RSS Forum rules

Commenting article: German Minister Snubs Greek Pleas for Austerity Extensions

Greece's request to extend a deadline for the Greek austerity program to cut the budget deficit is unlikely to solve the country's economic woes, German Finance Minister Wolfgang Schaeuble said on Thursday.

"More time is not a solution to the problems," Schaeuble told SWR radio station, as cited by RIA Novosti.

Schaeuble's comments came after Greek Prime Minister Antonis Samaras said on Thursday he will "personally guarantee" that Greece will repay Germany the bailout funds worth over EUR 100 Bit has lent Athens.

Dino the Athenian - 24 Aug 2012 // 04:45:34

That's exactly what the German rats told the Jews before they entered the gas chambers.

That additional time would not solve their problem of immediate liquidation.

What a disgusting barbarian race these Germans are.

And why is Bulgaria a friend to Germany? So that it can turn itself into a forced labor camp?

TheInsider - 24 Aug 2012 // 11:48:02

Bulgaria is a friend to Germany so that it can fleece the EU of all the EU development loans that Bulgaria benefits from.

Bulgaria has the upper hand.

It has not joined the Euro. This means that when the Bulgarian economy starts to go the way of the Greek economy, and the EU want to send in people to 'examine the accounts' - Bulgaria can then then say - no way - instead we'll revalus/devalue or just walk away from the EU - saying "thanks for all the loans and benefits that we've been given to develop our infrastructure etc."

This is the benefit of having Bulgaria run by criminals.

Dino the Athenian - 24 Aug 2012 // 14:02:05


Fine. But let's look at it from a historical perspective.

Bulgarians owe their freedom from the turkish yoke to Tsarist Russia's intervention.

Furthermore modern DNA tell us that Bulgarians are direct descendants of a. Thracians and b. Slavs.

The negative bias Germans have for Slavs is well documented. They basically consider them sub-human species due to Germany's extreme inferiority racial complex.

To then compound on the issue the Germans are nothing more than cousins of the Turks both on the basis that a. they admire them and frequently imitate them (aka Armenian genocide being the model for Jewish genocide) and b. there is some sort of connection between Attila the Hun (aka German) and Mongol Turk (spiritual and genetic cousins I guess).

So, here we have the phenomenon of some Bulgarians forgetting who they are and where they came from and instead of aligning themselves with their natural friends, instead they pick those who have harmed them in the past and hold the lowest opinion of them today.

What sort of psychology is this? Why would a country side with those forces which relegate it to the lowest possible denominator?

Saying that you a friendly to Germany for the EU money is a poor excuse. Because once in the EU you don't need to such up to anyone for the funds allotted to you anyway.

Therefore I will ask you again: What is the benefit for Bulgarians for siding with barbarians who time and time again have demonstrated their disgust and extreme negative bias against Bulgarians.

Do you guys have a victim-executioner complex or what?

mattbg - 24 Aug 2012 // 14:54:01

it's strange that it's the sophisticated and educated greeks pleading with the "barbarians" for huge sums of money to bail them out of ruin.

Dino the Athenian - 24 Aug 2012 // 15:17:45

No one is pleading with the barbarians Matt.

The conditions of austerity are arbitrary. It's not like they come from some macro-economic theory.

This is some nonsense that Merkel has pulled out of her ass.

And forget about Greece for a moment. How is it possible that Spain ( a model country in 2008 with a debt to GDP at 30% compared with Germany's 60% at the time) be in ruins today?

This has nothing to do with economics. It's 100% political and there is no way that Germany will prevail.

You can't have a system where Germany makes obscene profits (euro 80 Bil and counting), has zero % financing cost and dries up the rest of Europe from investment capital at the expense of all other 26 EU members.

How long do you think you can sustain this "Germany wins and everybody else loses" game?

You don't have to be a strategist to understand that Germany has embarked in another catastrophic defeat. And isn't this part of the German character? to be a perennial loser? Start off with a bang and always lose in the end? From football to anything?

Does Stalingrad say anything to you? Or the Russians handing Germany (the superpower of the time) their asses on a platter?

When will Germany learn a simple lesson that its name is always associated with ultimate defeat?

mattbg - 24 Aug 2012 // 16:49:45

you can't have a system where the most efficient and hard working country makes profit at the expense of lazy backward peasant nations? erm.... i beg to differ.

they have tiny interest rates for their borrowings as it's almost guaranteed the lender will receive their money back. whereas we've seen with Greece, they can't borrow any more as they're only paying back investors 30% of what they were given. simple economics - lenders offer better rates to good customers.

Chushki - 24 Aug 2012 // 18:35:04

Those Nazi pigs have had the benefit of years of a currency that has been massively undervalued, which boosted exports to the likes of Greece, and put the German economy where it is today. And it is about time they made the latest installment of their reparation payments to the rest of Europe after winning the economic ''war''.

