Frau Merkel is losing her grip on Greece

By
Andrew Alexander

Last updated at 8:36 PM on 31st January 2012

Vee haff vays of making you balance ze books’, said German Chancellor Angela Merkel to Greece last week — well almost. But she was soon chased off her scheme for having the Athens budget controlled by some Obergruppenfuhrer sent out from Brussels.

This was, complained heads of other eurozone governments, wholly undemocratic. Moreover, if the nominated finanzmeister turned out to be German — which would be logical if Merkel wanted someone she trusted — then certain unhappy memories might be fiercely revived.

On the other hand, you must admit that she was being severely logical if harsh — another aspect of the German character which is much explored by historians as well as simple onlookers. Control of the Greek budget obviously cannot be left to Greeks since they are always getting deeper into debt.

German Chancellor Angela Merkel is being to sound eccentric and is no longer the stabilising force she once was in Europe

German Chancellor Angela Merkel is being to sound eccentric and is no longer the stabilising force she once was in Europe

The eurozone ministers seem to have settled for an oversight of Athens’ budget with fines for breaking limits whose adjudication would be left the European Court of Justice. But if the fines are small they will be ineffective;  if they are substantial they will make reducing the Greek budget harder than ever.

Merkel has hitherto been seen as a stable figure, at least compared with the volatile French President Nicolas Sarkozy. Now she sounds eccentric.

Perhaps it is the strain of 16 — or is it 17? — emergency meetings to save the euro that is telling.

She says she will campaign alongside Sarkozy in the forthcoming French presidential elections (which some would say started in reality many months ago).

This is really very odd, positively unheard of — and also in danger of reviving unpleasant memories. The eurozone is not a nation and is never likely to become one in the lifetime of anyone now born.

Monday’s conference of EU heads scarcely mentioned the Greek problem directly. It remained the elephant in the room.

The conference was, in theory, about growth and jobs, neither likely to be promoted through the eurozone. Indeed, the zone, with all its uncertainties, unsolved problems, and constant bickerings, remains the most serious of all drags on a global recovery.

Yet still the notion persists that the answer to the debt problem, remains creating new debts.

The heads of government in the zone agreed, well before the Monday conference, that the two rescue funds for eurozone members in trouble should be merged.

They have aroused less interest among potential investors — such as the Chinese — than hoped. Maybe one fund will do better, they say.

Perhaps. Though whether a bailout fund — any bailout fund — will get and keep an adequate score from the rating agencies will obviously be open to doubt.

Sarkozy, Merkel and Monti: The EU summit is taking place to a background of riots in Brussels

Yet another conference: Sarkozy, Merkel and Monti at The EU summit in Brussels

The very latest official line on Greek debts runs that an agreement with the private sector will be settled by the end of the week. Perhaps it is true, this time, for a change.

The crisis has long been a race against time, slow at first and now frantic.

The fact that Greece will run out of cash in the middle of next month is concentrating  minds wonderfully.

The obvious fear in the eurozone is that a bailout for Athens will see other weak members, such as Portugal, demanding at least the same level of assistance — followed by Italy or Spain. At that rate the merged rescue fund  cannot be sufficient.

Whether ‘success’ is in Greece’s interests is in any case a different question. It would be better for Athens to bite on the bullet and leave the euro, devalue and resume normal service as a battered, small economy which is at least in charge of its own affairs.

The same can be said of Portugal. The two countries’ euro membership is not being maintained by the rest of the zone out of any philanthropic motives, merely by the fear that if they dropped out the contagion would spread.

The fact that a non-elected Prime Minister rules in Athens, as in Italy, (in neither case very effectively) should remind us that democracy as well as money has become a major issue for the eurozone.

The Greeks, ironically, invented the word as well as the practice. On their fate, democracy may now rest, as it did in ancient times.

Wanted: Music-loving banker

A kinder thought about Germany was presented at the weekend on the 150th anniversary of the birth in Bradford of Frederick Delius, son of a wool merchant from Bielefeld.

