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FinMin Schaeuble fires his gun: new Greek gov’t damaged improving economy, markets see no contagion from Grexit

The “embargo” that German Chancellor Angela Merkel had apparently imposed on her Finance Minister after the visit of Greek Prime Minister Alexis Tsipras in Berlin did not last long. Or was it no embargo but a spiritual Lent before Easter? Now that both the Western and Eastern Churches celebrated Jesus Resurrection, Wolfgang Schaeuble felt freed from secular and or religious constrains and lashed out against the Greek government.

“Greece’s new government has damaged the country’s improving economy, Schaeuble said  at an event in New York, a day before meeting Greek Finance Minister Yanis Varoufakis on another event on Thursday.

Schaeuble said also that he does not expect a solution to the country’s financial woes to be reached in the next few weeks and that the main problem with Greece’s economy is not its loans, but rather its lack of economic competitiveness.

In the usual economic serial-killer tone, Wolfgang Schaeuble prepared Greece for the worst, saying

there were no signs that financial markets were worried about a possible Greek default or exit from the euro zone, all scenarios for the country were already “priced in”.

“If you look at Greece it’s not a major part of the economy of the euro zone as a whole. Most participants of financial markets are telling us that markets have already priced in whatever will happen. You can’t see any contagion.


I am not sure whether FinMin Schaeuble was aware of the latest date on public debt issued by the Greek Statistics Authority (ELSTAT) for 2014, when he was speaking of “the country’s improving economy.”

According to ELSTAT:

–  the general government’s deficit was 6.4 billion euros, or 3.5% of GDP.
–  Greece’s public debt totaled 317.1 billion euros, or 177.1% of GDP, end of 2014.

– Greece’s Gross Domestic Product totaled 179.081 billion euros in 2014, down from 182.438 billion in 2013 and 207.752 billion at the end of 2010. The country’s public debt (excluding the year 2012 with the introduction of a PSI program) continues to rise as a percentage of GDP, although falling in nominal value.

PS I told you before, that Schaeuble’s decisions concerning Greece are pure “personal” and “irrational” and have less to to with economics or even politics and ideology. He has proven many times how biased he is against the new left-wing government in general and his Greek counterpart Varoufakis in particular. Also in Samaras’ times – his “conservative brother” – Schaeuble was putting pressure on Greece,  but with this young guys without ties he really has a deep rooted psychological problem.


“What’s the name of Greek FinMin?”

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  1. Mr Schaeuble is an ambitious politician. He had already expressed his determination to get Greece out of the Eurozone and possibly out of the Union.
    His estimation of the economic situation in Greece is way off actual fact.Finance Minister Schaeuble, not being an economist uses a staff of 140 economists to keep him informed and advised. he uses economic processes to advance his political ambitions.
    His publicised way for saving states in near bankruptcy is to apply Keynsian method in the short term, in order to save and improve employment figures initiall,y and then to boost fiscal, balancing tax and spend, in the mid and long term. BUT in the case of GREECE the Troika went straight into the fiscal plan, including money to the banks, and consequently employment plummeted. That was the way used to further destroy Greece.

  2. Henri Myllyniemi

    The European project seems all too confusing to me. When you read what Euro Working Group (the deputy finance ministers of the euro countries) demanded was a solution for Greece on April the 24th. Here, via Reuters:
    However, German FM Wolfgang Schäuble reiterates again that “nobody expects there will be solution”, he told according to Financial Times concerning the meeting of Eurogroup on April the 24th.
    Why to set “deadlines” if they have already in advance decided no matter what happens, there will be no deal?
    Answer is quite astonishing: The European project requires to keep criticism at bay. Europe wants so badly Syriza-led government fail only to maintain this nonsense-concensus in power for germanising Europe.
    So, they need to masquerade things in way that it seems Greek government was to blame. This can be easily confirmed when I read about Finnish articles tailored for Finnish people. They will get this distorted image and accuses Greek government, which in return works only with the mandate handed over by Greek people.
    And this makes me sad.

    • How will you vote Henri? It has always struck me as strange that Finland had a PM like Stub.

      The European project in the hands of a german government was never the idea. A European project that seeks to create poverty through lies and socializing bank debt is closer to the USA model than anything else. What is European about it anymore except the title? Why are we trapped in this charade?

      • Henri Myllyniemi

        Well, four years ago I voted for a party which didn’t want transfer debt from private banks to European taxpayers. It wasn’t enough. The elections held on Sunday will not make much of a difference. All the big parties have agreed “Greece” will not be given new money. Well, at least that is the picture they give.
        The biggest flaw in this European project is that it is constructed in wrong order. You don’t build house by completing the roof without making any work on the foundations.
        Common currency without common economic policy was a fatal mistake. They should have built first the federation (compatible laws, common finance ministry etc.) However, because European people was much against of it they decided to proceed nevertheless and created Euro. The result of having common currency without common risk-sharing and/or wealth sharing is this you are witnessing today. Chaos. Mess.
        I would like to remind that this is not the first time “currency games” have gone awry in Europe. It was pretty much the same story in early 90’s. Except this time is ballooned to a much bigger problem.

    • Im not necessarily disagreeing with you about distorted images in the media, but you original confusion I can explain away. They will meet on the 24th and insofar as thats the point where they meet next thats a deadline to hand in proposals that can be agreed upon. BUT even if there is agreement on that level of government there are hundreds of finer points that need to be worked in order to make sure that whatever was agreed upon will be implemented in the way it was meant to be/ that it will be implemented at all. And that takes time, therefor even if there is agreement on the 24th it wont be an agreement/the green light for next part of the bailout money.

      • Henri Myllyniemi

        Correct. Eurogroup will also meet on May the 11th, one day before part of the IMF’s debt is due.
        Europe has been working a lot of “last minute deals” before, but not anymore.
        In addition to this “they need Syriza to fail” can be added by realising that now EZ-leaders are expecting Syriza to implement the same “reforms” in two weeks which previous government failed to implement in two years.

  3. Ha, ha, ha, ha, ha,

  4. Schaeuble is a very dangerous man and he should not be ignored!