Posts Tagged ‘EU’

And the Eternal Greek Farce Starts Up Again

Wednesday, October 28th, 2015

Stop me if you’ve heard this one before:

Germany’s Suddeutsche Zeitung reported that just two (or is it three, this past summer is one big blur) months after Greece voted through its third bailout, one which will raise its debt/GDP to over 200% on a fleeting promise that someone, somewhere just may grant Greece a debt extension (which will do absolutely nothing about the nominal amount of debt), its creditors have already grown tired with the game and are refusing to pay the next Greek loan tranche of €2 billion.

Specifically, the payment of the first €2b tranche of €3b is now sait[sic] to be delayed because Greek Prime Minister Alexis Tsipras failed to implement reforms on schedule, Sueddeutsche Zeitung reports, citing unidentified senior EU official.

And evidently one of the latest sticking points is that Tsipras wants to prop up deadbeat home loans for houses worth as much as $331,185.

Greece edges close to default. Greece’s creditors demand reform. Greece agrees to reforms at last minute. Greece gets bailout. Greece fails to implement reforms.

Rinse. Repeat.

“Right Wing” Party Wins in Poland

Tuesday, October 27th, 2015

This seems to be a week for cracks in the EU’s facade of democratic unity to start appearing all over the place. First Portugal finds out that they’re not allowed to have democracy when it conflicts with EU mandates, and now Polish elections have thrown a spanner into the works.

The Law and Justice Party has won 38% of the vote, and looks to have won enough seats (232 seats out of 460) to form a parliamentary majority without including any other party, marking the first time since Democracy was restored in 1989 that no left-wing party will have a role in the ruling government. Law and Justice is described as “Euroskeptic” and “Right Wing” because it opposes the EU’s current pro-Muslim immigration policies and seeks closer ties to the U.S. (among other reasons), but is also “promising to raise the minimum wage and increase welfare spending,” which is hardly a “right wing” (or smart) policy.

But the area where Law and Justice could have the biggest influence is in wrecking the EU’s global warming policies. “Law & Justice generally opposes wind and solar energy and favors an energy policy that emphasizes tariffs targeted at Russian natural gas.” Poland also generates 90% of their electricity from coal, which bodes ill for meeting the EU target of 27% “green” energy by 2030.

Law and Justice is also markedly more wary of Germany, and less willing to appease Russia, than their centrist Civic Platform predecessors, almost as if they had some sorts of historical reasons for their views.

One wonders where the next EU crack will appear…

Portugal Decides EU Mandates Trump Democracy

Monday, October 26th, 2015

Portugal has decided that EU economic mandates trump that pesky Democracy:

Anibal Cavaco Silva, Portugal’s constitutional president, has refused to appoint a Left-wing coalition government even though it secured an absolute majority in the Portuguese parliament and won a mandate to smash the austerity regime bequeathed by the EU-IMF Troika.

He deemed it too risky to let the Left Bloc or the Communists come close to power, insisting that conservatives should soldier on as a minority in order to satisfy Brussels and appease foreign financial markets.

I’m not entirely unsympathetic to Silva’s plight. As in Greece, the anti-austerity movement is an economically illiterate coalition of looters who insist that the welfare state gravy train can never come to an end, ever, even when the country is dead broke. (Though note that author Ambrose Evans-Pritchard never once mentions “welfare state” in his piece.) Remember that Portugal has never practiced real austerity (cutting budget outlays to match receipts), never once having balanced its budget in the last decade. And if the commies (who are, thankfully, only a minority coalition partner) had actually promised to set up a dictatorship of the proletariat, I’d be cheering Silva’s intransigence.

But Democracy is the theory that the people know what they want, and deserve to get it good and hard. If Portugal thinks they can take cues from Greece’s anti-austerity tantrum and somehow not get slapped down just as hard, let them try. And in fact the leftwing’s coalition’s promises “to abrogate the Lisbon Treaty, the Fiscal Compact, the Growth and Stability Pact, as well as to dismantle monetary union and take Portugal out of the euro” are entirely rational and in Portugal’s self-interest.

