It was tried previously (several times) under "slightly different" circumstances, and failed. Yet when it comes to taking over a country without spilling even one drop of blood, and converting its citizens into debt slaves, Germany's Merkel may have just succeeded where so many of her predecessors failed.This seems to be for real. Die Welt is reporting it: Griechenland soll Kontrolle über Haushalt verlieren.
According to a Reuters exclusive, "Germany is pushing for Greece to relinquish control over its budget policy to European institutions [ZH: read ze Germans] as part of discussions over a second rescue package, a European source told Reuters on Friday." Reuters add: "There are internal discussions within the Euro group and proposals, one of which comes from Germany, on how to constructively treat country aid programs that are continuously off track, whether this can simply be ignored or whether we say that's enough," the source said.'
So while the great distraction that is the Charles Dallara "negotiation" with Hedge Funds continues (as its outcome is irrelevant: a Greece default is assured at this point), the real development once again was behind the scenes where Germany was cleanly and clinically taking over Greece. Because while today it is the fiscal apparatus, tomorrow it is the legislative.
As for the executive: who cares. At that point Goldman will merely appoint one of its retired partners as Greek president and Greece will become the first 21st century German, pardon, European colony. But at least it will have its precious euro.
The text of the proposal is downright scary: ‘Budget consolidation has to be put under a strict steering and control system. Given the disappointing compliance so far, Greece has to accept shifting budgetary sovereignty to the European level for a certain period of time.’
For Greek citizens this will spell out renewed and further hardship, as the Troika demands that Greece pass a law ‘committing all State income first and foremost to debt servicing and reduction’. Forget about paying salaries and pensions. The banks will have their money, before the Greek people can eat and warm their houses.
The Slog calls it as he sees it: This is, basically, the takeover of a sovereign EU member State in order to calm markets and protect exposed banks in the eurozone and elsewhere. What legal power does the EU have to enforce this? Is this even legal?
Even if it is, this is absolutely disgraceful, beyond redemption. This has to be the proof that the EUnion is as malignant as many of us were fearing for years. The question is now: What will the Greek do? What will the government's reaction be? And how will the people respond?
[UPDATE001] The Greek reaction is in. Via Keep Talking Greece: Strong Reactions: Greece Rejects “Budget Control Cede to EU”
Athens categorically rejected the German proposal to cede control over its budget to the European Union as a precognition for the second bailout, the rescue package for Greece. “We can never accept this. A similar proposal was made in the past by a Dutch minister. We do not even discuss about it” senior governmental sources told Athens News Agency.Really? Our own Jan-Kees de Jager has asked Greece to give the EUnion the keys to the house? What an utter cretin he turns out to be, when we aren't looking.
[UPDATE002] More at Underdog News.