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03 May, 2017

Schäuble made clear to Varoufakis that euro means discipline through destruction!


New details came out from a new book by the former Greek Minister of Finance, Yanis Varoufakis, concerning the dramatic negotiations with the German leadership about the Greek issue, at the time of his term in the ministry. The dialogues are quite revealing and confirm that the main concern of the German directorate is to impose the cruel neoliberal conditions, not only in Greece, but in the whole eurozone.

Varoufakis reveals the characteristic words by the German Minister of Finance, Wolfgang Schäuble, during a private meeting with him, who says clearly that euro goes with the memorandums, which are the catastrophic agreements signed between Greece and Troika (ECB, IMF, European Commission):

           «I was very pleased to hear your PM speak about the possibility of a referendum. This would be perfect! But pay attention. You should be very clear with the Greeks on what are their options. According to the polls, the majority is in favor of euro. You should tell them that, if they want euro, they should accept the memorandum. If they don't want the memorandum, that's ok, let them go on. Let them go on. The memorandum goes without changes. Or, drachma. You should accept the memorandum if you want euro. If you don't want euro, that's another issue.»

           «You see, the only way for the Union to survive, the only thing it can keep us, is more discipline. Anyone who wants the euro should accept the discipline. Eurozone will be en-powered significantly in case that discipline will be imposed by a Grexit.»

We have pointed repeatedly that the particular problems of Greece were only the pretext for the IMF-EFD invasion. An invasion for the purpose of destroying systematically the Greek economy according to the brutal neoliberal experiment, to open the road for the new conditions. That is, unprecedented cuts in wages-pensions, dissolving labor rights and social state, sell off public assets.

Therefore, Schäuble's ultimatum leaves no doubt: eurozone means brutal austerity, sado-monetarism, neoliberal destruction.

Indeed, Greece was forced yesterday to sign a fourth catastrophic memorandum which seals the final details of the cruel neoliberal experiment. From Reuters:

As part of the reforms, Athens has promised to cut pensions in 2019 and cut the tax-free threshold in 2020 to produce savings worth 2 percent of gross domestic product.

If it outperforms its targets, it will be allowed to activate a set of measures offsetting the impact of the additional austerity, which includes mainly lowering taxes.

Athens also agreed to sell coal-fired plants and coal mines equal to about 40 percent of its dominant power utility Public Power Corp's (DEHr.AT) capacity.

On the budgetary target level, the lenders are now likely to decide among themselves on Greece's medium-term primary surplus targets, a key element for granting further debt relief.

In a draft document seen by Reuters, the IMF says Greece can reach a primary surplus - the budget balance excluding debt repayments - of 2.2 percent in 2018 and aim at 3.5 percent annually in 2019-2021. It suggests the primary surplus target be reduced to 1.5 percent of GDP thereafter.

Euro zone lenders, however, believe Greece must sustain a 3.5 percent GDP primary surplus target over a longer period.

Last year's Greek primary surplus was 4.2 percent, according to the lenders. Whether that can be maintained is unclear.

Early this year, the neoliberal priesthood made clear what it wants:

While the German sado-monetarists insist that the IMF mafia should remain in the Greek program, the IMF has set new conditions: it wants Greece to continue cuts and austerity even after the end of the cruel agreement (third memorandum) between Greece and its creditors (EU Commission, ECB, IMF), meaning, even after 2018!

Less than a year ago, the chairman of eurozone finance ministers, Jeroen Dijsselbloem, has stated that “I don’t see any flexibility on the 3.5 percent [of GDP primary surplus] in 2018 because it was one of the anchors of the agreement of last summer. So that’s going to take a huge effort on the part of Greece but I think it can be done,”.

In other words, after six years of orchestrated destruction of the Greek economy through the IMF recipe, the Brussels bureaufascists insisted on 3.5% primary surplus by a devastated economy! Either they are indeed sociopaths, or, the most probable, do not care about any surplus. They just use it to impose further cuts in pensions and salaries, further rise in taxes for the remaining middle class, to the last drop of blood of the Greek economy.

The IMF-adopted policies completely ruined Greece over the last six years, but the Troika sadists want to destroy whatever has left from the country. They want to make an example of Greece. They want to finish the experiment, loot public property, transfer the new conditions throughout eurozone. It is more than obvious now.

As also described in previous article:

Poor Mr. Schäuble must give "earth and water" to the German oligarchs. He must organize a new Treuhand for the whole Europe to sell-off public property, he must completely dissolve labor rights, bring down pensions and wages, destroy the social state. He must end quickly with Greece and pass all the "Greek achievements" to the whole eurozone.

Europeans should also start to get used to unemployment rates of more than 30%, according to the Greek experiment. When these measures reach Germany, Mr. Schäuble will have the perfect excuse for the angry Germans: blame the Greeks and the European south because they refused to take "reforms" early, it's their fault.

This whole scenario explains why Greece's creditors insist to destroy Greece, knowing that they will never take their money back, as they systematically destroy the economy. Now you know. They don't care at all. They can print as much money as they want and give them to the banking parasites who control the Brussels-Berlin axis.

So, as you see now, poor Mr. Schäuble is very far from being considered a "powerful leader". Not only he is a puppet, but he is a puppet under pressure. He must do the work quickly for the oligarchs, persuading European people that the definite "restructure" of the eurozone into a totalitarian financial dictatorship is inevitable.

Therefore, any country that would think to join the euro sado-monetary prison, should know what to expect from now on.

Furthermore, the dialogues revealed by Varoufakis are quite interesting for one more reason: they show that he fell in Schäuble's trap, as the German official was pretending that he was pro-Grexit. Varoufakis' reactions show that this is a very probable scenario that we will analyze in a subsequent article.

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