The condemned ghost structures around them seem to draw together, as if conferring. Some patrolman from the karmic police is saying move along folks, it’s over, nothing to see here.
– Thomas Pynchon, Bleeding Edgw
Wolfgang Schäuble sees himself as an architect of a new union in Europe. The unprecedented humiliation of Greece is cool calculation: The Grexit is an important building block for this new strategy. It is enforced with the greatest severity. The circumstantial evidence for this plan is overwhelming. I’ve translated the report. What’s for sure is that Schäuble is determined to force Greece out of the Euro-Zone. He is using Greece as a pawn to control the other nations and force them under the thumb of German economic superiority. As he states it to Greece in the report: “We do not want you. We will denigrate you, until you leave the space of Eurozone.” (see below*) This is to be a pedagogic and tyrannical teaching lesson to the rest of Europe: As he says: “Consider what you want. Everybody is to be treated like Greece. Either you keep voluntarily conform to our rules, or we force you to it. One can assume from the fact that after the execution of Greece and the offer of the Troika to transform land into an euro-protectorate all the others will follow exactly what is needed to do or else. If they do not consider it, they will be forced by the Eurosceptics in their own land in addition.”
As for the EU ever forming a political rather than economic body “Schäuble sees a parliament like a big solicitor’s office: They follow the will of the partners. The image, in a parliament could do something as to not run counter from the agenda it was intended too, is in.” It appears that the political fight for a new EU Parliament or Government is only beginning, that in fact this bout with Greece is spelling either the demise of the EU or a new Beginning of strange political futures…
Does this sound like economic tyranny? If you answered yes then you are correct. Germany has become dictator to Europe and the Imperial Economic Iron Fist of a new Cameralist State. Yet, in this neo-Camerilist State the EU will become the united front for German Economics. A Corporate structure that will entail a complex of old and new parliamentary stake holders aligned to a more abstract unilateral political economy regulated and guided by Germany if Schäuble has his way. I’m sure he’d see himself as the Chief Financial Officer of this EU Corporate State. The parliaments acting more like stock holders in a board room than like political agents in a give and trust environment. A political economy of stocks and bonds: a simple registry of federated stock holders. The “will of the partners” like a stock broker account. Just another business transaction in the economic affairs of a cold bureaucracy.
Developed in the 18th century, cameralism was a German economic and social school of thought that held a primary function of state, in addition to maintaining law and order, was to promote collective prosperity through economic measures. To achieve the goal of collective prosperity, participation of the complete population in the service of the public good was necessary (“Germany,” 2007, p. 156).1 Under Frederick William I of Prussia (1713-40), cameralism was reflected in the implementation of aggressive policies to stimulate manufacturing and agricultural growth and reduce unnecessary state expenditures. The state had a supreme ruling body whose upper-level bureaucrats came from nobility closely aligned with the King. This centralized body directed all the state’s activities in industry, finance, internal affairs, and the military. Cameralism also reflected a societal work ethic of intense labor, frugal living and dutiful subservience to the state.
In this sense the Neo-Camerlism will be formed on the model of a Corporation with CEO rather than King. Yet, with austerity as its main economic engine it will still enforce a societal work ethic of intense labor, frugal living and dutiful subservience to the state or as Schäuble terms it “the will of the partners”. Whether Wolfgang Schäuble has read any of this or not in his studies of economic periods in German History (and, I’d assume he know it well) his ideas are close to this type of option.
The Syriza government was a present of the sky for Schäuble: He had to show consideration no more for his fellow members as earlier from the Nea Dimokratia. Earlier Minister of Finance Yanis Varoufakis delivers in an interview in the New Statesman the details: The Troika has never argued seriously with his suggestions. One required a comprehensive plan: Then it was discussed details. Before one could come possibly with the subject Value added tax to an arrangement, the subject was changed. If the Syriza people presented a new, unorthodox suggestion, it was rejected without grounds. Countersuggestions were missing. If one believes Varoufakis, the Troika people let the Greeks according to all rules of the art accumulate. They operated like the controllers of group headquarters on the dynamic enterprisers of the branch offices: It must be played under the rules.
When Varoufakis said in a point to Schäuble, one can play no more according to the old rules, Schäuble should have answered: We have 19 states in the euro and lastingly somewhere choices. If we change the rules after every choice, the thing flies to us around the ears. We have arrangements, and they must be kept – all the same who has ruled and what that has promised. If the negotiations ran even roughly in such a way as Varoufakis describes this, then the euro-rescuers have put on it from beginning to push Greece from the euro.
This has also been confirmed in the program which Schäuble moved on Saturday from the pocket: The demands are politically unacceptable. These should also be: No head of the government can agree to them. Ambrose Evans-Pritchard of the telegraph, one of the best observers of the euro-crisis and a centralism opponent, writes that Schäuble himself has been only one who had a concrete alternative suggestion for Greece ready: Today euro-escape, humanitarian help, a support of the new drachm by the EZB – all that sounds as virtually friendly in comparison to the program which Alexis Tsipras had to sign at the end. One cannot ward off the impression that Angela Merkel was surprised at the end that Tsipras agreed. She stuttered while reading out the deal so violently that it seemed: She would have announced rather the Grexit.
It is extremely unlikely that this deal holds: If Tsipras agrees, the suffering another three months goes on. At the latest in autumn everything will meet and ascertain that it has not functioned. Schäuble had hoped, Tsipras will already surrender at the summit and choose the Grexit. However, Tsipras is naive, put under a politically real hardened by Schäuble’s people clearly. Tsipras dreams of a better world – this makes him likeable. However, in the real policy it is about the penetration of interests. Policy is the preliminary stage of war with other means. The Grexit is unavoidable because Germany will continue in the euro-zone as a completely dysfunctional structure no more. If the Tsipras people had understood the “Bild” newspaper as a megaphone of Schäuble, they would have understood the message which was drummed about months: We do not want with you. We will denigrate You so long, until you leave the space.
