low investor interest and great economic risk on top of that and Greece will be completely on the ground.
      What little advantage they could be getting from building up domestic trade would instantly implode and the humanitarian crisis would further escalate. The country would struggle, probably for decades before it would even get back on track, orderly exit or not. Greece would turn into a third world country, though some already regard them as such. Some Greeks might think things can’t get worse and it is worth the risk but these people have no idea, it can get worse, way worse.
      Telling them to leave the euro is the same thing as telling them to hang themselves with a rope.

    • Henri Myllyniemi

      My thoughts exactly, but with one difference: EMU should have been dissolved few years back already.
      We are not having “a fiscal union” which is essential on currency-regime. This is the only other option.
      I am afraid that it will take some time before Greek electorate realise this.

    • Print your own drachmen, would be nice if you could do so. A little question: can Greece feed their own population, supply them with electricity, fuel etc? In other words does Greece need to buy things abroad to keep everybody and everything alive? If the latest question is answered by yes: how do you want to pay for it? For every drachmen you need something of value like gold before another person or country value the drachme and want to trade with Greece. And if you want a loan in the financial world the interest will be sky high. If you know more options than financial world, EU,IMF or an isolated Greece lets here them. Unfortunately for Greece the world can be cruel.

      • Henri Myllyniemi

        Current account balance is used to measure balance between imports and exports (both goods and services.)
        Usually people think that a country which has just recently defaulted is having problems for attaining new financing. This is not true. Because after the default, the probability to have another default is the smallest.
        You can compare it to Greece having €320 billion of debt, would you borrow some more? Or would you think it’s much safer investment for having €0 existing debt?
        Also, Greece has been in default during the last 200 years every now and then. Not so miracously: there has always been new ones for financing.
        My question is: why did taxpayers of the other eurozone countries wanted to transfer the existing debt on their own shoulders?

        • The taxpayers didn’t do it, their politicians did. Same thing happened in the USA during the financial crisis of 2008.

      • In answer to your question, Greece is self-sufficient food-wise and has copious lignite and coal for electrical power; plus wind and solar installations. Biomass and wave energy can also supplement this. I hope Holland is equally well set up 🙂

  2. This is absolutely disgusting! When will the blackmail and threatening from Europe stop? When will they understand that all we, in Greece want is to get Europe back to humanity, and not the violent, controlled and out of all perspective Europe, as it is today…. Who are the ones afraid – not the GREEKS!!!!! A frightened animal will always attack, so wake up EUROPE!!!! This is the 21st century and you’ve made a real mess of it – ACCEPT IT!!!!

  3. Gerrit Zeilemaker

    And on the other hand is Declan Costello, director at the EC’s directorate for economic and financial affairs who has ordered to stop legislation to provide free electricity for some households, and address poverty among pensioners and homeless families. http://blogs.channel4.com/paul-mason-blog/pass-antipoverty-law-commission-tells-greece/3467
    They are completely crasy now.

  4. It seems to be in your genetic code to feel the urgent need to shoot the messenger who is disturbing your alternative reality.

    Does he upset you because he is right? Sure. – Else you would not bother.

    Either you are the wrong-way driver or the other 18 members of the Euro-Zone. – Small hint: compared to you, the others are doing well…

    Capital controls will indeed be the next very step – and you know this.

    • keeptalkinggreece

      they could have imposed capital controls in 2010, 2011, 2012, 2013, 2014. But no! because some ministers had to send their money abroad first. They could have also had Greece default in 2010. But no! First they had to rescue -and still – rescue their own banks.

      • Exactly so ktg 🙂

        And now they think they’re fire walled and no contagion possible, tee hee!

  5. Dijsselbloem actually said that there are a lot of possiblities to help Greece and keep them in the Eurozone. Cyprus was an example of a scenario. He also said that Greece could think of several scenario’s but he did not say that Greece must do this or that.
    But why are you so angry? When Greek banks has no money because all the money is taken abroad the whole Greek society and Greek people have a big problem. The country will be bankrupt. Isn’t that what everybody tries to prevent?

    • keeptalkinggreece

      we are not angry. Dijssebloem can say whatever he wants.

    • Henri Myllyniemi

      No one has “prevented” bankruptcy, it has only been postponed.
      In corporate business the board which is postponing bankruptcy would be jailed – and for a good reason.
      All the eurocountries’ governments back in 2010 should face the same criminal charges.
      Then again, maybe eurocountries are not interested in free markets, but are good way of trying to make The Soviet Union v. 2.0?

    • Eurogroup and EU is angry. Not Greece. Perhaps you haven’t noticed who’s puffing and bellowing up there??

      This fuss is about giving 300eur a month to some – only some! – destitute families, plus electricity, i.e. peanuts. But helping the poor is against your “rules”. And worse, we ignore your inhumane, authoritarian orders.

      Worst of all, we choose to do what is morally right!

    • Dutch, I’m afraid you aren’t aware that you have the problem, not us. It’s called Dutch banks, German banks, French banks etc. That is what this game is all about.

      Good luck to you

  6. caro Dijsselbloem puoi morire ammazzato te e tutta la tua stirpe di merda. fottuto olandese