The EU has always been an explicitly antidemocratic union, one designed to prevent mere voters from overruling their bureaucratic betters. The fact that this time they’re opposed by idiots who think they can keep voting themselves goodies from other people’s wallets doesn’t change the problem of the EU’s deficit of democracy.

Two of modern Europe’s central foundations (a monetary union and a cradle-to-grave welfare state) are not only unsustainable, they are incompatible with each other, and corrosive to both stability and democracy. And the EU leaders have no idea what to do about it.

Eurocrat Summarizes Greek Problem

Monday, March 23rd, 2015

Sure, Jose Manuel Barroso, the former president of the European Commission, is a self-interested Eurocrat, but here he provides a nicely concise statement of the obvious concerning Greece’s problems

Greece’s problems can be laid at its own door and the country needs to provide a clear commitment to reform to reach an agreement with its creditors, Jose Manuel Barroso, the former president of the European Commission, told investors in Hong Kong.

“The Greek people went through extremely difficult moments, hardship. But these difficulties of Greece were not provoked by Europe,” Barroso said in an address at the Credit Suisse Asian Investment Conference in Hong Kong.

“It was provoked by the irresponsible behavior of the Greek government.”

“The situation of Greece is the result of unsustainable debt that was created by the Greek government, mismanagement of their public finances, huge problems with tax evasion and tax fraud [and] problems of the administration,” he said, noting that the country had also misled the European Union by filing false figures on its economy.

A nice statement of the problem. To which I can only add: And Greece continues to compound the problem, because it refuses to reduce government spending to match receipts. And it refuses to do because it’s welfare state is unsustainable.

All this talk of bailouts, relief, reparations, agreements and grexits is just filigree on the essential problem: Greece’s government spends more money than it takes in and refuses to change its ways.

Greece Snarls At The Hand That Feeds It

Wednesday, March 11th, 2015

Angela Merkel tamped down a party revolt to extend the Greek bailout terms by four months. And her reward for extending that lifeline? Greek Prime Minister Alexis Tsipras reviving demands that Germany pay World War II reparations to Greece.

Before Syriza came to power, the rest of the EU and the Troika seemed content to play along with the Greece farce (extending further loans in exchange for yet more empty promises of reform) at least a little while longer. However, Syriza’s virulently anti-EU and anti-Germany rhetoric seem to have finally exhausted their patience with the show. It seems even Europeans have limits to the abuse they’re willing to take from perpetual welfare recipients. It’s bad enough to underwrite a freeloader, but evidently having to put up with constant insults from them was too much.

At this point, everyone knows Greece will neither reform nor pay back their debts to the Troika (or anyone else). That’s why Europe has finally started taking a real hard line with them, insisting on inspectors on the ground to see reforms are actually implemented.

Either Tsipras has severely overplayed his hand (quite possible), or he is deliberately preparing to use Germany as the theoretical scapegoat for exiting the Euro.

To say that Tsipras and Syriza has no plan B to escape the crisis is misleading, since their cunning “insult our creditors into giving us more money” doesn’t even count as a plan A.

A bailout from Russia? It’s not like Putin is rolling in dough following a fall in oil prices and his continuing isolation over his invasion of Ukraine. Let Putin subsidize Greece all he wants. (And I doubt a Greek navel base would give him any advantage over what he has in Sevastopol.)

Greece could have avoided all this many years ago if their government had just stopped spending more money than they took in. Given their addiction to a bloated welfare state, this is the one thing they have proven singularly unwilling to do.

I doubt Syriza has thought through just how nasty a divorce from the Eurozone might turn out. Never mind asking they repay their debts, I’m thinking a complete halt to all bank transfers between the Eurozone and Greece, and international foreign exchanges refusing to list a newly floated drachma. People hate having their welfare benefits cut, but they really, really hate being unable to buy food…

Greece has finally reached the stage of socialism where they’re run out of other people’s money, and the results are not going to be pretty.

Experience is a dear teacher, but fools will learn from no other…

Pat Condell on the European Union

Friday, August 15th, 2014

Have another Pat Condell rant, this one on why Europe needs a revolution against the anti-democratic EU:

More EU Election Fallout

Wednesday, May 28th, 2014

It’s hard to know just how much weight to put in widespread gains by Eurosceptic parties in EU elections, mainly because the EU decision-making process seems so opaque to outsiders. Even if Eurosceptic Parties had won significant majorities, you get the impression that they would be like Patrick McGoohan’s character on The Prisoner after he got elected #2, issuing orders and flipping switches to no effect whatsoever:

Even were the Eurosceptics to form a coalition, power would still lie in the Council, or, some feel, in the permanent unelected EU bureaucracy. The entire apparatus seems designed specifically to thwart popular will and keep all power in the hands of the continental elite.

More reactions to the election:

Roger Kimball:

The architects of the EU envision a European superstate in which national identity is subordinated to the abstraction of “Europe.” The regime would be internationalist but only titularly democratic: the real power (as has been traditional on the continent) would reside in a technocratic elite, not the people. But the people, it seems, have just awakened to this reality and it turns out they don’t like it.

One take-away from yesterday’s election is this: when conservative parties cease providing a natural home for the community-binding sentiments of patriotism and national identity—when, that is to say, conservative parties cease being conservative—those parts of the population not indentured to the apparatus of dependency look elsewhere.

John O’Sullivan in National Review:

These results are merely the latest evolution of a very ominous long-term trend for the Tories. As Anthony Scholefield and Gerald Frost pointed out in their 2011 study Too Nice to Be Tories, the Conservative Party has been steadily losing one region of the United Kingdom after another in the last 40 years. It used to be able to depend on nine to twelve Unionist votes from Northern Ireland for its parliamentary majority; it gets none now. It won half the Scottish seats in 1955; the last three general elections each returned one Scottish Tory to Parliament. It wins eight seats out of 40 in Wales. And from the 158 MPs elected from the North of England, the Tories got 53.

This is a dreadful record, but it could get worse. UKIP is now starting to replace the Tories as the main challenger to Labour in northern working-class constituencies. The new party takes votes in particular from culturally conservative and patriotic working-class men whom both major parties have abandoned in their pursuit of urban middle-class progressives. UKIP may therefore be a threat to both parties, but the local elections suggest that it is a bigger threat to the Conservative party.

All this leaves Cameron with difficult choices:

Either he does the electoral deal with UKIP that he now says he won’t do, in which the Tories agree to support UKIP candidates in a given number of seats in return for UKIP’s not fielding candidates elsewhere. In London, for instance, that would give UKIP an electoral base of something just above 40 percent — in Britain as a whole an even larger one.

Or he contrives to lose the Scottish referendum on independence, which would remove only one Tory from the House of Commons but 41 Labourites and 11 Lib-Dems.

France’s ruling class are in a panic following the strong showing of Le Pen’s National Front.

Here’s a piece from the Jewish magazine Tablet in 2011 suggesting that Marine Le Pen has worked to purge the party of the antisemitism her father exhibited. Maybe.

Could UKIP and Eurosceptic parties even form a majority coalition in the European parliament? Possible but doubtful.

Then there’s the question of who would lead such a coalition, Nigel Farage or Marine Le Pen. Anglo-French rivalry is not exactly unknown…

Ukraine Update for January 28, 2014

Tuesday, January 28th, 2014

The good news from Ukraine: most of the totalitarian laws suppressing free speech have been repealed and prime minister Mykola Azarov has resigned.

The bad news: brutal thug and Putin toady Viktor Yanukovych is still President, and opposition leader Yulia Tymoshenko is still imprisoned.

Says one writer in the Moscow Times:

The Yanukovych administration is marked by two main features. First, Yanukovych is essentially a small-time criminal, and such people have a unique profile. They are typically rather dull, always looking for an opportunity to steal and incapable of anticipating the long-term consequences of their actions.

Second, Ukraine is actually ruled by Yanukovych’s eldest son and his friends — all filthy rich. Since coming to power, Yanukovych has fired all of his original associates and alienated his initial sponsors, such as oligarchs Rinat Akhmetov and Dmytro Firtash.

Current map of the situation:

Other Ukraine/Euromaidan news

  • A look inside the brutal Berkut riot police. “While other security and law enforcement agencies have undergone reform in the years since the Orange revolution, Ukraine’s police remain largely unchanged.”
  • EU actually getting pissed off over Russian meddling in Ukraine.
  • Putin responds by threatening to withdraw his offer of $15 billion in bailout funds if Yanukovych is deposed.
  • Tymoshenko’s most recent statement.
  • An open letter from Ukrainian writer Yuri Andrukhovych:

    During the less than four years of its rule, Viktor Yanukovych’s regime has brought the country and the society to the utter limit of tensions. Even worse, it has boxed itself into a no-exit situation where it must hold on to power forever – by any means necessary. Otherwise it would have to face criminal justice in its full severity. The scale of what has been stolen and usurped exceeds all imagination of what human avarice is capable.

  • More photos.
  • On a lighter note, all I could think of when viewing this pic was “Ukraine’s furry contingent has joined the fight for freedom!”

    It Begins

    Monday, March 18th, 2013

    Chances are pretty low that you haven’t heard that the EU has decided to seize portions of people’s bank accounts in Cyprus as a condition of a bank bailout:

    When Cyprus’s banks reopen on Tuesday morning, every depositor will have some of his or her money seized. Accounts under 100,000 euros will have 6.75% of the funds seized. Accounts over 100,000 euros will have 9.9% seized. And then the Eurozone’s emergency lending facility and the International Monetary Fund will inject 10 billion euros into the banks to allow them to keep operating.

    It’s hard to express in words just how bad an idea this is. Europe has truly crossed the Rubicon.

    “The establishment of the principle that a government can, and at times of economic strain must, help itself to your savings, and that this is a legitimate tool of statecraft, ought to provoke riots.”

    I’ll go further: riots are not enough.

    If I were one of the people having my wealth confiscated, the proper response to such actions would be join an angry mob hanging the still-twitching bodies of the people who proposed and passed such a measure over the nearest lightpost.

    Think it can’t happen here? Remember, liberals have already floated the idea of seizing your 401K.

    The Eurocrats in Brussels have already decided that they would prefer to seize people savings rather than let the Euro fail, or admit that the European cradle-to-grave welfare state is unsustainable. “The dream of political union matters more to Europe’s governing caste than the well-being of the people they represent.”

    I didn’t post anything yesterday because I was trying to figure out how much money I should put into gold and silver to get ahead of the European bank runs I half anticipated. Indeed, in this case such bank runs would etirely rational But they haven’t started outside Cyprus itself.

    Yet.

    More Cyprus news here.

    EU: How about letting the yuan appreciate? China: How about you die in a fire?

    Wednesday, October 6th, 2010

    It’s not just the U.S. that believes China’s yuan is pegged artificially low. The EU is also complaining at the current EU-China summit, asking them to let the yuan appreciate 20-40% in value.

    China’s reply? Get stuffed.

    That’s not the only China-EU news this week. China is also buying up Greek assets at the same time they’re dumping U.S. assets.

    Let that sink in for a moment. As The Motley Fool’s Christopher Barker put it, “China may consider Greece a safer bet than the United States.”

    If Obama Administration officials weren’t worried about our unsustainable budget deficits before (and every indication is they weren’t), now would be an excellent time to start…