If Merkel and Schäuble had even seen a minimum chance to hold Greece in the euro, they would have presented another deal: Beside the absolutely pointless Austerität they would have, and it is only as a fig leaf, some positive offers done: Money for investments from other EU funds, help by EU banks EIB and EBRD and the similar. Not a word is found of it in the dictation from Berlin. It is a dictation – and it should also be this. Schäuble wants to have Greece from the euro. If he had been interested to hold the Greeks, he would have had to appeal to the subjects and insert protective measures. Since the banks in Greece will never again open in such a way again.
One of the points in the dictation is that the banks must be subordinated directly the EZB. Reuters quotes a central banker who assumes from the fact that only the highest two of four banks will survive. The banks have savings inserts less than 100,000 euros at the rate of respected 100 billion euros. There will be a Haircut. The banks also know this. They count on expropriations with credit of more than 8,000 euros. The still national insert protection in Greece cannot press this. There will be heavy losses. Nobody speaks of the bank union of the EU which was still celebrated few months ago as almost perfectly.
Germany cannot save the Greek banks – Schäuble knows this. The capital traffic checks will still remain for months in strength. Schäuble knows this, too. He has suggested another deal to Tsipras: If you go out from the euro, her one debt cut agrees. The debt cut will come: Either by the voluntary escape of Greece during the next days or weeks. Or after the next crash in autumn.
With the elimination of Greece from the euro Schäuble wants to send a clear message to the other south states: Considers you what you want. Everybody is treated like Greece. Either you keep voluntarily to the rules, or we force you to it. One can assume from the fact that after the execution of Greece and the generous offer of the Troika to transform land into an euro-protectorate all the others will exactly consider what is needed to do. If they do not consider it, they will be forced by the Eurosceptics in own land in addition. The time works for Schäuble: Since the position in Italy is dramatic. The banks have survived only thanks to Mario Draghis Geldschwemme. In Spain all economic data are much worse than are officially known. The amount of a B sharp-panic Syriza threatens with Podemos. Schäuble does not want to negotiate with these parties. He will not discuss with marine Le Pen. He will attach to them to all the knife.
One can assume from the fact that Schäuble fancies no meeting under such a parliament in which he wants to fight with the Syriza, with Podemos or even Beppe Grillo. He would like a großkoalitionäres parliament like the German Bundestag in which continuity rules. Schäuble sees political institutions not as places of the dynamism, but as places of the stability: In the German Bundestag sit disproportionate many lawyers and party servants. This is a House of Representatives after Schäuble’s taste. In the topical crisis the German Bundestag and the Greek parliament are played mutually. Schäuble sees a parliament like a big solicitor’s office: They follow the will of the partners. The image, in a parliament could do something not so run counter as from the agenda intended, is in.
Then the EU becomes obsolete in Schäuble’s thinking. The Britons are anyway quite half outdoors and become next a-drift: Their main argument, why they feel more and more foreign in the EU, is exactly the change of the parliaments for the purposes of Schäuble. They have the oldest parliamentary tradition in Europe and cannot live in principle with the idea that the House of Representatives of our own land should be perceived by people who sit somewhere else. Hence, the most visible contribution of Great Britain to the EU is also the euro-opponent Nigel Farage who can be paid, indeed, by the EU parliament, but his life-work sees to abolish just this parliament. With the refugees the Britons are already brutal and refuse any solidarity, and also for the Greece rescue they will not pay.
The Italians, Spaniards and Portuguese are Austeritätsgegner. The entschiedenste opponent of Angela Merkel at the summit was Matteo Renzi. Nevertheless, his fight courage stopped only so long, to Merkel entered the space. Schäuble trusts to the Italians just a little like the Greek. Left remain: Germany, Austria, the Netherlands, Luxembourg, Slovakia and, if possibly, France. However, this is very doubtful if Le Pen takes over the power. Also Finland is not necessary: The economic position is bad, and the Eurosceptics sit in the government. Also they could start appealing to the mandate. Then it becomes difficult with the contracts. We know the rest from Greece.
This new euro-zone should be a real political union according to Schäuble’s image: Transfer union, common household, a Minister of Finance with all authorities, common insert protection, common unemployment insurance and the whole integrative program.
The plan of Schäuble aims at exactly this final state. Since the week-end we know that he will shrink back from no cruelty to move him. In addition already is at stake too much: The adventure of the old, being dying euro, will cost the German taxpayers hundreds of billions euros. Schäuble knows the true figures certainly – and they are awful. He does not want to come in as the finance officer in history who has lined up as a Swabian housewife and be seen as the biggest monetary exterminator of all end-times .
Hence, the end has begun with fright. For Schäuble and Merkel who follows Schäuble so long so long her own survey values are right, is certain that there is nobody else any more. They see precisely that in the EU a red-and-green front is brewing against her kind of policy. The time presses. The demolition of the old EU is initiated. There will be collateral damages. However, these will be lower, so there thinks Schäuble, as if one must further fight with the ” Greeks “, to the Italians “ etc. The post-war period is to an end. The tablecloth is cut. Definitely.
Update (Tuesday 17 o’clock): As if he had read our thoughts, the Francois Hollande raised the idea of a European Parliament on Tuesday. However, his parliament is the opposite of that what Schäuble wants. The fight of the systems is opened. Read here which counter-strategy the French have in mind.
1. (2011-07-16). Evil Paradises: Dreamworlds of Neoliberalism. New Press, The. Kindle Edition.