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What can also be observed and said is this:
Countries like Ireland, Portugal and Spain have also received bailout money from the other
Euroland countries, and they successfully, and to a significant degree, have made the reforms
requested by the creditors, as painful as these reforms have been. And all three countries by
now are on the path for recovery.
If they would see, that Greece would get new money again and again, without having to carry
out necessary and tolerable reforms requested by the creditor countries, they would get
disincentivised to continue on their own reform path, which is not yet completed. And they
would also request more bailout money, without having to pay for it by way of carrying out
the requested necessary reforms. A new avalanche of bailout requests would then indeed be
the end of what the giving countries can deliver.
For Spain, growth projections for this year have just been raised to 2,8 %, for Portugal raised
to 1,6 %, and growth in Ireland is even booming by projected 3,6 %.
Some Euroland politicians are praising, that Eurobonds would be the solution of all problems.
But: Eurobonds are not a solid financing instrument. They represent socialism of
indebtedness.
Eurobonds are not the solution. It would be, like you here in this room, giving your personal
credit card to somebody else, who can then freely buy for himself, herself, at your expense.
What nobody in this room would do, and could do, cannot do Euroland member states either.
Let us again remind ourselves, of how the Euro is constituted in the Maastricht treaty:
-no member state should be held liable for the government debt of the other participating
states, and thus there should not be any forced flow of money from one government to the
other one in order to balance off government deficits. In short, Euroland should not be a
Transfer Union.
-and last but not least, The European Central bank is not allowed, to finance the governments
of states.
Both contractual and legal prerequisites of the Euro are by now being broken by the
participating Euroland countries and the ECB, notwithstanding what is said to the contrary.
And daily we must read about this great controversy, which is not going away by itself.
The view of many is: One cannot build a stable currency like the Euro, by permanently
building it on the braking of the agreement, of the contract and of the law. The end of the law,
if it ever occurs, would then indeed lead to the end of the European Union.
As said the German Pope Benedikt the XVI th in his famous speech in the German Bundestag
parliament in 2011: Take away the law - what else then is the state than a great gang of
robbers.
Saying this is not popular, I know, but it is to be said.
IGTA eJournal | Summer 2015 | 10