PBl - 25 Aug 2012 // 00:59:11


And why is Bulgaria a friend to Germany? So that it can turn itself into a forced labor camp?

I am not certain all Bulgarians agree with the German position vis-a-vis Greece. For many, the Greece of a few years ago (and, maybe, still) was a desired model for Bulgaria (decent standard of living combined with the slow pace of life of Southern Europe). It just does not work in the world we live in.

Those Bulgarians in agreement with Germany perceive Greeks as whining for no good reason (compare the pension cap in Bulgaria with the minimum pension in Greece even after the austerity cuts). Maybe due to history, Bulgarians tend to be more resigned to decisions taken by others (own government or world powers). Just like the Greeks (and maybe more so), they are also happy to circumvent the rules if they can help it. IMHO, this is the cause of low opinion of Greeks (and of Bulgarians, and others) to the North-West, not some supposed DNA differences. (I have the perception that Cypriots are better respected than Greeks with no apparent genetic differences).

The conditions of austerity are arbitrary.

I actually think Greece has serious structural problems (state-owned sector too large, salaries too high to be competitive given the productivity, retirement age too low given the life expectancy). The German success at the moment is partially due to the structural changes introduced a decade or so ago (retirement age 68). I believe, the salaries were also frozen for a dozen years (to pay for the reunification), but that now helps with their competitiveness.

It is very difficult to combine structural changes with an economy in a tail-spin (which is what Greece is forced to do), but that's the only chance for Greeks. Exiting the Euro will have the same effect (only much more abrupt and with less outside financial support).

Dino the Athenian - 25 Aug 2012 // 09:07:11


The structural reforms are by definition a long term process. You just don't flip a switch and have structural reforms.

But let's take things from the start.

Greece was shut out of lending markets due to punitive interest rates. As you know all countries have short, medium and long term debt which when it matures needs to be replaced with new debt (a rollover is the term).

So, instead of market lending Greece got European lending for its maturing debt and for which Greece pays regular interest.

Enter now Merkel who attaches arbitrary terms of austerity into a routine market function of debt replacement and rollover.

If your criticism of Greece were to be correct, how then do you explain Spain? In 2008 Spain was a model country, had 30% debt to GDP ratio vs, 60% for Germany. Yet Spain is broken today because it undertook Merkel mandated austerity which killed its economy. So, is the case of Italy.

Meanwhile Germany is profiting as a bandit. The fabricated crisis lowers the euro and thus increases German exports, Germany gets zero percent financing for its debt (actually below zero if you factor inflation) and basically Germany is the only country standing and with an economic model not replicable by others. Because for every exporter nation there needs to be an importer nation.

There is plenty of macro-economic evidence to suggest that Germany has no clue what they are doing with imposing austerity to others but there is an even greater suspicion that such crime is deliberate on the part of Germany.

Whether Germany played dumb or is actually dumb is beyond the point here. The issue is that Germany has turned a simple economic issue into a political one with absolutely no strategy to win the political argument. It's now a clear case of an out-o-depth Germany and amateurish Merkel pursuing policies without have a clue or any experience in the matter. It's the equivalent of the blind leading those with perfect vision. It's embarrassing.

mattbg - 25 Aug 2012 // 14:09:21

erm... wrong again.

spain is broke because they rely on tax and spend policies, and a huge booming housing market boosting their economy helped that prior to 2008, and then brought the whole lot down when the recession hit.

it's a simple premise - don't spend what you don't have. however governments think that they can jump start things by borrowing and spending, which falls apart in the modern free market conditions, as if you flood a country which is a huge net importer with extra cash, all that happens is the money immediately leaves that country.

These antiquated socialist policies worked ok when there were huge taxes on all imports, and countries such as greece or spain produced sufficiently and efficiently to satisfy the demand, but nowadays borrowing to jump start growth is basically just filling the pockets of the worlds exporters (germany and china).

Pantudi - 26 Aug 2012 // 00:10:49

Hi Dino,

I agree with your analysis. BTW, visited the Greek island of Thassos last week and I liked it a lot; much better than BG.

Pantudi - 26 Aug 2012 // 00:13:07

Agreed, don't live on borrowed money.

Dino the Athenian - 26 Aug 2012 // 02:31:32

Hi Pan. How are you?



I left the 2012 version out because it's yours to write.

Balty - 28 Aug 2012 // 00:24:50

Perhaps we should focus on the European Union as common market etc. The usual ideals in fashion 20 years ago. And perhap we should give up on the Euro which only seems to split the Union. Perhaps our EU leaders should at last acknowledge that one can not expand without a deepening and the euro was a step too far too soon. Or perhaps they would like to use the euro to roll back the expansion. Understandable and possible but it would break the union they claim to hold dear.

Bulgaria news (Sofia News Agency - is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." (Sofia News Agency - and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria