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Germany Approves Agreement for Greek Loan Extension


#1

Germany Approves Agreement for Greek Loan Extension

Common Dreams staff

Germany's parliament on Friday voted overwhelmingly to approve the terms of an agreement between Greece and the eurozone which will extend financial assistance to the Syriza-led government for four months as it embarks on a series of structural reforms designed to unhitch its economy from the destructive policies of austerity that have gripped the nation in recent years.


#2

Of course they approved it - it basically, at this point, amounts to a capitulation by Greece .....


#3

C'mon, how could anyone realistically expect that Syriza, or any other new gov't, anywhere could do more than punt after a month in office.

We'll see another round of "capitulation" propaganda screeches in April, and regularly after until the 4 months are up. By then, Syriza will have formulated a plan which either forces the EU to write-off most of the debt and back down on the austerity BS, or watch Greece get a BRICS-backed, no austerity-strings-attached loan. Much like the one Putin offered Ukraine just before the US-led putsch in Kiev.

But the BRICS would prefer Greece to be a friendly EU-member New Silk Road gateway along the route to Spain. But if the EU wants to estrange Greece, then Portugal, Spain and Italy... stupid is as stupid does.

The longer this goes, the better Greece's position as the more unreasonable and irrational the EU/IMF will become. The world press was not even looking at Greece pre-Syriza. Now fomenting another colour revolution, particularly with the Russian fleet docking within a stone's throw of the NATO base, the NATO chickenhawks will be thinking twice... doing the US's bidding has worked out SO well for the EU in Ukraine, Kosovo, Syria, Libya, Iraq, Afghanistan, Yemen, Egypt... the list is endless.


#4

Nice response A_P to Aquifer's silly, off the cuff, barely thought out remark regarding the Greek agreement with Germany and what is essentially Germany's Eurozone.


#5

Appreciated!


#6

What you or I think about this doesn't matter - if the Greek people think they have been let down, Syriza's mandate will dissolve ...... do you think the German Parliament would so readily have agreed unless they thought they had "won", and Greece had backed down - look at the terms ......Syriza went in with no permission for a Grexit from the Euro and that is the only real leverage they have - if they go back in 4 months still without one, they will be in the same pickle ...


#7

Look at the terms of the agreement - certainly looks like Germany "won" .... maybe Syriza can pull a rabbit out of a hat, but without permission from the electorate for a Grexit - they have no leverage .... they have just kicked the can down the road ...


#9

Here's another "silly, off the cuff, barely thought out" piece ...

https://www.popularresistance.org/ending-austerity-in-greece-time-for-plan-b/


#10

By the time the 4 months is up, Syriza will have firmed up loan options from the BRICS+/Russia/China. The new Drachmas will be printed and the Greek banks honestly assessed for viability. The ones too heavily leveraged/beholdened to EU/IMF interests may be allowed to fail, or at least struggle as a load on the EU/NATO plate.

The EU has to also contend with Portugal, Spain (who just offered help to Greece, for what that's worth), Ireland and Italy getting tired of being screwed by EU/IMF machinations. The New Silk Road, Russian energy deals and BRICS loans look a whole lot more palatable, not having ANY austerity attached.

Escaping the US$/Euro Ponzi scheme may be the best thing for Greece and other countries in similar straits. If little Iceland and powerhouse Argentina can tell the IMF to get stuffed, why not the rest? The US/NATO can't start wars and regime change in all of them without risking having Washington turned into a smoking, radioactive hole.

The US$ Empire is done. Welcome to the new BRICS+ multi-currency world.


#11

See the link in my reply to RS above - the natives are restless, some are rather pissed - if Syriza can keep them mollified for the next 4 months while it gets its act together, maybe OK - methinks they should have gone into the negotiations with a Grexit in their back pocket - they had time before the elections to get their ducks in a row ...


#12

Syriza may have had preliminary talks with Russia et al, but could not know the full extent of the economic disaster until after seeing the books. Gov'ts are notorious for not telling the truth about their malfeasance. And no country will guarantee support before seeing the composition of any coalition that may be formed and the true(r) balance sheets.

Few places have the black-white divide the US appears to present politically. (The reality being the Dem/Reps are no different in functional terms. at least in "foreign/military" policy.)

Syriza has interestingly subsequently said they would look to the US first for a bail-out, then Russia. Guessing that is on the strength of leveraging on the US wanting to keep Greece in the NATO fold, or at least spending 3%ish of its GDP on "defense". Greece is one of the few NATO/EU countries actually meeting the funding requirements.

We'll see in 4 months, when Syriza Grexits, the EU/IMF caves or they both agree to "kick the can" one more time.


#13

Hmm - maybe that is one of the first things Syriza should do - spend that 3% on more useful endeavors ...
And do they think they will get a better "deal" from the US? From the same US banks who screwed them the first time around when fudging the numbers that got them into the EU? The US, the primary funder of the IMF? Seems to me that would make Syriza as dumb, or worse, as the previous admin.... Beware of banks bearing gifts ... look how well that has worked out for us ...

Dunno, just a guess, but methinks Syriza may need to start delivering on the promises it made while campaigning or the populace may kick their can - of course i guess i am thinking (hoping)the Greeks may be more willing to hold their pols accountable than we in the US are .....


#14

I think Syriza has been advised by superior tacticians (Putin/Xi) to approach all credible "players" before Grexiting. Get all the offers, no matter how bad out on the table and that way no one can say they weren't asked.

Russia offered Yanukovych a 3x better, no-austerity loan deal than the EU/IMF load of crap. But the Maidan-colour revolution was already pad for (Nuland's $5billion she wanted results from). The world was not watching as closely as with Greece, and the EU/US/NATO will have economic consequences far beyond what they face with Ukraine. At least so far.


#16

I'm just as skeptical, but given the backdrop that the US$/Euro system is around $200Trillion in debt, it won't take too many Grexit-type dominoes to collapse the entire thing. It is obvious neither Putin nor Xi (or the rest of the BRICS+) want the US/NATO nations to totally collapse, they could have done it many times before now. But it's not good for business and would surely trigger WW3.

No gov't would rashly instigate such a major change after only a few weeks in office. The inevitable retaliations from outside would make things worse than they already are for Greeks citizens, so ensuring "all options were explored" is an easier PR sell than "we miscalculated and must bow to the EU/IMF even more than before".

Giving the EU/IMF the opportunity over the next 4 months to be even more draconian will only strengthen Syriza's popularity. Getting the US to refuse to help will show who Greece's "friends" are not.