On Wednesday the European Central Bank (ECB) announced that it would no longer accept Greek government bonds and government-guaranteed debt as collateral. Although Greece would still be eligible for other, emergency lending from the Central Bank, the immediate effect of the announcement was to raise Greek borrowing costs and squeeze its banks, and to increase financial market instability within Greece.
The ECB should be ashamed of its latest assault on Greek democracy.
The only thing which shames a banker is a failure to exact as much profit from any situation regardless of the cost in human misery and death.
I don’t know why China or BRICS+ don’t come to the rescue. With their New Silk Road you would think China would be in the position to get world wide hero points for offering a better deal to a small hot seat country in the heart of their competitor/market. I would think that Putin also owes Greece a solid for refusing tmore sanctions at this crritical juncture
You dont get the political aspect of a country under a european bailout plan to start lending from other non-european states, in order to maintain a few policies that the “adjustment programs” don’t allow them to do.
It would be viewed as a unilateral move against the programme, a lack of good will to look for solutions and engage with “partners” and a kind of disengagement from EE/EZ framework.
There is also a wider political institutional framework that is being pushed, that of european expansion, integration and unification.
There is already a Fiscal Pact in place, on November a Bank union was formed that effectively gives ECB control over major national banks, and even “radicals” such as SYRIZA actually claim that only by pushing these developments forward can a solution be found.
They are playing a game of supporting the ambitions of the greater countries as the “easy” way forward, i.e. push them towards the direction they’re moving instead of against them, so they make up phrases like Varoufakis’ “Europe needs a hegemonic Germany”, the “Merkel Plan” for Europe etc.
It’s a bit too naive to be taken seriously if you ask me, nevermind how reasonable and logical it sounds.
If this is a fight for democracy in Europe, we’re in big trouble because the bar is really-really low for all contestants.