Anton Goryunov reports from Brussels: Big, big celebrations in this capital of this failed state, with no proper government in place for years, which houses the headquarters of the federal Europe project: the finance ministers of the Eurozone and the top dogs in the EU and the International Monetary Fund have agreed to release more bailout money to Greece. After marathon talks that seem to have lasted for ages, including two breaks to sample some good food and wine at the taxpayers’ expense, the best brains in finance and politics have come up with a solution: Greece is going to get another 44 billion euros, to be able to service its debts to big banks in Europe and beyond and have some money for its politicians to play with. All in the best possible taste, as they say, with the Greek people left to drool at the big numbers mentioned but not allowed to join in the fun. The markets reacted favourably, as they always do when more taxpayers’ money is passed over to the banks.
The funny part of the meeting of the ministers and the IMF came when it was decided that the Greek debt needs to fall to 124 per cent of its GDP by 2020, from the 190 per cent that it would stand at next year. No word about how it is going to happen was mentioned. Just a figure taken from the sky and adopted as a target. Very Soviet this. I bet the Communist Party of China loved it to bits.
As with all the bailout packages that the EU and IMF have been giving out to EU members who found themselves boxed in by big banks and marginal lenders of all sorts no one mentioned anything about the current package for Greece being mostly used to service its debts. In case you don’t know, this sick and twisted system works like this: Greece pays out the enormous interest on its debts, avoids bankruptcy and then goes to the markets to raise more money for itself to keep on going. The national debt shoots up again and then the EU comes up with another bailout deal that helps no one apart from the creditors and Greek politicians who line their pockets with commissions. A vicious cycle with no end to it.
Interestingly, the latest round of this financial mythology did not even bother to work out some sort of solution to the basic problem that Greece is facing: extortionate interest rates that the markets are charging it. You would have thought that the EU would have enough sense to cap the interest rates on all new loans in Europe, to stop the debt crisis spiralling out of control. But no, together with the IMF these incompetent buffoons keep on blowing taxpayers’ money, all in the name of fiscal stability. This is as criminal as it gets really. But hey, who’s going to take the EU to book? Exactly, no one.
What is really amazing about this whole debt crisis is that Germany which had built its economic success on the woes of other members is now telling everyone how they should be getting used to austerity. The Huns have the nerve to blame everyone for the current mess forgetting that they have been instrumental in causing it themselves. The whole bloody EU project was run to benefit Germany and France primarily but we never hear about it at during all those fancy summits. Not to mention that they could at least have cut down on the number of these expensive gatherings as with all the modern technology they can just as well communicate with each other by video links.
Everyone knows that Greece will be leaving the Eurozone next year. But in the meantime vast amounts of public money are wasted on keeping up appearances of normality and order while letting bankers and all sorts of speculators and financial advisors and consultants make a fortune for themselves.
Funny how finances work in this modern capitalist environment that has nothing to with capitalism really.