[ed. I saw a great comment about Slovakia's vote yesterday and the current state of the European Union: like a flea on the tail wagging the dog.]
by Ambrose Evans-Pritchard
Slovakia’s "Nie" last night will not stop the approval of Europe’s revamped bail-out fund (EFSF).
The ultimate outcome has never been in doubt. As in Germany, the opposition backs the bill. In any case, Slovakia’s political class knows that their country will pay a fearful diplomatic price if this drama in the Národná Rada drags on for much longer.
What the Slovak debate has shown us yet again – as if the political storm in Germany over the last two months has not been enough – is that escalating bail-outs are nearing their political limits.
The traumatic affair almost brought down the German government. It has in fact brought down the Slovak government. You can’t keep doing this. Democracies are not to be toyed with.
His objections are unanswerable. How can there be any justification for a state of affairs where a poor but rule-abiding EMU state must bail out a serial violator with twice the per capita income, and triple the level of the pensions – a country which is in any case irretrievably bankrupt? How can it be that the no-bail clause of the Lisbon treaty has been ripped up?
But he also touched on the most neuralgic issue, reminding everybody that the EFSF is "mainly for saving foreign banks". These are French, German, British, Dutch, and Belgian banks, of course.
Mr Sulik is right. The EU-IMF rescue loans have not helped Greece pull out of its downward spiral. They have pushed the country further into bankruptcy. Greek public debt will rise from around 120pc of GDP to 160pc under the rescue programme, and the IMF is pencilling in figures above 180pc.
The rescue loans have rotated into the hands of creditor banks, life insurers, pension funds, and even a few hedge funds. ECB bond purchases have allowed to investors to dump their holdings at reduced loss, shifting the risk to EMU taxpayers. It is a racket for financial elites. A pickpocketing of taxpayers, including poor Slovak taxpayers.
"I’d rather be a pariah in Brussels than have to feel ashamed before my children," he said.
Bravo.
Read more:
image:
by Ambrose Evans-Pritchard
Slovakia’s "Nie" last night will not stop the approval of Europe’s revamped bail-out fund (EFSF).
The ultimate outcome has never been in doubt. As in Germany, the opposition backs the bill. In any case, Slovakia’s political class knows that their country will pay a fearful diplomatic price if this drama in the Národná Rada drags on for much longer.
What the Slovak debate has shown us yet again – as if the political storm in Germany over the last two months has not been enough – is that escalating bail-outs are nearing their political limits.
The traumatic affair almost brought down the German government. It has in fact brought down the Slovak government. You can’t keep doing this. Democracies are not to be toyed with.
***
Slovakia’s cry of defiance has not been entirely pointless. Richard Sulik – the speaker of parliament – has caught a mood of popular disgust that goes far beyond his own country. His objections are unanswerable. How can there be any justification for a state of affairs where a poor but rule-abiding EMU state must bail out a serial violator with twice the per capita income, and triple the level of the pensions – a country which is in any case irretrievably bankrupt? How can it be that the no-bail clause of the Lisbon treaty has been ripped up?
But he also touched on the most neuralgic issue, reminding everybody that the EFSF is "mainly for saving foreign banks". These are French, German, British, Dutch, and Belgian banks, of course.
Mr Sulik is right. The EU-IMF rescue loans have not helped Greece pull out of its downward spiral. They have pushed the country further into bankruptcy. Greek public debt will rise from around 120pc of GDP to 160pc under the rescue programme, and the IMF is pencilling in figures above 180pc.
The rescue loans have rotated into the hands of creditor banks, life insurers, pension funds, and even a few hedge funds. ECB bond purchases have allowed to investors to dump their holdings at reduced loss, shifting the risk to EMU taxpayers. It is a racket for financial elites. A pickpocketing of taxpayers, including poor Slovak taxpayers.
"I’d rather be a pariah in Brussels than have to feel ashamed before my children," he said.
Bravo.
Read more:
image:
