Germany Calls for European Union To Control Greece's Budget

The heads of government meeting of the Euroland countries, scheduled for Jan. 30, are expected to vote to finish off the last shreds of sovereignty Greece's hold over its economy. This is the same meeting, taking place on the anniversary of Hitler's seizure of power, where they are expected to vote up the brutal austerity package.

The proposal, presented by the German government, and reported in today's Financial Times would force Greece to cede sovereignty over tax and spending decisions to a Eurozone budget commissioner to secure a second EU130 billion euro bail-out. This new commissioner would be named by the eurozone finance ministers and would take responsibility for overseeing all major blocks of expenditure by the Greek government. Budget consolidation has to be put under a strict steering and control system, the proposal reads. Given the disappointing compliance so far, Greece has to accept shifting budgetary sovereignty to the European level for a certain period of time.

The document further states "If a future [bail-out] tranche is not disbursed, Greece cannot threaten its lenders with a default, but will instead have to accept further cuts in primary expenditures as the only possible consequence of any non-disbursement." Athens would also be forced to adopt a law permanently committing state revenues to debt service first and foremost.

As usual Greece, the victim, has been kept in the dark on the proposal. The move guarantees one thing, that Germany will continue to take the rap for the British Empire.

Despite the fact that Greece's employers association and not just employers, do not want to see a cut in wages or the minimum wage, the EU-ECB-IMF Troika are demanding cuts in private sector wages and reducing the minimum wage below the current EU750 a month. The demand was made during a meeting with George Koutroumanis, the Labor Minister who is quoted in Kathimerini as saying, "The labor issue is turning into a crucial matter for the new loan agreement."

The Troika refuses to accept the agreement between the employers association and the unions for a wage freeze but are demanding a reduction. They are also demanding an end to collective bargaining. They complain that Greek wages are higher than their neighbors. Who are their neighbors? The former Socialist countries of Serbia, Bulgaria, Albania, Romania, etc where salaries average EU200 a month.