Greek Electoral Outcome Won't Alter the Eurozone Crisis
June 18, 2012 • 8:02AM

According to the latest exit polls in the Greek elections, the conservative New Democracy party obtained a slight lead over the Syriza party—the percentages are extremely close—and talk now is of a potential governing coalition of New Democracy and PASOK, if the two can reach an agreement.

While collective sighs of relief were expressed in media across Europe, Bueso chairwoman Helga Zepp-LaRouche said emphatically today that whatever the electoral outcome, it cannot stop the disintegration of the euro and the eurozone.

Bankers across the region are in non-stop meetings and phone calls, frantically formulating secret documents and plans on what to do—banking union, eurobonds, and any other crazy schemes they can devise. European finance ministers will be speaking tonight via conference call to discuss Greece's elections, and are expected to issue a statement later this evening. It doesn't matter. Whatever they propose won't work.

The only option, Zepp-LaRouche said, is a Glass-Steagall standard and the LaRouche movement's development program for the Mediterranean, "There is Life After the Euro."

Panic among the financial predator community was reflected in interviews that outgoing World Bank president Robert Zoellick gave to several European publications this weekend, warning that the world faced "a Lehman's moment"—a reference to the way world markets suddenly froze, like a heart suddenly ceasing to beat, when Lehman Brothers filed bankruptcy in 2008. Obviously that term doesn't begin to describe the magnitude of the crisis, but reflects Zoellick's state of mind. He called for urgent measures to stabilize the eurozone, going so far as to say it doesn't matter what "model" European leaders come up with, as long as they do something immediately, before it's too late.

According to the Telegraph today, the first draft of a secret document, parts of which the London daily published, is circulating among European governments and financiers, except that it is not considered controversial because it excludes mention of more "sensitive" issues such as eurobonds and banking union. Then there are a series of "non-papers" (!) that are circulating at a "top secret level between national capitals and Brussels," for discussion prior to the June 28-29 European Commission meeting. European Council president Herman Van Rompuy's preliminary text on the future of the "Economic and Monetary Union" will be circulated in sealed envelopes next week, presenting a "roadmap" to banking union.

At the G-20 meeting which begins in Los Cabos, Mexico, on June 18, similar discussion of crazy schemes will dominate. Leaders of Spain, Germany, France, and Italy are expected to huddle on the sidelines of the summit with European Council President Van Rompuy and European Commission president Jose Manuel Barroso. France's Francois Hollande will float a 120 bn. euro "growth pact" to the G-20. Outgoing Mexican President Felipe Calderon optimistically announced that world leaders will agree to increase the $430 billion "firewall"—recapitalization of the IMF—that was preliminarily agreed upon at the IMF's April meeting in Washington. It's unfortunate, he said, that the United States won't participate in that recapitalization, "but this won't prevent it from being the largest in the Fund's history."