My first encounter with his music was in the school choir when presented with the score of To Be Sung On A Summer Night On  The River. I was transfixed, then  and ever since. Delius is grotesquely underrated. His monumental Mass Of Life, drawn on the words of Friedrich Nietzsche, is so underperformed.

Admittedly, it needs large forces and is expensive to mount.
Surely some musically-minded banker, wondering what to do with his bonus, can see his chance?

Here’s what other readers have said. Why not add your thoughts,
or debate this issue live on our message boards.

The comments below have not been moderated.

A pity Mrs Merkel had not been in 10 Downing St when the Broon man annointed himself prime minister. Then the UK would not have been in the mess it is now.She is doing a grand job at the moment.

Greece is an occupied country in all but name. What happened to sovereignty and self determination? Greece sold it to Brussels for a few pieces of silver. Portugal Spain and Italy next?

The Greek fiasco becomes the basis for arguments in favour of greater controls of national economies by the EU. The EU sees in every crisis an opportunity to extend its influence and the EU bounds grow ever wider. Merkel was involved in politics in East Germany under Communism and her brand of politics takes no prisoners. She is at present effectively running Europe as the Russians once ran the USSR, hence we look forward to the EUssr.

I think Merkel has already lost her grip on Greece; and she knows it. There’s no point in pursuing a lost cause. Democracy will prevail even if it has to endure strife in order to do so.

I hope the following was said as sarcasm “Control of the Greek budget obviously cannot be left to Greeks since they are always getting deeper into debt.” The later observation “democracy as well as money has become a major issue for the eurozone.” was much more appropriate.
Indeed, democracy is the key objection to the whole EU project.
The EU was built without public involvement and in the face of rejection at numerous referendums. The political class have lied and twisted the facts to get what they wanted and now the damage is apparent to all.
That Cameron should continue to support this project and do their bidding is a disgrace but not a surprise to many of us – only the Tory Tribe are surprised. Those who told us before the last General Election that “you wait until DC is PM – then he’ll show you. He’ll get back our powers”.
Yawn.

Well done Greece. Someone has to stand up to the jackbooted Merkel because it appears that for all his blustering Camerloon won’t.

Both Greece Portugal would do well to ditch the Euro, revert to their old currencies which being greatly devalued would make the cost of holidaying there, extremely cheap for the rest of the eurozone. Result a booming holiday economy, full employment a return to financial sanity

The Frau, like Sarky is starting to display signs of paranoia and seems unaware of the blatant hypocrisy of both Germany and France when it
castigates Greece and the other no-hoper Eurozone countries! The Euro was
set-up to suit the requirements of these two countries, and rules on over-borrowing and keeping within financial limits were laid down accordingly. But
both France, Germany and most of the other Eurozone countries ignored all
these agreed regulations, and went over that 3% limit they had set-up and
agreed to adhere to, but no one then was hauled before Brussels and penalised – the infringements were just ignored, and anyway, Who would
Or could really penalise the two leading-lights who dreamed-up the whole
charade in the first place? Better to blame and castigate the poorer members
who were roped-in initially to make this policy appear as some sort of financial
nirvana, rather than the disaster many others forecast at the time!
Politics outweighed common-sense!

Perhaps Germany should return the tonnes of gold stolen by their army from Greece in 1941?

Frau Merkel never had a grip on Greece and that was the problem. She wilfully accepted Greece into the SuperProject knowing their accounts didn’t stack up. She sat back and watched them slip further away over an extended period. The belief wat that a template would be set for assuming greater political/fiscal control of all the weaker countries. The stronger countries would be weakened in the process, domino effect. It’s absolutely astounding how much she has got away with – not forgetting the faceless Eurocrats safely hiding behind her skirts. The fiendish plan is brilliant. The spanner in the works (from what I can see) is the power of the Markets. The money men need to see something in it for themselves and they no doubt want to see due respect. The EU needs greater control over them. The scene is set for our economy to be destroyed: The City must accept emasculation or leave town.

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