The barrage of statements about “disciplining” Greece to Troika’s orders seems to have no flexibility this time.
European Council President Herman Van Rompuy prepares proposals for “economic governance” of the Eurozone to be released in October. They would form the first clear conditions for the temporary or permanent banishment from the EMU.
The “politics game” that Athens attempted to play last week, with the interruption of Troika’s review mission, has paved the way for a broader acceptance of these changes. The sharp redeployment of Greece could not reverse this sentiment.
Diplomatic sources note that Rompuy’s arrangements are fully supported by Germany and France, seeking to enact measures that would deprive undisciplined countries of both structural funds and own state financial management, since their budget would be under direct European supervision and management.
In other words, staying in the euro would require loss of financial sovereignty.
Even the Stability Pact would be amend3ed, as the European Parliament seems to have prepared a stricter framework for the implementation of the pact. It would be possible to intervene “preventively“ in fiscal discipline and not afterwards.
Brussels sources indicate that Greek case has allowed launching the procedures for an indirect consolidation of public financial policy.
The possibility of “ostracism” from the euro area, same sources say, is a Greek word with well-know content, but still undesirable for all sides, even for Germany.
However, they add, this does not change the fact that after the adoption of Rompuy’s arrangements in October, economies such as Greece would struggle to stay in EMU without bold changes that they seem unwilling to implement.
(source: capital)
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
