German Finance Minister Wolfgang Schaeuble did not miss the chance for a last minute intervention aiming to influence the Euro Working Group meeting today to evaluate whether the Christmas bonus for low-pensioners is compatible with the creditors’ commandments. The German Finance Minister warned that such measures as the Chrsitmas bonus could indirectly bring down the eurozone.
Asked about Greece’s plans to pay pensioners a Christmas bonus while it is in the midst of a bailout program, Schaeuble told Die Zeit paper that the eurozone would fall apart if countries did not stick to the rules.
Schaeuble, who has long taken a tough line on Greece, said the European Commission, International Monetary Fund (IMF), the European Central Bank and the European Stability Mechanism (ESM) rescue fund had been asked for their view as to whether the step conformed to its obligations.
“The initial answer is no. If we don’t stick to the rules, the eurozone will fall apart,” he told Die Zeit, adding that the construction of the currency union had to be changed. (via Reuters)
He is a stupid blinkered man refusing to change course despite the ongoing damage caused by his disastrous policies. THINK MAN! What will happen if the poorest people get a bit of extra money at Christmas? They will spend it, stimulating the economy and returning a good chunk of the cash to the government via sales tax… sigh!
The Germans are obsessed with saving — despite the fact that the only way out of depression is spending. Saving is helpful when the economy is booming, and savers’ money can also be usefully invested in banks. Basically, the Germans are clueless about economics, and think like book-keepers: Schaeuble by training is a book-keeper and these morons put him as the key person to save the eurozone economies! We live in a world of STUPID…
Cathy, the man’s plan is not to stimulate but to destroy the economies and the production capacity of all eurozone states except Germany. This is why he does everything he can to perpetuate stagnation and to eliminate growth. This way, all eurozone can eventually become labour slaves manning his factories.
But why do the politicians of the other countries tolerate, agree with and obey him? I think there is one and only one answer….
I would be very interested to know what the one and only one answer is….because this question has been plaguing me for the longest time and even as a German that follows politics very closely I still can’t figure it out…
I presume that the explanation is “crony capitalism” — a modern form of corruption where politicians are doing deals behind the scenes with bankers and industrialists, and lining their pockets for the future. In other words, democracy has failed because it has been hijacked by the rich, with the explicit collusion of crooked right wing politicians.
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Trump is a clear example of crony capitalism — and the guy even campaigned saying he was against it, accusing Clinton of being this (partially true, of course). In reality, Trump will plunge the USA into its worst period in a century or more; already his planned staff consist of corrupt billionaires, his own family, climate change deniers, and a motley collection of crooks of all types. It’s probably the end of democracy, not to mention capitalism…
Guest(Xenos)covered the case for me. In short the answer is: MONEY. The plan has been fully successful so far, but the end will not be, I think. Even widely spread bribery and corruption cannot defy the basic laws of macroeconomics: the crisis of the euro will hit back with vengeance and Germany will not be exempt. In fact, being the largest creditor and relying totally on exports, i.e a heavily unbalanced economy, Germany may suffer the worst economic fate of all to the glory of Dr. Strangelove and his fantasies.
The Euro crisis has never gone away, never been solved, because it is insoluble. The Euro is the most stupid creation of a very stupid organisation. It has reduced Greece and Greeks to penury, and yet Greeks still (like a much battered wife or husband) cling to it. The longer the Euro lives the worse its death will be. Germany maybe calling the shots for the present, but eventually it will come and bite the Germans in the a*se. Then the Euro will be dead.
I genuinely thank you all for the answers. I don’t ususally wish for bad things to happen, but at this point the rest of Europe needs to get together, rise up and put my country back in its place! The way my country’s government behaves is absolutely unacceptable. And yes, I also want the Euro gone. It’s done far too much damage already.
You are not normally allowed to be anti Germany, but ever since its creation in 1870 Germany has sought, by fair means or foul, hegemony over Europe. With the withdrawal of my country (the UK) Germany finally has what she has always wanted. It fills me with a deep sense of foreboding . I would not be surprised if this all ends in War. I hope the UK will sit this one out.
If the rest of Europe had any competence, Germany would not be running the show anyway. The British ran away from the euro (instead of making it work properly), the French were concerned with their euro-empire building in a very colonial sort of mentality, and the rest were just looking for easy money and a lazy life. Everyone failed, and everyone continues to fail. Removing the euro does not actually solve any problems, even it if it originally created them!
The UK didn’t ‘run away from the Euro’: it warned against it. As they say ‘wise advice is seldom taken, but that is no reason not to give it’. And the reason the UK warned against it was because they knew it wouldn’t work – we all thought that, but I have to admit I have been shocked at the havoc it has wrought. The French, in their arrogant way, thought they could control the Germans via the Euro, but that’s turned out well ! And to compound their stupidity they have helped to drive the UK out of the EU thinking it would give them more power, but actually it has destroyed there power. They needed the UK as the balancing power. The Euro will probably limp on, but don’t expect an improvement in the lives of the Greek people anytime soon. And as I often say all was foretold.
Yes, strangely true: the idiots in the business are the French. The euro messed up their economy, made them subservient to the Germans and threatens to make them sink even deeper. How stupid can you be not to form an alliance with the south to save your country, the rest of Europe and even Germans from themselves?
I don’t believe the German elites will ever allow the Eurozone architecture to be fixed – this leaves one and only one alternative short of a full scale old-fashioned war: dismantle this perverted currency no matter what the consequences. Keeping it as is – I am afraid – will prove to be worse.
this man is deluded and thinks he can rule europe from his ivory tower he is the modern day scrooge it would be a really goodwill gesture to allow this payment to be made. we have just received our christmas bonus here in the UK and at the moment we are still part of the EU so why not greece just because they are in debt to the EU doesnt mean we cant show some goodwill to their elderly at this festive time of year