bail-out

17.06.2013 – Greek Bail-Out: 77% went into the Financial Sector

Attac investigation shows: EU crisis management policy saves banks, not the general population

Μετάφραση στα ελληνικά


Since March 2010, the European Union (EU) and the International Monetary Fund (IMF) have applied 23 tranches comprising €206,9 billion to the so-called “Greek bail-out”. They have however provided hardly any documentation on the exact usage of those huge amounts of public funds. ATTAC Austria has therefore put up an investigation on the issue: At least 77% of the bail-out money can directly or indirectly be attributed to the financial sector. (more…)

Who profits from the bailouts

(Reuters) – Throughout Europe’s debt crisis, northern European leaders have often said they will not stand for taxpayers having to fork out for other countries’ problems, and the notion of “taxpayer-funded bailouts” has taken root.

 

Yet despite three-and-a-half years of debt and banking turmoil, with bailouts totaling more than 400 billion euros, northern euro zone taxpayers have not actually lost a cent.

What is more, governments in Germany, Finland, Austria, the Netherlands and France have saved billions of euros thanks to a sharp fall in how much they pay to raise money in financial markets since their borrowing costs have dropped steeply.

But that has not prevented the image taking root in voters’ minds of hard working northern Europeans putting money on the line to rescue profligate, work-shy southerners, fuelling resentment and undermining Europe’s unity.

In the run up to German elections in September, that resentment is only likely to grow, and Chancellor Angela Merkel, bidding for a third term in office, will have to reaffirm her commitment to protect voters from potential losses.

But the truth remains that German taxpayers, as well as those in Finland, the Netherlands and elsewhere, are no worse off at all, and their finance ministries have racked up savings.

“As an unintentional consequence of the crisis, Finland has benefited enormously,” said Martti Salmi, the head of international and EU affairs at Finland’s ministry of finance.

“We have not lost a cent so far,” he told Reuters. “The same as for Germany very much holds for Finland.” (more…)

Ambassador Leonidas Chrysanthopoulos on the Greek economic crisis: could this Greek Tragedy lead to civil war?

By Barbara Van Haute

Editorial Note:  Of all the nations experiencing traumatic economic difficulties during the course of the current Great Recession, Greece has suffered the most adverse consequences.  The country’s five year economic problems have been longer and deeper than that of any developed country.  In fact, Greece has gone through a catastrophic depression otherwise unknown in the West.

The  standard of living has dropped drastically; unemployment has reached 26%; the debt to GDP ratio  is over 180%; the country’s “fiscal cliff” is looming bankruptcy;  social spending and the “safety net” have been eviscerated; while demonstrations and riots target both domestic debt reduction measures and the financial institutions  of the European Union power brokers. In response, the European Union and the IMF have authorized a bail-out of 240 billion Euros, some debt relief, and longer repayment schedules in exchange for severe austerity legislation and economic restructuring.

As of last month, the European Union signed off on a further agreement, with mixed benefits and results, to address the crisis.  As one analysis put it, “This deal provides little ‘free’ cash for the government to spend.  The vast bulk of the package provides for further recapitalization of the banks, repayment of arrears and maturing debt, and a debt buyback from private holders.  That leaves only a modest amount of discretionary fiscal spending for the next few months. As before, Greece will depend importantly on sales of government debt to Greek banks to finance itself, which in turn is made possible by liquidity from the ECB. That’s a new definition of recycling, whereby the monetary authority is the ultimate provider of financing to service official debts.” [Council on Foreign Relations website, Nov. 27, 2012: “Greece Gets Its Deal”] (more…)

Deutsche Bank Hid $12 Billion In Losses To Avoid A Government Bail-Out

Bombshell: Deutsche Bank Hid $12 Billion In Losses To Avoid A Government Bail-Out

Forget the perfectly anticipated Greek (selective) default. This is the real deal. The FT just released a blockbuster that Europe’s most important and significant bank, Deutsche Bank, hid $12 billion in losses during the financial crisis, helping the bank avoid a government bail-out, according to three former bank employees who filed complaints to US regulators. US regulators, whose chief of enforcement currently was none other than the General Counsel of Deutsche Bank at the time!

(more…)